This is your forum to ask questions and, where appropriate, receive answers from Ron. You can read through our most popular questions and answers below.
1: Where are most of your lighting revenues coming from - businesses or municipalities, etc.? Is there a difference in margin for say an automotive dealership and a municipality?
A: Mostly from municipalities. We would also like to grow our enterprise sales, as the cycles may be shorter, but these opportunities are tougher to find.
2: With your current lighting-centric salesforce, what kind of progress are you seeing? Are revenues increasing as a result? What is the average sales person's quota and how long do you expect them to take to ramp up?
A: Revenues from lighting have been increasing for 4 consecutive quarters now. We are seeing many more opportunities due to growth in market interest and a more on-target sales force. Our most innovative offerings are just now hitting the market.
3: How long will the turnaround take? Seems like it's been going on for nearly 2 years with little incremental growth.
A: 2015-16 were years of building out the solution set, rebuilding the salesforce and starting the sales cycles. Municipal project sales cycles can be 18 months or more. Smart cities are a growing market, but still nascent. We believe that our new innovative solutions such as white tunable outdoor lights address real, burning customer issues today and as such can accelerate interest in and adoption of our platform.
In addition to the headwinds presented by our embedded business decline, our year-year comparison reflects the termination of embedded systems sales to Enel, as previously disclosed.