Aug 13, 2026 earnings call — Data center demos and inventory build strategy
Base business backlog now stands at greater than $8 million and management expects a further $2 million to $3 million in projects to close.
Revenue $0.0B (est $0.0B) · EPS $-0.07 (est $-0.08)
Key quotes
"Over the last 2 months, we have hosted 12 product demonstrations, 6 in person and 6 virtual."
"In addition to what is already in backlog, we expect a further $2 million to $3 million in projects to close over the next few months."
"1-time costs in Q2 reduced margin by around 7 percentage points."
Analyst Q&A 4
12 demos and building inventory
Q (Bobby Brooks · Northland): Are the 12 demos 12 different customers and did they accelerate? Also, are larger data center customers moving from ‘wait for more capacity’ to scaling with you? And how big and costly would building capacity ahead of orders be?
A: Management said 12 different entities visited and 8 of the 12 were potential direct end customers; the other visitors were engineers, partners or a chip maker. They scheduled the most important demos later to get better at demonstrations. On building capacity ahead of orders, management would not give an exact cost number but said they plan inventory sizing by gauging interest from 3–4 potential customers and timing builds to manage cash flow and risk.
"So out of the 12, 8 were potential direct end customers." — Abinand Rangesh (CEO)
Vertiv deal and inventory plans
Q (Eric Stine · Craig Hallum): Which demo opportunities involve the Vertiv relationship versus direct paths? Also, what is the status of the MPA/MPA with Vertiv and those 25–50 megawatts projects? And is there more inventory building to come and how will you manage capital constraints?
A: Management said the demo efforts and sales are parallel to the Vertiv relationship, and nearly all demos came from their own sales and marketing. On the Vertiv agreement, they said things are “in a very good place” but they cannot comment further now and will announce deals when finalized. About inventory, they said backlog for non-data-center projects will absorb some inventory, they are focused on compressing lead times, and they will balance cash flow with the need to respond quickly to large-name interest.
"All the demos that came were arranged through us and our sales team and our marketing efforts." — Abinand Rangesh (CEO)
timing for pilots and base business
Q (Chip Moore · ROTH MKM): Can you give timing or date ranges for pilots versus larger projects? And what trends are you seeing in the base business and its markets?
A: Management declined to give specific timing details but said their priority is to land the right brand-name initial projects because that shapes future development. For the base business, they said demand is growing due to power constraints and long lead times for electrical equipment, and that some cogeneration and power generation demand is returning; having inventory helps capture projects where other equipment is hard to get.
"We are starting to see a lack of power electrical equipment having long lead times, those kind of things affecting the ability for the non data center type customers to have access to, you know, cooling or power generation or any of that equipment." — Abinand Rangesh (CEO)
new vs retrofit data centers and emissions
Q (Alexander Blanton · Clear Harbor Asset Management): Do you expect growth from new data centers or retrofits/expansions of existing centers? And how do your products reduce pollution, noise, and water use compared with generators or other systems?
A: Management said they see both new builds and retrofits. For retrofits, they expect customers often to add the company’s units as part of an expansion and leave electric chillers as backups rather than fully remove them. On emissions and noise, they said their equipment runs on natural gas, is designed for continuous use with very clean Ultera emissions and low noise, and in some cases inverters can shed peak loads to avoid diesel generators.
"Because our equipment is designed for continuous usage and originally, like, our Ultera emission system was designed for Southern California, so we have very, very clean emissions." — Abinand Rangesh (CEO)