They have relationships with process facilities. We’re also working with gas companies, where we can, in places like Florida, where, again, it’s a relatively gas-friendly market to identify customers that could potentially switch to a gas cooling or a cogeneration technology. We are also looking – like making – advertising in, again, these kind of process-type application magazine, specialist trade publications, writing articles to educate customers. We’re lastly, in the process of updating our website to also make it much more market driven so that we get customers looking for, let’s say, a chiller for a brewery, so they are searching for that on the Internet, we’ll be one of the websites that show up. So we’re working on all of that. It’s – the way to go after that market really is by market segment relevant.
And then, of course, we do work with engineers. We do a lot of lunch and learns. We try and educate them on the benefits of our technologies, especially some of the engineering firms that operate in multiple states. We try to get to as many of the regional offices as we can because, again, we believe that there’s going to be customers, especially the ones that have power constraint issues that we need to get in front of them because those ones don’t really have that many choices. But some of that also comes from these market segments, but the broader areas, it is coming from some of the engineering community and some of the consultants that work in this space.
Unidentified Analyst: And then a personnel question. Do we have engineers that specialize like in cooling? Do we have engineers that perhaps specialize in indoor agriculture? Or do we have engineers that specialize in the cogeneration area? Or do we have generalists that apply their knowledge across those different segments?
Abinand Rangesh: So we do have – there’s a little bit of overlap on the two – on the engineering team. There’s a couple of our team there, especially on the sales team, that have a more in-depth knowledge on certain markets versus others. They’ve – our key sales team have sold both cogeneration and chillers, they’re worse enough, but there’s definitely some over market specialization on a couple of the members there. And then again, we also work with some of the project developers to really understand what their needs are. And as we do that, we also improve our knowledge of what it takes to support that market.
Unidentified Analyst: And then with regard to sales efforts on servicing, are we making an effort to apply servicing perhaps to areas where we haven’t installed our own units? Can we service other people’s units?
Abinand Rangesh: So that is definitely an expansion opportunity. But what we’ve done and actually, I’m glad you mentioned this, we’ve hired some sales people for the service side alone. And where there’s an immediate need is actually just where our machines interface with the building itself. There’s all the pumps, there’s the heat exchangers, there’s the controls. And then there’s also the demand response side of things. So even addressing that will add a significant amount to our service revenue and more importantly, it will allow our machines to run more efficiently and increase run hours. And there, it’s a relatively straightforward sale because the customer already knows about the machine, they know about the benefits and they’re also understanding our – by actually putting a service salesperson in front of a customer, we also find out what the other customer pain points are.
I think eventually, we might look to service other pieces of equipment, but just expanding the box, doing some of this as billable work is going to give us significant increases in sales.
Unidentified Analyst: Well, that sounds like a pretty good plan. If we have a chiller system in place, then our technicians are already on site. And what you’re saying is that there is a possibility that we can add servicing of other components in that facility because we’re already there. Am I approaching this correctly?
Abinand Rangesh: That’s exactly right. And doing that, in some cases, can increase run hours by 10%, 15%, 20% just by improving how the system is set up. So that – it’s a big win both for us as well as the customer. So yes, that’s something that we’re pushing.
Unidentified Analyst: Well, it sounds to me like we should be making a monumental effort in that segment because we’re already on site, and it’s just a matter then of increasing what we perform on that site?
Abinand Rangesh: Yes. So stay tuned on this. I will be providing more updates in this space. This is definitely a huge priority for me that we do increase that stream there.
Unidentified Analyst: Well, I want to thank everybody for their effort, and I look forward to improvement. It looks like the remainder of this quarter and next quarter are going to be transition quarters for us. And that really, we should be firing, if you will, on all cylinders in the third and the fourth quarter. Am I correct in assuming that?
Abinand Rangesh: That is spot on, yes. The way I look at these next two quarters, the – a lot of – there’s going to be disruption on the product side. We’re going to continue focusing on the service side of the business to really get the revenue up, the margin up over there. We are going to be focusing on securing more service contracts and some of this billable work. So the service side of the business, we’re going to be – we’re hopefully going to see no disruption on that. On the product side of the business, we’re definitely going to see a disruption this quarter and next quarter. But Q3, we should be back on at full steam on all aspects of it. And then when we do the Q1 earnings presentation, I’ll talk a little more about the operating cost side of things and what we’re really trying to do because even a year ago, I don’t believe we would have – we had enough recurring revenue stream to cover a large portion of our overhead.
But I think now we’re getting closer and closer to that point. And I think with a little more – with all these changes done, we’re going to look at what the numbers look like and then start really looking at the OpEx and getting ourselves cash flow positive and profitable.
