AMSC - Earnings call 2 2024 | American Superconductor Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the AMSC Second Quarter Fiscal 2023 Financial Results Call. [Operator Instructions] Please note that this event is being recorded. I'd like to turn the call over to Mr. John Heilshorn. LHA. ahead. go Please

John Heilshorn

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

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

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

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

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

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

investors financial by are consistent management call, it and noncash, believes The indicative of excluding operating company loss comparing nonrecurring non-GAAP or performance across on non-GAAP measures. not on net and a to basis other Also periods its are reporting believe core assist company's will net refer management performance. income in charges, the loss, that non-GAAP which income to today's these does

GAAP press profit loss of and to net the on earnings on can of XXXX release reconciliation night The the to net SEC GAAP issued the that X-K. -- second be fiscal furnished Form company last income loss quarter found net

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

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

Daniel McGahn

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

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

we Several breakeven scenarios growth, discussed expense lead We performance and cash value. cash quarters possible potential business control discussed revenue that margin factors driving ago, could as scenarios. shareholder to generating and increased expansion

done. can stand results second Our proof quarter this be as that

had We XXXX, For orders. a showed showed gross we modest strong flow. expanded the quarter we we another and margins, of income. revenue, net operating positive second generated fiscal delivered quarter cash of non-GAAP We higher

guidance expectations for quite Total quarter quarter ahead and schedule. positive. our XXXX believe the we year of I exceeded in range. are fiscal came All this are revenues of our signs second above

power driven new $XX by primarily shipments. second energy system strong revenue quarter million, was Our of

year XX% versus accounted Our and the grew the grid ago quarter total segment XX% second revenue over AMSC's period. over of for revenue for

with the year ago. second strong strong We revenue systems as in orders The XX-month from from remainder of We also million the very backlog of bookings have our wind and over a a million. new of both products. record percentage quarter near business, October significantly a came new which grew our power announced had $XXX existing for energy $XX and customers in a

period. year nearly grew the backlog versus XX% Our ago

backlog you it $XX business. backlog. Last our XX-month And backlog see, overall in XX-month at orders If fiscal $XXX look reached We we grew had back $XX In year, about million. we're over approaching general the XXXX, $XXX fiscal you million, time again, into to XXXX, million. now backlog. as million pipeline, can in improvement fiscal and in see

and have customers. We more and new more business with existing a sustainable diversified

Our business has like corner. turned feels we've a It arrived.

decrease average year quarters, fiscal lead quarter. for million $XX several total an us see past business visibility for million, Over the giving procure. starting to of business or This our Orders orders We times products our the over XXXX. customers. for news quarter is take $XX for lead long seeing times of We and were per XX to the second into more good months months. secured totaled certain to XX under about

we projects in applications. and chain quarter, shipped renewables, the project note, Canada, And to projects to please materials as semiconductors well and projects second to systems orders to for the the to for Navy supporting U.S. Canada, to electric set U.S. We different industrials systems in semiconductor from multiple our in and as of saw vehicles this utilities U.S. and batteries the supply chip During in SPS a and a mining diverse is military mining, U.S. the renewable manufacturers. Taiwan. projects and

year. results these of pleased about are with and our rest excited the We

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

John Kosiba

our I'm start and off Daniel, saying pleased I'd like Thanks, good morning, results. to with second quarter everyone. by

of recall steps [ structure. mentioned had taken quarter call you back we third investor from many to several may XXXX-'XX our fiscal overhead the our strategic I cost ], in As lower of

these have In addition off. to our revenue growth, clearly steps paid

XXXX approached would revenue $XX that, as operating moved a could of in elaborated second million operating the of cash quarter. cash $XX.X scenarios could margins of we second in be compared to XX% I quarter, several to year I of approach fiscal pleased gross XX% into margins ago report the $XX there reported the $XXX,XXX as where generated breakeven for flow. gross and million quarter. also XXXX, that be fiscal million achieved cash and generated flow revenues AMSC am quarter we in

Our ago period XXX% accounted we business increased revenues, while accounted our to for second for India total unit that of quarter grid shipping ECS more licensee. are XX% XX%. wind business unit our unit XX% same year business business unit the in increased wind versus time revenues as the revenues quarter over and Grid wind

across the Gross quarter margin to detail. second most and by favorable was a impacted the Gross product by Looking for ago for our at increased of was product X% fiscal year favorably more quarter. this lines. revenue in profitable P&L quarter XXXX margin the driven XX% in revenues mix growth compared

Additionally, revenue increased spares meaningful service a impact had on and quarter. margins gross the in

are way these price over And work reported a year the and ago our increases margin gross factors in on the starting their to improved contributed impact quarter. we implemented had backlog margins. through favorable gross to All we a lastly, the our

XXXX the Now compared in noncash. moving XX% were SG&A SG&A and R&D $X.X Approximately on quarter fiscal million to operating expenses $X.X second expenses. million the of and quarter fiscal ago were in quarter. year of expenses the second of to R&D XXXX for

second net or ago net with per loss non-GAAP share or $X.XX XXXX modest a $X.X share million a $X.XX fiscal of non-GAAP the than in million income for of of generated the compared quarter. We per quarter $X.X less year

per million Our in million loss the the loss $X.X net per $X.X compares of of to share quarter XXXX net fiscal $X.XX share. or in second was ago or This year quarter. $X.XX a

our GAAP non-GAAP This to on Please in XX, cash, through the We release strong fiscal sheet the issued see a operating for million second results. this $XX second generated XXXX in to cash. operating a restricted We of no cash cash with and $XX.X with We ended June of our of strength XXXX compares press fiscal the last results and continue quarter reconciliation debt. equivalents of balance quarter night flow XXXX. have million generated with cash flow $XXX,XXX. of

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

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

Our revenue expected exceed net $X.XX per not million share. is loss to or on that $X.X

per expected cash expects of be or company net loss generation $X.X The non-GAAP Our exceed $X.XX cash to breakeven positive to million. is a not flow $X million operating to share.

end cash. the restricted with equivalents no We third expect quarter than to less and cash cash, $XX of million

turn I'll the to call that, back Daniel. With over

Daniel McGahn

policies, Thanks, such Reduction see electric from as second retirement, XXXX. John. federal demand Inflation our orders as renewables industrials, Strong market renewables utilities and for and the year quarter fossil fiscal sector as growth vehicle well developments. mandates fuel supporting Act, government drove of We

calendar including power. coal-fired XXXX, generation, renewable exceeded In energy hydropower, year

power by and see as solar address and XXXX, U.S. and see of power the coal. replaced gas and the generation renewables. shows more first We of traditional for calendar declining services grid. from wind During year addition power being data half products our distributed the power produced into opportunities coal progressively electric than this that utilities We natural generation

nearly Nearly expected fossil is Recently, XXXX. XXXX. X/X generation to fleet retired electricity of of coal gigawatts by the the nearly coal since U.S. capacity, of X% capacity XX fuel-fired cease

U.S. natural of in XXXX. by to in and to XX% from estimated to in $XX XX% prior by increased and XXXX. electric wind was clean billion sources year Solar, Investment to about made gas the billion energy XX% $XX grid XXXX than capacity the in added up the more grow nearly

and reliable power The low-carbon are a secure favor. in and modern, grid a market drivers our for economy

the for harmonize for applications reliable, clean believe more effective the help and well why to world's delivery. desire we efficient be decarbonization and longer energy term. positioned need Our the That's for with power

pipeline are going market a opportunities. strong of after opportunities, those thanks to we demand, have robust We and aggressively

our create We for and to investing path our internationally sustainable are resilient expanding domestically continued in world. of more markets diversification and scale that and the reach a committed a business,

the for a growth sustainable be electric will key metals, markets renewables; serve we markets towards future. particularly in are utilities; foreseeable world and for materials believe the a We driver vehicles; march and the mining; Our military. semiconductors, more

intensify Our to products take advantage in of to continue role this in trends. efforts are we expected and to our a central evolution, these collaboration play

management substation supporting well the that's the growing industry. renewables, We continue supporting to and towards for utilities metals, uses at and level as a as semiconductor for work mining in business military power customers

another turned remarkable quarter. We and corner a delivered have

third We quarter. fundamentals the and We business the performance well that see during robust aren't can our grounded. generated We back. cash are expect of looking

XXXX. delivered half fiscal In strong of conclusion, we a first

We are sets orders quarter. electrical We executing delivered from of control Inox systems X-megawatt this on multiple Wind.

they wind Inox class We as expand Wind include their exceptional an to are offering turbine. X-megawatt supporting

We which year. are intend they turbine wind supporting they farm design, with our X.X-megawatt XXX-megawatt to their commissioned as Doosan wind complete offshore next

multiple are our Navy. We for base U.S. revenue the broadening products with

that X X are system. We've delivered System LPD. total Antonio-class the have of installed currently Protection We commissioning a and process Ship in and the San Protection contracts for won of System Ship

our delivering Ship are fiscal System this We second Protection year.

have and by We major reduce driven mandates utility gas environmental to project pursuing others. greenhouse a aggressively emissions are

and electric resilient the system for showcase a performing Chicago as installed grid planned has in Our technology. become is

well diversified the current quarter XXXX. is for over expect and and Our growing. the first $XX strong year revenue backlog We in quarter the strong, over quarter robust of second and million revenue fiscal $XX million delivered of third during

we are and we world Overall, believe expanded solutions We our are and customers forward. is of very the plans, positive. the that's power well, moving Already, our our set of serving grid business transformative business. an in ahead are performing

our today's future. can progress vision a creativity meet and on better that help and to executing are our believe us We challenges

reliable, with the developing complex system. the power that harmonize energy future-facing desire We and and and need solutions to efficient progress deploying effective using world's power by energy empowering harmonize technologies designing, means for This more delivery. control increasingly clean for believe an decarbonization

at third our forward the I excited We look XXXX. to about of completion our fiscal future. you reporting to of are very quarter back

questions Nick, take from that the lines now on analysts are we'll -- our line.

Operator

question be First Rusch of Colin Instructions] from [Operator Oppenheimer. will

Colin Rusch

guys lower flow orders? lower the move winning how delivering component some little the back the where And to really cash Can talk you're a cadence metrics. chain? you you're here. your hop progress forward, to after queue and start this, potentially great on you It's you grid working and then rolling follow-up of given just on winning the see capital bit as about in the costs Congrats and on rebalancing in I'll through ability is the of question, on the supply around side

Daniel McGahn

compliment, the for Thanks Colin.

things winning So I that. we're for multiple mentioned we're winning winning -- mines, time with utilities, EV, the we're first I've in It's big customers. with on we're semiconductor. said winning with

We continue to in win renewables.

build been to like sustainable tried We've board. the it's feel across really it's fully diverse, So business, we it. robust, able built demonstrate now been and this to and we've

we're that I a we John was telegraphed earlier back this thought. quarters than think few here possible. that probably And

performing really really, is even want business much to the better his anticipated. question? So had you than take Do other we

John Kosiba

the understand quite repeat I question? you fully second entirely. it didn't can Colin,

drop it component I could something we've We as wouldn't I costs think capital? impact and it's you say asking yet. -- working quite cost component about drop were seen haven't how seen

I stabilized. have think we

hoping a prices what think are nice lead we've supply is to stable are starting I chain, times with down we're that and stable. got one, come

As prices might that change. come down,

Remember, As milestone far that billings. as how tied highly much. don't us is as our capital, I to working changes see for business

capital working orders our our milestone schedule. if to questions. on So tends funded from But further this you we and be the take bill have can based any offline

Daniel McGahn

Yes.

seeing benefits the get really projects -- trying we're focused some the our customers of times, more on we're so to That's been control think key team, time. can point on I there. is focus lead and more the their started

Operator

Craig-Hallum. Stine question of be Next from will Eric

Eric Stine

margins I I'll great to just the improvement. on second out. mean, laid see maybe that. I'll touch So you

this You finally level, through of backlog, mean, as that Neeltran maybe we for plus this mix thing in look that the could laid or low-price the evidence we I improvement. mean past. drill as should is kind a sustainable? of you're reasons down, you some that, areas other at But in view should a out just that's backlog the I minus the that

Daniel McGahn

I'll guide, flow. revenues potentially and to the part. the clearly, guiding sustainable mean we're increased increased given cash operating answer I

to to level that's So be new look into confidence hopefully months. growth of the this XX able is top when the be the the given XXXX, additional for help on backlog We'll the We're to orders you add will looking us get sustain at about backlog, next which thing revenue able that. there. really

beyond. eventually business guiding only the So like, we're bullish and on we're very what we looks do. quarter as quarter really the But out for in obviously, X next time

Eric Stine

to Understood. confirm? bullishness extends right, But margins, just that Yes. to

John Kosiba

you had careful to I to starting them say that Yes. of be what I is mean guide so one -- so don't that. gross on want margins, the say if we we -- will margins, at But I for explained I will this I what is look lot did revenue we're impact very to quarter. do Well, service theory, efforts -- That that's price continue. wasn't by -- to the of to have a accident. in a We kind that. that's a increases. see strong going of of our We put

strong of revenue, as service can our to to forward. we deliver help So going to move the on continue extent margins a we total component that's our

our And then mix product in overall, lastly, as product seeing lines. we our strength changes, best-performing are margins our

your see So to the gross extent comment we can do that, is we're going our we margins. backlog, to continue on on strong an growth. impact that shift margin to as having surely surely, Neeltran, off To that

Daniel McGahn

now team a have. behind to and stop it each acquisitions. I full selling we They've today, like the complements going constituent like everything blunt how integrated, components with think, been the us that is though, solution. we're it working. Eric, other. to the either how about very business, you, Everything is be We We they're the really talking sits as

to both business. part becoming of business these that of main the of part of accomplished the I trying the pieces think So with get mission

going focused for just grid, how sure. the customers. as our grow And help we're wind cities hopefully, do we do more how we'll So see and wins to continue forward, on REG some on really in we side Navy well future for the support

Eric Stine

on just wind. Obviously, one quarter. That's me, helpful. for maybe And last good Okay. another

the near going for then things Is start both forward, think we the a last still term Inox. you here -- expect level should that that I when and next to talked get the next this that longer several ECS would you about platform think come X-megawatt way and term? from for about to step the orders quarter, that the maybe had quarters that is

Daniel McGahn

Yes.

to I think you see come from the if steps you Inox, orders not backwards. continue see forward,

X most see more they They the recent They months were highly where growth. very about the potential probably for they than X-megawatt about were their platform. even ago. are You on with call excited seem positive it,

because with But business, will given, it's wind. or we people to announce the important a if they're level or with able again, get know see, we'll orders, support at are we we the as said I certainly mention work backlog, progress. to have you, calls including them seeing in then overall you our earlier. you'll And So we what different to look on constituency, them yes,

Operator

Next will Instructions] be question MKM. [Operator Clare, from Justin ROTH

Justin Clare

the So million XX% $XX I ask level guess gross talk is about you're at of, expectation an if revenue, in a margins, are margins first expectation. one about wanted where I you say, a to reasonable did or the

margin scenario? you in levels gross As you expand of to to to or XX% above, higher get that your continue revenue, if move can of type

Daniel McGahn

Absolutely. leverage. to drive to want the the We cost to That's get top disproportionately -- line we're trying line.

of there's in great a the think we So business. leverage deal

We We've haven't has And put wasn't make next of this able put to kind mentioned in that. probably going and now John we've been out. of the ago. know say, what's where go? it period people numbers. any out just are I time on to you well, long do it, that

I think I on service job after are sustainability. We've the in backlog. the able you see doing the across is overall to probably it's And is line. side. guys robust theme great the product there. the The revenue We're think a been pricing what

go very believe pleased and and where next. where with are, we very So going happy we're I to we're

Justin Clare

it. Got

that Okay. project also And the you the if I about ability different the offerings have. you between you in in supply cross-sell product then various got can and that then seeing talk you you're that sizes bookings per content QX could strong trend and wondering to here. that was project

you that, speak to helpful. could be If would that

Daniel McGahn

Sure.

effect. of lead cause You're and kind and

products project of which and strategy and different solution. project, as for a the that's complete up, part together means selling the is content more for selling the going leverage now a we're of the So revenue

And very out seen it of industrial. very in it we've mining seen general semi, the the as nicely. as materials well working specifically we've seen some we've in kind in renewables, that's So certainly and

we're were. we So there. feel We've a business than very we today talked about different getting

like go the more in we to and future. I we're and to Now want there, continue and more do feel

Justin Clare

that Okay. than little talking And then a one. Inox turbine to wind. is profitable just this one might shifting more But X-megawatt it for turbine be about X-megawatt. bit was early more, the gears a And their

for an margin for wondering was providing? the X the I is you're have a capturing versus value you customer opportunity to there greater if is profile X the product that there So potentially for if your better

Daniel McGahn

Yes. With line. to I'm margin customer, out it customers. and break up not our talk respect we by to by don't product going break certainly

I So offend not don't answer. want to Justin, to but going you, just I'm

Operator

like That turn ends Mr. I'd back to the closing to McGahn over for the question-and-answer call session. remarks. Daniel

Daniel McGahn

Great.

I here, an I'm the is, in huge, with guys. accountant the able John nominally delivered non-GAAP. a we're been were positive that and for news through predicted do with since haven't result at has good It's to the But XXXX. we it, new whole break huge milestone company. all we is business This place a that huge, said to that it. not what think means non-GAAP. GAAP a back We

telegraphed Most of delivered this long We've going asked have always about me I for happen? John it. you always as have us when then investors with talked how. we've And now that and a said, been how, to time

at move lot So is world There's and benefit to strong the the of of a we it, we hope very There's and right and backlog strong, we're onward in think it. really the a center is strong. decarbonization, the really from to upward, diversity. pipeline

X getting for forward you, to time. in your you to months' Thank about everyone. all and back you support, thank attention look So your

Operator

concluded. for conference is presentation. Thank today's you. The you Thank now attending

disconnect. now may You

American Superconductor (AMSC) 2 Nov 232024 Q2 Earnings call transcript