AMSC - Earnings call transcript Q2 2021 | American Superconductor Corporation

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Operator

Good day, and welcome to the American Superconductor Second Quarter Fiscal 2021 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

Christina. you, Thank and of everyone American Corporation's Superconductor Good XXXX welcome Earnings quarter fiscal Conference second morning to Call. I'm John Agency Relations AMSC Relations, Heilshorn of of LHA record. Investor Investor Chief Daniel With President, Vice Officer, Chairman, us call Financial and are Treasurer. on President Kosiba, today's Chief and Executive and Senior Officer; John McGann, for its of second fiscal closed. XXXX Superconductor issued the market American yesterday earnings release quarter after the

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

purposes Private Before during I would various relied future should be forward-looking today. SEC. period to about to the start management's including financial the ended not September of XX, as under those expectations the the today XXXX, ended call any XXXX. risk which company's XX, like American of XXXX forth factors on other plans views Commission Act company on annual reports that XXXX, and superconductors of fiscal regarding statements as represent These XX-Q indicated updated provisions performance, Harbor June Form the the securities as remind in with I exchange Securities and remarks various subsequent March filed the as of XXXX, and company's and management important statements with you the of representing results for constitute the forward-looking third for the expectations, Reform X, American filed a section for date Form today's XX-K the report as company's of year may materially only management's that of upon Superconductors the including Actual Safe expectations result by factors, may forward-looking quarter make call differ from set Litigation prospects statements those such in

Company's management the does non-GAAP can earnings by or Form While net a the on loss financial indicative Also The the developments press basis GAAP update believes XXXX today's in specifically call, periods forward-looking company non-GAAP net core the company's anticipates investors across performance change statements. a these events loss to and are that loss, subsequent that on to net non-GAAP the its measure. obligation to quarter fiscal non-GAAP Company company net of may reconciliation any it the non-recurring, non-cash, on net and loss will and performance. believe the reporting loss management views furnished operating be of comparing assists other of not cause K. release to refer disclaims to second The consistent in that found last charges excluding issued SEC the GAAP these night X to - company

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

Daniel McGahn

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

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

strategy. growth on are We executing our grid through

than our we that our last XXXX ago grew We hope year grew to Total in came fiscal second can on more continue a the we We of of and for and continue business XX% by the guidance year diversify the year trajectory range our versus business. of over growth. quarter above revenue entire top XX% period.

quarter. was sorry, of - revenue million second-quarter the nearly $XX record Our million $XX recent

of of grew and accounted XX% the AMSC's ago year quarter more for XX% segment fiscal by revenue for versus the grid nearly year XXXX, Our total period than revenue. second

quarter strong energy start grid execution, fiscal have this it Since, grid largest is and the well this and years exceeds different driven we XXXX. been extending during by second business a very strong times. shipments. fiscal fiscal our the our is particularly quarter to In a had. fact, team's This challenging system own certainly was even This of momentum a these stronger business was into very the ago. visibility ever business our has the expectations year, testament primarily grid our few than XXXX, of In was bookings new power grid in our

We into NEPSI Neeltran. business the our nicely integrated at integrating have

recent driven to the were industrial to We see from color of which the fabs. $XX you nearly a the which are give new starting semiconductor orders and about between orders, leverage the applications of and orders, industrial markets some quarter was on evidenced by come announced, million half came by as these lines, from product semiconductor

product markets We industrial mining, of are across getting selling including leverage the and a number lines into metals, chemicals.

fiscal of continued can are from you anticipating revenue As business. for our in XXXX, the guidance see strength third we quarter our

backlog at ended revenue Our this we more $XX in a second with year million and than ago more higher time than cash. is quarter XX% the

managing through crisis, our global way are the We evolution. and its

margins. experiencing chain in and some supply on inflationary sourcing pressures delays needed have These impacted cost products. materials our are We and negatively disruptions for our gross

a customer to half, the has adapt demands. times. reducing continue and been to Throughout past difficult job team managing during continued work to we've to deliver and year supply The these these great disruptions done on of We able risks. chain

where impact the proactively are successful costs. revenue best the the growth we assess mitigate see XX costs and business COVID fiscal and year-over-year include additional expect and our risks the to we and we grid pandemic again can continue in our overall our of metals business. We commodity changing XXXX, In of to our to for these customers. operation on continue rise, We prices around product specifically

recently system Our REG Grid Chicago. the energized Electric Resilient with team ComEd along in or

protection with San class our Antonio the manufacturing first platform year. are ship this We expected systems ship delivery for LPD

them. field actively ECS. are South electrical wind turbines, supporting X.X megawatt the offshore providing and they and commissioning control And systems in pay we as ECS our partner Inox with interacting Korean turbine and We are AMSC's design or supporting wind utilizing for need

business. moment a Grid review grid for revenue the company. our take driving to Let's is

continue be building diversified on predictable and We more to a focused business.

new systems by has Our of and a notable and strong momentum. projects supported industrials energy gained base renewable power

and chemical installations it are diversification our will new addressing drive fiscal expect renewable mine, fab, systems or a plant. We this on company growth focused industrial semiconductor power for year, energy our and energy like

the We strong as energy of power are our presenting we content to leverage more systems. combination new customers

are diversifying and by and We geography by growing revenues market.

around to wind We are working and manufacturers provide farm the the connectivity turbine world. top-tier developers with to farm wind power wind grid

in Texas, Oklahoma, Colorado are we the Singapore, with projects the in renewable supported demand for the and U.S., supporting increasing and we Hawaii, quarter Japan. This industry chips semiconductor Taiwan,

quality significant power material, profit. solutions loss originate if These transmission tooling downtime, the left problems and Our that semiconductor of disturbances protect uncorrected of can affect scrap grid. process facilities cause from the their against plant

We systems to also have into and paper delivery we also from mills, of industrial chemical The have is systems, acquisitions. copper variety to what diversification plants, we a mine. predicted delivered the industrial applications with

Our growth is through working. grid strategy

business. protection systems of our grid ship also are part or Our SPS

Antonio first baseline win platform. system you in LPD Richard Class as As ship an previous the and XX, SPS our design or This Class. protection The San with Navy. We Class USS is the ship LPD is protection M. Antonio our has ship the design for become announced U.S. Jr. contract the the for Antonio warfare San fourth system known also our January for contract San McCool for know

include orders vessel SPS now and revenue our in for the San per approximately Class and current represents Our XX, LPD Antonio LPD XX. SPS LPD XX, $XX million XX, LPD

on focused SPS deliver to orders perspective, of very capacity the is and expand we our systems. expect team and while concurrent busy we've the we here From multiple business, continuing for planning Our been manufacturing are. first a to

been revenue. expected delivery always San the first plan focused $XXX class times delivery of that has of of now build size team were four total, many future this opportunity systems we the million these ships in there design We've ship. We Navy these win. the or Our the In had potential $XX with talked on correlate past. doesn't our the won XX million and of after million for have of Antonio $XX Class to the about

Navy SPS. are not actively Other to platforms but carriers, littoral ships. engaged pursuing the our vessels destroyers, include classes limited of We potential deployment for and frigates, additional of with are

We believe do to we have what In ships. done the some are for prior SPS have engineering potential several to deployment for of our next of case, we classes the engineering each procurement. work

and our fiscal strong to system sit XXXX. our grid that contributed SPS quarter protection the of changes second the the to segment the common make show ship. revenues ship to have in all of We our components up build

proprietary utilities employees of operational more and fully Chicago. proud our period make announced performance the in product a turning which many grid of seeing wire. feature fault interested the utilities of in very The on of or this assets country to the and Now on the and I'm high-temperature are interconnecting to limiting a our REG AMSC in the catalyst system deploy AMSC's grid. REG happen. in grid. made substations deploying power art solution. reliable the possible capable across REG and REG utilities We're in operation state be first our we Superconductor of to integration of for Chicago, but energization and became that Electric to which could we developing in Resilient opportunities Exelon August, currents ComEd's robust all A this also of a the worked believe ComEd resilient system successful very hard Grid believe other other our and get this power We are wire system REG Chicago, product utilizes for

execution future focused Chicago will We of first first the are utilities believe deployed. on the REG we. system as the be of derisked. U.S. deployments this project that are With

Wind. they ready wind, support two-megawatt sell in two-megawatt partner to and XXXX, during second or continues turbines new turbine. stand of we need the Inox ECS. our stock our fiscal shipped of Inox commission to their wind India partner as ECS We onshore new two-megawatt promote quarter Turning wind to to

megawatt Inox supply project a a repeat order two-megawatt it customer. announced that recently from will won In wind turbines it's to fact wind XXX newly

class by the complete stated market. Inox encouraged and that megawatt megawatt way commissioning for have wind is will Inox the to a turbine we are wind prototype new class we of construction. lower will energy designed operating We Indian Inox's Once The for now of cost new designed. for by They product commissioned three working in great fit be completing will appears India. the turbine that turbine. portfolio. to certification their turbine is class type towards line the turbine competitive is further desire tariff levelized of expand Inox's environment three end, seek megawatt class turbine three a process a Inox prototype the in turbine. three a wind the megawatt constructing To of

We class demand the put year. initial their this build expect intend to class to class and three with end the supply already a megawatt ECS Inox turbine. for fiscal the in launch thee production growing megawatt an production work at megawatt place support chain stated to of three Inox that they in order

fiscal Inox in ECS three supply to the We are South We contract. the be service hopeful wind Heavy transition that This class a platform. will XXXX be begins megawatt through transitioning Doosan Industries offshore megawatt that signaled our our partner by ECS market Korea. will year three

Doosan's ECS wind exclusive X.X the are We supplier megawatt turbine. for units of offshore

a potential wind market. does global us, wind for offshore market opportunity the presents as Korean South long-term

first Doosan order And these the actively with the is for X.X offshore turbine. we of offshore them, completed production utilizing are series of have X.X AMSC's turbines. turbines initial their ECS. We megawatt production now megawatt supporting of directing ECS wind commissioning Doosan's

Doosan to wind look working market this is we forward with partner. and offshore potentially penetrating team global Our the with closely

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

John Kosiba

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

a addition the the by ago includes increased fewer now of as total and the quarter Grid unit year business of Neeltran. revenues versus our quarter, unit during Our XX% result year XX% XX%. XX% accounted quarter in in the business period. grid for the versus which second second shipments revenues business accounted unit unit of wind NEPSI over Wind for revenues ECS quarter while decreased the ago business

expected and to gross to XXXX. approximately in XX% P&L when the main the of XXXX and year walk change at Looking lean by Neeltran our that ago has margin - moment the an acquired margin compared was per to we within fiscal expectation take which closing accretive of start share was for detail quarter's abnormally in closed off of quarter this margin stated we will margins. the of months everyone this of through high earnings One we gross worth at gross FYXXXX closing our XX QX year-ago XX% second that be quarter. more will reminding on change. a gross the X, you Neeltran a in I versus quarter. Neeltran acquisition year's announced May had we backlog backlog drivers I

as So and this into has our expect, both margins last consolidated on you a drag been quarter this would quarter. gross

projects our see this to more be expect to drag started backlog gross have replace into through way We this we with and as FYXXXX. We what backlog are working profitable on that temporary. we margins as head

accounting associated are costs previous over several into acquisition. calls on quarters with related after spill purchase adjustments to tend to discussed as the Second, there acquisition. we cost These additional

significant was finished are believe cost are sold up sold we these goods NEPSI cost on related we related adjustments. and impacting the this impacting any these gross we goods purchase FYXX see to adjustments impacting accounting that sold drag Neeltran of adjustments accounting with the acquisition for temporary. see as expect of to We cost on finishing we quarter, any this goods - last we margins significant of QX cost Again purchase

D-VAR year. we the The decrease about period particularly shipments we FYXXXX, quarter third the gross this from the experienced QX in more results experienced and issue quarter's and quarter about strong were those impacting margins in less projects contribution the last strength same robust. is In over

a factory factory. our a maintain coming and of COVID and material aggressively have FY ahead we result control to benefit, chain of were anticipating we to was Does our manufacturing strength to Two two-pronged on into heavy able result, QX is scheduled a of potential Some costs accelerated this the of impacts loaded stay supply accelerate one work D-VAR as XXXX. and to raw our schedule. the of in able were on shipments we

are a Now experiencing we effect little all this forward rebound year a COVID. of

We normalized already current load as experienced cases, are material this we back these into and in In new projects cost can. raw and raw to this both where have quarter. we increases now increases material factory see priced most have we temporary we

half margins XXXX same The of expenses this million, million XXXX. into move the this drags starting was fiscal So period were in absorbing was non-cash. increase that we to both and R&D on expenses summarize, XX% $X.X of the a as of many to second second fiscal of experienced fiscal and for were SG&A of for year quarter and we subside the expect quarter we gross operating in quarter into the Approximately XXXX, expenses second ago. the acquisitions. year-over-year up of R&D SG&A the from primarily $X.X fiscal XXXX result the

share. million see second quarter. per that in per $X.X This or million, cash, or million quarter compares reconciliation GAAP our fiscal for Operating the fiscal last million compared with XXXX for second in loss burn million June XXXX expected net with non-GAAP marketable $X.X restricted securities, second that night share year quarter cash We non-GAAP of with $X.X growth XXXX. sufficient revenue capital to XXXX. remainder the Our This was release year $X.X share fiscal included second share $X.XX per the We in loss the $X.XX issued quarter to ago $XX in fiscal to will with on $X.XX million the Net cash revenue ago equivalents, capital of is a and of press XXXX the $X.XX of XX, $X and cash the in the or levels working normalize for fiscal of $X.X current Please our quarter. million in XXXX to approximately results. capital investment of of or support future million was ended burn cash. quarter was working per compares believe are $XX.X support growth. working

in exceed to assumes turning of $X.XX that nor range guidance for accounting share. adjustments net million, million Please $X not guidance will million our expect loss the revenue on fiscal no that the be to the our quarter $XX any Now with expected of we revenues our financial our third to purchase XXXX net or loss per consideration change in is that Neeltran contingent note associated acquisition. $XX

million Our is to $X flow of expected $X.X fiscal a per loss XXXX. non-GAAP expects $X operating company burn share. to in net of million The third the cash not exceed or million $X.XX to be quarter

with turn less marketable over end to cash. no equivalents, Daniel. I'll With third securities, in expect restricted call to cash We and $XX cash, than back million Dan? quarter the the that,

Daniel McGahn

Thanks, integration Across next helped has as acquisitions on Please and of fiscal the augment margins going for chain rebound remember that we're year. on because business business, Neeltran, backlog. revenue we our is specifically the of cost working John. some positions seeing as potential with a impacts margins The new supply build and challenges. increased wind well we're enhancing

diligently We are supply customers chain are and where raising prices suppliers risks to partners our our for with mitigate possible. we working and

We several believe ship continue be on customer which inflation supply to orders as chain should meet commitments over a is that situation, built fixed in. the we temporary with priced were next quarters this and

high. X.X REG The pleased to strong megawatt revenues the We business and in commissioning balance are is sheet. the turbine Korea. at by recent class supporting are report are very grid is that a we Recommision record a supported scaling of

project, new business for the saw term channel X systems, our are near the but that total we sales begin life delivering revenue an delivery. are SPS power all content quarter that per We in order, was impact our We energy energy for our first the system strong do our megawatt the simply taken going India. expansion company on commissioning to through transformative market, of the These during not systems if grow events look for through lineup. even immediately of are expansion new next remember the leverage of upcoming supporting they bookings believe of in to the We revenues. we class entire exists of expansion not turbine

position our next see through early which coming year. reemergence fiscal wind the are business, for of as as We in growth we

the expect winds, for We critical positioned are ship engineering acquisition We of a grow in infrastructure critical additional to platform through for are country. through this currently would REG work of we growth as doing product the on. which emergence

are critical the We Chicago to have focused opportunity continue expand inorganically I, on the demonstrated have the it strategic keenly as sense. we to of pandemic. in engagement of the employees makes operation system personally we able and to a lot with have been where throughout

grateful Our mission create well our opportunities, be I'm our how workforce on privilege I I very the impressed the with deliver to step work with. to continue people commitments. committed to up challenges, vibrant for is we have the and that customer growing. and

We revenue year expect grow to fiscal grid XXXX. again this

quarter with same This business the compared grid year. last XX% period grew over our by

since our we year our trajectory of Our look business at last to our Christina, of total over and year to analysts a growth. I take on by third we XX% fiscal have forward up. back backlog queued ago. from questions now quarter completion grown has We XXXX. will grew XX% that by the reporting over to of you a hope continue

Operator

first Capital take Partners. with from Roth Philip we'll our Shen And you. Thank question

Philip Shen

taking you for questions. my Hi everyone, thank

up I is you XX% is year-over-year quarter. the in mentioned think on your one backlog First that backlog. Daniel,

you to trend we mix your it are how if And the are could much growth was revenues given different how be how And expect. were Is market the how and as the you in in bookings up, for to that able that, wondering than that a clearly international that the that they international so to and U.S. talk year saw was win example, orders but relates I Thanks. orders wind better profile. that might I backlog. queue and margin be international is that the I relative that share of be what's should insulated wondering how challenges you ago win, a challenges. for through might those guys is experiencing does from if backlog on these in is example, bookings does it trending

Daniel McGahn

All good questions.

importantly it's at coming as think in some business. point this I changes asked positively the see we

benefits a had from America the last of one the we North as the U.S. coming the specifically So of preponderance business, year of in revenues

COVID tend due you we the order the in. able see industrials as out able of are being about countries kind our coming to semi from be now can of of in some to lot talked a a now it's we're working thirdly renewables order to to to then deployed to markets. called of specifically in some starting We listed that that a So due from that orders foreign appear knitting, that bunch projects acceleration see semiconductor the next deliver of to coming of magnitude last have large we when booking of we and accelerating, to reimbursement hits, locally specifically we is kind general. part kind We're in

So a the intake projects of and we're up seeing not from business international order U.S. host across

is but to industrial semi-margins obviously improve more to in build commented throughout the into diversity We've tend get those we're margins past So that's I business. very We've if specifically, working Neeltran hope going healthy. be our time. that that commented over to the in

an when bookings. look you at net-net, acceleration see the trends you in So general

lot see expand. make - things that You our a that working on gross to to continue sure we're of margins gross

just So trying several the next the grid over the see at quarter some backlog be over Please of to reminded look really we when year not as we backlog improving. but could that much but on things out. next telegraph our be as we're quarters

have say as will we seeing mentioned, because wind key lot take time. what rebound as we to project the that to nice we potential And basically in related for to the in have going we're are a been as of think to there able five hope really new they're I they've in I three, position. XXXMW in next a in good business to remarks that of backlog about India another Some It our constituents. year order customers announced outwardly in think over of listening months, very to the Phil for specifically remarks begin is I of their be weather when the using looks like to through words don't the four, storm, megawatt a with could mentioned the they two tune short and it we product. They've of the as even win been

last tried that on we've So how the to those and be working. of seems coming focus temporary brighter. issues kind through I better out we future growth John, grid and And where to and think only with in really puts margin well. certainly, laid eloquently that are see next with are we but being quarters us get good potentially for we is for XXXX not now wind, orders we mentioned a but into our with hope, we then grid, starting year situation with that backlog our XXXX as as

Philip Shen

a should to said things better. know gears on all Shifting lot I getting you've margins, detail. and Thank that be you that for already that

bit the for level into quarter or and forth you the do for level of quarter better can get quarters, then continues kind wanted 'XXs cost there Thanks. to supply as I it because to this few take about things it when bit through Does a do a to quarters a so coming maybe think and at this Just for granularity around example, get could we but see perhaps next get quarterly more the should of expect input to, margin six and back of type the that do little margins. you we be a to does cadence get perhaps and we and mid next challenges think we 'XX. and recent trough think well the of know take that us chain so four if for as most from QX increasing little fiscal we steadily guidance just logistics gave low then the you bit,

Daniel McGahn

believe, an improved guide some bottom what notice do calling quarter-to-quarter say basically we things, results thing a lot where team just is lines as we quarter. to the suppliers, the reset use as on improvement revenue of working will will the well be had guide, line said, only margins see, relative of we maybe kind is and master the Neeltran product with not for different of several probably think the the particularly when with John to we I different now, this kind those cost to is I opportunity to as competitive do. we that value can But it the but maybe revenue price, not be seen, or think get can overall some are, being compete to quarter think our stronger think we think on it's into that's we I We I get for teams XXXX, better really have quarter-to-quarter. can to and a become in we're better as to potential advantage showing we'll there comes all how see the hope take the those financials business behind historical we first us, everything of deliver. what improvement challenged understand thing in How is but this of similar going key with quarters to our can bright growth. customers to to but value better price And that the in to

Operator

from question next Colin Oppenheimer. with Our Rusch

Joe Beninati

in more This bit indicators you ship for interest Colin. that our on taking point of to on demand. with provide and growth of sort for share progress is a budgets any Joe little would questions. color Thanks Navy Can

Daniel McGahn

quarter that on the is begin the really is we the the principally Joe, in think, focused that system. we'll here, to orders thing realizing deliver first digestion of that have. our team I We're coming optimistic first very

the did I engineering the are moment company. the potential ship growth I the SPS. platforms. seminal on use This doing multiple plural to for is another time again So say that we regards growth that first work in

we increasing. see So the interest

and even the comfortable will and on much we much how into be harder I the ship, that to a go basis happen print through a because work to it basically the to makes have base. cost integrated think from all non-recurring diagnose come would has how in that that the changes

also busy preliminary the here we of is and turned be hope and So a which very design, delivery mode eventually procurement. team into delivery will

to long I me to for the multiple say rather which in and fully sooner of we're think the supply right say over into future our The the want price ship pricing but Navy about the inserting than orders getting chain these odds that later, it's challenge one what increases take. well. as the that future we platforms, how at next think understand we point news will as is, really the goal for we I line we make today with a cost, we that sure we're good talking understand potential see

Joe Beninati

one more REG for with projects. any progress what interest and then share potential on additional else demonstration you And on utility-scale can

Daniel McGahn

the we the risk, utility. the be the regulatory technical I manage up their think the wide it's to adoption be standpoint which able aspects demonstration they believe have demonstrate utility demonstrations from and unique to We it to it's the the to important on can projects I see need own own they utility. within the been see that construction as really all retired, word their risk utility of think to the before don't can because financial

this City REG know, of been of told We first we forward year they've towards and have a Chicago. their at the said the in that more we've but in Exelon words done by operate and implementation for to we leans uncertain need consistent work everything one about least

done not with be utility. when a Exelon across have everything but it work in seen only to a desire Chicago position think strong we've even entire leadership this they technology, comes to with in I we've that their the

we've the say past projects seen identified in utilities. similar around other or have We renewed I'll uptick related an interest with and

an demand, timing the lot of their projects new have it a where of in are and kind capital We is in which cycle seen regulatory uptick do of cycle. they the

I asset So to an in operation. have have we here we because to the differently utilities think that's market well opportunity doing REG existing

at the doesn't take able of quarters, on. think get consideration like think a future I we're And is is book this I I that's the doesn't be something take takes going weeks. that the helps to we utility with order purchase. always a So is work look that certainly significant is But what procurement. there of look strong working their number months, that this said, the businesses about this us interest years think where a It takes thing that in have as really show utilities to that to and challenge, to

Operator

next to our Go question Chip Moore EF Hutton. from with

Chip Moore

thank Yes, you.

momentum You in semi-fab channel. the some the called of out Right.

you your think bit how seeing there decade. could seeing billion investment you I is next this or Maybe $XXX opportunities, pipeline when you're that spending there, expand cycle over to what more should the on the opportunity. in customers just translate are talking think about start about out a we

Daniel McGahn

an We capital or you're is countries. think was have that unless three years was because that we in doing expand immediately capacity demand was threshold. today being way. ago don't new here and XX% what or four put two factory built mentioned planned that the that we that we're one expansions there that semi our semi is the they mention place. that's I intended larger upon our in the world, seeing of through Chip customers We based highlight market different There around of exceed the did customers benefiting different this we're

into some forward read energy into lot for we're So the customers satisfy. needed really look I've what of how getting allocation money and on we and and that Long as in make create capital meet some chips bitten its constraints we we've it. replacements we a types where and found will seems new at do new the been there. are that term, really to trying a semiconductor look tried it is semiconductor We able economy supply digital to this through it we're us, we're the that demand, look the key things to the chips. know to here forward move economy market we're We've and other are installations industry I way legacy from that do at for be that going to getting diversify from of brings help by in the standpoint future. the to customer the trying chain fabs but how

business we've for able And great. but only products as years and has a for ago, only an been that, was D-VAR, we've to order the I it this which turned few into So do been a acquired not think well.

Chip Moore

really timing and the that's quite the of doubled to bit only things there? infrastructure one of question in just details like level platform I a bill is and grid on high investment reliability potential the And terms talk had obviously in that, benefits but about

Daniel McGahn

Federal dollars customers billions what look my resiliency of driven we by When read there potential exactly do. of to at by it is our the around spending it Government I grid of

support, se. I So, expect the necessarily a to company. of contracts the coming being in I see grid the able future growth business. has expect tailwind influx very of that be I monies, per potential don't government helping in doing strong and boost focus resiliency certainly us to to But do

with hope find available what to but it utilities, government, terms bills things to that we of certainly certainly them our commercial commercial that lot funding ways. stuff in utilities have So a in have sources be ways when we through bought we pointing to different can tails work federal with the to you different we in the into the certainly us is and dig have

but it's we well. opportunity to resiliency something benefits when as on that's will that usually identification really prognosticate hard work that that's with benefits into grid to us business translates we're to follow-up question for hopefully think the the trying but me that through, and we the it market So affect that serve

Operator

next We'll go with Craig-Hallum. to from our Stine Eric question

Aaron Spychalla

first for on up the It work. for Maybe Thanks SPS. on Spychalla questions. is the following engineering just taking Aaron Eric. Congrats the on

details engineering, anything or trying you size can high on frame it is that look the you a Just just as of content on know kind of opportunity to but any number level give just out? of opportunity potential ships curious I if

Daniel McGahn

of it, kind talk large simplify just Yes, we small ships. ships, used ships, medium to about and

said a it shift, of billion to $X ship on and $XX is order a small like somewhere $XX was $XX could million content, content, the it between it billion carrier or of of $X $X to which us plus to we first large content. to ship medium was know, for billion be billion You then for a

it been. called that's as ships a I I roughly of of the [indiscernible] So we term what just as the or medium where that of in near most of the where in fits, all see ships gave really kind the are sized ship kind that prepared our relative has and focus the fleet remarks. in the

with be the really change have the engineering of So to price procurement. the work down Right, the make now where the right able we're next we'll is change. design But we it and focused it see team design considered on happens, to path a to out. order [indiscernible] go negotiating

Aaron Spychalla

and are me and of then stay for Previously there that the second on tuned on shaping gave you there steps - pipeline how some that of up. kind and the Understood. we'll update an underway VVO. pilots how next that

Daniel McGahn

REG operator. is set it vision utilities, quite great help just done think the come new a speak great to pole on card I've in a think tried see control able of the from parts the is, voltage you change lines the we problems well be We able us, boost that and or from lot, highway tried business to this little for We're things very power the tactical level, about potentially put the seen the prepared of we industrial power on is to more been We've is, great or solution see installations bit. to manage those continuous solar. the roof has it's an But need matters We've is shining for do can with it. that light complementary fraction happy more grid stage what high if two-lane does. a customers this on and continue for probably being we're the as of VVO when you have remarks, to doing trying distribution when and into and a add bring say can energies we've learnings able looking VVO learn I the received utilities, to certainly have I a been product certainly bright calling able other largest REG types VVO product into or long-term to - distributed among power system-wide for well. distribution in the those utilities do only to with create to size certainly to of utility to the grid. resonates called sure. a future how products setting as a large but you to for top the been we're a the repeat orders to we're the solve

Operator

session. any back to for additional This turn concludes McGann question-and-answer call the today's I will Mr. remarks. closing or

Daniel McGahn

Thanks.

turn and to trying where advantages, we're the of today challenges So we can. the market

tailwinds We're but as for We fully do Our teams by impacts some potential is The and in may working temporary change very benefit these see closely driven and are well engaged what climate working financials government with long-term for suppliers. we margin. customers through and on together. creating do climate on policy revenues a we our went the our have business.

to to So level coming were near business. term a we near when We're - positives able several of to we look see proud, the lot these we the revenue. able been has are into very what We're two Superconductor. meet only acquisitions a things and team company, out record for quarters, to very record better proud at American integrate here getting of the do

your we'll for you everybody talk hopefully to you attention soon. thank and So

Operator

conclude does today's you call. may participation, your That Thank now disconnect for you

American Superconductor (AMSC) 9 Nov 212021 Q2 Earnings call transcript