In the quarter, the Company announced the signing of a Memorandum of Understanding (MOU) for a new Chinese joint venture with Wiscom Systems, Ltd of Nanjing, China. The proposed joint venture will focus on leveraging AETI's utility-scale solar inverter and wind converter technologies to create power conversion products specifically for the Chinese renewable energy market. Based in Nanjing, the joint venture will manufacture, market and sell the products to Chinese utilities expanding their renewable generating capacity.
- During the quarter ended September 30, 2010, the Company recorded equity income from joint venture investments of $0.5 million. The Company anticipates an increase in Chinese drilling projects which is expected to improve equity income in the remaining part of 2010.
- The Company's Brazilian joint venture, AETI Alliance Group Brazil (AAG), exhibited at the Rio Oil & Gas Show in September a drilling rig Variable Frequency Drive manufactured at our AAG manufacturing plant in Macae, Brazil. AAG also has booked orders with customers including Noble, Etesco, Dolphing, and Pride.
- The Company's cash position as of September 30, 2010 was $1.5 million and long-term debt position of $3.3 million as of September 30, 2010, which is essentially unchanged from the prior quarter.