Latest news with #SmartGATE
Yahoo
16 hours ago
- Business
- Yahoo
Legend Power Systems Inc (LPSIF) Q2 2025 Earnings Call Highlights: Revenue Surge Amidst Margin ...
Revenue: $523,000 in Q2 fiscal 2025, up from $124,000 in Q2 fiscal 2024. Gross Margin: 22% for the quarter, down from 46% in the prior year. Gross Margin Dollars: $114,000 compared to $57,000 in Q2 fiscal 2024. Cash Position: Ended the quarter with $224,000 in cash. Working Capital: $874,000 at the end of the quarter. Trade Receivables and Deposits: Over $750,000 received subsequent to March 31. SmartGATE Systems Sold: 70 Gen3 SmartGATEs sold. SmartGATE Systems Deployed: 43 Gen3 SmartGATEs fully deployed, with 27 more scheduled. Backlog: 15-plus systems in backlog. Inventory Reduction: Inventory decreased significantly, converting into goods for sale and cash. Customer ROI: Customers experiencing a 15% ROI, with some achieving higher results. Operational Savings: $2 in non-energy savings for every dollar of energy savings. Warning! GuruFocus has detected 6 Warning Signs with LPSIF. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Legend Power Systems Inc (LPSIF) reported a significant increase in revenue for Q2 2025, reaching $523,000 compared to $124,000 in the same quarter of the previous year. The company has successfully managed its backlog by leveraging existing inventory, maintaining strong supplier relationships, and prioritizing critical needs. The Gen3 SmartGATE systems have exceeded performance expectations, leading to high customer satisfaction and repeat business. Legend Power Systems Inc (LPSIF) has secured several strategic partnerships and is seeing increased adoption of its Gen3 systems, with 70 units sold and 43 deployed. The company is experiencing a shift from energy savings to operational risk mitigation, which is transforming its value proposition and driving sales growth. Gross margin for the quarter decreased to 22% from 46% in the previous year, due to increased costs of certain inventory components and unfavorable product mix. Legend Power Systems Inc (LPSIF) continues to operate in a tight cash environment, necessitating expense and operational cost reductions. Some part orders were put on hold, impacting the company's ability to fulfill all commitments promptly. The company faces challenges in maintaining its working capital, with ongoing discussions about potential equity raises to support growth. There is uncertainty regarding the impact of recent changes to the IRA tax credits in the US on product demand, which could affect future sales. Q: Are all 50 systems mentioned by a customer Gen3, and what about the legacy systems? A: The customer still has three legacy Gen1 systems, but the majority are Gen3. We are discussing upgrades with them due to the significant improvements seen with SmartGATE Gen3. - Mike Cioce, VP Sales and Marketing Q: Can you discuss your working capital requirements and the possibility of another equity raise? A: We've managed working capital with small financings and are exploring various options, including equity, to support growth. We are also receiving 50% deposits on significant orders, which helps manage cash flow. - Randy Buchamer, CEO Q: What steps are being taken to improve gross profit margins back to historic levels? A: We experienced an anomaly last quarter due to product mix and installations. We are optimizing our bill of materials and expect to return to strong margins, potentially within one or two quarters. - Paul Moffat, COO Q: Do you expect any impact on product demand from recent changes to the IRA tax credits in the US? A: We haven't seen significant effects from these changes. Our value proposition is rooted in traditional business values, such as lower risk and higher profitability, which are not dependent on government incentives. - Randy Buchamer, CEO and Mike Cioce, VP Sales and Marketing Q: How does the current backlog impact cash flow and revenue? A: We have 15 systems in backlog, with some inventory prepaid. We are managing inventory and supplier relationships to optimize costs and cash flow. The backlog is fluid, and we are shipping systems over the coming months. - Randy Buchamer, CEO and Paul Moffat, COO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Globe and Mail
30-04-2025
- Business
- Globe and Mail
Micro Cap Lands Major Follow-Up Order from Real Estate Giant
Repeat purchase orders are a strong indicator of customer satisfaction. Given the high cost and effort involved in acquiring new customers, one of the most effective strategies a company can pursue is to ensure existing customers are satisfied and eager to buy again. This micro-cap company is excelling in that regard. Shares of Legend Power Systems (TSX-Venture: LPS), a global leader in commercial electrical system solutions, are moving higher to start the day as the company announced a new purchase order for eight additional SmartGATE systems from a major commercial real estate organization. This latest order marks the fourth large-scale purchase by this customer in as many years, bringing their total SmartGATE purchases to over 50 systems across their portfolio in the past five years. The SmartGATE platform is designed to optimize incoming power conditions, reducing the risk of voltage fluctuations and other power quality issues that can degrade building performance. By ensuring a more stable electrical environment, SmartGATE enhances energy efficiency, minimizes maintenance costs, and improves the overall reliability of key building systems such as HVAC, elevators, lighting, and control systems. A senior executive for the customer stated: "The results from dozens of previous SmartGATE deployments made the decision to expand an easy one. With over a 15% ROI, lower operating costs, and a dramatic reduction in building issues, we're seeing stronger building performance across the board. SmartGATE is a win for our tenants, our employees, our bottom line, and our portfolio valuations." "This latest purchase order underscores the value that SmartGATE consistently delivers to large commercial real estate portfolios," said Mike Cioce, Vice President of Sales and Marketing for Legend Power Systems. "The ability to systematically roll out SmartGATE solutions across a portfolio proves SmartGATE's ability to drive better building performance, reduce operating costs, and extend equipment life. This order further validates that once an organization experiences the impact of better power, they recognize the strategic advantage of expanding the solution across their properties." Shares of LPS are currently up 13.04% at $0.13 in mid-morning trading. Copyright © 2025 All rights reserved. Republication or redistribution of content is expressly prohibited without the prior written consent of shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. View more of this article on About Media, Inc.: Founded in 1999, is one of North America's leading platforms for micro-cap insights. Catering to both Canadian and U.S. markets, we provide a wealth of resources and expert content designed for everyone—from beginner investors to seasoned traders. is rapidly gaining recognition as a leading authority in the micro-cap space, with our insightful content prominently featured across numerous top-tier financial platforms, reaching a broad audience of investors and industry professionals. Want to showcase your company's story to a powerful network of investors? We can help you elevate your message and make a lasting impact. Contact us today. Contact: Media, Inc.
