Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Sanjay Shrestha – Lazard Capital Markets
Sanjay Shrestha – Lazard Capital Markets
Couple of quick questions here: You guys talked about the pipeline growing by about $400 million on a sequential basis and at the same time we’ve got this big credit crunch happening in the environment. So can you go into that in terms of some more detail as to one, what segment of the market that’s coming from and what type of customer they are and how confident you feel about that? So can you talk about that in a little more detail?
Mark Morelli
Yes. As we indicated, we have seen some risk in our pipeline. However, we do add new players to the pipeline in particular the one we just added with Carlisle was our focus on the U.S. market. We think it is an excellent high quality player in the market that will help us. They’ve got hundreds of salespeople and thousands of contractors focused on the commercial building segment.
We’ve also signed a few smaller deals, actually even a take or pay agreement last week that was in Europe. So we do see pockets of activity out there that we think bodes well for the longer term. I think clearly the near-term issues make things a bit more cloudy but we think our guidance is responsible here.
Sanjay Shrestha – Lazard Capital Markets
I know, Mark, you mentioned some of this, but can you go through some more detail as to where exactly are you getting the cost reduction from? You said that the higher throughput and things like that. Can you go through some more detail how much of that is raw material, how much is throughput and sort of walk us through that value demand driven cost reduction even before you get the volume benefit.
Mark Morelli
Well we think our focus on operating excellence is really paying off. We see a number of areas where we’ve really gained some great traction, namely our ramps in Greenville II have just gone very well. I think that bodes well for our flexibility for our growth to 1GW, but more importantly we’re getting the direct benefit of the costs at the bottom line. We also see great opportunities for material productivity in the terms of utilization of materials, as well as negotiation with suppliers, as well as a great runway on yield, as well.
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