Polar Power, Inc. (NASDAQ:POLA) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 04:30 pm ET


Polar Power, Inc. (NASDAQ:POLA) Q3 2019 Earnings Conference Call - Final Transcript


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Good day and welcome to the Polar Power, Inc. Third Quarter 2019 Financial Results Conference Call. Today's conference is being recorded. Now at this time, I would like to turn the conference over to Mr. Shawn Severson. Please go ahead, sir.

Shawn Severson

Thank you, and good afternoon, everyone. I'd like to thank you for taking the time to join us today for Polar Power's third quarter 2019 conference call. Hosts today, Arthur Sams, Polar Power's Chief Executive Officer; Raj Masina, COO; and Luis Zavala, Chief Financial Officer. Arthur will begin by providing a review 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 this quarter's results crossed the wire today at 4:05 Eastern Time and is available on the company's website at www.polarpower.com. We would also encourage you to view the website for additional information, an overview of Polar Power's business as well as the LinkedIn page. Following management's prepared comments, we will open the call up for questions.

Before we begin, I would like to remind everyone that statements made 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 those described in the call. Please refer to the company's SEC filings for a list of associated risks, and we'll refer you to the company's website for more supporting industry information.

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

Arthur D. Sams

Thank you, Shawn, and welcome, everyone, to Polar's Third Quarter 2019 Earnings Conference Call. During today's call, I'll briefly discuss our financial highlights for the quarter followed by an update on our business strategy. Luis, will then provide greater financial details during this call.

A brief summary of the financial highlights. Revenues for the third quarter 2019 were $6.9 million. Backlog at the end of the third quarter was $3 million. Gross profit for the quarter stood at $2.2 million, and net income for the quarter totaled $25,000 -- $48,000, which is $0.00 basic and diluted share. So again, I'm correcting myself, at $48,000.

Now I'd like to provide you with the business update and review some of the key highlights for the quarter. Last quarter, we have initiated a strategic review of our business and strategy to make sure that we are optimizing our resources to pursue the best growth opportunities. For our basic strategic review, we're making some adjustments to our business plan and operations to better drive growth and diversification.

Let me take a moment to remind everyone of our business model. We provide power and cooling solutions. We're not just a generator manufacturer. One of the major components for our solar hybrid micro-grid system is the generator set. Polar chose DC generator technology