Polar Power, Inc. (NASDAQ:POLA) Q2 2019 Earnings Conference Call - Final Transcript

Aug 12, 2019 • 04:30 pm ET


Polar Power, Inc. (NASDAQ:POLA) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Polar Power's Second Quarter 2019 Financial Results Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Shawn Severson. Please go ahead.

Shawn M. Severson

Thank you, and good morning, everyone.

I'd like to thank you for taking the time to join us today for Polar Power second quarter 2019 conference call. Your hosts today: Arthur Sams, Polar Power's Chief Executive Officer; Raj Masina, Chief Operations Officer; and Luis Zavala, Chief Financial Officer. Arthur will begin by providing an overview of the key events in the quarter. This will then be followed by Raj, who will provide an operational update as well as updates on key strategic objectives, after which Luis will discuss the financial results.

A press release detailing the quarter's -- this quarter's results has crossed the wire today at 4:05 Eastern Time. It is available on the Company's website at www.polarpower.com. Following management's prepared comments, we will open the call up for questions.

Before I begin, I'd like to remind everyone that statements made on the -- today on the call and webcast including those regarding future financial results and industry projections are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from these described in the call. Please refer to the Company's SEC filings for a list of associated risks and we will refer you to the Company's website for more supporting industry information.

At this time, I'd like to turn the call over to Arthur Sams, Polar Power's CEO.

Arthur D. Sams

Thank you, Shawn, and welcome, everyone, to Polar Power's second quarter 2019 earnings conference call.

During today's call I will briefly discuss our key highlights for the quarter before I'll provide you with an update for each of our core markets. However, before we get started, I would like to discuss the financial highlights for this quarter. Luis will provide greater financial details later during this call.

Financial highlights for the second quarter. Revenues for the second quarter 2019 were $9.24 million, which is a 59% increase compared to $5.82 million last year, with the majority of the growth driven by sales of our DC power systems to the [Technical Issues].

Our sales backlog at the end of the second quarter stood at $7.62 million compared to $5.83 million last year. The increase over last year was driven primarily by higher level of sales to our Tier-1 telecommunications customers. I'd also like to note that transition of US telecom markets to 5G and the need to add backup power for improved reliability is shifting infrastructure budgets at Tier-1 telecom companies and will create some short-term volatility as they prioritize their spending during the second half of this year. This, along with the short lead times, are impacting short-term visibility, but should have no impact on the strong longer-term fundamentals.

Our sales backlog at the end of the second quarter stood at $7.62 million compared to