Question-and-Answer Session
Operator
(Operator Instructions) It looks like we will go first to the side of Michael Horwitz from R.W. Baird, Please go ahead.
Michael Horwitz – R.W. Baird
How are you doing gentlemen? Congratulations. Great quarter.
David Schramm
Thanks Mike.
Michael Horwitz – R.W. Baird
Maybe on technical question and maybe a bigger picture question if I could. Can you kind of give us an update on where you stand in electrode capacity, in terms of your manufacturing abilities in San Diego, and how you plan to roll that out to meet demand? How we should think about CapEx there as well as margins?
David Schramm
Yes, that’s a good question Mike. Frankly, we’re not limited with our capacity. We are upgrading the equipment as we speak, that will be completed here in the next quarter. The engineers have just done a fantastic job to get more yields out the equipment we already have. We’ve increased the line speed and we’re increasing the finished yield coming off the end of it.
We’re also going to upgrade our slitting capacity. So we have tighter control, which again is going to give us more yields. So frankly right now, I think by the end of this year we will have capacity that will far outstrip the need that we see in the future, even if we continue these growth rates.
Michael Horwitz - R.W. Baird
Okay, great and then the other question maybe a little bit bigger picture, but I get this a lot from investors as well. With all of the new focus on energy storage systems being developed in the U.S. and clearly a lot of new ultracapacitor companies being funded in the U.S. maybe, can you explain the amount of time that it’s taken you to get to this stage in your company?
How much testing you’ve already done with perspective customers and what kind of lead, do you think you have on people both in cost and then qualifications, because I do think there is some confusion as other people get funded, where you stand in your lifecycle?
David Schramm
Well, I think you’d find in those of you and Mike, your one of those who have followed the company for a long time. This has been 10 years in the making and making money and putting cash in the bank that was a real milestone for us as company this last quarter.
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