普拉格能源 (PLUG) 2008 Q1 法說會逐字稿

Greetings and welcome to the Plug Power Inc. first-quarter earnings conference call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (OPERATOR INSTRUCTIONS) As the reminder, this conference is being recorded.

It is now my pleasure to introduce your host Ms Cathy Yudzevich, Manager of Investor Relations for Plug Power Inc. Thank you. Ms. Yudzevich, you may begin.

Good morning. Thank you for joining Plug Power to discuss our first-quarter 2008 results. Andy Marsh, CEO, and Gerry Anderson, CFO, will be on this call today. The call will be archived on our website at plugpower.com.

This conference call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including but not limited to expectations regarding revenue and product orders for 2008. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties many of which are difficult to predict or beyond our control and that may cause our actual results to differ materially from the expectations in our forward-looking statements.

These risks include without limitation the risks that FCC rules on backup power requirements are not adopted, the timing and quantity of orders, shipments and installations of our product, our ability to develop commercially viable on-site energy products, the cost and timing of developing our products, market acceptance of our products and our ability to lower the cost of our products and demonstrate their reliability and other risks and uncertainties discussed under Item 1a risk factors in Plug Power's annual report on Form 10-K for the fiscal year ended December 31, 2007, as filed with the SEC on March 17, 2008 and in the reports we file from time to time with the SEC.

Plug Power does not intend to and undertakes no duty to update any forward-looking statements as a result of new information or future events. At this time, I would like to turn the call over to Andy Marsh.

Thank you, Cathy, and welcome to everyone on the call this morning. During today's call, I'm going to discuss my initial impressions of Plug Power. I will then review our first-quarter 2008 operational results while adding details to the growing interest in our product solutions. Gerry Anderson will then provide an overview of our financial results for the quarter after which we will open up today's call to questions.

Since joining the Company a month ago, I've had the opportunity to meet with more than 20 customers, potential customers and partners representing all three product lines as well as visit the Plug Power operations in British Columbia, Holland and Tennessee.

Traveling with the motive power team to customer sites, I found it most telling that customers and prospects for our motor power business can clearly articulate the operational economic value that fuel cells offer over batteries. They cite the improved productivity brought on by rapid refueling and constant full shift power, the potential for additional commercial space upon the illumination of battery rooms, the superior safety performance and the reduced carbon footprint. What struck me was that these customers take as a given the value fuel cell technology will deliver to their operation.

In meeting with several of our telecommunication customers, I found that our backup power solutions continues to generate interest based on its high reliability, predictable runtime, and greatly reduce environmental impact as well as the small physical footprint and low acoustic noise which allows for more flexibility in siting.

As service providers consider the implications of the potential FCC ruling on backup power requirements for wireless applications, fuel cells are being added to their mix. From the feedback we received at their recent CTIA tradeshow, it is clear that service providers can see fuel cells as a proven and reliable solution.

While attending Plug Power's facilities in Europe, I had the opportunity to attend the Hanover Fair in Germany, the world's largest tradeshow for industrial technologies. At the fair, our continuous power team unveiled Plug Power's latest prototype, high temperature, (inaudible) combined heating and power fuel cells system, part of our GenSys product line. The feedback from our partners and potential customers was extremely positive. The latest system is designed to meet the total heating needs and a substantial portion of the electrical demand of the home. We expect this system to create value by lowering utility bills and reducing carbon footprint.

We are currently working to assemble an international user group and expect to begin testing the latest design with these partners late in 2008. The data from these tests and feedback from the user's group will drive further product refinements intended to tailor the system to specific markets in northern climates. I value this customer focused tactic and will continue to promote it throughout all of Plug Power's business activities.

This innovative project will receive funding through a progressive partnership between the U.S. Department of Energy and European Union. Several European companies including BASF, [Domal] and Vaillant have partnered with Plug Power to develop this breakthrough technology.

My travels have also taken me to British Columbia affording me the opportunity to meet with John Sheridan, CEO of Ballard Power System. Clearly Ballard is one of our most trusted important partners. Our two companies share a similar vision and our businesses are very much aligned to continue to drive fuel cell adoption throughout various markets especially motive power.

I've also visited the Plug Power operations in British Columbia, Holland and Tennessee. In addition to having the opportunity to meet with Plug Power employees, I've observed first-hand the global reach of this company and the amount of hard work that is contributing to what I believe will be our eventual success.

Now I'll turn to our operational results. The first-quarter 2008 was a transition period for Plug Power, Roger Saillant's retirement and my subsequent appointment as CEO, the most obvious example. Although our backup power business has not yet experienced a ramp up in orders in the wireless industry that we would like, activity remained steady. Shipments and installs were flat from Q4 2007. During the quarter, we shipped 47 units and installed 40. I believe there are currently two main factors gating the pace of new orders.

One, as stated in the last call, I share the belief this has to do with the short-term uncertainty created by the FCC ruling regarding backup power. As contribute to a slowdown in new orders, as service providers perform analysis of their existing sites, consider the enterprise impact and engage the FCC and suppliers in discussions around the extent of the implementation, logistics and timing.

Two, consistent with many equipment providers, the first quarter has traditionally been our slowest quarter for GenCore orders as our customers finalize their annual capital budget and prioritize their capital project. By way of comparisons, our Q1 2007 GenCore orders represent less than 5% of the total orders for the full year. I do expect that GenCore will gain traction over the later half of the year as capital budgets are implemented and more importantly, if the SEC ruling is clarified.

Our GenCore sales and marketing teams have been involved in key industrial panel discussion and sponsored demonstrations. We have also seen increasing interest from and collaboration with coated hydrogen safety and siting officials which is critical in developing the infrastructure necessary to drive the adoption of fuel cell technology.

Furthermore, we have initiated follow-up trials with existing customers in new regions, repeated business that represents further validation to GenCore value proposition. During the first quarter, we also received a purchase order from two -- for two GenCore systems to backup telecommunication sites for the cities and counties of Honolulu which operates in a network of more than 100 sites. We believe this activity indicates broadening interest in our GenCore solution and we are hopeful that these trials will lead to follow-up orders later in the year.

In motor power, a GenDrive solution for electric lift trucks continues to generate promising customer demand. Our participation at to recent International Material Handling Show, [NAOA], reaffirmed the considerable customer pull that exists in the material handling market. Interesting, the show featured a keynote address on supply chain sustainability by Green to Gold author Andrew Winston. Further evidence that the material handling industry is focused on the economic and operational value created through the integration of cleaner and more efficient products.

During the quarter, we secured a follow-on order from Bridgestone Firestone North America tire in Aiken County South Carolina. We've already built and shift some of the 22 Class 1 units from this order. This is just one of several orders we have received recently from Bridgestone Firestone North America.

A trial deployment at Ace Hardware Distribution Center outside of Sacramento is also receiving excellent reviews. At a recent National Hydrogen Associated event in Sacramento, an Ace Hardware spokesman conferred during a public presentation that these units are already proving the value proposition of hydrogen fuel cell over the incumbent lead acid battery technology.

We also commissioned units at the first of our SYSCO Food deployment in Michigan in the first quarter 2007. As we roll out these deployments, we have successfully demonstrated our acumen as a full-service system integrator. By providing the hydrogen refueling infrastructure through partnership with key gas suppliers, we have been able to keep -- we've been able to help ensure economic value for our customers and success for our fuel cell systems.

I'm aware that one of our partners and suppliers, Ballard Power, made mention during their investor call of a battery supplier issue impacting our assembly and shipment of product. As we stated in our public disclosures, we've relied heavily on several component suppliers and manufacturing vendors whose loss to the company can adversely affect our business. This being said, while we have experienced a temporary disruption in the production of units for some of our orders, we continue to work closely and collaboratively with all of our suppliers and customers and continue to seek ways to protect and broaden our supply chain.

We believe that we worked through an acceptable solution on the battery supplier matter and all parties are currently comfortable with the anticipated production shipment and installation schedule.

I will now return the call to CFO, Gerry Anderson, to present an overview of Plug Power's first-quarter 2008 financial results. Gerry?

Thank you, Andy, and good morning to everyone joining us on the call. To follow on to some of Andy's comments, the first quarter was one of continuing transition for Plug Power as we drive to become more sales and distribution channel focused with a portfolio of products that provide our targeted customers with desired solutions and real economic value versus alternatives.

During the quarter, we experienced challenges in growing our backup power order book due to the gating reasons mentioned by Andy earlier in this call. For the quarter, our total product, GenCore, GenDrive and GenSys system shipments were 61 units while new orders acquired during the quarter amounted to 54 units. Consequently with shipments exceeding orders, our backlog declined from 305 units at year end 2007 to 298 at the end of the first quarter of 2008.

More importantly in terms of composition of the backlog based on the issues we have discussed, we saw our backlog for the GenCore product decline while our GenDrive backlog continued to advance.

Turning to our statement of operations, total revenue for the first quarter was $3.7 million of which $850,000 was derived from product and services and $2.9 million was attributable to research and development contracts. With 235 unit shipments in 2007 and another 61 in quarter one of 2008, our produce revenue is favorably impacted as we have a larger installed base over which we continue to recognize revenue.

As noted in prior calls due to our development stage status, we defer recognition of product and service revenue and recognize revenue on a straight line basis over the service period of each sold system. At March 31, our deferred product revenue stood at $3.7 million, a $376,000 increase over our 2007 year-end total. We expect to recognize substantially all of this revenue over the next 24 months as the service contracts for these shipments are fulfilled.

R&D contract revenue while up more than 30% from the prior year first quarter is down $1.5 million from our last reported quarter. We continue to have a strong book of contact engagements already totaling 22 projects to be worked on in 2008 and we expect to see sequential quarter improvements in our contract revenues as work on several of the new projects commences.

Our total cost of revenue for the first-quarter of 2008 was $6.6 million and was comprised of $1.6 million for product and service revenue and $5 million for R&D contract revenue. As we have noted in previous calls, our cost of revenue for product and services includes the direct material costs for fuel cells shipped during the period combined with the labor and materials associated with servicing all of the installed base; whereas our cost of revenue for R&D contracts is a fully burdened materials, labor and overhead amount.

Our product cost of revenue increased this quarter over the prior quarter by $269,000 primarily due to the mix of units shipped during the quarter which included more expensive Class 1 products for the materials handling business. Cost of revenue for R&D contracts was approximately 172% of revenues which is higher than we expect our run rate to be for the year but it was impacted by cost incurred on fixed fee contracts.

Research and development expenses cost incurred for internally funded R&D programs were $10 million for the first quarter as 2008. This represents a modest increase of $738,000 over the comparable prior year quarter which did not include our Canadian operations and is a decrease from our 2007 fourth quarter of approximately $1.8 million. That decrease is largely attributable to the $1.2 million in inventory adjustments and write-offs that we took in our fourth quarter as well as lower materials consumption on internal projects during our first quarter of 2008.

Selling, general and administrative expenses were $6.5 million for the first quarter of 2008 representing a $2.4 million increase over the comparable prior year quarter. The increase results primarily from the inclusion of our Canadian operations acquired in quarter 2 of 2007. Additionally during the quarter, we took onetime adjustments for retirement payments.

Our net loss for the quarter ended March 31 was $20.7 million or $0.24 per share and weighted average shares outstanding were $88.1 million for the quarter. Net cash used in operating activities for the first quarter was $15.5 million and an additional $570,000 was used for capital expenditures. On March 31, 2008, the company had $146.8 million in cash, cash equivalents and available for sale securities and $145.5 million in working capital. Included in available for sale securities and working capital at March 31, 2008 was $60.1 million of option rate debt securities.

The recent disruption in the financial markets has resulted in reduced liquidity for these types of securities and recent auctions for such securities have not been successful. Accordingly, the company expects to hold these securities until there is a successful auction or the company sells them in the open market. Securities similar to the auction rate debt securities held by the company are currently trading at a discount on the open market.

Given the risk of continue to failed auction for auction rate securities and the discounted trading for such securities in the open market, the company concluded that the estimated fair value of the securities has become lower than the cost of these securities and that this difference represents a decline in fair value that is other than temporary. Accordingly, the company recorded another contemporary impairment charge of $2.8 million as of March 31, 2008.

I will now turn the call back over to Andy for some concluding remarks before we open the call to questions. Andy?

Thank you, Gerry. Let me reflect for a moment on our short-term challenges. I believe what Plug Power needs to develop more extensive sales channel for both our motive power and backup power businesses to better serve customers and prospects. We have overcome some of the difficult technical challenges over the years and now we must increase our focus on introducing products to market rapidly, that we will continue to invest in new technologies. We are now in a product implementation phase. Additionally, we need to continue developing our supplier base to drive down costs while meeting delivery and reliability expectations.

Finally by working with our partners, we must continue to demonstrate solutions to our customers that include more than just products. During the coming months, we will be fine-tuning our strategy at Plug Power. At the next conference call, I look forward to the opportunity to present in more detail our future goals. I can assure you that a more aggressive sales plan will be a critical element of our efforts.

Thank you. We will now open the call for questions.

(OPERATOR INSTRUCTIONS) Steve Sanders, Stephens Incorporated.

Good morning. My first question is for Andy. Specific to telecom given your background and building a Company on the back of an innovative product suite, could you talk a little bit about creating sales momentum in the channels and specifically discuss service providers versus system integrators?

Steve, I welcome the opportunity. And let me see, in the service provider market, Steve, it is very critical that we are approved by the end users. So the channel and the route to success is reaching approval for our products with T-Mobile, Sprint, AT&T, Verizon Wireless. And as you can understand, most of our activities have really been associated with field deployments directly associated with the service providers.

After one receives approval from the service providers, integrators such as CommScope become rather critical in the sales function as well as OEMs such as Ericsson, Nokia, Alcatel Lucent. So it is really a three-level sales activity one must have going on. One must convince the service providers to ensure that they will prove your product for use in their network and then it's an activity of convincing the OEMs and the integrators to include you on their [bomb].

From my experience at Valere, what I found was in the end about half the sales came through service providers and about half the sales came through work with OEMs and integrators. I'm not exactly sure how the mix will be in this business. My suspicion is it will be more geared to service providers buy a larger percentage of the equipment directly. Does that answer your question, Steve?

That was definitely helpful. Historically I guess you guys have attacked the service provider. Do you plan on attacking the system integrator channel any more? And are there 15 to 20 larger key integrators that you can really focus on broader than that -- just anything you could provide there?

I think the answer is yes. As part of my visits during the past month, Steve, I have spent time with some of the integrators. In North America, I would say there is really three or four large integrators who are significant who are more the cabinet integrator types, folks like CommScope, Purcell Systems. On the OEM front, we have been meeting and regularly meeting with folks like Ericsson, like -- and others. And internationally, we have also been engaging system integrators in Europe as well as in Asia.

Okay. Thanks for that. And then could you talk about how you view the relative attractiveness of the various geographic markets for Plug's telco products going forward the next couple of years?

Big question. If I look at -- and Steve, it this service provider oriented -- or general?

Yes, both.

Let me start with the motive power business. Our initial focus has been developing the channels for the work lift market here in North America. When you start thinking about the deployment one has to think about the service as well as the hydrogen infrastructure. You -- one could look at our sales activity and see it is clustered. We will be expanding those clusters in North America to reach out to more customers. Our activities in that market in Europe and in Asia have actually been somewhat limited to date.

Europe is an attractive market because actually the need for forklift trucks is probably 1.2, 1.3 higher than North America, while Asia is actually a smaller market for these type of products. So I could see that during the coming year, our sales activities could expand into those other markets.

On the service provider front, there is actually -- the needs for the product may be somewhat different. In North America and Europe where the networks are highly reliable, products like our GenCore product really meet to the customers' needs since the uptime requirements throughout -- the uptime of the utility network throughout the year is relatively high.

As we've been exploring markets such as India where downtime could be as much as four or five hours a day, we find our GenSys product more attractive for that type of market because it is almost a continuous power operation. And during the past quarter, we actually installed two units in India as we started working through that as we starting working through expanding that international market. I would expect that we will be looking at a combination of direct sales and close working relationship with partners that expand into those other markets.

Okay great. And then maybe a question for Mark. Could you bring us up-to-date on the product side for motive Class 1, Class 2, Class 3, as well as the field performance and the response that you are seeing in the channel?

Mark is not here. We have Andy and Gerry here today. I had, Steve, a wonderful opportunity that I've actually visited the Bridgestone plant. I have visited the Nissan plant and that I will be going to see our activities at Wal-Mart soon. The Class 1 product if I look at it at the moment, we are completing the product development cycle and as I mentioned in my earlier statements, that there appears to be a great demand on our customers side as they view the value of the increased productivity associated with those products as well as the fact that we are really providing more space in their operations.

I've looked at business cases for Class 1 products which show that there is potential payback periods of three to seven years. So I find that market actually quite promising at the moment. Our Class 3 vehicles are being deployed at Wal-Mart. They were deployed at Ace Hardware where we received such a positive response at the National Hydrogen show. We certainly had challenges in this market but the demand and value is recognized by the customers. And our biggest challenges, Steve, what I see at the moment is full sweeps of product availability from Class 1 to class 3; hydrogen infrastructure which when I look at it we have matured quite far in certain regions of the country with our customers. And the other is certainly the supply base to make sure that we could deliver product throughout the coming years.

All right, thanks, guys.

Pearce Hammond, Simmons & Company.

Good morning. First question is how should we think of cash burn for the year? What guidance are you providing?

Pearce, consistent with our last call, we're trying to give Andy some time to help set the strategy and then structure our organization accordingly. Obviously our goal is to continue to efficiently deploy our resources and drive that cash burn down. We have adequate liquidity obviously to go through this year and into next year. But again, I think in our next call we'll probably have more specifics on strategically what we are focusing on and how we will structure the organization and the burn requirements to accomplish our strategies.

Okay, great. And so the same would apply also for revenue guidance just wait until next quarter?

That would be correct, Pearce.

Okay. And then, Andy, you were talking about the challenges on getting deployments in the motive arena. And you mentioned hydrogen infrastructure. Was just curious what you were seeing there given some of the industrial gas companies have very good distribution around the country and around the world.

I think, Pearce, I think when I look at it -- when I was in Tennessee and South Carolina during the past weeks, I actually ran into air product suppliers and vendors at our different customer sites working on activities and deploying hydrogen in real-time. I see that air products for one is really beginning to develop a much more sophisticated hydrogen infrastructure to support our customers' needs. I hear, I met with our partners Honda earlier in this week and they told me there were over 129 hydrogen fueling stations in California at the moment. So I see that it is beginning and developing.

I think that as we talk about our future that the issue of hydrogen and working closely with partners is going to be report directly into me because it is so critical to our long-term success. That is -- as I can see at the moment that key partners are really starting to gear up. We just need to promote and be closely aligned with them to meet our customers' needs.

And part of our sales planning process, Pearce, is I've worked with the material handling team over the past month, is a great deal of focus on looking at the deployments, looking at the targeted customers and the customers who want the product, and thinking through during the next 15 or 18 months and talking to folks about how to ensure that they have hydrogen available.

But when I look at this industry that hydrogen availability issue is one that is maturing but a company like ours needs to pay specific attention and work very closely with the gas providers.

Great. And then I know you are still going through your assessment and we'll get a better update on the next quarterly call, but in this release you unveiled the latest residential CHP technology and obviously you've had efforts and continue to have efforts at GenCore and then the motive areas is very exciting. Obviously that is reasonably broad. Do you foresee focusing on just one or two areas or still kind of keeping this broad strategy in place? Because it seems like you might want to focus the resources where you can get to commercial production of products the quickest.

Pearce, I'm going to ask you give you to give me a little bit of patience here during the next three months. I've been looking at focusing and making the organization -- working with the management team and looking at running the business more efficiently. Certainly broad customer acceptance and revenue growth is certainly one of my key drivers. And instead of today telling you exactly what business and what investments we are going to be making in each of those businesses, I'm just going to ask you to have a little bit more patience and I promise to clearly enunciate over the coming months our strategy.

No problem at all. Thank you very much.

(OPERATOR INSTRUCTIONS) Jeff Osborne, Thomas Weisel.

Great, thank you. Good morning, everyone. I just wanted to dig into the catch issue. I think excluding the ARS's you have about $87 million, $88 million and you burned about $19 million this quarter. Just what is the company's strategy should this issue on the auction rate securities persist for three or four more quarters?

Well, we are pretty confident, Jeff, that we have adequate liquidity and like many companies in a similar position on the auction rate securities, we've been in active discussions with our financial adviser on this issue. And we are exploring all of our legal options including that of filing a claim. And with that said, we still are confident that we will have appropriate liquidity to continue to drive this business to market adoption and grow it profitably.

Should we think about the cash burn rate being similar to this quarter's run rate for the rest of the year?

I think this quarter if you look at the -- I know the $19 million is the net change in cash, cash equivalents and marketable securities. The actual operating cash burn was about $15.5 million and that probably is a little higher than what our run rate should be. Keep in mind that during the fourth quarter we have one week of shut down, the last week of the quarter. So you have some accumulation of accounts payable and things like that that clear in the first quarter. That is typical for this company. So we are expecting to continue to drive that cash burn down and it is a little higher in the quarter than we hope for future quarters.

Got you. Just a few other ones. At this point can you just update us? Are there any formal RFPs out there ahead of this FCC issue on the service provider side or is it just more people kicking at tires and seeing what their options are?

Jeff, there are some formal RFPs out there. I am probably not at liberty to say who.

Sure, no I didn't expect that. But can you give us a sense of volume? Is this a three- to five-year rollout or do you expect once the tipping point hits there, that this is a quite sudden shift?

Jeff, I probably need to spend a little bit more time thinking through the answer to that question. I would say that it will not be a sudden dramatic shift that you are not going to see come October all sites going from batteries and generators to fuel cells.

Sure.

I think what you will see is that service providers will have a mix of backup solutions and that fuel cells will capture a much larger share of that mix than they presently have today.

Okay. In the initial discussions, is it more on new sites or retrofit?

A combination.

A combination, okay. And can you just go through the battery issue again? You have multiple suppliers. What exactly is the issue and just kind of walk us through that again?

You know when -- if you look at this industry, Plug Power over the years has really put in a rather sophisticated supply chain organization. And actually considering the product revenue, I was actually surprised about our knowledge of our suppliers. So a good deal of effort is associated with the quality of our suppliers or technical performance, their capacity, their costs obviously. And if you really look at this capability has been added to our motive power business over the past year.

We are seeing that in the battery -- on the battery issue we have one supplier who had issues associated with the fact that they were servicing more heavily the automotive industry I guess with the buildup in hybrid cars and that it has been difficult in sourcing batteries from that supplier. So we've gone in and worked contracts and negotiations with other battery suppliers to allow our supply chain to keep on producing batteries.

So we will -- be have and are beginning to receive products again from our original supplier and we are adding suppliers on during the coming six months to ensure that we have a viable supply chain.

When you are a low revenue product revenue company like we are today, having the attention of the supply base is certainly one of our challenges. And to ensure that they will deliver when we need and that is why even with this sophisticated supply group, I've really made it a mandate that with all our key suppliers over the next three, four months, I have the opportunity, as I have already met with those suppliers to make sure that I understand personally their commitment to Plug and to also personally state Plug's commitment to them.

Certainly one of the largest challenges in building this industry and we will build this industry, is aligning the supply base to be successful with us long term.

Got you. Just to make sure I understand, the original issue had to deal with the supplier focusing more on the auto side or I think there is a major supplier --

Absolutely.

-- in the space that's (multiple speakers)

There are actually -- and there were actually two issues. One is that they were having some delivery issues and they had big customers and small customers and the big customers were GM and the small customers were Plug Power. So like most companies when faced with an economic issue like that, they deliver to the big customers first. And the small customer actually suffers. So that is why we recognize that we had to broaden the offering. And just to be more specific, these batteries are used in our Class 3 product offering and not in our Class 1 offering.

Got you. And then just the last one quickly. What was CapEx and depreciation in the quarter? I missed those numbers.

The CapEx was about $600,000 and our depreciation and amortization in the quarter was I think about $600,000 as well. Most of that is again, amortization on the intangibles.

Very good. Thanks much.

Thank you, ladies and gentlemen, there are no further questions at this time. I'd like to turn the floor back over to Mr. Andrew Marsh for closing comments.

Thank you. On May 20, Plug Power will close the NASDAQ market for trading. The following day, May 21, our annual meeting with shareholders takes place at 10 AM at the NASDAQ market site in New York. At this meeting, we will showcase three fuel cell units, GenCore, GenDrive and GenSys representing our three product lines and the markets we serve. This will be an excellent opportunity for you to take a closer look at the product solutions that we offer our customers including a demo of fuel cell power Class 3 pallet truck.

I look forward to meeting and talking with many of you at the shareholder meeting. Thank you for your questions. Again, we appreciate your time and interest in Plug Power. Thank you.

Ladies and gentlemen, this concludes today's conference. And you may disconnect your lines at this time. Thank you for your participation.