Flux Power(US:FLUX)2020-09-29 00:40Financial Data and Key Metrics Changes - Fiscal year 2020 revenue increased by 81% to $16.8 million from $9.3 million in the previous year, with four record quarters contributing to this growth [6][8] - Fourth quarter revenue reached $6.3 million, representing a 107% increase compared to the same quarter last year [6][8] - Gross margin improved to 13% for fiscal year 2020, up from 5.9% in the prior year, and increased to 17% in Q4 compared to 7.3% in the same quarter a year ago [28][29] Business Line Data and Key Metrics Changes - The company expanded relationships with key customers and forklift OEMs, contributing to revenue growth [7][8] - New product launches, including the Narrow Aisle Walkie product and a pack for Class 1 3-Wheel forklifts, were significant drivers of sales [7][8] Market Data and Key Metrics Changes - The company noted a shift towards increased orders from distribution centers and warehouses, driven by the growth of online retail during the COVID-19 pandemic [39][40] - The partnership with CLARK Material Handling is expected to enhance market presence and sales through established dealer networks [41][43] Company Strategy and Development Direction - The company aims to accelerate growth by leveraging recent capital raises and partnerships to capture more demand in the lithium market [21][31] - A focus on building scale and improving gross margins through cost reductions and operational efficiencies is a priority [15][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but emphasized minimal disruptions to operations and a strong demand outlook [19][20] - The company is optimistic about future growth opportunities, particularly in the lithium sector, and is committed to enhancing customer and employee priorities [31][32] Other Important Information - The company completed a capital raise of $12.4 million and listed on NASDAQ, enhancing market visibility and liquidity [21][24] - The implementation of an ERP system and ISO 9001 processes is underway to support growth and operational efficiency [16][29] Q&A Session All Questions and Answers Question: What is your quarterly burn rate and current cash position, including the recent offering? - The quarterly burn rate is approximately $500,000 to $600,000, with a strong cash position bolstered by the recent capital raise [33][34] Question: Are you seeing a shift in your customer base due to COVID-19? - There is a noticeable increase in orders from distribution centers and warehouses, benefiting from the growth of online retail [39][40] Question: Can you provide details on your partnership with CLARK Material Handling? - The partnership is expected to enhance sales through CLARK's established dealer networks, as they are the 10th largest OEM globally [41][42] Question: Can you discuss the major order from a global airline? - The order involves ground support equipment and has potential for significant revenue, with plans for a dedicated assembly line for production [46][48] Question: What is the current status of your pipeline backlog? - The backlog is significantly higher than a year ago, with expectations for growth as the company moves into the fall season [50][53]