Echelon Corporation Q3 2009 Earnings Call Transcript

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2009-11-04 18:25:19.0

Tags: Revenue, Echelon, Call Transcript, Earnings, Duke, Operational Accounting, Finance, Seeking Alpha, Echelon Corp.

Question-and-Answer Session

Operator

Thank you. (Operator instructions) And our first question comes from the line of Dale Pfau with Cantor Fitzgerald. Please proceed.

Dale Pfau - Cantor Fitzgerald

Yes, good afternoon gentlemen. Yes, first of all Ken my best wishes for a very speedy recovery, and looking forward to speaking with you over the next few months.

Ken Oshman

Thank you.

Dale Pfau - Cantor Fitzgerald

First question, in the quarter, you mentioned Denmark as being strong in the NES side, can you give us any other insight into what else in the NES was shipping Chris?

Chris Stanfield

Denmark was the most important market in terms of Q3 in terms of revenue, but we had revenues in other European areas.

Dale Pfau - Cantor Fitzgerald

Was there any Duke revenue?

Chris Stanfield

A modest amount of Duke revenue.

Dale Pfau - Cantor Fitzgerald

A modest amount. Okay, and looking into the fourth quarter, how much are you looking for Duke to be in the fourth quarter?

Chris Stanfield

Our guidance includes a substantial amount of revenue for Duke out of 120,000 that Ken disclosed, or discussed with you earlier.

Dale Pfau - Cantor Fitzgerald

And as we are all awaiting the PUC approval for Indiana, do you have any indication from Duke when they expect that to be released?

Chris Stanfield

You know, we're going to let Duke issue its own statements with respect to the whole PUC process. We are not experts on that.

Dale Pfau - Cantor Fitzgerald

And in your prepared remarks you said that Duke expects to begin ramping up that after its – within six months of their approval from Indiana PUC, is that correct?

Ken Oshman

I believe that was the plan prior to the stimulus package. I don't know what their plan would be now that they might be able to use the stimulus to accelerate that, but that is sort of their plan. So that probably is what they will wind up doing.

Dale Pfau - Cantor Fitzgerald

Okay and then maybe just a little bit of a color here, you mentioned that you are seeing other utilities continue to talk to you because of what you are doing with Duke, has the interest increased in the past week or so because of the win of Duke?

Chris Stanfield

You know, we didn't win Duke in the last week or so. It seems to me it was years ago, but I think it was probably in August or September that we announced the frame contract that we entered into with Duke. So I think the answer, the most direct answer Dale is that no, it is not in the last week. Since, we announced the Duke contract; I think people are saying, what did Duke see that we missed? And we are finding a lot of interest and a lot of people saying, let me look again and see what it is. Maybe I didn't understand.

 

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