Question-and-Answer Session
Operator
(Operator instructions) And our first question is from Dale Pfau, Cantor Fitzgerald.
Dale Pfau – Cantor Fitzgerald
Good afternoon. Congratulations. I like those gross margins and I also liked your cash management. That is superb in these trying times. Couple of quick questions here and help me square in your commentary saying at the end you said you would – you are expecting to see sequential growth quarter over quarter this year?
Steve Rhoades
I should say year over year, Dale.
Dale Pfau – Cantor Fitzgerald
Okay, you are going to see growth year over year in all the quarters of the year, is that correct?
Steve Rhoades
I think so. I think first quarter last year was $11.3 million, yes. So we wouldn't have sequential quarter to quarter, like Q4 to Q1. That is not what we're projecting.
Dale Pfau – Cantor Fitzgerald
I understand that. Okay. And you expect to grow full year over full year, correct?
Steve Rhoades
That is correct.
Dale Pfau – Cantor Fitzgerald
And necessarily that is going to be a little bit on the back half loaded. How much softness are you looking at, I mean we're sitting here with a $23 million backlog.
Steve Rhoades
Order flow at the end of the quarter in Q4 was pretty low and is picking up now, but definitely we saw a dip at the end of the fourth quarter. So we're going to see some softness, talked about that in the past, Q1 is going to be a little more challenging, but we're seeing order volume pickup right now and I like the trend for the rest of the year.
Dale Pfau – Cantor Fitzgerald
And how much of a contribution are you going to get out of the 1 megawatt inverters in the second quarter?
Steve Rhoades
It will be a small component of our revenue. But it is good to see with a new product, we have got a lot of pipeline for the 1 megawatt inverter, it won't be a really large component of our Q2 revenue, but we expect that our 500 kilowatts will remain our largest volume single product line in the company.
Dale Pfau – Cantor Fitzgerald
The gross margin of 24% was considerably higher than I had modeled, which is nice. Are we going to see a little bit of a drop down here in the first quarter and then maybe a rebound through the rest of the year?
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