Sean Hunkler: Was say multi-project awards. What’s nice is it gives you a good base and good kind of ability to forecast short and, and long-term revenue basis. So we’re excited about these multi-project, multi customer award wins because it does build us a nice baseline for, for revenue and revenue growth for us to be able to, to feel comfortable about what we’re, what we’re talking about externally as well.
Maheep Mandloi: Yeah. And steel prices have gone up or almost six up 60% since the lows we saw in December, at least in the us. How does that impact the discussions you’re having with customers either for future orders or existing bookings? Just trying to understand the impact on pricing and margin for you guys on that?
Sean Hunkler: So we, we have quite a few lessons learned from, from the past year when we dealt with the historic highs in, in both steel and logistics. And, and while you’re right that, that as of late some of the, the steel pricing has gone up, but we continue to provide quotes to our customers that have a, a limited window of time because we want to prevent any, any sort of surprises with our customer base, which, which they like about the approach we’ve taken. So we, we basically manage it the same way we manage to before, which is to give quotes that, that have a limited a limited shelf life.
Maheep Mandloi: And then how should we think about like, pricing later this year? Say steel prices remain low, do you expect pricing to come down over here, or price pricing relatively stable right now this year?
Sean Hunkler: So we continue to, to watch the market very, very closely. And there are so many factors at play right now. If if for example, the, a positive outcome happens for UFLPA and suddenly there’s a, there’s a significant increase in demand for trackers driven by crystal and module supply with, with the resolution of UFLPA. I mean, there’s so many geopolitical issues and things going on. It’s, it’s, it’s hard to, to predict exactly what’s going on, but we have we continue to have our DTV or design to value and our design to manufacturability initiatives to continue to have a a cost down roadmap so we can regardless of where the pricing goes, that we’ll continue to be able to to have a good margin outcome for our shareholders.
Maheep Mandloi: Thanks. And then just one last one from me presume the like since there’s a limited market for the non UFL P projects, does that increase competition in that, non ufl RFPs and how should we think about the margins for those projects versus owner, normalized margins for U F L P or regular projects?
Sean Hunkler: So we, we never ever underestimate the competition, but, but frankly, we’re really happy with the way the way that the sales team has been able to win projects going up against some, some pretty, pretty stiff competition. But frankly speaking, we, we feel really good about the, the manufacturability advantage that we offer our customers. There’s more to it than the price. And many of our customers recognize that and, and give us value for that manufacturability when we when we go head to head against the competition. Yeah, the thing I’d add is I think that’s informed by everything Sean said about the Q1 margin guide that we have of, positive two to positive eight 8%.
Operator: Thank you. One moment while we prepare for the next question. The next question is coming from one moment. Alex Figueroa of Bank of America; your line is open.
Alex Figueroa: Hey guys thanks for squeezing me in here. Appreciate it. Just, just wanted to ask on the backlog, I mean, it, it’s pretty wild, right? If we look at what you guys are guiding to in one queue, I mean, even on a sort of growing rate through the year or annualized the level of backlog or line of sight, however you want to think about it is, is really long versus what we would see from your peers. Just wanted to ask, because I, I know you guys include the sort of a combination there between contracted and awarded what portion of that is not contracted currently. And I guess if it’s, sort of you’re on a verbal or, or there’s, negotiation of terms still to come, like what’s to prevent somebody from, I guess adjusting or walking from those contracts as it sits currently? Thanks.
Sean Hunkler: Well, I, I mean, I think the way, we look at kind of the contract and awarded, obviously these are projects that are, at times multi-project awards, kind of PO date for over multiple quarters in, in, in multiple years. And so as we look at kind of the, the UFLPA, non-UFLPA, the the 400, as, as as Phelps, as, as, as Phelps talked about and as well as myself, there’s a portion of that that’s going to be recognized in, in, in 2023, and there’s a portion of that that’s going to be recognized ultimately in 2024 as well based on project delivery schedules. But if you think about from the customer’s perspective, they’re looking to simplify their overall supply chain. And so going out and having these kind of onesie and twosie type negotiations, they’re really looking at, I’ve got three to five to seven projects that I want to go out and and, and kind of lump together in a portfolio more a approach.
And certainly we’ve been approached by those customers that want to look at kind of these multi-project awards and there’s certain benefits for in, in, in doing that.
