Conestoga Capital Advisors, LLC on Electrovaya Inc.
Thesis
Electrovaya makes lithium-ion batteries for industrial forklifts and other equipment. A cut to management's revenue forecast appears tied to delayed projects and supply-chain disruptions rather than canceled business. Conestoga believes the company's battery technology and expanded relationship with Amazon provide support for sustained growth. Conversion of delayed orders would help validate the underlying demand outlook.
“Management says the orders were delayed rather than lost”
Key risks
- Customer project delays prompted a reduction in the annual revenue forecast.
- Supply-chain problems interfered with deliveries.
- Delayed orders could ultimately be canceled rather than simply deferred.