BE Bloom Energy

Mark Mesler VP, Finance & IR
K. R. Sridhar Co-Founder, President, Chairman & CEO
Randy Furr EVP & CFO
Stephen Byrd Morgan Stanley
Michael Weinstein Crédit Suisse
Paul Coster JPMorgan Chase & Co.
Pavel Molchanov Raymond James & Associates
Call transcript
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Good afternoon, and welcome to the Bloom Energy Fourth Quarter 2019 Earnings Call. [Operator Instructions]. I would now like to turn the conference over to Mark Mesler, Vice President of Finance and Investor Relations at Bloom Energy. Please go ahead.

Mark Mesler

Thank you. thank XXXX joining Earnings and Energy's on all, Quarter Fourth Conference afternoon you us for Bloom Good Call. SEC earnings To have supplement information call with that and throughout periodically supplemental website. to filed we posted the release this our QX we along this XXXX shareholder financial conference with and have call, our reference Relations it will letter Investor

XX, we XXXX. XXb-XX would filed we Form with later the than indicating no also March our file that Form XX-K Today, SEC,

The XX-K be the factors call. important forms statements financial revise risks These will filed we to obligation which matters the future performance regarding any the documents the subject actual our that contained are with results company. no statements forward-looking reports we and that discuss SEC, today's materially cause include statements. made today most discussing risk in in from the events those forward-looking to to forward-looking future differ and in uncertainties on statements identify could detail and assume XX-Q, of We recent on specifically

QX in generally or call and and and GAAP non-GAAP in These are performance our for non-GAAP prepared measures to XXXX with shareholder we refer shareholder and principles with to addition financial not GAAP of reconciliation a financial included letter. this between During not accordance the in financial measures. accepted letter, accounting our superior financial GAAP. in and measures U.S. to XXXX substitute prepared non-GAAP QX is A in accordance are measures

Chief Randy Chief Executive today call are and Financial the Sridhar, Furr, K.R. Co-Founder on me and Principal Joining Officer. Officer;

of the and operating K.R. take we quarter, and the questions. then Randy and financial will review highlights will

K.R. call I over now will the turn to

K. R. Sridhar

you you, Thank Good day, thank for joining call. and the Mark.

all start the of that's with for us, mind topic of COVID-XX. top Let's

normal safety highest Today, natural businesses, of placing is At Given feel and it's and and most workforce that the we we What Bloom our are customers everything I Energy, are what's a announced to and unfortunate. people, a somewhat our helpless. without to priority. to issue. was to impossible we like its compromising take operations short to mitigate as health of reaction our impact our with ago. possible are In happened vulnerable weeks and the happening, business doing address our This this not also the on extended by human community safety. coronavirus. other impacted term, customers a the committed want to few moment restatement

have These of hasn't to announcement, we I is understand our than had world. have servers dedicated nearly and thanks for accounting Following today, lost. billion installed to are, period. adjustments went along This where at unrelated, of straight not. is there impact is are from you a mission, restatement as progress. the the that many you been amazing to the that and made the want revenue no on is and business, solely an we driven study managed you our What our are have for equipment hurdles the to Tumbling X to acknowledge we contracts. year publicly $X important that overcome company. The XX% been or what the is a and an service way. make team accounting the capital traded total it We to what time adjustment innovative, the service is is the no look over the with and unrelated our facts. sure critically I obstacles took life and these services hurdles revenue I and Bloom line, portion a path groundbreaking agreements, doing cash of less always of and by the effective issue speak appreciate the of was able to at it all to

Let discuss sales saw backlog report coming we once XXXX. our out a We of the momentum me now year.

from During sluggish XXXX, to XXXX XXXX. book. had first we We expanded of a second increase X,XXX half very year. Clearly, half business XX% the very reported in system sales a our order strong backlog we systems, witnessed the momentum

changed? So what

and increases, I those need increasingly its As Energy asking, resiliency and that and during projects may we resiliency with not provide points, do one, and were They see there strongly of four, this valuing resonating with reliability on provide resiliency they are recognizing and to the natural grid the force. I customers, X are addresses solution major unique of to outage. need turn. keep sustainability our Bloom adapt X to remote when is proposition rate have customers while Energy for customer, with security reasons solution operating utilities and and positive requested Number frequent renewable on our to to proposition making their a and business "What a to credit customers able customers. deployments. carbon realizing The a customers. value its do and predictability Server our electric offer equal it, continuity in power businesses offer Number significant that value focusing Number to need they the disasters, keep resilient. territories attractive benefits them securely." change are Number and dual are of three, my cost has to very Bloom traction The climate summary reliability with not faced the business marketplace are gained two, of cost energy do lights benefits make in multiyear their sales Bloom's now our several more

as placed U.S. Stop the we Shop & in New economic, Korea. repeat on now. elaborate solutions projects a me for market, meeting South top the These deployments stores the at customers' in their resiliency resiliency events, XX U.S. on New grid. heat, These serve X winter order for when to customer witnessed and allow extreme and such expectations the & reliability Stop Let now. the the even Shop In resilient York. microgrid quarters our time storms both & coasts markets: in our of stores the deployed always-on dynamics for Shop better a are and pilot community York. Stop at several two awareness We of power severe grocery local increasing and will Massachusetts disrupt weather need,

are in Traditionally, Here of that in percentage was teens. metrics. total of the microgrids past couple a business years, the the was the low

over We XXXX growth than sales XX% to XX%, doubled. for significant Our Bloom. mix the opportunity a contribution at XX%. contribution it microgrid XXXX, had microgrids in grew as our mix that was more had pipeline the backlog Also, in ending number see ending XXXX. Whereas

labor factors, overhead become the Manufacturers the imperil have and these commitments. Because also sector. cannot industries sensitive of fulfill Power and products outages power demand they in the not for capacity. and Manufacturing customer outages all of very price experiencing undermine company's to of healthy to a having lose we afford safety manufacturing process inventory, ability from are power. because our

our solution X providing the Korean Now Korea sales grid. our preferred emissions volume marketplace. XXXX We market. me with a major since that high-quality cells in address we Bloom let significantly increased fuel as power customers. has reducing are the that to generation and Customers companies for ended Korean entered recognize

major with won X have XXXX. exiting X out of contracts We gencos

a are other Here few highlights XXXX. for

call, adjusted metrics letter. non-GAAP with these adoption detailed our restatement. impact provide QX due my of shareholder comments, comparison and be estimates reconciliations XXX will clarity I removing the to ASC provided that margin financial our gross when the on of accounting We GAAP of adjustments metrics earnings revenue we For to reference the and I in and in the metrics ease

renewable One, got is year-over-year, highlights. we achieved to to $X,XXX we for a three, per businesses. total We U.S., performing revenue growth of gross cost units collaboration XX.X% Number average program with of resulting product our grid goals, of deploy effort for our Energy XX.X%. half electricity this. XXXX to as entered servers five, from the as India CalBio XXX the on-site dairy a for Number in non-GAAP of in and outages, XX.X%. productivity system joint kilowatt Power very is a in margin of as we to on XXXX, to second Number reduction the commercial-scale in we to in design well we four, prototype here with team from waste the Bloom's a So energy in the two, track. X,XXX a of $X,XXX into XXXX. year-over-year into solution six, municipal had conversion Number of hours microgrids our waste Number a deploy waste. XX agricultural X.X saved proud powered over biogas are first

will now to And turn I Randy. over

Randy Furr

Mark earnings referenced be my Thanks, to referring I'll prepared presentation K.R. the call Throughout earlier. that slides in the comments,

XX, February the our Before at changes for through highlights walk you're level, to at high would accounting given into from like I the you Bloom. announcement a quarter, the I seeing dive

Recall adjustments which from from to service less of of effective our than over that our the QX December contracts managed impacted periods, our systems services related. revenues X% XX% are 'XX the press slightly to less in related XXXX our year-end than XXXX. were Furthermore, accounting the release QX day, managed backlog

now So accounting with will that changes. I summarize said, the

agreements though agreements financing an XX-year the operating will to the financing XX, as revenue servers sheet line. treatment, February the over and the recognized Energy of Even goods the revenue assets, systems revenue with as the the is balance depreciated will lease. and managed from for lease life not recognition our flow this the over to hold treatment put First, servers. and subject communicated we of Under are interest power the from estimated as customer sold Bloom the on at title a cost the cost both a service accounting well Bloom profit on be P&L do Energy as of against to sale term upfront lease moving generated will that line be expense through

partners, as the revenue that payments partner. monthly offset form The customers in on systems. generated sold will goods represent end offset will these revenue depreciation. made transactions the amount or by of electricity payments in our record proceeds lease the we electricity of the for cost of the cash loan portion from loan we that our the or finance from reduced to a receive as is will The financing balance liability our of will be So form of with upfront the power the our offset sheet. be our a over banks, be that time This be

we impute an Given expense. will our that through that a is received cash as and charge, interest flow P&L as upfront will the booked interest loan,

on stock-based making adjustments financial within that While adjustments we and our the statements. range and and compensation expenses. impacted the these XX consolidated also for communicated minor to derivatives adjustments, made some reflected identified additional February This we falls in

term, cost the that agreements So goods is, of interest will revised balance in period recognized summary, and to sold charge the as our contract against of equal for loan. service be a depreciation, managed noncash accounting XX-year will sheet result revenue a over revenue we the see treatment

will The area the XX, standard second ending adopt of our with of ASC revenue the change XXXX. other required major fiscal many standard be are the companies, new new we accounting Like XXX. to adoption December new year

As of ASC standard revenue reminder, and to across recognition practices that capital comparability a is the XXX a jurisdictions improve intends markets. industries, entities,

Again, profit Going million-ish than to forward, impact the million-ish revenue, negative overall course, small, future noncash. and we under less related this minimal $XX XXXX. is The for in revenue standard, not of new is This, XXXX relative estimates range negative pushed and $X P&L will net on and for for both and revenue is the impact lost, income. on just into relatively profit. periods the range X% is current consensus see the and

XXXX XXXX. on of be ASC than as to XXX, we the XXX due numbers This expect GAAP basis. high the accounting reconcile schedules changes this change In these our ASC impact have you accounting the it ASC reported with end you as our larger we impact the discussion order to this And provide to the to of afternoon. with is quarter. for a get impact to accounting both impact well greater provided the financial the the adjust adoption use well those as adjusted our reconciles and our and take results estimates compensation for the we will our the provided we as we financial We as experienced in to change reconciliation to of on third restatement, in did adoption stock-based metrics noncash adjusted you P&L for The at ASPs metrics. of XXX go-forward clarity of was the

that Now we on highlights reference revenue financial some back all financial metrics data year. that the will I in will and presented since the year adjusted entered to fiscal the to the slides. for tie Note full our numbers and include quarter, I profit

with changes presentation these are reconciliations XX financial detailed slides found the metrics of reference, on deck. the XX adjusted your For in through accounting

we percentage investments, X. and from XXXX million flat came income QX and QX. which Revenue So with by was was backlog coming over points a Slide in essentially quarter. Non-GAAP $XXX.X QX systems XX% XX% on quarter up Acceptances with were rose the consolidated operating $XX.X includes in Adjusted ended in with very to $X.XX. Non-GAAP at EBITDA PPA systems. was up million million. from XX.X% adjusted at X,XXX short-term In X.X And to summary, finally, $XX.X was cash. respectable million of EPS cash $XX.X margin XXXX's million, this $XXX.X up XXX gross systems. approximately XX.X%, XXX, Year-end year-over-year.

$XXX.X and PPA investments. cash, have cash short-term of the we Excluding million

XXXX XXX from $XXX.X systems. XX.X% the year, record million at totaled come were year, from the adjusted margin year, was was X,XXX up acceptances Non-GAAP million $XX.X XXXX's systems, EBITDA up XXXX. $XX.X and a operating For million. in Revenue for non-GAAP for XX.X% gross XX.X% income the and

once to the as and X,XXX you color XX, systems X. XX.X% point at that than months systems with backlog, backlog quarter. December backlog, maintain all know, increase we the to as Recall install time. per ended number. the in over year XXXX. to is some product backlog on report start for like our with Now goal install of in only XX.X% We revenue is and higher product to in A any year. recognized a X our I'd Slide X,XXX our XXXX This XX

XXXX end year. clearly the that at fiscal are We the of higher as window enter we

value an billings The on upfront $X.X those recognize as backlog annual the occurred X,XXX service approximately agreements system excludes of this backlog billion. contract any system is we as basis. And

to base, $X.X system the X,XXX systems is our value. billings contract term, that for contracts again are $X.X base. of future the installed service service backlog billion finally, was electricity the And existing estimated of that the value term, include for were contract revenue, value backlog future base billion. over the approximately $XX service Bloom be service all excluded of $X.X existing billion service to the service our added That is Also revenue just value our of assuming you renewed billings installed $X.X If billing previous of renewed from also assuming both the program. billion are for from estimated would electricity discussed the Electrons Total contract then approximately approximate another our the future in for over these contracts remaining from XXXX systems excluded value installed revenue value and million. in upfront is full

industrial majority will includes utility-scale million international will Bloom. virtually customers, them. XX.X% customers. and contract ASP to up discussion. Quarterly revenue current billion revenue add XXX revenue future contracted our XX.X% future. the On and for with or where the all current XX.X% sequentially. up, growth in summing in $X.X majority quarter-over-quarter. associated The The X. revenue backlog was and and up commercial of up So driven domestic color were acceptances revenue The acceptances I of revenue the QX and have records by mix no yields low of both that and this was on acceptances year-over-year Quarterly year-over-year approximately $XXX.X and were my is Slide U.S. XX.X% of of install we up more recognized be backlog our projects

end universities, a majority spread United XX in sports include in and States. utility for $XXX.X QX's were Most the both On XX.X% the customers of achieved revenue. relative acceptances basis, records food different and installations In was basis, up of we verticals existing pharmaceutical, and an projects, a XXXX, and to systems were mix and Bloom. On over range even the represent up the revenue of XXXX. year-over-year a were with to annual beverage broad health retail XX.X% scale Again, in total, acceptances million customers venue. acceptances care, of XXX from X,XXX

In system sales as range On our as Slide shareholder with estimates a price of to X. total cost estimates. well letter, provided a QX installed of we you range QX

For our per positive at 'XX, just in QX average number of below in come the another a per or installed the lower midpoint estimated $X,XXX side, at way, ASP, put range. below cost, $X,XXX price, or on system number estimated within, our selling our end of kilowatt, and the a Total come TISC, range. or kilowatt,

does year product impacted opportunity cost factors past year-over-year, the tariffs number TISC I'd excellent the the to lower on a reductions the and kilowatt protection this include: installed, past, and the our over includes location for installation. product Average our basis; is number work While include ASP the take our with I cost, being scope site that the to the and/or location; whether installation. XXXX of larger I'm site dropped as a Typically, outage installation, cost of on site grid in of reduction mentioned the another generally, in business size say or average And of topic not XX% line to per in and was utility whether like the both X mission-critical; cost a years. cost the international the are efforts. includes not, by applicable

and ASP stress kilowatt. delta element or during acceptances unit profit the and margin yielded TISC our level margin. our that $X,XXX or once again, delta directly of gross $X,XXX important the and overall estimated gross the of midpoint is I between estimate quarter, but correlates the or of represents per the delta to So ASP The which a profit the TISC trend the the the trend not to the continue of This X.

that our towards $X,XXX us midpoint Slide The of our of our the our mix end lower see below X, and of margin from acceptances sites on drove that pool ASP the customer you a the margin As delta actual estimates. thus ASPs per can of yielded slightly was had kilowatt. on range drove

simplify or share metric try XXXX. as slightly later and of top in going estimates on I mentioned, for for the I volume acceptances that beyond, However, and forward-looking XXXX note exceeded will the to specifics range. we're to for more QX end estimated you, our outlook our our

adjusted $XX.X financial profit profit On in XX's almost XX.X%, and 'XX Turning basis, for XX.X%. an 'XX. significant increase $XX.X in QX XX.X%. million QX flat to came with a Slide to a up was sequential at X. Gross metrics in basis XX.X% QX million margin on Gross year's increased from XX.X% last gross from QX

Our was up a basis. in operating sequential $XX.X million, both on and income QX significantly year-over-year

$XX.X EBITDA million for worker at Nonoperating reported Our in quarter. quarter. and $X.XX expenses, adjusted EPS the came for was plan the

'XX. in For XX.X%, Gross full from for million XX.X% came profit an 'XX. gross million, fiscal margin $XXX.X FY X.X income, XX.X% increase $XX.X adjusted up increase in and X.X% percentage points over the financial in FY year, 'XX an of up was million, XXXX. of at $XXX.X metrics, million, over as EBITDA adjusted FY from increased $XX.X FY reported at to Operating come

includes $XX.X and switch of now We me on of Slide $XXX.X the cash. million consolidated of This total a cash ended with sheet the balance short-term quarter million PPA to investments. Let X.

million So QX. an increase excluding short-term total $XXX.X is $XX.X we This and ended PPA from million cash, cash of investments. with of

the $XX.X July is exchange this on XXXX, financing to to leading XXXX. Bloom off million partner quarter's in with million starting on increase end commitment discussed the about of their Jefferies call up The restricted committed time, increase cash from to an $XXX.X full in of driver the cash. restricted cash returning to reduce refinancing, of provide included to for expected I $XXX sheet, the million QX. by limit. balance will a roll increase $XXX.X reserve debt However, process of wanted their of debt, I process. of the cash on we that this over This is of financing in our in is the amount This million Keeping of are with the in update that last

considered our has of that efforts on that we this range due the call, refinancing $XXX of the time. outlined of approximately million of options notes The that X% been convertible have focus in December are last year. the I Since

note. the We of have another term that range of combination debt with debt pursuing narrowed options goal of a alongside convertible

details of provide will We upon completion offering. the full

business of well be and that will momentum positive our confident the business. and we our in the holders partners we our Given the approach year through equity as the best refinancing we debt and this have, half our first in of remain will interest the the in strength work as of that

by Referencing Slide XX sales X. to volume QX. in down X higher Days of was QX the from driven days day

inventory of of reduction Our and days And in days payable X by service our to outstanding by was to QX QX days. down goods was up by days from electricity base sold. XX X XX driven from day cost

now would did to in outlook. thorough like add that I we I to change to perception QX, wanted the study. But our investor a conversation first, pretty

is items our full provide more that of study and One our of coming preference into the transparency to our simplify outlook investors' P&L. out

our do just here So attempt is to that.

X only into adjusted and for but estimates methodology. our Periodically, metrics we also are calculation. was providing they a other of adjusted TISC. though our and part top line, the to acceptances, and simplifying is into Even EBITDA. the P&L estimates streams provide meaningful part which adjusted EBITDA, X outlook, visibility these line quarter. bottom are This stock-based metrics report continue other compensation, as have aspects total we the impact metrics prior insight we to ASP under EBITDA for of include our revenue revenue the X afford service one and and electricity our to revenue additional the Providing and of or will on may a for We challenge

million we $XXX between be QX expect to XXXX, revenue and For $XXX total million. consolidated

related $X to restatement expenses restructuring. and million, and this to $XX million million be between includes to of $X We the onetime expect and operating expenses $XX million

to $XX expected with the million Mix both we of is throughout $XX will loss. a to corresponding the challenged profit QX between Finally, balance adjusted be mix. cadence more to respect prior favorable EBITDA profits. to and higher million similar successive each be expect to quarter revenue Also, complete and seeing of with we years, year. our be the to outlook, revenue

like to full enter bookings. as it we especially to year. XXXX record relates with clearly add a for to the new respect We had little the As outlook, year, color I'd second half Bloom to our a

Given this time our We first that do fact the and half second it the there's to half of second from as for XXXX acceptance. not takes first XX business, XXXX X in C&I sufficient months bookings order booking half the U.S. order the to generally just expect to a far revenue. half better in transition than XXXX strong

will the of many revenue. XXXX fact, In QX orders represent

clearly, outlook. improved stronger Ideally, an a second would this So allowed have half. for

we that QX seeing call, for in certain recall, the way. on the swung a with our completely You time. pendulum seeing XXXX And strong the discussed respect we we were headwinds, Obviously, by some provided earnings markets. we might And to that headwinds at were QX, tailwinds. other high-level outlook

place So not this a improved to prudent difficult what at again, the time this an is increasing around in not events felt at today. to the seeing But driven estimates world it the time. all we to judge has simply be outlook the with coronavirus, we're do primarily It why recent world as today.

and said, we are believe already that in as today. excellent mentioned, we With position

for or to attributes. grid real. power sustainability longer operating. business arbitrage resilient is We to strong demand their the keep for our Bloom look look power our have They no Today, to a customers simple Bloom and for backlog

back turn now will I K.R. before we take to questions.

K. R. Sridhar

get teams process. in and extraordinary this work like would Randy during I significant. timely a financial the professionalism thank their to completed results Randy. entire you, and Thank The for and to integrity required was accounting finance fashion our

your the us Randy, terms point. of this final for candidates. through us and our selection you of Randy's for the you, on-boarding successor, team to well agreeing to the with the We Thank nearing new And also, dedication we end CFO. leading your with process thank in and the stay Randy to are wish retirement. We in of get

track, the cost platform will continue reduction our see first rollout on X.X of customers. of ahead is to Looking will XXXX, X.X our to the development our The we on we platform. of and systems

We will end and solutions technology low X our continue develop to carbon with platform. demonstrate

are current confident am that we and highly world-changing times. building transformational that a is technology relevant I our energy business for

build Before healthy that and year. backlog momentum that offerings soon. be the and positioned company, and nation is our this It the well relevant were strategy the will disruptions, using as increased needed. for crisis is of emerge and After will had our very know this world this we and true COVID-XX-related time our customers well. we a true and our prepared to hope crisis business health as are this over, disruptions. a and out We, electricity for this to just adaptability wellbeing, be with against very to this crisis our resiliency as is is is is macro lives COVID-XX over. after is important ourselves us it absolutely serve our in that And with reminder daily to protect

to and build solutions resiliency adaptability resiliency designed microgrid Our are business. for

it, business boards going of will plan. forward, see As leaders I prioritize continuity their the implementation business and

our weeks in who stock what XXXX, we run few the we are, of and taken through are gone have company. have the values how and we we As beliefs

First, thing we are about all right doing time. the the

Second, are we continuous work hard to and on promises and constant dedicated deliver to make we improvement.

are solutions fully climate that address and committed power of and to around the are change reliable electricity impact world. of causes and more delivering we the the our disruptions cost-effective cleaner mission to Third,

take now questions. will we and all, you your Thank


from Morgan with first Stephen question comes And Stanley. your Instructions]. Byrd [Operator

Stephen Byrd

how just sales installation just be little on today, things the know or challenging capability. explore supply from about to just potentially a a the elaborating you fluid the it first future? and business both of wanted bit on coronavirus. the you I would impacts But on very care, think on you impacts the or extent chain that little quite and mind further also I outlooks topic exactly mentioned, bit it's potential predict are to first but impacts further, on touch the and in coronavirus on whether customer

K. R. Sridhar

you as mentioned, it's I dynamic And I That's emphasize here the extremely key fluid. want where and started. to is And important. Sure. thing

thing doing employees, it's first. of our well-being all customers. safety of us, which about For our the and means and our community right of time, the Safety

immediate work, at there disrupted. who to not may see of come we work people to feeling the is done being in a installation want customers or us is that term, be in So whether right affected, is And whether chain what getting it's it's going normal point any are to business the able lot our not thing do. supply time being this to

immediate that's issue. So your

past to you the of backlog. go look months' you have at that at worth if it, the we Bloom news midterm But XX is, good if issue,

We and a as have Stop blue such these their chip Depot, are Home to & Walmart, wanting operations a customers, keep running. Shop, products

look Permanente that, keep communication you running, you at AT&T links the like to somebody if or like look wanting hospitals customers Kaiser that need If the running.

the to forward. nature is is going pop-in in important other things climate pause, may as is resiliency a The and and thing going remember pause or while mother take midterm important take not a to

very blue load is there. be that the it's term, look power, products the at that a and really world. service the chip peak in the connected we And base we the these kind believe we need centralized even not for going offer, business to of you for Longer customer base If load load.

center, the strong, aspect front of become While safety, continuity. be is going very I business that localization aspect good This we that it point COVID on important and about going important our of protection, an equally in has "Are and forward. think way of role life?" thinking terms to to and to continue is We exclamation going that's every saying, think play very a puts a

take than this immediate happy further Stephen, more But term. long that's to want if midterm, to. I'm you the

Stephen Byrd

it near term, be just how delays some in Understood. remain like remarkable to customers have potentially very through they I time. sounds there employers requested exactly the their mean could employees home. many plan given in mean thinking business I this

that And got message, I so I if understand I that think right? that,

K. R. Sridhar

days. our own would Yes. on affect And Yes. in turn next depending correct. our few that out suppliers, things That's employees, that the how affect would

It happened. was to emerge is So immediate that end. of extremely we in a crisis, everything in the out when are this this this how strong before but we is look fluid will And term. event going But situation business crisis. short the

And so we're we but we're energies first, this of this out going to look our focus to and with are we going trying how out trying crisis. focus And in when be crisis. out to I'm extremely how strong confident with strong safety of are to to coming emerge going we very mind we're emerge

Stephen Byrd

practical being just And latest capable just Would just guess, potential capturing mind, Understood. separate capture. of you the little technical then I through status given COX, for also on, a carbon thoughts the both a maybe of on thinking but question high your think more the the about of about, bit a mean? capturing level, broadly I'm you how business could the the opportunity? at there about of cost thinking uses about that really and just prospects, more what that And just COX,

K. R. Sridhar


you I are this. we if look So about carbon that capture, ways while X at think, think there --

use you to But natural without first is The make first today, thing with forward. when technology. think do, our carbon I in least we current system trying asking -- our carbon. is footprint emissions to you above we out different have which into either beyond are to molecules to generating next we the we carbon traditionally ways you get are the the gas, steps this. green way renewable you get place smog the systems and Three negative before of power in what hydrogen, one want point the in and as capture, use about takes as and can, pipeline. first started. the When biogas get That we is even get to come much biogas Number carbon our

single-digit at we X about across that zero do are as is something do next able in XXX-megawatt get with generate. to gas talk electricity, power time this? price, In we carbon kilowatt going cost level a electricity sequestrant. plant. power at be acre few and supplement we we let's can able aggressive footprint, what in That's for think In hour can carbon can zero we to to the get the if we carbon sub-penny That when Bloom's fuel plant, natural -- and carbon do a years methods and carbon seen, to term time-sensitive Now you're one -- capture. a long X have scalable XXX-megawatt renewable capture a focused most the of starting then we that's it's with we And that cents reliable, capture. large-scale of the we carbon on use reductions can believe look a resilient we providing using today the viable natural to per to and available a How highly gas board. abundantly


question Your Crédit Weinstein from Michael next with Suisse. comes

Michael Weinstein

about doesn't are It to on understand -- Could margin, more system being ASPs dropped, upfront I color? quarter-over-quarter ASP you guess, the you gross which mentioned mix, improve, shaping and what $X,XXX? the while is Where the me gross here can like system dependent total but your think up -- total main I if down. cost XX% see talk in you little know costs a you XXXX install. to regional I the thing especially looks if you briefly bit it more the give margins beyond? how installed up do -- going? the include see will Is that do installed you it

Randy Furr


So Michael, good question.

obviously, on to is mix within other trending can total is significantly installed our see combination And cost, quarter. of the trend price, you the has long that, things. that One from the average term, which two of total and And order by is those, gross been selling varies So the product cost. impacted order and into refer primarily down. as what that there install margin TISC, -- to the we falls product as our the

It's and down. see mix challenged. to mix, installed there. out is fluctuation profit we to to it's fluctuations to the quarters, remarks, -- tracks be mix my to, that have to -- meaning and just some quarter tied you quarter ASP going going richer in going be, have all also prepared as in generally, and we're -- on quarter, pointed other From from back to could guided that cost. going just is higher going to a the like whether the I quarter, more it's But higher a to business Now be of

the if is that would then follow a or cadence QX down to normally, the and term, are we do QX, we want see say, pause translated -- of we to months loss think short guidance X. today. meaning, decent answered second if that, we you and in through or the I back future, normally to bit forward. And we we're in certainly In continue book of see we want was in in see here, back to flow a that I that given some the I term, I'll you you to were the pointed you QX breakeven in we here key, and back XXXX, and you'll at through QX go strength order over seeing see back would I expect if want the up last QX. on more the facing cadence going and it here, in out -- made in the profits what some to we give that I we prepared expect quarter, if challenged little and than you there like that were short being X comments that more in we thought half -- do next the the what that based were year, -- to go with booking of aggressive that end in QX forward orders get pretty said, ASPs today, take, when to we go and first to that more. more to giving to question and especially on saw a too comments, your without see fill XXXX much tailwinds to I the go I

Michael Weinstein

Okay. sounds the second half flow should to as is starts said the before, especially half, into solid what backlog It be second flow second starts to which a second half, like you into half. the --

K. R. Sridhar

asked term, a I then it, coming and from think right? microgrids. the I think to the contribution long Michael, and about here the is the spoke way you to on question

shift imagine If you you think reasons very that power, dynamic in the where our happening different power having going. cost price of can the the is that's and the among that we see of of about customers not the a discussion, all for conversation versus

our feel forward, be You healthy. you combine the that that constant going cost margin saw, we that is reduction with to going

Randy Furr

utility. in increase the And

K. R. Sridhar

third is the currently And Randy rates point, utility like out, Yes. points up. going the are

will things should lead X those a forward. margin as higher to of go or combination that So we

Michael Weinstein

you. Got

problem you first little to the being a able you're convert, -- and be that loan have that Is here liquidity to I are to first at there's refinance you're in to confident easier this point? are convert considered term guess half, the going after you talking going the to confident do a the that, be Jefferies why not in On reason get that term loan half. might a if

Randy Furr

best debt the low we're capital makes Yes. long into get company. convert term. certainly it's in we price get done. it's the permanent but made here I the And out, as that, for that today about I -- good it, of or sense structure. fact our was company the done long-term right what and share equity -- equity done, half. we like We're do we done, we company sense the of game more middle of goal for know inning to kind the until path And we to the vehicle some give whole path the not is And to capital going. like felt company the some being given the a because the that felt us want this long-term call pointed of, right put first structure Look, amount picked for the getting in And the to felt it, transaction don't we're to but

Michael Weinstein

to current aimed and that helps are process margins whether guess the that, the get completed the that result the something I is market making changes as refinanced terrible. refinance whether if even with at the and equity liquidity, that specifically market comment -- loan getting my something done, sure But more term with you of and seeing any conditions you're Yes. a

Randy Furr

to a of to is more an head, sit of will in get bit want folks are the we but it's needed And confident challenged make little nail on The on look, we on than we you half. -- our announcement today, where a the term But focus right. sooner is the to to occur it. exactly And our we still this challenge. feel today out lot that commitment later, it this term to first goal hit where a markets we with loan. easier getting do today. to want the keep the be And You're there to


[Operator Instructions].

Your next JPMorgan. Paul question with Coster comes from

Paul Coster

trying the But time -- so there talk little rate that. a be something and and timing -- acceptances. it's It seems it to that lead about bookings your me backlog why on gap you with it bit? to do has you subsequent I mean that installations. the the Can between going and that And why just is just the production. to be two? between grow to that easily into production can't lag could the run between understand I'm are forward from

Randy Furr

operations. internal at manufacturing chain. honestly my we industry supply the but both years we've energy here shipment a in a only and Paul, missed that chain great company, say, from related And to we're a X that you're with technology company five supply do anything Yes. I have not can And product not to builds the a right, here. -- company we're builds our

install better of like to three I process go we're out And of we of quality. -- folks can for manufacturing in as mind we industrial, phases. But systems. construction just and company, a also, that U.S. it for all itself the folks that terrific. do. costs lack you're and right, term, and and think are increase kind bear of we that our internal a commercial And we Our Great also these that

the X local running X company. all customer those that which improvements are, building back approvals find building those everything all to have send permit process construction often takes approval, the do the permits, all whole out site, the detailed get the where drawings, sites phase, to the neighborhood first about months, the having utilities needed local takes in for we or of survey we approve The a from CAD to electric gas, all jurisdiction the the get in approval, engineer application out approvals, the includes field the Person a of city to site, they CAD. of we that machine, neighborhood of months. and authority the leased, Then approval that landlord local and the

neighborhood approvals of in All months three as the usually of take well. those

on we X of my actual the into about approvals, somewhere there's a fuel are around to actually we a So the building signals start to time we months those X the team, start that and When get we person process. construction cell systems. to deliver who's the is to the X he From process system start time the weeks.

a construct time ground the it's takes we X fully So process the to And them in field. another and months. to running. whole from up fairly X We the build systems. break we those short that time it Again, time from to And finish. gets start

customers up, add XX-month that time of gives larger in our sometimes X-, in the start some or the we're at then X of go X of sites kind get And that all you that on done. then a frame. X time frame average, X large amount you obviously, So that quarters months, even all and time, XX-month of besides through your of books more before we on

of in QX, QX, be best in that in being most orders over that XXXX. booked delivered would a So would orders frame, the QX the time fair that of year. is we November-December this would into And them QX point that be amount at spill of of


from question last James. Raymond comes Pavel with Molchanov your And

Pavel Molchanov

of a revenue as I I year and came know XXXX, this XX% significant well. imagine past Korea, that in from the percentage

virus currently? SK affected the and Korea can talk impact customers you specifically, Given your are how Korean about relationships being in the with

K. R. Sridhar

Yes. Sure. That's a good question, Pavel.

cadence a process. for orders, they're and Korean and from in the is say are come loads, a C&I with unlike a and sites, would large I request for what there's utility orders base is it companies. industrial the Here utility U.S. usually the to These proposal the

in process in peak to it will How as to in when can for that And to civilized change we be any be now process seen no see future? different. end cadence from gencos. say. it's entire its difficult any time. of in It's large So there, question? multimegawatts there months have These this time, us opposed one to X.X seen during from very the Korea the answer have far, months to X to the at stalled that we very have going are And a X process. any And to been the RFPs But even that they any your do of that point our went future. Does to out that anything that and of near a normal mandate we not through a at signals translate this. able for are them is they have

Pavel Molchanov

I And the update color. Yes. can months the we in appreciate marine we're progress? shipping partnership on quick with guess a Any I of get Samsung? X that now.

K. R. Sridhar


is also that process simultaneously customer requirements, and working ground-based that customer is that needs for in builder to ship is through of with that own in and is there of a work and its the going We our are and onboard whom has there making progress simultaneously, agencies to breakdown regulatory be will ship to And and forward. And applications. has done through and to a them approval in lot are and be process, this systems, who that terms a terms what. parallel. go doing UL because is the happening you do authorities of in design we that's on many very similar and have understanding that lot schedule And process also going discovery with

So that the those activities project. are that on forward are particular moving


to we time the K.R. for Sridhar questions. closing turn the back all call remarks. That's I'll have for

K. R. Sridhar

crisis our way nation the for what extremely We, that Well, when can as very block all that crisis strategy, and along take emphasize and Customers on on, are team resilience entire doing and planned I for it the it we our customers we to ready here world am is we but in to over. an be: to is us clearly creative what deliver I'm keeping a of we what on is resonating of going is for the what safe; to for serve the of minutes than and crisis closed will customers once ways what is is originally over. a apologies be fully our care and our with than a, here stumbling have do out what want serve longer we customers. beginning The unusual them. to nimble Look, our able our were our being more you being confident out customers; for COVID to be day being confident be b, X understand it one. is product, crisis that a and c, resilient the over. company, it's value

we all and your really you for our and appreciate thank company So time, your the support and in faith your mission.

Randy Furr

Thank you.


joining. Thank you concludes today's This conference call. for

may You now disconnect.