Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the impact of the Airstream weather event and the heavy-duty trucking delays on Q3 guidance? A: Wade Seaburg, Chief Revenue Officer, explained that the Airstream weather event is impacting Q3 revenue slightly, but production lines are coming back online, which should normalize by Q4. The heavy-duty trucking delays are due to a prolonged freight recession and the need for fleets to see a three-season test of the system to ensure ROI, which is expected to pan out based on current data.
Q: Any thoughts on Tesla's unveiling of the first Cybertruck using dry-cathode 4680 cells? A: Denis Phares, CEO, noted that Tesla's dry process is different from Dragonfly's, involving different chemistries and polymers. He refrained from commenting on the efficacy of Tesla's process but highlighted the differences in their approach.
Q: How does the partnership with Stryten Energy affect non-dilutive funding efforts and government funding opportunities? A: Denis Phares stated that the partnership with Stryten is synergistic, as they are interested in domestic cell supply using Dragonfly's dry-electrode process. He mentioned ongoing success in securing government funding across North America and is in the process of site selection for further developments.
Q: Can you provide an update on the methane leakage opportunity and the timeline for potential follow-on orders? A: Denis Phares explained that the first deployment is set for September, where customers will observe the system reclaiming methane continuously. The project is expected to take off rapidly due to mandates for detecting methane leaks, which are significant greenhouse gases.
Q: Regarding the trucking deal, what is the timeline for converting the fleet of 500-plus trucks? A: Wade Seaburg indicated that the conversion will follow a normal trade cycle of four to five years, with some units being converted in the aftermarket if they are under a year to 15 months old. A significant percentage will be converted as aftermarket, while the rest will follow the normal cycle.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.