Greetings, and welcome to the Plug Power 2013 Second Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Andy Marsh, President and Chief Executive Officer for Plug Power. Thank you, sir. You may begin.

Good morning. Thank you for joining Plug Power to discuss our 2013 second quarter results. I am Andy Marsh, the company's CEO. And we'll be joined today by Joe Makowski, our Chief Accounting Officer on today's call. Our Interim CFO, Dave Waldek, is on vacation. Once finished, this call will be archived on our website at plugpower.com in the Investor Relations section under Presentations. The conference call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations regarding revenues and product orders for 2013. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, or beyond our control and that may cause our actual results to differ materially from the expectations in our forward-looking statements. We encourage our listeners to refer to our SEC filings for a complete recital of our Safe Harbor statement as well as other risks and uncertainties discussed under item 1A-Risk Factors, and our annual report on Form 10-K for the fiscal year ended December 31, 2012, filed with the SEC on April 1, 2013. Plug Power does not intend to and undertakes no duty to update any forward-looking statements, as a result of new information for future events. Now on to the call. We took a step forward in the second quarter 2013 after the challenging first 4.5 months of the year. The funding from Air Liquide in May, which we discussed on the last earnings call, provided industrial validation and has been a catalyst with customers, investors and employees. I'd like to review some examples of the impact of this investment. First, of the $7.5 million in new orders received during the second quarter, $6.1 million occur between the…

Thank you, Andy, and good morning, everyone. We shipped 246 GenDrive units during the second quarter of 2013. As of the end of June 2013, our backlog was comprised of 1,229 unit orders for total of $21.7 million. Product and service revenue for the second quarter was $7.1 million, an increase from $6 million from the first quarter of 2013 and comparable to $7.2 million from the second quarter of 2012. Cost of goods sold for products and services for the second quarter 2013 was $9 million. The gross margin for products and services for the second quarter 2013 was a loss of $1.8 million, an improvement compared to the gross margin loss of $2 million for the proceeding first quarter of 2013. The products and services gross margin loss for the second quarter 2012 was $1.4 million. The gross margin loss in the second quarter 2013 resulted primarily from fixed overhead cost associated with the number of units shipped compared to our capacity, as well as costs incurred to service the install base. Research and development contract revenue for the quarter were $367,000, compared to $400,000 during the preceding first quarter 2013 and $458,000 from the second quarter of 2012. In our operating expense categories, selling, general and administrative expenses were $3.2 million for the quarter, compared to $2.9 million in the preceding first quarter 2013 and $3.6 million in the second quarter of 2012. The decline in SG&A expenses from the prior year is attributable to the restructuring plan announced in December of 2012. Research and development expenses for the quarter was $824,000, compared to $750,000 in the preceding first quarter 2013 and $1.6 million during the second quarter of 2012. The operating loss for the quarter was $6.6 million, compared to an operating loss of $6.4 million…

[Operator Instructions] Our first question comes from the line of Philip Shen with Roth Capital Partners.

This is Matt on for Phil. Andy, you mentioned on the last call, you had a high probability sales funnel of about $100 million. And you mentioned, specifically, some near-term opportunities of $20 million within the next 120 days. Could you give us some color on your progress in turning some of this funnel into bookings?

I think very good progress, Matt. And I would say, with 3 of our larger customers, we are in the final stages of discussions to close multiple sites at once, which I mentioned on the call was really different than what we've seen before. I am -- my confidence level that by September 15, which is the end of that 120-day period, that we will achieve, if not exceed, that target. The funding from Air Liquide helped us a great deal in opening up the discussions. And I think that everyone will be happy with the list of customers we will be bringing to the table, who have used GenDrive before and are now -- and who have many, many distribution centers or manufacturing facilities, and will be purchasing multiple sites over the coming months. I wish I could give you the exact names, Matt.

That's great color though. Just one more if I may. This is probably in keeping with what you've mentioned here. But you mentioned, I think for 2014, there was a shipment target of around 3,000 units to about 20 distribution centers or manufacturing facilities. Maybe you could just give us a bit of color about how it breaks down between customers. You mentioned 3 customers that may be large orders. Are the remainder sort of equal amounts spread out, kind of smaller orders as well, or are you looking at some other large orders in there as well?

Right. So I would expect there's 3 to 4 customers, Matt, that will represent about 1,500 units. The other 1,500 units, about half of that will come from customers, who are Plug Power's customers today; and about 750 units will come from new customers, who we've been working with over the coming year -- over the past year. Does that help, Matt?

Yes, that's very helpful. And that's it for me.

[Operator Instructions] Mr. Marsh, it appears we have reached the end of the question-and-answer session. I would now like to turn the floor back over to you for closing comments.

Thank you. I look forward to talking to you, many of you individually, over the next coming days. And I look forward talking to all of you on the third quarter conference call. So thank you, everyone.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.