Mr. Caliel: Integrated Electrical Services, IES, is a very large national electrical and communication designing and construction firm. We're involved in the design, installation and support of electrical and communication systems, primarily for three end markets. First, we serve the residential markets for single-family and multifamily homes. Second, we also service commercial markets that span a number of subsegments, ranging from retail, hospitality and gaming, all the way through health care, large government military installation, data centers and more significant commercial-type operations. The third segment that we're involved in is the industrial segment, primarily the process and manufacturing industries. So we work with everything from the generation of power to the transmission and distribution of power through refining petrochemicals, pulp and paper, and other discrete manufacturing-type industries. We're involved with energy and communication from the source of energy all the way back through the consumption side of energy. The systems that we design, install and support deal with the critical electrical and communication infrastructure systems that make the modern life that we lead today possible.
TWST: What is the revenue breakdown within each end-market segment?
Mr. Caliel: We basically view our business in terms of a few major end-market segments. Commercial and industrial represents about 75% of our revenues, and the residential market represents about 25%. Within those areas, electrical services would be the design and installation, construction and support of all the electrical systems that may be in a hotel, for example, or in a large office building or hospital. We are involved in literally every part of the electrical system in a building. This includes the electrical systems, the security systems, life safety systems, fire alarm systems, etc. So anything that deals with the electrical systems within a facility, we design, and install and support. On the communication side, we are involved in the communications backbone of a facility as well. When we're looking at a large institutional facility, like a school or a university, or perhaps a large data center, we not only provide the electrical systems but also the communications and structured cabling that provides the communications hub for that facility. On the homeowner services side, we are primarily involved in the construction of new single-family and multifamily homes. As large national homebuilders go in and develop neighborhoods, we work with them to design and install the electrical systems for the homes and also the communications systems, the security systems, in some cases media centers and home theaters. We also provide the support services to the homeowner once the home has been sold. As you well know, the residential and homebuilding markets have been under a lot of pressure for the last two years or so, and as a result of that, we've expanded our homeowner offering to help us deal with the downturn in new home construction - namely things like standby power systems. For example, in areas where frequent loss of power, we market, design and install a standby power offering, so your home will have a standby generator there ready to go if the power goes out. That's an add-on offering that we're taking to the market. Also with the renewable energy markets and solar federal tax credits, we have developed a residential solar installation offering. We work with both homeowners and large builders to install residential solar power-generating systems. For example, we worked with Pulte Homes out in Las Vegas on a large all-solar community of nearly 200 homes, where we installed not only the electrical systems, but we also installed a solar power generating system on each home.
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