Question-and-Answer Session
Operator
(Operator Instructions). And we will take our first question from Carter Shoop with Deutsche Bank.
Carter Shoop - Deutsche Bank
Good morning guys. Congratulations on a great quarter.
Gregory Yurek, Ph.D.
Thank you.
David Henry
Thank you, Carter.
Carter Shoop - Deutsche Bank
In regards to the contract negotiation, can you discuss a little bit why didn't just keep the original length and increase the size of contract or is this because the entire module revolution incremental $20 million and we'd want to the in that sort of total number of shipment? And then based on those numbers its seem like the core business might have seen a little bit of push out and with that case is not or is being a little bit conservative here given a strong demand in China?
Gregory Yurek, Ph.D.
Well, Carter its Greg's speaking. I'll give a simple answer here is that, Sinovel kept ramping up and they kept pushing us for faster delivery monthly shipments. And we said probably sat with and said look, give us the numbers you want, when do you want to have all these shipments made. That became clear, we couldn't want to waste, we could have renegotiated all in the contract, that could have slowed things down, because we're up to make certain commitments in our assembling test operations, bringing new test equipments and so forth to expand capacity, which we've done by the way now.
And we select not to renegotiate a contract, let's just condense the current contract and never talk about future orders, future years separately. So that's I think the long and short of it and when we said in the comments here, they're going to need more core electrical components for 1.5 megawatts wind turbines for 2011 and beyond and all by the way, we don't have an order for their 3 megawatt wind turbines for 2010 and beyond either. So those are the separate negotiations and we wanted to avoid any complexities profile. We will speed up the -- from both Sinovel and our self.
David Henry
And also we to your question on the PM3000 versus the PM1000, its the Sinovel's interest to migrate to the PM3000, because that product is specifically designed for the wind market and have additional features that the PM1000 distributor doesn't have. So, Sinovel recognizes that it's a very good product and would like to migrate to us. That's the reason for that.
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