Final Transcript: ENSL - Q1 2010 Entech Solar, Inc. Earnings Conference Call

FINAL TRANSCRIPT
ENSL - Q1 2010 Entech Solar, Inc. Earnings Conference Call

Event Date/Time: May. 17. 2010 / 3:00PM GMT
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May. 17. 2010 / 3:00PM, ENSL - Q1 2010 Entech Solar, Inc. Earnings Conference Call
CORPORATE PARTICIPANTS
David Gelbaum
Entech Solar, Inc. - Chairman & CEO
Mark O'Neill
Entech Solar, Inc. - CTP
Bob Walters
Entech Solar, Inc. - VP, Marketing
Jim Lowell
Entech Solar, Inc. - Product Manager, Daylighting
Sean Rooney
Entech Solar, Inc. - COO
Chas Michel
Entech Solar, Inc. - CFO
Lee Laurendeau
Entech Solar, Inc. - VP, Engineering
Doug Williams
Entech Solar, Inc. - Engineering Fellow
CONFERENCE CALL PARTICIPANTS

Roger Schwartz
- Private Investor
Peter Trapp
Bifrost Capital - Analyst
Frank Dontiss
- Private Investor
John Young
- Private Investor
Thomas Nichols
Investors Capital Corp. - Analyst
Gary Polterek
- Shareholder
PRESENTATION
Operator
Good morning. Welcome to the Entech Solar call covering the Company's first-quarter 2010 financial results. The Company is
voluntarily providing this opportunity to participate in this conference call and to ask questions of the Chairman and Chief
Executive Officer of the Entech Solar, David Gelbaum, as a courtesy to shareholders and others who wish to participate.
Before I introduce David Gelbaum, I would like to caution you that Mr. Gelbaum's remarks today may contain forward-looking
statements. Such forward-looking statements may be identified by the use of words such as plan, expect, intend, anticipate
and similar words. Any such forward-looking statements are made pursuant to Section 21E of the Securities Exchange Act of
1934. They are neither promises nor guarantees but are subject to risk factors that may cause actual results to differ materially
from expected results. A discussion of those risks is contained in the Company's filings with the SEC, including its 2009 annual
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report on Form 10-K and quarterly reports on Form 10-Q and in the Company's earnings press release on May 14, as well as
other periodic reports filed with the SEC. You should not place undue reliance on such forward-looking statements, which are
current only as of the day they are made, and we disclaim any obligation to update them.
And now it is my pleasure to introduce David Gelbaum, Chairman and CEO of Entech Solar, who is prepared to take questions
from participants on the call.
David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Thank you, Candy. Good morning. Before I start, I had asked several members of our team to stand by -- to be on the call and
to be able to take -- so I can hand out questions to them if a question is asked to me that they can answer better. So first, I'm
going to ask the members of the team to introduce themselves, and I'm going to start with Mark O'Neill.
Mark O'Neill - Entech Solar, Inc. - CTP

Yes, Mark O'Neill is here, the CTO. Thank you.
Bob Walters - Entech Solar, Inc. - VP, Marketing

This is Bob Walters, Vice President of Marketing.
Jim Lowell - Entech Solar, Inc. - Product Manager, Daylighting

My name is Jim Lowell. I'm product manager for daylighting.
Sean Rooney - Entech Solar, Inc. - COO

This is Sean Rooney. Chief Operating Officer.
Chas Michel - Entech Solar, Inc. - CFO

This is Chas Michel, the CFO.

Lee and Doug, are you there?
Lee Laurendeau - Entech Solar, Inc. - VP, Engineering

Yes, good morning. It is Lee Laurendeau, Vice President of Engineering.
Doug Williams - Entech Solar, Inc. - Engineering Fellow

Doug Williams, Engineering Fellow.
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Thank you very much. And then I got a couple of questions via e-mail from shareholders. The first one was a question about
the cash burn in Q1. I'm going to hand that off to Chas Michel, our CFO.

Thank you, David. Several of you have inquired and interpreted the net loss for the quarter, which was $6.2 million as cash used.
This fortunately was not our cash used during the quarter. We have a number of expensive items that do not require cash. And
in our Form 10-Q, which we will be filing later today, you will see that our actual cash usage during the first quarter was $2.9
million or an average of about $1 million a month.
The Company continues to enact different cost-cutting measures, but we still have certain legacy costs, primarily severance
costs, related to downsizing of our New Jersey and Texas operations and management changes that will continue through
November of this year that is going to impact our cash usage. The peak of these costs actually occurred in April, and they were
slowly decreased through the remainder of the year. I think that covers the cash burn, so it is back to you.

The next question was a question about a shareholder had asked to describe our strategy for penetrating the skylight market,
and I'm going to hand that off to Jim Lowell.

Thank you, David. The tubular skylight that Entech Solar recently launched is being viewed as a commercial buildings product.
And so to gain penetration to the building products market, we are looking for architectural specifications of that product. We
are looking to achieve those specifications by selling directly to architects, design build contractors and people of that nature.
We are in the process of establishing a distribution channel, a network of distributors and representatives across the US who
will help us penetrate that market.
Is that sufficient, David?

Yes, that is very good. Thank you very much, Jim. And now I will open it up for questions.
QUESTIONS AND ANSWERS

Operator
(Operator Instructions). [Roger Schwartz], private investor.
Roger Schwartz - - Private Investor

I have several questions, more of a general nature. The first question being, how has the introduction of the Tubular Skylight
been going? Are there significant sales or interests? Do you expect it to be contributing considerably to revenue this year?
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I will answer that. I think to date we have sold only six skylights, and I will not make a prediction on what contributions to revenue
will be in 2010. It is just our policy not to make projections.

Okay. And the second question. Are the ThermaVolt products on target for completion and market launch for the fall and first
quarter, first half of next year?

We have discontinued for the moment ThermaVolt. Our current CPV product is SolarVolt. SolarVolt, if all goes well, we will get
it into certification this summer, and then if we -- I think certification is expected to take about seven months. So once we get
into certification, we expect -- we don't expect to get out of certification until seven months after that.

Thank you. Will Entech products competitively sustained and perpetuate given the rather fierce world competition in solar?

That is a very good question. Our cost model shows that our SolarVolt product will be competitive with -- actually the lower-cost
and wind/sun modules are priced right now. And we also have plans for reducing those costs over time. But right now our cost
model shows that we will be competitive with wind/sun panels as they are priced right now and with the other CPV products
that are on the market.

Lastly, how will Entech Solar be financially secured with sufficient operating capital until its products can generate the revenue
needed?

That is not -- I cannot answer that question. That is a question about the future. Chas, can you tell us right now about how much
cash we have on hand?

Well, David, as the readers will have seen from the press release, we had right at $3.9 million at the quarter. And that is most
updated information we can release at that this point in time.

Okay, very good. So all I can say is we cannot make a prediction about what our capital resources will be. We have, as you know,
we have -- (inaudible) are you there?
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Unidentified Participant
David, I will help you out with this one. We are also as you will be aware and if you watched the filings, you have seen where
we have a rights offering that has been filed with the SEC that we are waiting to go through the comment period with the SEC.
You are also aware if you have watched the filings we have a $5 million offering registration in the SEC as well for [Associates
Capital], which we previously announced. Those few items are two funding sources we are looking to for future funding for the
Company going forward. Their success obviously is -- we have no way of determining how successful they will be and nor do
we really know at this point in time when we will have access to that capital. It all depends on when we finish our review period
with the SEC and get both registration statements effective. So there is a lot of unknowns right now, but we do know for sure
those two sources are out there for the future.

Thank you very much. I wish you continued success.
Operator
(Operator Instructions). Peter Trapp, Bifrost Capital.
Peter Trapp - Bifrost Capital - Analyst

I think you may remember that I have been involved with Entech Solar for a few years here. And so I just wanted to raise a
question as to whether any of the technology that you or products in the SolarVolt area, do any of them carry any of the old --
I shouldn't say old -- any of the technology that came from the joint venture that you had with Encore at one time?

No. Mark, is that correct?

That is correct.

Okay. So this is completely separate and all activities with them were severed, and none of the technology is being used is -- it
is all your own?

Correct.

Okay. Are you able at this stage to give any indication on what is the size of the addressable market in the skylight lighting
product? Also, who is your competition in your opinion on both the SolarVolt and the skylight?
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Okay. I have not answered that, and I don't know if I should. We know that there is -- I believe this one company in the Tubular
Skylight market has revenues of $100 million a year, so that is one data point. And I don't know what the size -- I don't know
how big the addressable market there is. Because the demand for skylights is growing because skylights are a renewable energy
product. And I would say that's a non-known, but I think there is one company has revenues of $100 million a year.
Could you give me the second part of your question again, please? You asked, what is the size of the skylight market, and then
you asked some thing else.

Just getting a sense as to what the size of the addressable market was for the skylight and for the SolarVolt, and also who your
competition, if any, was.

Okay. I would say that for SolarVolt, that is the market for solar electricity, which is huge. It is just all a matter of coming in
competitively priced. There is -- I think (multiple speakers)

So it's a price competitive market completely you are saying as opposed to a product innovation market?

Correct. All we are doing is producing electricity. We do not produce better electricity. It is all about the price for SolarVolt.

Okay. And where would you intend to manufacture these -- this product or these panels?

Right now we're looking at manufacturing them in China.

In China? Okay. And you have you actually begun to secure manufacturing capability, or are you just not far along enough yet
with the certification process?

No, I mean we are in discussions with a potential Chinese manufacturer.
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Okay.

I think you have another question about the skylight market.

My two questions were competition and addressable market, so those were the two that I had. (multiple speakers) -- get a sense
of -- I'm assuming it is kind of a low-tech product as opposed to the solar, which is a slightly higher tech product or --?

Yes, in some sense it is lower tech, but our skylight product is unique because of our patented Solar Collimator, which straightens
light out and delivers more light where you want it. As opposed to the solar electricity market where we just deliver electricity
and it is all about the price, our patented Solar Collimator delivers a better quality daylight than the competition so far as we
have been able to determine.

So is your initial goal in the skylight market to focus on the California market or let's call it the West Coast market? Are you going
to try to go national with it? Are you going to use a franchise or a dealer operation, a dealer network? Can you give us any
indication there as to how you intend to leverage your product into the market?

Yes, I'm going to hand that off to Jim Lowell. That is an excellent question.

Yes, the Tubular Skylight, as I said earlier, is an architectural building product. And so it is through that distribution channel that
we are looking to get the product into markets actually across the nation. There is not a particular geographic region that we
are targeting. We are looking at this as a nationwide product.
So we are looking to set up distribution within the building products market and looking to establish distributors who are well
placed and have good reputations for delivering and selling products into that market.

And at this stage, have you secured any dealers that have taken your product yet?

Yes. We have established one -- entered into a relationship with a local distributor here in the Dallas-Fort Worth area who is
distributing our market, and we are also in discussions with several others in other markets around the country.
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Okay. So I'm assuming then that this product would be -- I mean the growth in the product if it is a successful product is a
function of the construction market. And so the construction and housing market -- I'm assuming it is both a commercial, as
well as a residential product. But thinking about the commercial side, I'm assuming that that is a function really of the growth
in the economy for looking at potential projections?

The product was designed specifically for the commercial market. So both new commercial construction, as well as renovation,
are both opportunities for our product.

Okay. Is there any tax credit available for installing these because of the theoretical energy saving or the lights enhancement?

I am going to hand that off to Bob Walters. Go ahead, Bob.

Yes, this is Bob Walters. There are several different types of incentives around the country. There is not a direct investment tax
credit like there is with the solar power system. So different states have different types of incentives.

Alright. Well, I have probably asked you enough for now. So maybe I will just hop back into the queue.
Operator
[Frank Dontiss], private investor.
Frank Dontiss - - Private Investor

My name is Frank Dontiss and I'm representing some German investors. Hello, Mr. Gelbaum. Hello, gentleman.
I think your long list of questions actually, some of them have already been answered. Thank you for that.
Our first question actually remains is related to one the previous speaker asked. How can we see or is there a strong pipeline of
customers already existing for both products you have already or you are going to bring into the market?
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Well, we have -- as I said, we have sold only six skylights. I don't want to comment on what we have -- I don't want to comment
on future sales. As those are made, we will -- if we make some in the following quarter, we will announce them, but our policy
is not to make projections.

Fair enough. We have seen you and recently quite often now in the public, and you appear with interviews and some articles
have been launched. Is this a turning point in terms of marketing? Events or did it just happened?

I don't -- you mean, was my decision to grant interviews a turning point?

No sorry. Before we have not seen you very often in interviews bringing a company like Entech into the public. Now we have
seen several over the last couple of days. And we just wonder whether this is a new strategy you have in your marketing that
you appear more often in the public?

I think that is probably true. As CEO of Entech Solar, I felt obligated to grant these interviews. I will do what is best for the
Company, what I think is best for the company.

Okay. But it is not something that you have something you would like to promote? It is just that you would like to make the
Company more public showing that Entech it is in the market is there and that you are proposed to provide new products to
the market soon? Is this the reason behind that?

No, it was not. It was just that there was some interest on the part of the news media to interview me after I became CEO of
Entech Solar, so I granted those interviews. But it was not connected to marketing our products.

Okay. Thank you. And one last question is, in respect of all your other investments through your fund, I know that is very
hypothetical and I believe that the answer is clear. Will there be any synergies among those investments in Entech?

I think there are potential synergies, yes, with some of them. Not with all of them but some of them.
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Of course, of course. I mean you have quite a lot, yes. Well, thanks very much.
Operator
John Young, private investor.
John Young - - Private Investor

I appreciate your having this conference call and including the rest of the executive management team. I was wondering if you
could just make a comment on working capital?

0 ratio and just slightly above with some positive working capital as of the end of the quarter.

Okay. Also, on the financing options with the shareholders rights offering and the Associates Capital, when do you think we
will actually see that firm up a little bit? Because you had that other shareholder rights offering back in March of, I think, the '09.

Really we have some comments back from the SEC on the Associates transaction, and we are responding to those comments.
But we cannot say when it is going -- if and when it is going to be provided by the SEC.

Also, I would point out that rights offering you are talking about from March of '09 is the same rights offering we are still working
on because of just getting through SEC comments and review and just timing of the market in general. And so that rights
offering you are thinking of is still the same one that is at the commission that we are trying to get finalized.

Okay. (multiple speakers) It could move up or down in terms of the price that is being offered? Currently it is at $0.08, so that
could change to you then, or is that a possibility?

I think that I'm not sure what the --

No, the price is set at $0.08 a share. That would be the price.
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Okay. Great. I just have two more questions. Is there any testing or certification that is either recommended for skylights, and
how do insurance companies feel about skylights in general?

I think Sean you can comment on the testing and certification right.

Yes, over the past several months before we launched, we went through a whole host of testing and building code requirements
including AMA 440, which is an IVC 2006 International Building Code 2006 requirement. We've got our WDMA hallmark
certification, which includes positive and negative pressure tests, water leakage tests, air infiltration, etc. We have gone through
smoke flame test on the plastic material.

So it sounds like it is not going to be an issue?

Yes. We provide our purchasers all of that test data, which again falls right in with what the interest industry is looking for for
their insurance coverage.

And then just one last question. Let's say you walk in and you make a sales call on a potential customer. How do you convince
them to risk a skylight from a small company that is also a new manufacturer in the area? Are there small vendors looking to
get a leg up on the competition, or is there -- are they just going to try something new, or do you have to give them incentives
to get them to try it?

Why don't you answer that, Jim?

That is actually a very good question. We are positioning ourselves as providing a product that is superior to the current state
of the art in that product design. We believe we have a good list of feature and benefits and offer a great value proposition.
There are a number of areas where we have made some technological advances. There are some other areas of the product
design where we did not want to reinvent the wheel, and we are relying upon established and proven designs there. So the
risk with our product we think is very low.
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Okay. So what -- well, I can ask one last question then?

Sure.

What is your manufacturing capacity right now for those skylights?

I will let Sean answer that.

Well, we have got a supply chain that actually allows us a lot of flexibility to handle the small volume we have done thus far as
well as any increased volume that we might see. So I would say that our manufacturing capacity is going to be flexible enough
to handle the sales that we may see.
Operator
Peter Trapp, Bifrost Capital.

I just wanted to ask Mr. Gelbaum if in this rights offering whether, in fact, Quercus Trust has made any public statement that
they intend to take up their pro rata share, or if, indeed, Quercus is going to operate as the standby agent in the rights offering?

I would like to get our Company counsel on the line to answer that. Jerry, are you there?

David, he is having the problem. I will be glad to address it. Inside the rights offering itself, Peter, it is clear that Quercus Trust
can not participate in the rights offering whatsoever.

Oh, I see. So that means then that you need to have an independent standby agent then for to take up any [underedge], so to
speak, in the rights offering? And if so, who have you nominated if anybody?
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There is nobody nominated in that role. It is all to the shareholders.

Okay. So it is all on a best efforts basis. It is not an underwritten --?

That is correct. It is best efforts.

It is not an underwritten?

No, sir, not at all.

I see. Okay. Alright. Well, that makes sense.
Operator
Thomas Nichols, Investors Capital Corp.
Thomas Nichols - Investors Capital Corp. - Analyst

I just have a question regarding the skylight and the SolarVolt. I wondered if we could get a little more description of skylight
versus SolarVolt.

Okay. The skylight is -- SolarVolt produces solar electricity. So there is -- when you say versus, do you mean a comparison of the
two, or do you mean just what is one and what is the other?

Yes, I think you mentioned that the SolarVolt was really more directed at the electrical grid as opposed to -- the skylight is what
is that, more for commercial and residential?

Yes, that is correct. We were aiming at the commercial market, and that is right for skylights.
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Yes.

I may not have understood your question. I don't think --

No, I was trying to see if there was a distinct sort of difference between the skylight and the SolarVolt.

Yes, there is a distinct the difference. The SolarVolt produces electricity for solar power. So it's output is just electricity. The
skylight delivers natural daylight from the sun, so they both come from the sun but that is their only connection. The skylight
just takes the light from the sun and delivers it directly into the room, whereas SolarVolt takes the light from the sun and science
on the solar cell and converts it into electricity and delivers electricity to the customer.

I see. So the skylight then is strictly, as you say, just light. There is no solar panel about it?

Correct. That is correct.

Okay. Well, I just thank you very much for that clarification.
Operator

I was wondering did you guys attend the Light Fair International Expo?

What was the name of that?
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Light Fair International Expo.

Yes, we did.

How was the reception on that?

I will let Bob Walters respond to that.

Yes, John, we were quite pleased with the activity that we had in our booth. It is the first time that Entech Solar participated in
the Light Fair. It appears to be the premier international conference for daylighting and lighting fixtures. And so we had
continuous activity in our booth, people asking questions, wanting to know the value proposition that was being offered by
our sky lighting product. And exactly the questions that others have asked, how does it differ from other products and why
should they purchase it.

How many people attended that conference, I mean that Expo, and how many companies -- (multiple speakers)

We have not heard the final number, but we think there were on the order of 25,000 to 30,000 people there, and that number
will be finalized and we will be told a final number probably in the next week or so.

Can I ask one more question?

Sure.

So what is your strategy for cutting costs on the SolarVolt? I know you can cut materials, aluminum, you can cut plastic. You
can cut labor costs. What is the biggest thing you can do that cut the costs now in the future? I mean would be switching to
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triple junction sales? I'm just trying to get an idea how you can be competitive with -- be cheaper than thin film and also cheaper
a year from now.

We cannot comment on what our cost-cutting plans are. It would be -- because that would be giving away proprietary information.
But what you've described is, what we have to -- just what you said -- those are the things we have to reduce.

Are you currently working on a triple junction model to really get -- (multiple speakers)?

I would say we are not currently working on that. We do have IP in that area developed by Mark O'Neill. Mark, do you want to
comment on this question?

Sure. We have done a lot of work in triple junction sales, especially for space over the last couple of decades, and we are very
familiar with that technology but our present SolarVolt is a silicon-based concentrator. We think that provides the most economic
approach for the near-term.

Okay. Can you give an idea what the efficiency will be or what the concentration will be on the final product?

We can talk about the concentration. I don't think we want at this point disclose what the module efficiency would be, and it
is going to be a 2010 concentration.

And I think some of that is described in our newsletter on our website, too.

And I guess in that same vein, what is your goal to reduce costs? Do you have it on a yearly basis, I mean like a certain percentage
every year? How do you know when you have actually reached your goal?

I don't think -- I would say -- I'm going to turn this to -- I'm not trying to be a smartaleck. I don't think we will ever reach our goal
because it is a moving target. So we know we have to continually work on reducing the costs. We don't think that will ever stop.
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Is there any chance you would be coming out with any newer products in the next year? Is there something in the pipeline that
could be totally different than what you're working on now?

Right now our focus is 100% on SolarVolt and on our skylights.
Operator

I must say I commend you on the article that appeared in the New York Times. I thought it was actually very interesting and
quite thoughtful and insightful. I'm sure that the impact of that article could not have been -- I'm sure was not lost on you with
the stock up significantly on 10x volume against its five day moving average. So it was not just a fluke I think.
So based on that, I'm wondering whether, in fact, you feel the company is at a stage that it makes sense to be attending not
just industry conferences, but maybe some of the small-cap microcap investment forums in order to get a little bit more profile
with investors and with analysts potentially, etc.?

Yes, I think that --

And if that is the case, how do you propose to go about it or maybe you have already gotten there.

No, right now I'm not proposing to do that. Right now what we need to do is make something. We need to make some skylight
sales. We need to get our SolarVolt into certification. We have got to get it out of certification, and we have to make SolarVolt
sales, and that is our job right now. And I'm not inclined to go to present at small-cap conferences. We have to deliver -- my
attitude is we have to deliver results and not promise things.

Okay. That is fair enough. Thank you.
Operator
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I was just wondering with regard to the SolarVolt, how that would possibly fit in or compare with offerings from SunPower and
First Solar? They seem to have a bigger footprint in there, and I just wondered if SolarVolt was something that was possibly a
little bit more advanced than the offerings from those two companies if that is possible to address.

Okay. I would say that -- (multiple speakers). Our goal is to produce a product that is lower-priced than the competition. And
when I look at the competition, I'm considering one (inaudible) manufactures, and our cost model shows right now that we can
be -- our cost model shows that we can be lower-priced than the wind/sun panel manufacturers, if you take it on an all-in basis.
But it is definitely going to be a challenge for solar. It seems to drop -- has for the last few quarters dropped its cost per watt for
its panels by $0.03 or $0.04 a quarter, so that is a moving target. So we are certainly not going to promise that we are going to
be lower-priced than they are, but right now our cost model shows that we will be lower-priced than the average wind/ sun
panel manufacturers.

Good. Thank you very much.
Operator

You gave a radio interview a while back --

Where did I did -- I cannot remember where it was -- Texas?

Yes, I think it was in Texas. I mean it was a little while back. In the interview you mentioned that SolarVolt you were not targeting
the rooftop. Is that still the case, or is that just something that you are still considering?

Our initial market will be the ground mount. But we are not precluding a rooftop market, but our initial market will be the
ground mount.
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And I guess I have one more question. It seems to me just thinking this through that the one thing that would be a slamdunk
for getting your products sold would be -- one limiting factor might be financing. How do you convince [PK8] financiers to take
a risk on new technology at the small company? I was just curious if you have actually considered providing financing actually
(inaudible) whether or not someone else another engineer or something like that -- financing some of these projects -- I mean
financing their own products?

No, I would not make any comment about my commitment for the future. But I would say that we know we have to -- the point
you brought up is a very valid point. We are going to have to convince someone to finance our product or we are going to have
to -- I mean someone to license our product. We are going to have to convince someone to buy our product and self finance.
That is definitely going to be have to be a hurdle we are going to have to get over.

So Entech itself would not take ownership of some of these projects and just sell electricity? I mean kind of doing what Suntech
and SunPower and First Solar are doing?

I would not say that -- I mean if you look at our cash balance right now, we definitely could not do that. I don't know what the
future holds, so I will not rule that out. But I will not say it will happen either.
Operator
[Gary Polterek], Entech.
Gary Polterek - - Shareholder

I enjoyed reading The Times article last week. Nice to meet you, sir.

Nice to meet you.

I have a couple of quick questions. You mentioned the distribution network that you are working on. When do you expect that
to be in place, and additionally can you comment on what other current locations are now? And would your distribution network
include some of the mass retailers like Home Depot and Lowe's?

I commit predict the futures. I cannot say when anything will be in place. We do have a distributor with whom we are working
right now in the Dallas area. My guess is that skylight is a complicated product to install. And I don't know if -- so right now we
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are not trying to market through Home Depot or other big box retailers. We are marketing through distributors. So we are not
-- this is not -- I don't think this is an easy do-it-yourself install product.

Okay. I don't know -- can you hear me?

Yes, I can hear you.

Okay, I'm sorry. Would this be something that building contractors would be trained to install, or is it too complicated for that?

Let me hand that over to Sean Rooney.

Yes, we intentionally designed the products to be readily installed by, quite frankly, an HVAC subcontractor. We have a rather
robust installation guidelines that we have written. But at the end of the day, we don't require a standalone certified tubular
daylight installer to install it. It is meant to be installed by a building tradesmen who is capable in his craft, and we have offered
to provide training if need be. So it is within the building industry, within the building trades industry, it is a fairly simple
straightforward installation.

One last question. Can you give us a flavor for what you expect your burn rate to be starting in 2011?

I would rather let -- in general, we cannot (multiple speakers) predict the future, so I'm going to let Chas comment on that.

No, we would not comment on that at all anyway. So that's too far in the future. We will not comment on that.

Of course not. Okay. Thanks for a much. Really appreciate it. Good luck. I'm a shareholder and looking forward to great things.
20
FINAL TRANSCRIPT

Thank you very much. Before we go on, I wanted to -- I'm going to ask a question for everybody, which is, what are engineering
services -- and I'm going to hand that question off to Lee Laurendeau. Our New Jersey office is focused on two things, engineering
services and operation and maintenance of our previously installed solar installations. But I want to -- engineering services to
date has brought in $21,000 in revenue, and I wanted to ask Lee Laurendeau to tell our listeners what are engineering services.

Yes, thank you David, and again it is Lee Laurendeau, the Vice President of Engineering in New Jersey, and with me is Doug
Williams as well. I will give you a quick overview of what we are doing as far as engineering services.
I think most people on the phone are aware that here in New Jersey there have been 20 plus years of experience designing and
installing solar large-scale PV installations. Of course, we have designed the Denver International Airport and the Fresno
International Airport and have a record of installing over 10 MW of PV. So our attention is to leverage that experience and
expertise and offer engineering services as a service to other companies that are looking to get into the PV business.
So we are not getting back into the EPC or the construction business. This is purely design engineering of PV installations.
And to be more specific, we are looking to help clients bring PV projects from concept to shovel ready project by working
through all of the conceptual and preliminary and detailed design surfaces doing system layouts, cost analysis, optimization,
energy, modeling and all the things that go along with engineering of a PV system.
Specifically we have targeted three markets that we are going to address as far as engineering services but. The first is we are
going to go after airports, and our value proposition there is very simple. We have the experience and know-how and practical
knowledge of putting solar in an airport. There is some specific engineering knowledge related to airports that we can certainly
use as part of our value proposition.
So we are going to be reaching out to airports. We have a great resume with Denver International and Fresno, so compared to
other engineering companies, we certainly have the resume. And our intent is to help them do feasibility studies as to what a
solar installation would look like at their airport, how big it would be, and some of the preliminary economics of what it would
cost and how much revenue it would generate as far as electricity. Eventually if the airport does go out for RFP, our intent would
be to partner with them and put together the technical specifications and preliminary design that would be on the RFP going
out to other EPC contractors.
The second target market we are looking at is to partner with large EPC companies, and there is a lot of floor type EPC companies
that are looking to get into the solar market. They certainly come with a great background with construction and project
management. But the folks that we have talked to all are telling us that they are sorely lacking in the engineering capabilities
related to large-scale PV design. So that has been going well. We have partnered with a few of those companies, and currently
are working on a 6 MW and a 10 MW design for two clients that we have.
And lastly, our third target market that we are going after is small and medium-sized EPC contractors. So there is -- you know,
now that solar is getting hot again, there is a whole bunch of electrical contractors by the hundreds who are looking to get into
the solar business. And they are finding that it is not in their -- it is very costly and not economical for them to try to build out
an entire engineering team. So in that case we are working as an outsourced engineering provider for them. So they come to
us on a project by project basis and will pay us to do either the design required to do a bid or in the case if they win the job to
do the detailed design.
21
FINAL TRANSCRIPT
So very quickly that is just an overview of what we are pursuing. This is a relatively new venture for us here in New Jersey. We
certainly have done this before, but we're trying to kick this off in earnest and generate some revenue, as David said, going
forward.
So that is a quick overview of engineering services here in New Jersey, and I will hand it back to David.

Alright. Thank you. We will take more questions now.
Operator

Yes, I was just wondering if there was something that came up before Entech Solar became Entech Solar, I think they had when
it was air and water technology or something they were doing solar powered portable pumps or generators or something like
that, and I was wondering if that was still part of the mix or if that was part of the stuff that was cut loose?

That was part of the stuff that was cut loose.

Okay. Thank you.
Operator

Yes, in listening to the presentation on the engineering services, I just wondered if you could provide any insight onto what
the sales cycle is in these kinds of propositions and if you have any backlog yet of work? And if you do, are you going to account
for this on a cash basis or on a milestone basis?

I will not comment on any backlog. We are only going to comment on things that are built. Okay. So we have $21,000 in revenue
so far. And then I will let -- I just wanted to make that clear. But then --
22
FINAL TRANSCRIPT

On the accounting side, it just depends on the term and the length of these projects. So far they have been very short. And so
the times that would convince us that within the period it almost approaches a cash basis because of the quickness. Obviously
if you got into long-term contracts, we would have to consider where we went from there as far as the accounting.

I'm not sure I understood Mr. David Gelbaum's response on the sales cycle.

(multiple speakers)

That was Chas that was --

But on the sales cycle, again, they are short. And as far as any backlog or anything like that, it is not the position for us to talk
about the backlog at this point of potential sales. It's a very young business just starting, and if we get more visibility into the
demand, then maybe that is something we will talk about in the future.

Okay. Well, if it is that young then, how are you going about your marketing? Are you reaching out through the press? Are you
reaching out through professional magazines? Are you reaching out on a one-on-one basis to the contractors? Are you just
advertising generally? Can you give us some indications as to how you're making contact with these hundreds of contractors
and other people who might be interested in working with you?

Yes, I will give that question to Lee Laurendeau.

Yes, that is fine. As far as the airports go, we are doing what I would call direct marketing. So we are sending brochures with
some of our experience in pictures related to the Denver and Fresno airports. We are targeting the appropriate folks at the
airport who would be the decision-makers. That is for the airports.
As far as the large project integrators, we do have quite a few contacts from our previous experience that we are leveraging,
and at the same time similar to the airports, we are just doing targeted marketing and reaching out, everything from cold calling
to letters to also looking at large RFPs that are out on the newswire as a way to approach them.
And lastly, as far as the small to medium-size contractors, we are using industry associations, and we have lists of literally
hundreds that are in front of us and we are just reaching out to them. Obviously we are not doing it all at once, but we are
23
FINAL TRANSCRIPT
working first with local firms trying to leverage the fact that we are nearby in New Jersey. There is a lot of activity as far as solar
going on in New Jersey, and that is kind of our first wave of reaching out to the small to midsize companies.
Operator
We have no further audio questions at this time.

Wonderful. Thank you all for your questions, and thank you, Entech team, for helping me out here. This has been great.
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Final Transcript: ENSL - Q1 2010 Entech Solar, Inc. Earnings Conference Call

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ENSL - Q1 2010 Entech Solar, Inc. Earnings Conference Call

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CONFERENCE CALL PARTICIPANTS

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David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Mark O'Neill - Entech Solar, Inc. - CTP

Bob Walters - Entech Solar, Inc. - VP, Marketing

Jim Lowell - Entech Solar, Inc. - Product Manager, Daylighting

Sean Rooney - Entech Solar, Inc. - COO

Chas Michel - Entech Solar, Inc. - CFO

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Lee Laurendeau - Entech Solar, Inc. - VP, Engineering

Doug Williams - Entech Solar, Inc. - Engineering Fellow

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David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Chas Michel - Entech Solar, Inc. - CFO

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Jim Lowell - Entech Solar, Inc. - Product Manager, Daylighting

Is that sufficient, David?

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

QUESTIONS AND ANSWERS

Roger Schwartz - - Private Investor

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David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Roger Schwartz - - Private Investor

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Roger Schwartz - - Private Investor

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Roger Schwartz - - Private Investor

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Chas Michel - Entech Solar, Inc. - CFO

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

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Roger Schwartz - - Private Investor

Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Mark O'Neill - Entech Solar, Inc. - CTP

Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Peter Trapp - Bifrost Capital - Analyst

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David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

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Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Peter Trapp - Bifrost Capital - Analyst

David Gelbaum - Entech Solar, Inc. - Chairman & CEO

Jim Lowell - Entech Solar, Inc. - Product Manager, Daylighting

Peter Trapp - Bifrost Capital - Analyst

Jim Lowell - Entech Solar, Inc. - Product Manager, Daylighting

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