SatCon Technology Corp., Q2 2008 Earnings Call Transcript

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2008-08-12 15:37:10.0

Tags: SatCon Technology Corp.

Question-and-Answer Session

Operator

Thank you, sir. Today's question and answer session will be conducted electronically. (Operator Instructions). And we'll take our first question from Adam Krop of Ardour Capital.

Adam Krop - Ardour Capital

Good afternoon, guys. I know you provided the inverter sales number in the past. Can you help me out with this -- that for 2Q?

Steve Rhoades

The inverter sales numbers?

Adam Krop - Ardour Capital

Yes. As far as total revenues from inverters in the quarter.

Steve Rhoades

What's this on here, John? Go ahead.

John Peacock

$5.2 million for solar.

Steve Rhoades

$5.2 million for solar and for the fuel cell?

John Peacock

$2.78 million.

Steve Rhoades

$2.78 million for the fuel cell.

Adam Krop - Ardour Capital

Okay. Now how should we be thinking about the inverter business trending in 3Q and 4Q? Just given some of the uncertainty in the US ITC market, how should we be looking at that?

Steve Rhoades

Our focus has been on the larger scale installation and those have been less affected by the ITC. So as we said, we expect revenue growth sequentially quarter-over-quarter.

Adam Krop - Ardour Capital

Okay. So you haven't seen much slowdown as far as order flow for the back end of the year?

Steve Rhoades

Depends on which types of applications, but for the utility scale, large scale commercial, we've seen continued growth.

Adam Krop - Ardour Capital

Okay, that's helpful. Thanks. Now on the cost side for the inverter business, if you have to list two or three areas where you see significant cost coming out of that business, can you just maybe comment on that for us?

Steve Rhoades

Well, as our volumes are increasing, we are getting much more of a flow manufacturing line set up in our Arcadian operation. This is reducing our labor cost. And we are also very focused on our material cost going forward, reducing those inside of those lines.

Adam Krop - Ardour Capital

Okay. Then moving over to just some of the restructuring that we saw in the quarter, how should we be looking at that for the back half of the year? Should we see more restructuring charges there?

Steve Rhoades

There's a potential there.

Adam Krop - Ardour Capital

Okay. And then one final question on I guess the Xantrex acquisition by Schneider. Can you just comment on how you see that changing the competitive landscape, maybe especially in Europe?

 

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