Just got off the conference call and I thought it went really well. Some highlights:
- Sales strategy is bascially sell 1-2 units for trials at first, then if successful sell 5+ units which gets them some serious data on the turbines and provides financial benefits to the company. The last stage was tough to get an answer out of him but he finally said if one of the "big 3" goes national with Vindicator we are talking a 20,000+ order...of course that is the dream.
- Companies who use the product are experiencing 15% increase in power and that's awesome because that makes it easy to prove the value of your product and market it.
- Profit margins are 20-25% on the second generation but could rise to 50% on G3...that's excellent news. Those are the marginal rates but he said it didnt take much sales to blow through the fixed expenses (even 20 units would get you close).
- He was also asked if they are still on track to make break even in a couple quarters and he said on the expense side they have executed their plan so its all based on revenues/sales but they are still on track.
I thought it was very good news in general, 2012 could be the year we go from penny stock to a real company with real profits on a real product. The future is looking good IMO.