RE:ProductionJohn4434,
I have no idea what point you are trying to make. Furthermore I don't understand your math which appears to be an attempt to support you conclusion which quite frankly doesn't use math at all.
It's simply conjecture on your part.
Having more orders than they can produce is not a bad thing at all. EXRO will have the ability to forecast volumes many months in advance. Their customer engagement process is the key. Each customer engagement requires months of working together before orders are placed.
Furthermore, Exro will require up front financial commitments from customers as part of their order acceptance process. The products they produce are too high value and too customised not to.
Orders will also include scheduled progress payments based on agreed upon milestones. EXRO product will likely be fully paid for before it ships.
The Company's manufacturing footprint is right sized in my opinion.
I have no idea what their order book for 2023 is and I don't think you do either.We have some visibility but they may very well receive a large number of orders in 2023 for deliveries in 2024 and beyond. This is totally in keeping with how this industry works.
Over the next couple of years this company will be valued based on their order book (future orders, revenues) and not their quarterly billings.
As they matures the pendulum swings to one where they will be valued on earnings and their abilitiy to utilize capacity.