The answer now is that they are not making money. WPRT is losing money.
I am not very happy about the numbers just repaired. There comes a time when negative cash flow becomes a problem. At this point it looks like we are several quarters from profitability. Can WPRT make it before using up all the cash and having to float more shares?
I am still long WPRT but it's a big risk. The valuation is very high at this point for a company with no earnings in sight. The product looks okay but, it's not profitable at this point. I think some have the idea that WPRT is a big engine company. They only make components, the heavy iron comes from other suppliers. Can they make it before others start to do the same thing. The big market is China and WPRT patents will mean nothing there. It must cross the line to profits this year.
I would like to have seen higher revenue. Still holding but getting nervous.
Poster below has it correct. Management stated on the con call that they have 3 years cash at tye current burn rate. To the first poster here, this reminds me of Intel in the beginning. They never made computers (engines) but other than some also rans they are "inside" most of them.
If you haven't listened to the call and are a serious ivestor, it would be worth an hour of time to do so. There are certainly numerous executional risks going forward but they seem to have a pretty good grasp on things and are thinking about the big picture accross many verticals.
they are thinking long term
they have agreements with their partners that if they drop price so do they
they say they have enough money for 2 to 3 years even if not a major increase in sales
what drives prices lower/
So they want that for the long term
If they retain market share than they should be the lowest cost provider
To keep the volume up it appears that they will also sell parts of systems
I could not tell if they would manufacturers any them selfs
But if I was buying a part.I would buy from wprt
They are looking at failures and redesigning parts
They are a long time befor making money
As a shareholder i really dont care about the price of the shares NOW. yes think long term,but think about becoming more efficient. thats what a good management team does. they also might be top heavy in management and not know it.