Kris Tuttle

Kris Tuttle asked for an update on the sales pipeline, specifically how the volume and nature of opportunities (like RFPs) have changed over the last six to twelve months, particularly in light of growing concerns about grid reliability.

Answer

Jan Loeb (President & CEO, Acorn Energy) confirmed that the number of opportunities is larger and more varied than six months ago. He highlighted that the company is now receiving RFPs for its monitoring solutions in applications beyond generators. While he couldn't translate this directly into a sales forecast, he noted a clear increase in inbound interest.

Kris Tuttle from Blue Caterpillar LLC asked for clarification on the operational status and capacity of the new Georgetown, Texas facility.

Answer

President & CEO Darryll Dewan confirmed that the new Georgetown facility is now '100%... full capacity, full production capability' after a transition that began around May and is now complete.

Kris Tuttle asked about the durability of TSS's value proposition in rack integration, questioning if efforts by partners like Dell and NVIDIA to simplify integration could eventually render TSS's services obsolete.

Answer

Executive Darryll Dewan countered that AI rack technology is becoming significantly more complex, not simpler, citing increased power requirements, server weight, and the shift to direct liquid cooling (DLC). He asserted this growing complexity strengthens TSS's role as a specialized integrator. Executive Daniel Chism added that the new Georgetown facility was purpose-built with expanded DLC capacity to address these advanced, future requirements, positioning the company for continued growth.

Kris Tuttle from Bluecaterpillar asked about the company's plans for its existing facility after moving to the new one and questioned if there was further room to improve turnaround times in the rack integration business.

Answer

Darryll Dewan (executive) outlined two options for the old facility: subleasing it at a potential profit due to favorable rates, or repurposing it for an expanding part of their integration business. CFO Daniel Chism added that the EBITDA forecast conservatively assumes no sublease income until the next year. Regarding efficiency, Dewan stated that while the biggest gains in cycle times have been made (from weeks to days), his team is constantly seeking further optimization, especially with new direct liquid cooling concepts.

Kris Tuttle of Blue Caterpillar asked for a qualitative perspective on the long-term attractiveness of the Facilities Management business and whether it could become as significant as the integration business in the coming years.

Answer

Executive Darryll Dewan highlighted the market's potential, citing IDC forecasts of 12-13% CAGR growth. He noted that while long lead times for modular data center (MDC) containers are a current challenge, he is optimistic about new AI-related opportunities that will drive revenue in 2025 and 2026, though it may not reach the same scale as rack integration.

Kris Tuttle of IPO Candy asked for more details on the surprising mention of licensing code for AI training and inquired if the company plans to expand into licensing other content types, such as corporate training videos.

Answer

President, CEO & Director Clint Stinchcomb clarified that licensing code was an unexpected opportunity that demonstrates the value of controlling diverse IP, though it is not a primary focus. He stated that while other video types like corporate training could have value if they are behind a paywall, CuriosityStream's current focus is on expanding its library of factual entertainment, scripted series, sports, and audio content.

Kris Tuttle of IPO Candy questioned the long-term sustainability of AI content licensing deals and whether they could be viewed as a recurring revenue stream.

Answer

CEO Clint Stinchcomb acknowledged that while licensing agreements are not contractually recurring, they have become 'de facto recurring' as every AI partner has returned for more data. He expressed confidence that controlling a large, high-quality content library and serving large tech partners who prefer to work at scale will create a robust, sustainable business line, even as the specific rights being licensed may evolve over time.

Asked about the progress of operational improvements at STADCO and Raynor, the long-term margin potential for STADCO, the expected timing of backlog delivery, and the potential for increasing content per unit in submarine programs.

Answer

Management explained that improvements at Raynor are well-funded and ongoing, while STADCO's turnaround is still in its early stages and requires sustained profitability. A direct comparison between the two is difficult. Backlog delivery is lumpy, not linear. There is a significant opportunity to grow content within existing submarine programs.

Asked for elaboration on the company's new growth strategy, what indicators to look for (e.g., new products, booking growth), and the potential timeframe for seeing results.

Answer

The response outlined a dual strategy: short-term focus on go-to-market execution with current products, and a long-term plan involving product optimization, channel improvements in the Americas and Europe, and filling product gaps in manual/desktop systems to secure early engineering design wins that will lead to future production system sales.

Kris Tuttle of Blue Caterpillar asked for more details on the company's transition to a growth strategy, inquiring about what specific indicators investors should look for and the potential time frames for these initiatives.

Answer

Executive Gerald Ng described a two-pronged approach: short-term initiatives focused on go-to-market execution with current products, and longer-term strategies involving product optimization, channel improvements, and both organic and inorganic opportunities. CEO William Wentworth added that a core part of the strategy is to re-establish the brand's presence in engineering labs with manual and desktop systems to secure early design wins, which he believes will drive future automated system sales and fill a current product gap.

Inquired about the RevPAR assumptions underlying the 2024 guidance, details on the ancillary revenue initiatives, the potential for cost savings through scale with vendors, and the progress of transitioning bookings to the Wyndham platform.

Answer

The 2024 RevPAR guidance is conservative due to economic uncertainty and the variable mix of future property acquisitions. Ancillary revenue initiatives include early/late check-ins, bundled services, and partnerships like one with Amazon Hospitality. Increased scale provides leverage to lower costs for payment processing, supplies, and other services. All initial properties are now on the Wyndham platform, and the company is working to optimize the technology and shift booking volume to it.