Mr. Marsh: Plug Power is the leader in fuel cell technology under 25 kilowatts. We are targeting applications today that represent a market TAM over $10 billion. We have two businesses: our material handling business, which is replacing batteries in electric forklift trucks, as well as our prime power business, which is replacing generators in Africa and India for operations in which the generator runs all the time. These are two big markets.
The company reached this point over 12 years, 13 years of technology development and then product development. As I talked about before, Plug Power formed as a joint venture between DTE and Mechanical Technology, Inc., here in the Albany area back in 1997. We went through five, six, seven years of technology development, then three, four years of product development until today, where we have commercial products for commercial applications. Instead of a technology company, Plug Power has become a commercial enterprise reaching out to an expanding customer base.
TWST: We spoke almost a year ago. Would you describe the goals and expectations you had for the company back then and what your performance report card would be for the past 12 months?
Mr. Marsh: I'm always a difficult grader, but our goals are clear. We had an investor day in October 2009 where we laid out our path to profitability to analysts and investors. Our goal in three years, in 2012, is to be a profitable enterprise, and that path leads us to double our shipments in 2010, 2011 and 2012. This year we are targeting shipment of 1,100 units in our material handling business, again a business where we replace batteries in forklift trucks, as well as shipment of 1,000 units in our prime power business, which is a generator replacement business. I believe the company is on track to meet these goals. We also have an EBITDA goal of $26 million loss this year, which is an improvement over the past year. We continue to try to increase our sales, reduce the costs of our products and manage our expenses.
I've never been more excited about the prospects of this company. We have a team that's clearly aligned. We're focusing on markets not because we offer an alternative energy solution but because in our material handling market, we offer productivity savings to large customers like Sysco. In our prime power market, we offer operational cost savings, which are up to $6,000 to $10,000 a year, to customers for cell sites in India and Africa. This is an exciting business.
Tickers included in this excerpt: PLUG
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.