...and for those who can't spare the time, highlights of the call courtesy of William Shockely on Yahoo
We make components for all these (new) industries fuel cells, microturbines, UPS,
Three Benefits of fuel cell performance w/ molten carbonate type fuel cell.:
1. Reliable Power
2. Clean Power
3. Cheap Power (ie. FCEL), $.02 per Kwh
Four things you need in Distributed Power Systems:
1. Generation
2. Electric Power Conversion
3. Advanced High Efficiency Motors
4. Energy Storage
3 out of the 4 things SATC makes and sells as products, things that are more than ½ of the total distributed power systems.
SATC is selling these items to these companies:
Electronic controllers to Plug Power, H Power, Northwest Power.
Motors and controllers to GM Fuel Cell electric vehicles.
Drive train to Chrysler for the Minivan
Assembly line in Marlboro, MA can make 25,000 fuel cell components per year, “no one else has a line like it”.
Extremely successful testing of flywheel at WindDBreak cable in Nebraska.
Electronics for windshield wipers for Boeing 737’s
Switch that switchs almost 1 megawatt, basis building block for the converter
One of only 7 companies that sells space rated parts
RF uplinks
Speedpass for Mobil Gas Stations
300 mm mag-lev tool for Applied Materials, exclusive supplier, “key: reliable powering”
100kw, 45 lb., 100,000 rpm motor; only supplier in the world, goal is to bring technology to the product and cost reduction, a typical motor like this would weigh about 1,000 lbs. from Siemens, “We’re about 5% of that weight”
Speculating on Beacon’s market value, “very comparable to Active Power”
“GE was the lead investor on the $28.5 million private placement”
73% of SATC revs. come from product sales. “distributed and energy power markets”
“We have over 100 patents right now”
Strategic alliances like Applied Materials, GM and Chrysler.
7 acquistions in last 3 years, “we think they all are good buys”
"This is Internet kind of thing – reliable power."
"The market is starting to recognize the valuations for the industry."
“We’re a technology leader, good mgmt, good future…”
Ques.: Competitors right now?
Ans. Zantrax (spelling?) and trace(?)
Not many competitors right now but they will come.
Half the value in most of systems are in the products we make.
We got in first.
Efficiency for fuel cells are approaching 80%.
Significant barriers to entry.
Actual product lines now are cash flow positive for the last quarter.
We have advantage of existing product lines and customers in a fast growing space.
We think we’re kind of cash flow neutral right now.
Fuel cells are a nice solution for a lot of areas now, HPOW, PLUG and Northwest Power are all trying to do it now.
3rd world markets are very appealing, ie. Nigeria (will be 4th largest population), regular turbines are too complicated and difficult to maintain for a mostly illiterate society. |
