Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Our first question comes from the line of Trey Cobb with Stephens.
Trey Cobb - Stephens
Good morning.
Andy Marsh
Good morning.
Gerry Anderson
Good morning, Trey.
Trey Cobb - Stephens
My first question relates to what was obviously a very strong quarter for GenDrive orders. Could you talk a little bit about the driving factors behind the pickup and whether that momentum has carried forward into 1Q?
Andy Marsh
Sure, Trey. If you take it from a big picture point of view, as we’ve been stating since last June, the value proposition for GenDrive products is strong. We can sell customers on productivity improvements, as well as a greener footprint for their facility.
Since joining the company, we have really built out the sales team for the material handling industry to be able to position those products with our customers. The day when I joined the company, we did not have a structured sales organization. Today, we have over 25 individuals involved in sales, service and Hydrogen infrastructure, all reporting to the VP of Sales and Marketing. That organization did not exist when I joined PLUG. So it’s a combination of strong value propositions and this reach out to customers.
In the first quarter of the year, we will not have a strongest quarter of the fourth quarters shipping GenDrive products, but the funnel is large and we have a number of deals that we expect that will close over the coming 60 to 90 days, to allow us to continue expansion of the market. We remained bullish.
I think one last item and I spoke about it briefly, but I believe it is important. In the recent ARRA Act, the tax credit also now offers an option for the individuals to take a grant, and so instead of having a 30% tax credit, many of our customers can’t take advantage of tax credits. The 30% grant allows them in 2009, 2010, to receive a cash payment within 60 days, which we actually also believe will help us grow this business.
Trey Cobb - Stephens
That was helpful, and then Andy could you revisit kind of the commercialization outlook for the product? Are you looking for a handful of 100 unit orders from the few key customers and then if you could talk a little bit about how 2010 looks?
Andrew Marsh
Right; I think you hit on a good point Trey. If you look at this business in the manufacturing sector, single orders need to be in the range of 45 to 50 units for a new facility to provide a strong value proposition and that’s because of the cost of the hydrogen infrastructure.
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