AMSC - Earnings call transcript Q1 2019 | American Superconductor Corporation

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Operator

Good day, and welcome to the American Superconductor First Quarter Fiscal 2019 Earnings Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mr. John Heilshorn. Please go ahead, sir.

John Heilshorn

Brandon. you, Thank and fiscal everyone, American first Superconductor's Good earnings welcome conference and XXXX call. quarter morning, to I'm John Heilshorn, of partner of LHA, American Record. Superconductors IR Agency and Chief Financial With McGahn, John call today's Officer. Senior Chief President, Kosiba, and us and Executive President are Vice Officer; on Chairman, Daniel

yesterday issued XXXX earnings of its closed. market Superconductor for the the American quarter first release fiscal after

Company's in For release, a the those to the page able investors seen of www.amsc.com. you been who website of the is have available at not copy

I'd remind to call, various that during XXXX. management the call that the provisions the forward-looking expectations, Superconductor's safe remarks starting Before constitute under of of Private like today's you make for prospects plans may purposes Securities and harbor Act statements Litigation about future American Reform

from Superconductor's by as indicated Form XX, filed may which report Actual Company reports Securities forth XXXX, for such important including the on materially the Exchange American results XXXX, X, result Exchange Commission. XX-K a the and the the year the those differ of has filed Company annual Securities statements in and section that factors, June set various of subsequent Commission and with March ended on Factors forward-looking with Risk those

as forward-looking views upon should as to These as subsequent of representing of expectations represent statements not management's only today. management's and today be relied any date

events may disclaims the cause subsequent developments Company's change, and statements. anticipates to obligation any specifically that update the to While Company the these Company views forward-looking

as warrants, defined refer cash relevant fair charges Company net cost Non-GAAP changes over in other items based non-GAAP the the the at non-GAAP loss of operating net management adjustments the of basis flow. consumption before of Also, measures, amortization stock and rate zero on value tangibles, effect is related and tax unusual loss Company's today's metric. to acquisition certain calculated or inventory, of loss will financial non-GAAP compensation, call, net non-GAAP by

non-GAAP flow or cash cash of that legal Company's is unusual by press Commission reconciliation the have issued X-K. release tax flow found A be night Non-GAAP operating can the Exchange and on before defined the fees XXXX Company flow Sinovel's earnings and fiscal and Form items. the operating of measures first furnished Securities other to cash last effect and quarter expenses, settlement, to GAAP the adjustments in

SEC All of releases www.amsc.com. website American at of be from Superconductor's page press the can and Investors accessed filings its

McGahn. With that, now I the Daniel? President call will to Daniel and over turn Chairman, CEO

Daniel McGahn

provide today an provide Kosiba Thanks, and of John, John and begin the good review June ended business of ends first our results our XX, financial units. September I'll will which everyone. a then update by second the XXXX, providing fiscal XXXX. quarter, quarter, and XX, detailed wind morning, grid for which fiscal guidance for

our comments, to analysts. from our open line the questions we up Following will

Revenue XXXX for year quarter range. guidance our exceeded the of first fiscal

our this deployment quarter, Last revenue D-VAR continued fiscal of record our In expected business quarter last strong backlog I quarter year, reported spoke when contributed to the a revenues our growth from U.S. product both success. a was of project. the is in shipments, first and ship REG grid grid period testament first Growth fiscal XXXX grid sales and to additional from Navy year. same for for our fact, our increased D-VAR our XXXX. SPS fiscal of to the this VVO for of segment our in compared by wind revenue driven the also quarter projects segment the to

very well. performing Our is manufacturing also team

been able to chain the supply D-VAR. for increasing has to respond demand Our

remainder anticipate this of revenues base D-VAR should grid We year. strong that shipments of provide the a fiscal for

high based half have business. overall D-VAR levels upon continuing of in XXXX. and into of that fiscal growth this the foresee stronger of even grid year is have we driven the grid as for pattern fiscal well D-VAR, expect as by backlog the for This We second a we XXXX continuation

now reported in revenues we quarters, fact, In revenue. two which XX% consecutive have grid of comprised total over

backlog building business D-VAR is and of industrial of beyond. for the XXXX D-VAR team orders of both the sales The renewable strength a focused fiscal Our grid segments market. coming is the and on our from connectivity

class. anticipate of Our has SPS a LPD. Antonio system approximately future potential Ship baseline the for on XX Navy's Class is degaussing design platform, in total now deployment the the ships San We SPS for this our

$XXX Antonio with remaining Class. believe about $XX our represent first could the revenue vessel. San the win revenue to Antonio San approximately over design Navy. to stream The per be Class a SPS We of could This the life our equate for million then Antonio Class million the of in expected San is

vessels We the Class U.S. of additional are pursuing with

platforms and product to of delivery XXXX. our capabilities and of Other grid segment fiscal combat contributed not include carriers, the limited SPS Navy. during establishing XX to, destroyers, but quarter our XXXX. LPD revenues and first the littoral aircraft quarter first are XX in began fiscal We ships. SPS manufacturing frigates LPD for

LPD We timing XX. are the XX understand the for to working LPD closely and Navy program with

We perspective, we Class. for planning a concurrently. anticipating manufacture From additional SPS are capacity to are systems orders the Antonio multiple San SPS

on established. we During the first place the into on backlog the quarter, already capabilities putting we deliver focused to have

in a are believe to future. We in we get the position orders more that

is floor As you very our in Massachusetts can days. these busy production imagine,

or VVO, Volt/VAR system, this new product Our addresses the power market. Optimization distribution

our our products, utilities' team done are job educating by we about VVO encouraged an to sales and reactions has Our excellent positive utilities solution. of

today. to from utility repeat multiple We orders are starting we multiple delivering and customers, are customers to see units

our VVO's We see a in applicability. natural diversification

our shipped to a improve its feeders. plans VVO our In power quality on the customer VVO distribution utilize industrial during This product fact, first customer quarter. to nonutility product to we first

its on focused the to are from We XXXX fiscal VVO right getting go-to-market the strategy. in product capabilities and

product. XXXX. nationally fiscal to reps and is contribute now VVO grid growth sales expect our we on are nicely, new trained Our our developing pipeline the Overall, in VVO to

secured Doosan its offshore for making a wind turbine. to receive X.X-megawatt certification for business. company has turbines. and wind our license type to diversifying Doosan certification X-megawatt our turbine, first are we Korean us such large know, you type a manufacture As the international recently X.X-megawatt

than Doosan XX than construction news XXX construction. megawatts the out a project. indicates currently more operation of and Recent XXX-megawatt in more megawatts of offshore South beginning Korea has wind

with Our working wind is Doosan. closely team

to near X.X-megawatt look enter offshore our Doosan reporting wind our expect more and We with to market turbine forward the Industries the Korean progress partner in Heavy future.

lays of a that to and near to Korean management policy, that Doosan Doosan's significant to order a technology government's Doosan turbine share larger stated the it that Korean South has energy ground domestic Korean wind power in publicly for the an is in the intends I role the quote play with We secure renewable and hope term. South and announce to market. the

Turning to Inox.

by for the projects. that We progress and are AMSC of certain Inox design at SECI-X made by cost for asked encouraged to facilitate support wind levelized fact engineering energy and has lowering the their

desire I are cost ECS signed X-megawatt Inox's clear stated to the by Inox. to want new though, energy way encouraged turbine lower by design, with we of class We even our further supply X-megawatt a also have a yet be agreement winter. levelized wind of not

indicated, an wind power its turbine has deploy strategy the India. is of Inox in integral to part However, new long-term

well to their of X-megawatt dynamics SECI-X, demand the shifts Inox's competitors The for are India potentially We are believe India's a as focus for prototype towards requirements. We we Inox around moves Inox Inox's changing, X-megawatt their will and support completion which positive wind class about market that are positioned class in winter. believe, significant turbine optimistic towards may to be business.

look significant X-megawatt completed execution SECI-X. with We SECI-X a SECI-X We has the projects. supply X-megawatt to turbine. and to we continue ECS, for Inox to demand Inox's support are their growing working the portion ship to carefully forward on SECI-X Inox and already secure monitoring of for for product

of to end for results call fiscal XXXX. XX, for over the review first John turn provide the to of second financial and fiscal XXXX, I'll which will the John? guidance year Kosiba September Now quarter XXXX our quarter

John Kosiba

and good year $XX.X first million XXXX, the everyone. Daniel, generated $XX.X of fiscal compared quarter for in quarter. Thanks, AMSC ago to million the revenues of morning,

business quarter. accounted business for while grid for by Our revenues XX% accounted of the ago versus increased $X.X Grid quarter, XX%. of first year business for unit our million revenues total the wind XX%

the primarily was the business of in revenue. the ago by XXXX quarter, ago recently gross due year license revenues our favorable and first decrease was of the associated a to primarily was to the year This the grid and of as period. a of development in versus XX% year for fiscal due quarter Gross XX%, compares revenues with increased X% the primarily REG in particularly year-over-year mix which segment product ago Wind higher quarter projects. revenues million margin increased first $X.X for The with in announced quarter. D-VAR margin start result

fiscal first $X.X in of expenses quarter fourth expenses For comparison XX%. XXXX of more noncash. million. and for and the was was ago. the R&D fiscal XXXX the of million This same purposes, of were in R&D year were for from down first SG&A SG&A margin gross Approximately, a $X.X XX% period XXXX recent quarter fiscal the quarter

Included was of per expense or loss in in loss $X.X change share, of quarter. associated net $X.X a $X.XX quarter the million the compared in of Our fair the in this ago or warrants. first net was value reversal million XXXX fiscal noncash year $X.X to $X.XX million share with per

in was results. for $X.X with per first or $X.X fiscal night last $X.XX loss to Our per a GAAP XXXX share of quarter. issued the million compared our see the reconciliation year Please ago press net non-GAAP $X.XX for quarter of million share, or release non-GAAP

with a as XXXX interest XXXX. payment XXXX of equivalents with in our first of We fiscal first compares in was sale and the ended $X.X quarter balance March cash This cash the receipt cash, fiscal million of of quarter with million $XX.X million of the XX, receivable from final factory. the associated ending and Devon's our cash. note Included restricted $XX.X

the first XXXX cash fiscal of in $X.X quarter Our non-GAAP operating burn million. was

$X to operating This previous guidance million our $X stronger burn. than came of a million in

our In capital business favorable of arrived our calls, a result receivable As the in first future due I working capital quarter. to billings previous to collections our out deliveries XXXX, business. the quarter in serviced milestone grid accounts being have of time projects late as of of from fluctuates working individual that mentioned time grid experienced and fiscal

the XXXX. fiscal our of quarter to Now financial guidance for second turning

million. We expect be range revenues million $XX the will our to of in $XX

million cash payments fiscal a million per $X.X million anticipate non-GAAP expected of our the We flow net exceed not or in does guidance million $X tax be $X quarter of or is other to loss to $X.XX any Our not on that net include or burn and second related share, $X.X to per exceed costs not is loss the settlement. operating share. expected This to revenue $X.XX to XXXX.

This cash. end XXXX million restricted $XX the I of second to turn concludes expect in over review. than the And quarter my cash, now back less fiscal call We to equivalents cash will Daniel. no with and

Daniel McGahn

John. Thanks,

Turning our funnel to REG, as that quarter we believe for is that more these learn significant resilient electric we our quite this opportunities every of customers. go and with through we product funnel grid

going aggressively those after are We opportunities.

projects, lot of a We on continue utilities we promise. with to very show which work major believe specific

ComED, that part attention Grid. of to proof point was believe for see a the Edison our and permanent We the initial REG for solve. Power will Exelon in and Chicago's of continue expected attention to deployment retire to and serve is to project problems utilities. by it believe the We that events Chicago, chosen REG. a to Commonwealth Chicago uniquely risk will bringing drive We Company REG as become

Security to the REG on recover for want up the from us with to that's in AMSC's approval system. contract I of DHS the just said, Department modification enable Chicago, U.S. The and project received to the first with approves first Homeland system the expected sure ComEd I is of $XX to have the of REG million REG We project scope modification contract clear. cost. make

grow putting look this in energization operational XXXX. deliver successful quarter grid REG been into deliver place forward conclude, begun the expect the We we again began in systems the project to work expect in We've record revenue revenue and XXXX. to the to have To XXXX. to project. fiscal the We to of engineering hardware and

supporting strongest And we've the our with have recent in of sheet growth had advantage years. the we balance

business very D-VAR Our strong. is

are We SPS manufacturing for Navy. now the

We are now manufacturing REG for ComEd.

market, X.X-megawatt with wind and Inox We're developing add the to delivering We're class nicely. are portfolio. our wind a with offshore Doosan's to VVO three-megawatt to effort their to the turbine is very supporting pipeline turbine. working market penetrate our closely We product

to is hard our that and goals our work their against executing are dedication. of We employees to credit and the due

our we'd I analysts. time, do questions Brandon, our reporting of look to like completion the at this at fiscal to forward back XXXX. And you take of to from quarter second

Operator

The first will Stine. instructions] [Operator question come go Please, ahead. Eric from

Eric Stine

Hey.

I in way for with the modification, ultimately, does REG. the know starting approval in that any the want that this the you I Because it base question. Just The first to get like that I allow Does put be PUC this that. would -- or contract to get rate process? help any do mean, to be way? the DHS process to guess, help the utility in would

And line sight in is more and clearly, of then, to other sounds then mean, work like utilities. I Chicago, the it also, first

think that you with the it's do Chicago whether So this other utilities? DHS process, taking or step helps

Daniel McGahn

Yes.

much that do reason I think embarked scope remember allows to because utility us want program. is to. cost it this the but larger eventually be for get upon there's just to scope, you not get a to the And it It as have to able recovery they overall is absolutely this retires risk. nailed to you understand this that that we that

to sure many we expect. many, deliver if do potentially we that, So what with utilities that not but think only the a in other continue well. certainly, said with to as we really we and make Exelon, need have winner, we future, we we what do And on that

Eric Stine

of clarity gotten multiple since plays ratable then -- the you've that more know then, be should small? to revenues out it any to maybe we you of of closer, through is recognition going think And it's And XXXX. the pretty revenue? that that, in Is Or as work I it as quarter? kind quarters REG over to able the you quantify think initial something as are how it's a

Daniel McGahn

a in cost the the right We the that's it. that's way Yes, to way into recovery the quarter. think to I good to -- exactly approach entered get late agreement

we're happening, it, we're we're able the want able you're to 'XX hey, quarter. 'XX, going really forward quarter-to-quarter a But to this going kind to good means that, word, able be get content. see So you're in into signal the where build to underway, might to quarters, of think as right, get I is exactly to revenue into we revenue we're the the really good the bill some deliver recovery, able which next linearize for people We project to projects that. and in work ratable cost

there business. relative Now reductions surges to that revenue but it's minimally in be the total quarter-to-quarter, overall may or we think

Eric Stine

orders since Okay. a with I to do just results. turning obviously, that there have and Got work -- strong it. been D-VAR you know the Maybe a bit little of that the lot Vestas.

forward? think them the to least You've you with way And opportunity is them talked your that, about mean about -- a use and example, going that. penetration I there what But at them? as about just over when couple what think last is you the years, what with is of an

Daniel McGahn

Yes.

that renewable I principally with we've think, for generally, bit to selling a you realize our kind developers. changed have of We connectivity approach were little to D-VAR.

are now project they a and Vestas have trying XX%-plus interim a getting a D-VAR in. because example that lot to we sometimes But what good We show the we geographies projects. and wind into customer, been as top-tier project delivery, is development continue traditional companies of is in management that that to gets do we've develop when and they that's And as the procured. more see customers,

growth into for helped So players, build we've turbine on with top-tier that the for translate wind able and line. product back that's to been the

kind with hope maybe coming see by And market and of D-VAR. will a grid we've create on what predictable the well. driven additionally, that wins there. been We really similarly, customers. out stream dynamics changed those we more large And number It we to really a as be focused continuing to of we of revenue see the deal industrial and able

Eric Stine

time me, maybe And think etcetera. those content? how comes, this just then know should Navy destroyers, of you the the that Antonio? when the additional about the turning more X we content off. last and a San I still mentioned a to term. are But for I the is same bit the we think long But should little of carriers, mean as ways platforms,

Daniel McGahn

and size, weight length the it and ship. density the the of really the the think depends I upon

a the might put a in $X a So million length, that ship, for for to on we're we've of in the littoral see or there. an combat more then large million content in we which the aircraft for is might million example $X $XX the the number give, lower one ship. is doubling it's our good shorter range, we said smaller you probably ships, to And traditionally tonnage The LPD. ship $XX the currently out million past like be content carriers, example small a than is call it, there

frigates would all and destroyers delivered on typically, When kind of of content embarked we cruisers of range, the we this are $XX million. the guided and to we revenue then ships million $X LPD and in on number kind ships. be million originally But about L with this, midsize $XX and

pricing point able was So and to that was a proof we're a that the pricing right, wins. us winner the that gave get

that So color. you some gives

spectrum a of But aircraft Navy large carrier that sized. know, ships enormous. in are them fleet I are the most that the we mean They of is There's an But actually steam. called ships. today medium

an a or So destroyer a or a or LPD shift cruiser. that's larger frigate obviously a than

Eric Stine

Okay. Thanks a lot.

Operator

and will Company. question come Please, next from The Rusch Colin go Oppenheimer with ahead.

Kristen Owen

Great. taking for for This our is Good Kristen morning. questions. on Thanks Colin.

second thinking about meantime? gross about how as lag of to cash of then begin fiscal like on And preservation in projects sort follow-up revenues on sound that you you're Just the talk But business. wanted of in the cadence deliver? you to the some what's an grid over the the half in those year. can expecting inflection of are margins the It does related, of sort

Daniel McGahn

Okay.

John go at of can kind with then in actual kind without let me details through level. maybe hit So a high chime those and of

don't that based have growing But backlog. you to see itself, really gross So by in it, understand business business grid upon the segment. report we we margins

So we D-VAR. have backlog at for record levels

levels we'd We very with high at we thought levels have compared be VVO. back where to

backlog have backlog LPD for have the Navy, we ships the for for and We the the REG.

One of margin new three within products. challenges the business you with is, specifically grid gross the got

get have better to thing its that the to I the Right? this as be we backlog. on to in in for to to leverage margin. Same gross is to systems to SPS. with we stages, could, mean, beginning able You putting to get able be systems needs telegraph which we VVO, telegraph, put deliver year investment these try as is an SPS. place capital clearly We're scale in

We that purposely REG And costs have spend the mean getting prior same burn. where have program, that we to orders, is do is means the are sharing DHS. with to with didn't these but REG. in reflected the spend. I that you And thing

We're the obviously, costs not a utility gross with of to gross sharing be us not the lot. direct. best the basis, that out margin margin It's it's on product, for

is, So kind when online, mature selling into products you REG SPS. comes grid D-VAR. infant seeing product of products to other a but growth VVO, strategy we're the have disconnect and the you you're of do that And then come three you have having that coming these a from multiple have markets in it

we time, get appropriately So I think those margins as over scale. to we'll

anything more detail You want to any Go about margin? ahead. in talk

John Kosiba

Thank you.

Daniel McGahn

of and we're that and But you this business out from that we're can the showed was in cash me the well, principally that's backlog. quarters we're able the we Kristen, then I signal, see expected the growth burn be to previous what to clearly the going to John. thing in putting And it upon grid, that manage trying principally see based numbers think coming kind level And on to. is

going as hearing able and gross get we to as management we that backlog deliver. to based that on on improvement you're you're a high degree today That's to operating higher well. upon the get lot And on going growth the going to think what to So levels, financial numbers have be margin better I to and line trying it's margin come, not deliver a do other is line. we're what revenue the leverage we to think be they that of of excitement confidence that only we're -- from able

Kristen Owen

to size number, be that OK. as And stage? us follow-up used was the for to that quantify to something of that a that that disclosed. willing backlog be backlog at Would you just this

Daniel McGahn

any D-VAR. that of front Yes. you in of with can add kind what up we I me, don't of but have had

the know You what ships L are.

You know REG with that. disclosed is. what We've

you have you written You a where think yourselves VVO probably decent sense from is. what and even

that picture to you for think can feedback the to get add But do take I and on. people, we they construct together. backlog consider math how we've a certainly that some as we got have will better so understand

Kristen Owen

you or any wins those And these various stage? either larger then you Be that product how a seeing you higher at lines, across D-VAR, cycle sales of level, would just shortening of REG customer categorize any the cycle in or under product in across that your belt? some your sales it this are had now wind areas

Daniel McGahn

Yes.

across the the simple And probably, We're the yes, D-VAR. answer designed think repeat seeing customers us being yes. and ourselves and customers designed VVO. seeing with I being with We're that's board. repeat is,

proliferates rest with of to recurring I think some the that through business the that's the going Navy and SPS the fleet. technology accelerate at that the clear should be rate that

starting trying that and put want to the sustained to they're of challenge forth We're shortening, the upward respond the now team a August, the that is we focused lot to that's that sure period already over a sales cycles to. already beyond. on, when XXXX team we work continues that And management in backlog but to see build our do D-VAR and to really it we a So of make and wanted that's telegraph voltage challenge VVO. the trajectory into particularly to comes time. solutions sales We what this

Operator

Capital Philip come will question. go from question with Please ahead your Shen next Partners. ROTH with The

Philip Shen

the question. Thanks guys. for taking Hey,

maybe questions, The some first one is on different bit a from perspective. prior a follow-up of a

year, revenue modeling can you quantify put is the any just But strong you in growth what way And that could just grid prepared guys of talk year. for you to expect what deliver this for be? others, there purposes guys backlog that through your and simplicity say, the remarks last of digits You everybody can about talking So could I or I million revenues. quantification that of low you modeling help and XXs, if were in let's at about way the see be? could guys, there's we're think believe, $XX talking growth We're any future? the double something

Daniel McGahn

Yes.

think question. I a great that's

I think is with you depending it's have that we they to something progress always upon always those do, the struggle once the in that have accelerate these financial you customer we -- can can decelerate because projects milestones projects understand that them making and have things. timing, their or and

really So quarter D-VAR, or revenue conservative kind able semi-quantitatively think it we've what time. all we of on kind VVO, SPS and contributing and But tried control, to is qualitative, REG, now we're be we're to a guiding which growing. of to about at talking very one do real

business and to grid don't today news other and want VVO, the out from to intend be target main and that's and I grow intend But that we a translate nice these specific a certainly, to make top than as growth D-VAR, But grid, grid. any delivering and can't projects to driven is expanding to grow, into products grow So that, projects, the I put say new on we give we strategy think multiple should you but that growth into well target. we multiple on the products working for of growth overall, REG TAM SPS. think -- going

Philip Shen

Okay.

adding through But into but this some I there. but of you just ago? to year X you've successful you do utilities just have I approval is expect the VVO, that expect their kind months in how you off of necessarily the have had the you that was terms PUC envisioned way said already And VVO you process reordering a wondering do a order to shelf, buy given utilities they developing getting get this In the or product can And that that color to our product? in product been for, many specifically, multiple, -- are -- just to you list? they'll be if think talk

Daniel McGahn

is kind has know like never is feel of to that functionality -- any it hope distribution the way regulator. Our We lot and designed, that mean XXXX. manage, we're is exactly something a the I go and it a utilities We the there. VVO looks is envisioned does price this transformer. point to by product a how to

having be is a this the a is of extra the even stock a we're homes, carry and stock of What product a us that residential some utilities which thesis with solar that now for. becomes side the industrial kind directly industries electric at we thing So of on of power a quality what managing vehicles, litany market, kind seeing done work different a we've could size, product D-VAR applicable see, so. carry over VVO smaller managing for fundamental can and

of the direction VVO. right in wins for kind are all the pointing So

is said, for if we future we XXXX, to copy going but not again. orders, it tell years, that is orders are, this we we on And going becomes this we'll there, hopefully XXXX, those more the the see for to over Grid. And in limited the in will piece what right, can and when sure the get as move it we we business. and make hope that and place year want to make I'm to updating the of numbers we're is started a sure to deliver deliver something we from on likely be expanding. and markets a the to growth every there, noticeable things, coming to many keep continuing time need We want say, learn we and we come number, to So on market back we over business we're you

Philip Shen

saw you on Shifting over to last there. released that Micron your guys night, I XX-Q

customer or about think with were VVO Micron? or QX's you they both? And they of are primarily revenues. Can D-VAR I your XX% talk relationship

Daniel McGahn

Yes.

of So a of talk that when full kind factory typically that's size D-VAR. about protection, we

you're in maybe spending in seeing percent They're uptick If some new names capital with XX-plus a being now. the full customers.

year. this projection semi-market, I the total think $XXX they're about spending, now the think capital just is I billion

to years. over the mobile be are memory move these have the devices, a With be these going next to to few different to for fabs continue lot built of

So we to our like our our product seem and relationship with company. relationship with They like Micron.

So, something it's that's lot for of what customers. our are going things future be some times a of that have are going to be see to long-term but to we something limit we because

don't of things. I or fill kinds those to over get of additional identification any kind So of or detailed for demand want growth

Philip Shen

to REG one be the second the one you emphasized in is you system could terms And first in Okay. me, about, Chicago talked last of announced? this REG, that when sense REG Any as for guys system.

Daniel McGahn

I I think say. all stay tuned. That's can

Just on one. first will the be

Philip Shen

Great.

Thanks, it Okay. pass I'll on. Dan.

Operator

the Thank I'll Q&A session. the concludes you. call Daniel hand for back McGahn closing to remarks. now This

Daniel McGahn

of some quarter for great we term. challenges. through see orders of near we the REG. pretty strongly on great relatively We're some that coming. it the with see potentially changing that was we with It's maybe wind really certification Thanks that heels signaling gone think getting we think about, the have in are questions, business a clear see particularly when X.X-megawatt Doosan turbine this we I But where and

large are the see kind signaled market the grid of some to coming themselves of to We've in. Doosan demand market want they even get saying very in that we share

We've with Inox how help an project. indicator pleased very overall SECI-X to of a as execution used in handled the of the Wind has really the themselves that are We for business. kind

significant Inox of fraction to to that where this. they've has been proud commission gotten very a a point able we're So

to think far very but with in going to that that really these report their don't I happy be in can be an I happy near when know term, happy them they I the with want to their solved need they're relationship execute. with challenges We're they're ability to day. of a because ahead challenges execute. get too ability to we're hour And into run the and

Our to able as really them. worked to teams problems together one be approach those for

three-megawatt. of the And very kind in good the on we it's of a beginning between to relationship future, potential signaling the the some working companies, Inox for growth see start

share, suppliers market changes coming position they be order Indian help be the So can today, at would ECS, the may larger we're point, see do some great. in a there We should that there saying that not market command but three-megawatt Inox be should some put where that in which near wind in term. an for

We are SPS. see that coming additional orders signaling we clearly for

the trying specific best signal are note, hope demand news deliver D-VAR over VVO. project. on understand potential We out people some that, call we and to this, more for so to will think sense of be a be to that but able definitely to On an increasing what our the some sure. for there pieces of REG we we There's can as more unfold time. appears with appetite there's REG And I for

Realize that approached business quarter. this $XX has grid million our alone

The when So business Company. are thinking of to about the the the starting for here good things a supercharged get hopefully, of that's kinds be kind milestone deliver to forward. employees new to customers. trying now at going we're really It's able and to do

the that we're believe very can't today, REG here. in expected a the our XXXX, new control the lot putting as We really that place everything on we really our side. chain products, But particularly all should company of through been prepared but growth revenue our of half, customers I of formally growth we improvement levels see the supply John retired. a at capabilities, have of And We about can we're you being think markets We new grid that then to and now directly based that we And three that and control are is upon burst. VVO, SPS in kind relationships. the these do, we're risks maintaining today. a and level. in It remarks, say do cash for think to trying went back over consumption great at to as this can the position second see this

we you to that, Thank to to forward in being look able even report you, to few news. everybody. months, with hopefully, able So again talk better a be and

Operator

and concludes ladies event. you gentleman today's Thank this

may disconnect your now You line.

American Superconductor (AMSC) 10 Aug 192019 Q1 Earnings call transcript