Based on our cost-saving initiatives, we have reduced our non-GAAP breakeven to $110 million to $120 million annually, down roughly 25% to 30% from when I joined Echelon.
With our NES system, we are winning new pilots in territories, such as the Philippines, and making solid progress with existing pilots in locations including Poland and Austria.
For example, in Poland, we have a number of pilots currently underway and more recently, visibility into future RFPs that will expand existing pilots as they move closer to production awards.
In Austria, our ongoing pilot activity positions us well for rollouts over the next several years. The range of activity we are seeing across territory remains encouraging and my recent visits with customers in these regions leaves me optimistic about our positioning for future awards.
We recently partnered with Metrima, a leading AMI supplier in Sweden with more than 600,000 units installed. They are standardizing on Echelon's NES system for their customers. Metrima's strong position with a large number of smaller utilities, positions us well for the pending changes in Swedish energy law that could require upgrades to advanced smart meters for more frequent load profiling.
Similarly, our partner Ericsson recently announced that it would upgrade Echelon's smart meters for Sweden's largest utility, E.ON. Finally, we are leveraging our partnership with Kapsch to penetrate central European countries.
razil, despite the less comprehensive mandates recently announced, our pilot activity remains solid and opportunities for expansion are on the horizon in 2014 with some of our larger pilots such as CELESC. In China, we have received our largest pilot order to date for more than 50,000 end points with Hunan Utility. We recently completed the next version of our communications and control module to meet the new China state grid requirements for future awards.
From a strategic standpoint, our China joint venture is creating exciting new metring products for Western markets while keeping R&D cost low. This is opening up new potential territories such as the Middle East where we are currently participating in several tenders.
...so, lets enumerate for the myopic... OPEX down 30% ...Sweden, Brazil, China, Poland, Austria, Philippines and central EU moving ahead with Echelon meter and grid technology...no one here worried about Echelon not providing IP compatibility is there?! Pilots and pilot size increasing....That "cant' be bad...Echelon just waiting on global pickup on roll outs...it will come, albeit a lot slower than any of us would like....