AMSC - Earnings call transcript Q4 2020 | American Superconductor Corporation

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Operator

Good day, and welcome to the American Superconductor Fourth Quarter Fiscal 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. John Heilshorn. Please go ahead, sir.

John Heilshorn

Shelby. you, Thank and full everyone, American fourth Superconductor’s Good XXXX welcome earnings and fiscal conference quarter morning, to call. I'm John agency Relations AMSC's Relations, Heilshorn of of LHA record. Investor Investor CEO; Daniel With Chief and Chairman, us call Officer. Kosiba, are on President Vice today's Financial and and President John Senior McGahn, fiscal issued Superconductor full release after the fourth quarter for American yesterday the market earnings and its XXXX closed.

www.amsc.com. have the release, a Company's available in Investor For page the website those copy seen at of not yet you the Relations who of is

relied American X, Annual views on with indicated of call, of in subsequent to the Superconductor's today's Reform including of the constitute like to Risk XX, SEC that plans Securities forward-looking the ended remarks the harbor Superconductor's you starting which provisions during forth Before safe that results the Private Report prospects reports Company for various and Factors those June make under that expectations I'd Form statements set XXXX. Act as as on management's the of SEC. call not today Company the the various upon XXXX, filed today. as as a management's be has and such important remind by forward-looking These for and forward-looking management statements representing future from factors, purposes result may Litigation of may statements only any American should about subsequent March filed year those Actual XXXX, differ the of with section XX-K represent materially date expectations,

rate amortization settlement, charges operating disclaims loss statements. on gain value financial and flow. and other will adjustments non-GAAP before to settlement, and is the to items of changes cash in issued the Company minority directly Company developments and update unusual today's China call, last the operating expenses, stock-based of as China can to non-GAAP non-GAAP of Company's X-K. on may the fees be fair income is cash GAAP Non-GAAP net these press change, full cash that Form metrics. fiscal the defined or release non-GAAP and forward-looking While Company loss the relevant of Also the effect compensation, investments, flow defined Company items. flow events Company to the before cash quarter the earnings comparable flows effect subsequent or of A by found on calculated on measures certain non-GAAP legal the the for interest reconciliation other or at net gain unusual and net to XXXX net specifically of Company the obligation the night SEC anticipates fourth measures acquisition by the tax furnished tax China loss views management net intangibles, measures, settlement net or refer as sale in and any that warrants, and operating Non-GAAP of the noncash cause

With www.amsc.com. Investors Superconductor's at and Chairman, American accessed over to I McGahn. can that, its be All releases of filings now of press call from SEC Daniel the page the Daniel? will turn and CEO, website President

Daniel McGahn

line But, are time our our and XXXX, with review We scope our product customers, He deliver each of or that our revenue firstly, to REG results approved morning, generated recurring year-over-year, our the a orders. of Edison. $XX guidance Electric your this I'll million AMSC which fiscal $XX about challenging lines. on and revenues provide cash cash Kosiba beat We will our business. off living a Homeland June XXXX, testament product positive we execution. healthy. built flow we're many start able Grid balance John VVO optimizer, for own that manufacturing fiscal and exceeds fourth the we financial up shortly. quarter to balance and began and We important XXXX. XXXX. of the in Thanks, call operating is the of to detailed which our fiscal of in a our delivered have To expectations growth March of ended with no But Department ended that several of the Grid. focus will growth for missed in system. the Commonwealth will nearly year and a Full-year and And This the safe XXXX with and all and not debt. for We develop generated year results into is quarter questions in manufacturing. driven compensator in from the Grid XXXX. believe fourth good this which volt/VAR the D-VAR were We of strong project, finished a REG and these announced record in start the of to fiscal over XXXX, following the believe dynamic then from XXXX, the Resilient I also In the VAR Grid. our fiscal for of We we hope announced its key get by to a this times, going particularly know you which we by In everyone. John, is year-over-year Security over we sheet XX, million the backlog challenging to-date, fiscal I Grid families we're year good end we'll through. business grew and quarter team's provide fiscal full will first analysts. XX% open increased business XX%. the far by remarks, entire AMSC XX, We call

partner, to We control ECS. also announced Navy. System Korean our we or fiscal a the In to million Heavy order secured systems XXXX, embark Chicago's REG X Ship desire Industries or began Doosan the second on a for deliver possible SPS our class And capabilities megawatt to establishing the $X electrical from we project. Protection U.S.

expect and Grid less we a But to still without during ago. complete business. Indian have than under revenue business this shipments diversified uncertainty order our We years Inox. just see wind the saw in fiscal revenue in through our and XXXX. We few one Inox. we now revenue AMSC's two-thirds and Grid of we're was than more annual overall is third growing Grid, market

As D-VAR XXXX, backlog our we at enter fiscal record levels. is

is year. team shipments VVO Our fiscal volume preparing expected this for higher

on planning the schedule. Our hardware to REG deliver team to this Chicago is year REG

for LPD. We SPS ship San Class Antonio are manufacturing the platform,

expected First delivery is in XXXX.

to Heavy delivering Industries. Doosan are We

it. ECS and We are supporting more Inox product, they and need providing commissioning the field it in as pay with for

growth our Grid expect fiscal in revenue a business XXXX. again As from result, we

were production. times separation and keep a operate protocols We early implement pandemic. in has World So, emergence has crisis. paramount. can instituted global talk We've Health result, to for at And effectively current declared have COVID-XX to demonstrated sites. to March not operational turn the In let's is the our protocols both, beat of created our situation. missed manufacturing healthy, challenges safe be COVID-XX businesses. now macroeconomic everyone through it offices a a help cleaning XXXX, outbreak Organization and AMSC which in concerns all physical we as of The the for coronavirus, to

are focused on service product We and strong quality. customer

and local where travel, temporarily AMSC unnecessary working are home. suspended employees and from possible business international have We

the situation. in to what markets impacts the continue business some is in be we Grid. accelerating We What to due signs see global we know markets that the sell will is long-term serve, don't and particularly on

supply. multiple components and We flexibility from have is have Governments that broader to been a keep focused key our component the essential. costs, us with chain, that source really establishing to has manufacturing supply sources. on means helped which of deemed provides continuity business This

operate. an remain and open our Similar caution. our The forward business an contracts It their is These pandemic. economies. at considered customers the the military Shipyards same albeit globe, factories electricity, that business. jobs and continues throughout electricity essential continue operational to local ships. Our supporting is across the pace, Navy have award been with essential to to essential seems move buy to are to more to continue

they is to doing COVID-XX. can In fact, cash collect than that against especially execution safe planned as our measure and can we protective focused, Navy Managing a very we Inside people contract We're and priorities. balance We're to our what Defense response our don't in are sooner awards, on the looking sheet accelerate what wherever to productive. reported keeping know.

We before. are resilient crisis a has overcome that company

us allows sheet on the balance of normalize. uncertainty, expected to our navigate strong this conditions is and to us to driving industry when Our period long-term capitalize enable opportunities,

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

John Kosiba

revenues of increase ago by quarter a fourth were of everyone. year Grid by year-ago is $XX.X revenues $XX quarter. quarter, XXXX a morning, revenues versus an our million, the ago XX%, versus This Total the Good business $XX.X million Daniel. of compared increased Thanks, million. business XX% of while of $X.X increased year quarter million. Wind fiscal to for XX%

contribution XXXX, increased in of of DHS the XXXX $XX.X revenue the of fiscal Inox. by to surged class business shipments revenues growth for our was product year-ago reduced fiscal Grid XXXX. Moving Wind $XX.X from margin year XX% megawatt total marks in driven product with in primarily quarter the all onto revenues. revenue a Heavy ComEd result Grid of XX% fiscal million fiscal quarter. XXXX AMSC, in compared decrease as as and the revenues growth ECS fiscal of XXXX, for experienced mix up fourth the This in well XX% a Grid growth. XX.X%, with business prior we Doosan offset wind XX% XX.X% year-over-year of This lower turbine. in primarily within full was year, lines year. year versus The to fiscal segment. increased their fiscal XXXX. revenues total consecutive between partially four million shipments a decreased Gross as ECS is margin Grid was margin revenues represent result business by Industries associated gross revenue X for the less Wind agreement cost-share fifth favorable to offshore in This to

in with DHS agreement For a lower down full fiscal year result XXXX. of of is primarily associated and from AMSC was the decrease AMSC, year fiscal XX%. the year-over-year between margins margin margin gross This gross cost-share The the ComEd. contribution in XXXX, XX% generated

accounted Additionally, XXXX, revenue and for impacted for contribution $XX that year. both, which million, margins approximately revenue fiscal Inox positively during

development, quarter were was Research the Moving fourth SG&A a quarter on fourth to year-ago Approximately of and $X million operating $X.X in quarter. million XX% for totaled in This SG&A and non-cash. expenses the of XXXX. from fiscal expenses expenses. R&D and up

XXXX. managed totaling XXXX, development, and for and we research flat year, fiscal expenses compared keep full fiscal the fiscal million to to SG&A $XX.X with million expenses relatively For in operating $XX.X

in was quarter XXXX loss per $X.XX per $X.X the to share, fourth net of or the million Our compared in year-ago fiscal quarter. million or $X.XX $X.X share

million fiscal per Our year-ago loss fourth quarter million share, $X.X non-GAAP non-GAAP a or in net quarter. with of XXXX for per compared $X.XX or net $X.XX loss the of $X.X the was share

$X.X million year margins $XX.X generated million. the in cash equivalents, operating quarter XXXX. cash. the XXXX operating December compares $XX.X fiscal restricted of share. on The a net fiscal we positive and was million our XXXX, driven $XX.X was and $X.X with share China settlement flow of or per cash, and or fiscal loss full by XXXX XXXX, the compares This on We during flow In securities $X.XX period. higher million with the the cash income in cash fourth per fiscal of a XXXX. For in non-GAAP gross net million income This $X.XX XX, ended million gain $XX.X to net marketable

the any related obligation payments forward, to included tax with flow not associated we settlement. to China final anticipate $XXX,XXX do what related expect a to settlement. cash our we And This our operating tax China the payment was Our settlement. be moving additional

favorable Our in D-VAR business. quarter the resulted fourth positive by cash within for cash working milestone, was favorable in capital. working In several flow Grid which payments the particular, capital driven received we

inventory positions a timing working reminder, and each depending business. milestone from fluctuates within capital of on quarter-to-quarter As payments

guidance our will in revenues for million. $XX XXXX, quarter financial range expect the our fiscal to we to the turning Now, of first of be XX

$X.X anticipate quarter than to non-GAAP net first net more per flow to $X.X be million no a or and $X.XX loss share, fiscal loss in our Our of than million revenue We expected expected $X.XX share. cash million $X per no to or more on is burn operating be of XXXX. to be net is $X million the

the and We restricted cash to Daniel. call fiscal first expect now back of securities Daniel? less the million no XXXX cash. end than will quarter over with turn marketable I in equivalents, $XX cash, to

Daniel McGahn

by fiscal nearly XX%, our mainly again. revenue D-VAR. Thanks, John. by XXXX, grew driven In business performed Grid Grid

renewable strong composition Our in D-VAR segments, backlog. base by and the our of is business the industrial projects record as supported by of indicated a

we you we can the growing our are pursuing quarter customers, also revenues. will and only of a for couple new tier wind A but diversifying top industrial We manufacturers. And on begin new mentioned recurring customer focus We customers see that calls the XX-plus-percent VVO ago, see with product. anticipate this in to turbine name. not

VVO to delivering our developing are nicely. We market pipeline very the and is

products growing a pandemic materially of business. people. list is To-date, testament quality of Our and the Grid and has repeat AMSC’s customers the affected to not performance our

need our the on and products factory focused site. to our are a from supporting customers’ customer We of maintaining flow timely

are our We on focused productive. safe and keeping people

strong that into a base This is backlog a expectation that in D-VAR pipeline. see We well. D-VAR very driven performing by as provide XXXX. should fiscal we for Grid Grid as business is well team the manufacturing the business. overall well dip strong have don't of We anticipate revenues, Our the our

future of pushing qualitatively, Xrd, markets to So, know coming out But, we don't as and in our won't mean year. and the see show projects the the a serve does that impacts slowing. months not business doesn't we we June

REG undertaken, be of second We the agreed a to the third We we with REG system are an ComEd’s with with substation system XXXX, XXXX if second the Nexans AMSC's XXXX year approved utilizing system existing for operational of multiple REG of the wire. quarter the in important REG that DHS business fabricate with engineering within scope we interconnect REG proceed project, AMSC's allowed the can Commonwealth us AMSC project superconductor control. proposed of should focused proprietary schedule. and what utilize anticipate in the ComEd cable, Amperium We which Fiscal to on project In the Chicago. fiscal Edison, REG to central announced proceeded REG. Chicago's assessment district. on to and manufacturing system. AMSC's would and partnered was

second project outages larger the provide The scope load-serving other resiliency is disruptions. greater in to Grid or capabilities first than reliability, and expected be during and

the our to country. developing also are other REG deploy We in opportunities product across utilities

We many are take cities by strong pipeline REG more. These five seeing the projects do have very-pleased we're solution. to for a We've time the of and mature. support announced developed

will we the of believe first execution first future the With critical that we project, project, U.S. system derisked. utilities focused on this secured, is first on of are Chicago this REG deployments this focused of execution on and focused are of be Chicago execution project. the Chicago

system our the LPD orders. SPS delivery two XX ensure Navy We Our LPD. with working delivery fiscal SPS Antonio LPD orders San the Huntington XX. other we design one and for deployment with announced two-ship SPS timely with supply LPD the XXXX Ingalls of closely to ship our Navy's for baseline Class the In the on is fiscal XXXX, platform XX. very chain secured, for for and our ended We're degaussing contract

as the establishing capabilities last in on the we the reported deliver to SPS are engaged systems. call We

preparing which order, and Antonio construct at of a multiple We billion Ingalls of is Ingalls manufacturer signed the In Huntington March contract XXXX. in is XX. SPS U.S. XX San XXXX, billion Navy's Ingalls. the February Navy orders. Navy's for LPD LPD planning for Antonio for under Class of U.S. ship, XXth The the XXth the next San LPD XX with $X.X to are contract ship. Class is we're construction ship construction $X.X SPS Navy awarded a this Huntington the concurrent

SPS XX class. timing has are of deployment total for LPD XX. We a both, anticipate potential the the this future on LPD Navy in for understand program approximately with and ships the We engaged XX our to

be this Our potential entire our there The SPS for is sell first opportunities fleet U.S. allied the may stream well. class believe We our revenue the of a Navy. Class the of San surface with Antonio design for about to represent could million San and ship. U.S. SPS $XXX as Antonio to navies class win

third Turning fiscal Doosan and ECS shipping of megawatt the to fourth shipments into began quarter. continued X.X the XXXX Wind. during to quarter ECS We with

We a believe partner geography for this We and during complete Southeast order wind our for fiscal shipments under turbine is expect well-suited our X megawatt to XXXX. Doosan. class Asia

has seen offshore to-date any business impacted by have We not indication wind been Doosan’s the that pandemic.

continue We offshore expanding focus additional projects. on to our market addressable to

stock support We our with ECS. are to they gain as turbines stand compliance We new need not or India, contracts. commissioning in is need slowing down. their with working support ready to Inox partner of new us

resolution grew conclusion, the FYXX, capabilities grew year-over-year. XXXX, by to working. than mix Growth the XX% to positive we expectations. business way. for exceeded business. This using fiscal a through our are of full-year situation two-thirds those long In In XX%. contracts We both is nearly more bring own help revenue our diversified come We a parties. our grid we've We've We revenues Grid by of our Grid. consisted year,

Grid were years less business years itself today Grid than we December amount XXXX two finished XXXX. was million. year backlog Grid entered few is a Just larger revenues one-third. quarter. back Cash for with a in basically same past unchanged We execution of The April the with ago, XXXX, of We this ago. the in cash entire just record was $XX than business had fiscal the

believe we is about this to more. a initiatives and crisis. we I predict weather position we've AMSC the Company. in But, set what are you wintertime. The we've like something for you guiding accomplish or growth put Grid. the tell have COVID-XX, with come look the strong world's undertaken This, We our what year and unknown delivered in in assure to on I this We can't cannot out to going fall that unique

XXXX, will our team which AMSC and that for And business. to can fiscal aggressively are delivering a continue control. managing more sustainable the strategy of We we diversified execute

grateful XXXX. for following the constantly covering for the culture our first Shelby, with markets is commitment line best the this and and our reporting of we Our you successful We we the at I'm XXXX. team's listen can from and fiscal to year to of we completion and our a forward to inherently on quarter our and from partners. try to collaborating here I brightest. always accountable open our through questions learn again look now any been customers, hire hiring pandemic, the We've Company fiscal innovative, analysts. delivery to serve.

Operator

Instructions] take we'll question Genuity. you. from And Dorsheimer [Operator first our Thank Jed Canaccord with

Jed Dorsheimer

Hi. are guys Thanks. like And it you sounds thriving.

the So, just it's good the to in same dig is vulnerabilities we that was of the Grid, with talk COVID how and associated or things. at value like -- look could side well, does maybe D-VAR wondering if it recognition value product COVID proposition wondering, the we has I Dan, was the look on and you sounds the or for face proposition. question Navy vulnerability hear. the you It -- of on I could we is could actually to over you your perhaps into about what shifted a at if elaborate then,

Daniel McGahn

good. Thanks, Jed. Family is you're Hopefully, safe.

Jed Dorsheimer

Yes. Everyone’s safe and good.

Daniel McGahn

Good.

in. to their to that were to think, D-VAR things acceleration was quickly really access acceleration as of tried done see the labor. what signal see orders And markets that have possible, bring about What we we to like in labor. I customers with access back projects their are as last able year, get we large still where we in they some to to really that because concerned they and some goes

the I a term, if do becomes think that affected, market critical. you electricity longer of are think, think I think macro lot trends I more

more wind that going that and we're the team not coming everything was means matter the years, that ships did orders in the less. the acceleration seeing the think in in in connecting through to market work the protecting But, are really I that great XXXX.

Jed Dorsheimer

could strong to was times it. so that about that if the consider a just mentioned on strong bit, backlog. Got several call what define you And you the be. wondering we you understand I

Daniel McGahn

out Well, in way when to book time we're in trying I've orders, time we we're than look been any here. further what of at the

but quarter We've or really in a ahead it product break kind years. realizing by of orders of we with last to months. book to burn the compared are hinted were we backlog saying There we with out looking year. talked that six orders two of probably line, So, out, we're say We million to don't typically orders past is about out and where $XX strongly we're D-VAR, able the deliver that book some new comes quarter-to-quarter.

orders one are are that customers delivery have at looking seeing We year. beyond dates now that

the coming in We our can't we're by see What fact slowing. winter. don't an what John? So, I the to in backlog election do the the reported But, the K, as really happen in when I happen business going comforted an don't help pipeline, look think fall. have we what's have at we to we aggregate know will up.

John Kosiba

$XX million performance XX of months obligations.

Daniel McGahn

challenges Jed? XXXX. $XX one we So, the Inox. backlog believe is did dealing say fiscal been be what So, million has always you is, will for what that, the we recognized in hear backlog reported of believe with Why with we the for we

make We in is might Grid. shift and educated potential you're to us Company based history through we upon their on have the what Grid to But a what more they're seeing payment there. an we projects what forecast obviously, have growth and by revenues for and guess, showing think

Operator

Craig-Hallum. question Stine And take we'll Eric next from our with

Eric Stine

stand, So, then, loaded just end then potential order. commentary follow-on mean, remainder actually as that curious for -- your ‘XX. the in be they on there. Doosan? will market, to potential mean, a wanted in much outlook thoughts just that being fiscal based and on know I Inox good start that your should with because given we -- it I quarter on was we your on where given that's should more quite take executed Wind, schedules the assume, project that a just I I front all the And mean, thoughts pretty I

John Kosiba

Yes.

three then report we a We that installations. estimation D-VAR in to were Those QX. were lightly to and little I Siemens, going continue this, QX that is customers industrial a than think, name really key XX%. which contractor a Doosan. and your us new did deliver were in us helps for electrical that greater more with started we're They

So, they the in And Siemens, a Doosan know hundreds I few don't want In megawatts before more portion, seem is slowing. have of seen certainly of with for a Korea Grid focused to Doosan we specifically they to that's They’ve go the that as this wind going that continuing case my what's signals not build. market becomes or to a a revenues. happen in the at with Korea, and our very signs I to for aggressive but bigger of lifetime. we build product least pandemic, targets. remarks, execute a Wind haven't haven't on D-VAR. through said they yet identified And these But, prepared farms. in been be at

I So, be. can't to turns and tell the are going you what twists

can't confirm with the be there'd lead I their But, order going if happen see But, to that coming year Doosan continued they're going the I would logically profile, imply believe in I you talking not. so. to quarters, that going or order whatever you don't traction guide would pacing that. that's it know that. forward. Given you're another next to or can't to about demand a

Eric Stine

Yes. Got it.

John Kosiba

of Wind the your you revenue directly. and to in look you answer look revenue, you the at K majority can the of was QX, the percentage Doosan of it see Eric, at question was if

Eric Stine

Inox. uncertainty mean, this I quite down, And some least through want sticking mean, of where getting a there you guess, or then, terms pin for… of Wind, ground confidence I movement, in good getting your I Okay. in in the then, uncertainty it that to maybe does you being with of But just obviously, mean, does but on terms is and necessarily I -- Yes, resolved, at don't stand bit that sound inventory. something like some this in is perfect.

Daniel McGahn

Yes. I mean, we company. -- Inox a with very work closely as our work

through things. understand a been We for have of We them. they've great lot respect

for good working good. that the up them think for signs they’re consuming well we the that they turbines, think, from being means It they're also seeing which is collect, that their fact standpoint, can supply which flows for I that bodes future cash we're bodes means commissioning is they're and then us, inventory, out need inventory from flow chain. well which able cash back have to the they a they're

as the best you to clear, them and we we're all consistently the to help do to deliver. the want we're we we’ve our and message can. many want going going But, to work to we've we're And delivered receive be delivered to we that's that's then quarters. So, Inox, payments past to going and message for

Operator

We'll take our next with question from Colin Rusch Oppenheimer.

Kristen Owen

This is morning. questions. taking Thank our for Kristen Good Colin. you on for

that break that about segment, that's that So, maybe looks some of I called appreciate a by that just within Grid trending And gross on wanted appreciate I you you’ve to comments you. commentary of helpful. on don't like-for-like up be I agreement Thank follow that out up but about you talk some on what your like margin. how Wind, some the basis? cost-sharing there. just can But versus

Daniel McGahn

happening at slowing have the you're which of with get that waning have right? things comments business, or you from, margin, idling also where a But that specifics. focuses kind So, in you then, John, we're an factors happening, kind That's we see good of so couple wind, you everybody of we is the we have level lot. we two as margin, doing in and business, revenue business, in mature Why kind Yes. typically want That high very get of margin. gets margin. coupled a -- we focused whole the of which into not what contribution on if don’t Grid. basically a have machine I impacts certainly to talk on made kind and

a products products. scale to You new similar contribution launching more have certain to of contribute we're margins get to need as established the a to start series that that

way So specifically, costs, where when extent not accounting. an way contribution. also would overhead related we in then, you're we that has positive the designed we product direct to REG, The believe look certainly We the we government able costs some program only impact. ascribe accounting works, at to see the but SPS, a and look at cash with

So, It we're that drag present looking is future sharing the near-term three it But, in our kind means between for that, differently. REG. the at costs commercial isn’t would hopefully we a typical a see order we're does of and program, it which a parties. cost-share

wind of kind then REG. the cost-sharing effect, styles. are you the you the program and So, have have have watching the three with SPS of you a effect Those

John Kosiba

nailed side, mentioned operating is about wind less what you $XX but customers. it. told And last think, on in both, a by year. profit units by in Dan in unit, exact million reasons of I have I driven Kristen, the from business profit I was reduction the in can both, than you is seen my On this said, revenue disclose gross year-over-year. gross tell we for We've heavily don't Inox script, reduction that year of it the that's revenue a Inox. XX% you

So, you know million it's less the for than year. $X

the $XX a then, Grid on do Dan bridge. Inox year-over-year. a minimum, at Grid side, you did good job then, And least from at explaining the revenue math. the lost of think we've can So, million And I

Daniel McGahn

what sure the it’s comes. know margin to getting we have deliver. is We believe then, planned. towards we're make to temporary. think that the and top-line, first growing growth we And want and that the It's beachhead of working investment that that bit is new focused There's we margin -- to future hard the issue markets. that do. something a We're We these on in

but have that here to earnings years. we year we business over to deliver next and not are kind or to growth. We revenue have earnings And deliver growth, of the only our maturing

Kristen Owen

Okay.

Operator

Shen Capital Partners. Philip our from next Roth take question with We'll

Philip Shen

everyone. Hi, the for Thanks questions.

first is VVO. one on The

Dan, give us was if that. might you be You repeat little wondering to color talked more customers. on able about, I a more

Specifically, than much more think or much as how standpoint a it could example? from year-over-year fiscal could sub XX%, more still then, Thanks. customers? that repeat business you do think for do And VVO you're XX%, in how of you you 'XX? be Is do segment mixed grow think a than

Daniel McGahn

with frontier to of typically spiritually. level doing trying first projects And compelling lot we recurring new it's again we are we the to the them get of seeing kind back to beginning because this utilities some on way. Well, project, where approach distribution VVO then, business. what a once identify see front, customers, it's is interesting for think of of their new kind go We're high continue

So, optimistic. we're I think

I projects with within VVO don't think with XXXX of transition kind I also important is new pioneer initial really continuing a into kinds think, an from year get those year. recurring know for we to customers to first projects can big customers, but how new projects go of to with VVO customers. same

in or similar to we think, type to to the feel I we sense set to It's think be trying that projects, manufacture but We But, orders feature limiting to D-VAR highly industrial be as prepare I we've learned a we're more. are it’s also deliver. to we right. been to to well. to valuable. only to that the rate think both. think we not is going projects We're how capability generation presenting market step identify distributed able sell XXXX, have we're We able good what say the modulate hard trying is

We're place So, should comes it's potential so. don't for the in be to hard to certainly me VVO. do if XXXX, strengthening come in year things to because for we manage we guide Phil, the here things put But, or in see but certainly say, that, next trying product. to able that by

Philip Shen

Great. And shifting to D-VAR.

on than driver relationship the of color end the steady in they're the a business that's XX% give repeat You markets How on see you customer mentioned not Do time? operating over or behalf of now. that business? being little Siemens Can whether us more -- on there? being you more bit or

Daniel McGahn

yes. simple is the answer think I

able can to is can't for some Vestas all business in about for we I good guys guarantee help have these that we've for it. develop And some lot And a to show think, look way the been get job wind unique there. there that a we've long-term I done aren’t provide is We've we've past of a very recurring strategically very turbine. offering them talked we them. tier the revenue what are seen think there how but be general where that's That's to there top emerging I kind of of going. and Siemens, at We in of be developed sets selling will effective that indications cost a how markets a in feature potential least at these that.

indications well ability just team D-VAR. with just it the a shows base, but value D-VAR, and delivering. think really customer XXXX think, for show the markets for the I applications beyond. very we for overall That the we're to have All diversify that the runway here we nice bodes and we serve, very really not the

Operator

we queue at questions this have [Operator no more Instructions] time. in And the

Daniel McGahn

thinking I part as resilient on flow We've We've what and cheerleaders I. be and and in don't and John of as and get in going Great. Thanks, I customers. a in product appreciate in quarters. think front we months I that think vigilant over to waking worrying to that know the of really violence. it. And able of this how It's really and or hygiene proactive term. virus focused about coming to us. everybody's staying and our I make our we're results. help are different lot all time a things to know just and on to think people with to mean, It's virus we're about to safety. sure we're a to up the are of people focused we We're is our tried to place, families kind our that very longer Shelby. focus not tried different turn tried put protocols chief We being I in place. our weird on. to attention. quickly the situation. initially deliver and need our could We going I to We those this we're

as are progress we're keep long the people seeing making healthy, I think our the in we'll As that market. and safe

people Grid. is it always grew call we and think well, key But our think, sometimes grow want to Analysts points than want with I shareholders the we want of ask the much more to one to you how I did you leave can something. ask, even we anticipated thought when when we a throw a the we can it deliver, And we as promise struggle as it a looked we we're promise, see when John say I ahead grow? where business we we of thought number out. with always at we But, what could sees ourselves. be.

sheet. position, we're and balance in given the great think, backlog a I the

in really now Just people, it We new a of so creating the or back was seems Company it vision grid direction discussed and to Analyst super It November. about an year ago, was we remind York. in Day New a and ship. like just the a had super

you superconductor that's we it's electrical the a That's capability hearts, more our and the about super the the beginning protect power There's fiscal ships Navy see for a That's key look electrical, different becoming When commercialization become We much that we're That's the of And and we the greater back And have our as grid serve. power with So, resiliency in on not for all not That's harmony but a to the think we that’s control, with is really deliver things our XXXX. of resiliency view renewables systems, us. about of and deliver signal more resiliency to we're as and Navy to hope the at for the lower cost control and we renewables completion in only a that at going grid. material, for the to John the of and to markets what to of where of way fleet. reporting we're some started we fleet. more enables capability operational allows power a the have do orchestrating the we forward near to music really to to what about our the grid. other control this. conducting lot superconductor, the that we’ve work ship grid technology, material theme rhythm symphony. ears think the musical we Even grid it. of But resiliency sell and be in you and and how to first to is our expand continue super and and grid. fleet. enabling a of on see now only quarter Navy you position able power do markets how hard we we we it. grid world not control. we Company, dear than I which the And the how something

on everybody. Please day safe. our you you, realize Please Thank be to a and again soon. talk stay to out hopefully keep we'll basis. to seems that are threats So, there changing there, world day safe. Please

Operator

concludes This participation. for your today's you Thank call.

You may now disconnect.

American Superconductor (AMSC) 3 Jun 202020 Q4 Earnings call transcript