Energy Focus, Inc. (NASDAQ:EFOI) Q2 2019 Earnings Conference Call - Final Transcript

Sep 13, 2019 • 11:00 am ET

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Energy Focus, Inc. (NASDAQ:EFOI) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from the line of Amit Dayal with H.C. Wainwright. Please proceed with your question.

Analyst
Amit Dayal

Thank you. Good morning, James. Good morning, Tod.

Executive
James Tu

Good morning.

Analyst
Amit Dayal

I know you guys have a lot on your plate, so I'll limit my questions in light of all of the commentary already provided. Just going in to how the sales force is going to be reorganized, with this new customer centric focus, can you walk us through how you are going to potentially use the agency channel versus building potentially organically over here?

Executive
James Tu

Sure, Amit. So, we do have a agency network and we have been rebuilding the agency network and we have consulted the agency network. So, we have less than 20 agencies now and we are working with them, and as I mentioned earlier, that we want to be able to educate and nurture these networks. We have, regardless of agency or contracting partners we work with or directly with large customers, as you mentioned, the customer centricity is what drives our sales activity. So we are channel agnostic, but we want to be able to serve the end customers as best we can. Even if we got into a new relationships by the intermediary, we want to be able to educate the end customers and help our customers solve their lighting problems. And that's what we're doing everyday now.

So in terms of the sales organization, we have a direct sales force that also opens other channel partners, as I mentioned, primarily the agencies and the contracting partners. And we are expanding that right now. And in addition, we are also working on inside sales organization. We're building up our inside sales capabilities. We also have particular specialty distribution partners. Again, these are considered the agencies of the world, but non necessary lighting agencies. And we have a few leaders in the sales organization which we will be expanding our sales organization pretty aggressively within the next few months. So at the end of the day, the agency network, the contracting network, the end customers, we are organizing our sales force to approach all of them with our products. And we have leaders in different channels to help us support the regional sales people.

Executive
Tod Nestor

So, just to build on that a little bit. Whether we approach them directly or through an intermediary, we're going to partner and do it through education and with out customer centric view in a manner so that we're educating them about our products and what they can do. It won't be a hands off approach. It will be a very partnership approach.

Analyst
Amit Dayal

Are you going to potentially bring in somebody to head this operation or are you working with the team in place already?

Executive
James Tu

Both. As the Company grows, definitely we will be hiring more leaders. As I mentioned, Tod just joined us this quarter actually and we are actively recruiting additional leaders on sales, marketing, every respect.

Analyst
Amit Dayal

Understood. And you highlighted