Unidentified Analyst: Yes. It’s interesting when people think of moving aside from trains, when people think of automotive electrification, your name doesn’t come up. So I think my guess is over the next few quarters sequentially, hopefully, you can discuss more of what you’re doing in that area.
Gregory Peloquin: Yes. It’s interesting. We’re really not in the ultracapacitor battery business. We’re in power management. And so yes, this is probably a huge — obviously, a huge opportunity, but there’s other power management products that we’re looking at for forklifts and other products like that because as things turn to green, the entire power management section, as you can see with the locomotive, needs to change. And we have a unique ability, so much experience with battery technology. I mean we’ve been dealing with ultracapacitors for almost 20 years. And we have some key people on staff that are very knowledgeable. And so really, we’re not looking for standard products so much, but just niche products that are unique to the customer to help them win market share. In this case, Progress Rail is on that run rate.
Unidentified Analyst: Okay. It was a month or so ago, the company had a news release regarding becoming a global distributor for — I don’t have the press release in front of me, but for a company involved in gallium-based circuitry. Can you maybe flesh out what that could mean for the company?
Gregory Peloquin: Yes. You’ve seen over the past probably 6 years, a number of press releases of technology partners we’re signing to, as Bob had mentioned, we are a true global company. And these smaller companies that have a unique technology based on — and also add that to our unique capability for niche products need somebody to take those products to market. It’s an engineering sale. It’s very little distribution, if you will, where we design the components into customers. And I’ll use the ULTRA3000 as a prime example. We are working with the customer on an ultracapacitor component. And out of that came their need for an ultracapacitor module. And so we have a very strong lineup of technology partners. Gallium is a startup company.
However, it’s a group of engineers. I’ve been in this power RF business for going for 35-plus years. They got some real key people. Gallium nitride, which is their key technology is the technology of choice both for 5G and power management applications. And one of the things we’re seeing, all the products I’ve been talking about here for, specific the last 3 years, all are going to want remote monitoring. And that’s the next step of our product. We have the key RF and wireless component suppliers in the world that we work with on developing key products that will add to our portfolio where all these products that we have today that are going 300 feet up in a wind turbine or 20 miles out on a solar farm or some locomotive going across Wyoming, they’ll be able to remotely monitor the battery, the power of the system itself.
And so it’s just an iteration of our model. That’s the model. It’s — we lead with technology partners and with a very unique capability internally for RF power and power management, we’re able to come up with these niche products to support these applications.
Unidentified Analyst: Okay. Well, I think it was, well, at least 3 quarters ago during 1 of your conference calls, the stock was 11 in a fraction, and I said someone was not happy where the stock was, and I said that people like the stock more at 17 than 11. So I guess I’ll do it again. I think people will like the stock more. The stock is roughly $19.97 is the ask, I think all like it more at $29.97. And I’m willing to wait for that, no problem.
Operator: Our next question comes from Brett Davidson with Investletter.
Unidentified Analyst: I got a couple of questions. The change in the backlog, I’m wondering if you can just give me an idea what that represents. Are you guys better able to keep up with the order flow where there are customers holding back until the end of the calendar year. What does that small drop in the backlog represents?
Gregory Peloquin: I’ll add to it from a PMT and GES point of view. Most of our business, specifically on the green energy side is project-based. So we’ll get large bookings 1 quarter and then 3 quarters from them when we get the components in, we’ll have huge shipments. And that’s just kind of the ride. And if you just look at FY ’22, the 4 quarters, we went from an $84 million backlog to $152 million backlog. Well, to get to 150% growth, we finally got the components we need it because I think I mentioned already that the lead times and supply chain issues, lease stuff we’re looking at have not improved much. And so it’s really a project-based cyclical type thing. We’re going to have huge bookings. For example, in the fourth quarter of just in May of last year, we had $1.68 million, and this time around, we’re a little over $1 million, So it’s just kind of cyclical in terms of what we’re able to get out of the factory to the customer in the quarter and based on their timing of bookings of the next section.
For example, we were awarded about $15 million of new business for electric locomotives in Q2. However, that does not show up in our bookings because we do not book that until we have scheduled delivery of the product. So if that was in there, our book-to-bill would be way over on our backlog, we’d actually be up quite a bit in the quarter. So just the nature of the business.
Unidentified Analyst: So let me rephrase then things are just going to be kind of lumpy and you really can’t read anything into it.
Gregory Peloquin: I wouldn’t read a lot into it a fluctuation of 5% to 10% in our backlog, I wouldn’t read anything into that based on the forecast that we’re seeing and the traction we’re getting. It’s just that the way it’s ordered our backlog will fluctuate, yes.
