Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tecogen Inc (TGEN, Financial) has seen a significant increase in its backlog, growing from $5 million to over $10 million, with expectations of further orders before year-end.
- The company is forecasting sequential revenue growth, with projections of over $6 million in Q4 and over $7 million in Q1 2025.
- Tecogen Inc (TGEN) is making strategic inroads into the data center market, which is expected to be a significant growth area due to the increasing power demands of AI applications.
- The company has successfully diversified its project locations beyond New York and the Northeast, with projects in Nevada, Florida, and Missouri.
- Tecogen Inc (TGEN) has implemented operational improvements, such as a new lubrication system, which is expected to reduce service costs and increase uptime.
Negative Points
- Tecogen Inc (TGEN) experienced a 21% decrease in third-quarter revenues compared to the previous year, primarily due to limited production capacity following a move of its manufacturing and administrative offices.
- The company reported a net loss of $930,000 for the third quarter, which is an increase from the $482,000 loss in the same period of 2023.
- Cash constraints have delayed production ramp-up and restricted the supply chain, impacting both product and service revenues.
- Product revenue decreased by 53% quarter over quarter, highlighting challenges in maintaining consistent sales.
- The company plans to raise $2 million through a private placement, indicating a need for additional capital to strengthen its balance sheet and support operations.
Q & A Highlights
Q: Could you provide more details about the Las Vegas Convention Center project? Is it a rework of the existing center or a new building?
A: This is a major renovation project where the Convention Center is replacing existing mechanical equipment and expanding. Our chillers will be part of the cooling plant. The project was recently approved by the board, and we plan to issue a press release soon.
Q: How did the Las Vegas Convention Center find out about Tecogen's chillers?
A: A consulting engineer familiar with our technology recommended us to the Convention Center. They visited some of our other sites, liked what they saw, and decided our solution was suitable for their needs.
Q: Can you explain the return on investment for data center owners switching to your natural gas-powered chillers?
A: The payback on freeing up cooling capacity can be under two years. Data centers charge tenants based on power draw, and our chillers allow them to free up electrical capacity for high-value computing, offering a compelling ROI.
Q: What is the strategy for marketing Tecogen's products across the country?
A: We focus on specific industries and regions. For cannabis, we partner with entities selling complementary products and target states with licensing. For healthcare, we use traditional sales reps. For data centers, we attend trade shows and partner with companies offering complementary services.
Q: What information is available about the private placement you mentioned?
A: Currently, nothing public is available. Interested parties should reach out directly for documentation and details.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
