AMSC - Earnings call 3 2024 | American Superconductor Corporation

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Operator

Good morning, and welcome to the AMSC Third Quarter Fiscal 2023 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to John Heilshorn of LHA. Please go ahead.

John Heilshorn

Thank you, good morning, everyone, and welcome to American Superconductor Corporation's Third Quarter Fiscal 2023 Earnings Conference Call. of Relations, Heilshorn agency Investor John record. of am LHA AMSC's Investor Relations I today's Daniel Vice call and on us With are Officer; Officer Treasurer. John Financial Chief McGahn, and Kosiba, Chief Senior President, and Executive President Chairman, for American third fiscal market quarter the the Superconductor after earnings yesterday of its closed. issued release XXXX

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

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

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

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

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

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

press and to third earnings furnished quarter from release the income found of GAAP issued The can net can X-K. company press of filings last be on All and SEC page reconciliation net www.amsc.com. website night be XXXX American SEC fiscal of accessed its Form loss at releases Superconductor's with Investors GAAP the in the the the

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

Daniel McGahn

ended end then good provide our review a really and our excited the to will December XXXX, third I'll business, XXXX. and financial begin Kosiba everyone. with detailed will guidance fourth and great providing a update morning, everyone John, John news Thanks, March for which XX, few some I'm fiscal by on remarks share an will sharing results which quarter, of the for provide quarter, XX, fiscal today.

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

entire really third to business another margins. guidance operating We financial expectations We exceeded range. really is generated as results. of our previous The announce income, positive for quarter. fiscal X We revenue fiscal booking for flow. orders expanded for backlog. continue We showed past XXXX revenues about the Total cash the and this revenues quarter We're higher revenue. of total Total rate had which and pleased outstanding quarter we our months the same showed at the year outperformed to year. non-GAAP for net gross

fourth in for about had think people important, of convinced revenue about this as business. Through and that missing the we this months first are of it's months I repeat fiscal entire This will the me means fiscal I'm the X that point do the growth. our we previous XX same Let because year-over-year quarter that be whatever strength year. the the year,

initiatives, success revenue you this is for growth the business see signs our I was won't of as quarter the are regional basically very about All quarter year. $XXX mix guidance the demand. pricing steal positive. fourth our This fiscal and given overall fact but and customer basis John's our call, the product for driven the later million, by in the

over was revenue new than Our demand $XX power forecasted. energy million customers' of products driven third was system by needing earlier quarter due shipments. to This

We our of sooner. products and business. customers lead want a great of this see as health times are the finding are shrinking indicator our We

quarter Our the about XX% Nearly revenue XX% quarterly these ago our from are a business of period, accounted year grid which This the XX%, grew versus AMSC's and record-breaking revenue. for year revenue total segment came the of big XX% also XX% grew approximately revenue versus over and represents XX% period. ago unprecedented wind grid with numbers.

voltage protection our systems VAR products projects. shipped compensators, set shipments. mining control of and well capacitor markets, industrial third semiconductor, saw as filters, product including Navy quarter, and diverse rectifiers, a went harmonic systems. renewables variety electrical into a banks, We our transformers, Volt of During we ship as optimizers, These

quarter, our orders over of to XX-month backlog During $XXX third grew we our $XX over million booked new and million.

to backlog third period. the year power new nearly ago XX% orders. compared at of of million $XX We Our systems by end the had when energy quarter the increased

quarter metals well Our the utilities, million orders renewables X/X projects. for projects wind power as They new XXXX, market of timing. These mining market. systems with strong the the from semiconductor total. contributions represent for approximately fiscal orders, accounting include of as have orders Industrial and averaged which varying energy year and increasingly of X/X third $XX approximately quarter diverse because by during quarter solar contributed total over orders a serve an

in grow diversify and across strong business we to these grid to Industrial and through end bookings our sectors. our strong With demand Renewable and markets, future continue both expect

Okay.

million Inox they payments. to ship course in seems of ECS, control Let's delivery XXXX. to like public some and to talk not X-megawatt We be first but impacting business take believe secured fiscal are if lead second take all one under order sets with this could the XXXX. our systems, we see information off during deliver on it expect our is year their Inox and great about Their follow-on would these to the of ECS it poised requested XXXX, It when. we or Wind and quarter $X would order, delivered news immediate timely over to first quarter, electrical has longer payments. calendar this. depending from Wind. Inox second our Inox's

We off cutting-edge calendar Inox XXXX X-megawatt year order an are our continuous start turbine demand ECS. follow-on to this partner X-megawatt ECS class well. the see We for and with from our our in encouraging for X-megawatt as

Additionally, work. continue our secured we made on to and progress development orders have Navy that programs

working to multiple technology Navy's We are our fleets. insert into

X-year taken annual revenue. had rate. We our of XX% we've years, grid integrated several and business compounded sales grow content we nearly consistent broadened to our past acquired to actions leverage, our our a and the business which through our series very deliberate have Over diversify a X grid period, tripled business. and offerings revenue and companies our revenue over growth total of growth increased contributed successfully of expanded Over

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

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

John Kosiba

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

revenues, increased by quarter, XX% period. while total year unit time for business Our XX% quarter XX%. business XX% the increased wind of revenues business versus in grid our business Grid by accounted ago our over third unit while unit for unit same wind the accounted the

positively and the was the detail. of of compared quarter impact P&L X% was Looking ago Gross higher impacted quarter a third in the more third favorable Gross fiscal product from the the at product increases across more lines. XX% mix XXXX fiscal year pricing across business the our revenues, in margin for quarter. to favorable XXXX the for margin by

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

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

non-GAAP share $X.XX was the our release share. $X.X ago million or This loss $X.X net net to per per third in of GAAP last fiscal with equivalents We quarter. Please issued million on loss $XX see compares in fiscal XXXX $X.XX press quarter reconciliation September cash in million a of This for of quarter ended cash, of with third XXXX. $XX million or XX, results. Our the the year XXXX to night and compares a restricted cash.

Our operating of the in $X.X XXXX quarter generated flow cash million. fiscal third

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

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

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

per not net Our non-GAAP $X.X to expected exceed million share. is or $X.XX loss

generation breakeven be expect We $X cash flow to operating million. of to cash positive

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

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

Daniel McGahn

for John. to meaning. This of we didn't again quarter second demand operating we've last has quarter, are is and and our quarter, to fiscal positive where that do expect guide a a for renewables, cash new drove the We achieved XXXX. quarter row third Thanks, systems energy power market utilities from quarter. in that industrials third Strong flow that but and orders year this

customers opportunities as from address market semiconductors addition into illustrate and applications. distributed our services see utility metals, to electric power materials products military utilities orders in Our and and mining the diversification of and for the grid. We

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

We We've the India, strengthening us expanded our in we Navy to see year. wind and more in horizon. ships that significant and business on all translate been into for able see next programs, the progress market should make U.S.

of grid that electrical we in many electric resilient system solution have and operate cities. to grid we problems Chicago solve the existing many in a Our planned continues believe can as

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

vehicles; materials markets particularly for are and semiconductors; and Our growth utilities key military. electric renewables; hybrid and mining metals,

foreseeable world march markets be the believe sustainable will we the the We a driver serve in more a towards future. for

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

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

corner the another turned outstanding have We delivered quarter. and

like in back. looking the we grounded. at of see semiconductor All back. and the feels well investment our as have capacity electric is wind of aren't We renewables; the X rise our reshoring vehicle We are of driving infrastructure. tailwinds. in Policy It see the more American fundamentals the business America, can we

be you're believe needs come wondering to solution who you and to you there be place. solutions, to providing will climate a have that these decarbonization right If and the

of future diversified the future investments in a believe capitalize future defense well that markets as and and business that investments these mining vehicles To renewables, built stable the we go to electric into is on in as conclude, the business. the well the of investments semiconductors, of materials we've of X in positioned the

opportunities that transportation. are by as climate We change us driven presents of the electrification as the to well

the products consumption Our support vehicles. the provide power point electric grid at of

at the a to and mining evolved Our and same from factories the margins. a to vehicles. support both these products while time improving growing and the also concentrated for business We've with materials revenue build business and concentration used more very diverse at provide metals customer market being

We making a our to deliver diversified focused sustainable and business performance continuing financial of building on are business. on longer-term of priority business and improving our the towards progress a

team I has done of think this. terrific the job achieving a

pipeline our at not becoming types look larger, sales we they're smaller. are The less looks not When prospects more concentrated. of Orders and becoming weakening. serve like, what our are markets we strengthening, diverse,

and for work our completion ever to year-end. next fiscal that the to serve want team advantage believe the our are of forward say, look us thank allow will you look when efficiently. more customers So or support, and I prospects capabilities great. our and year term, our I at quarter to set the fourth a to at significant our of reporting We I think differentiated so, are solutions back I that their near fiscal hard and

take Gary, our questions we'll from now analysts.

Operator

comes from question with first Eric [Operator Stine Instructions] Our Craig-Hallum.

Eric Stine

the start about a bit, this it with sure make -- you I'm just I I that you talked but you 'XX? you order And dependent, you on but expect we systems, Were control that? discuss to see in payment expect order? clear QX year majority you here X-megawatt -- X-megawatt can QX and know is out wind. fiscal it's it. how maybe So just Could talking this just little How for the calendar of when would want playing the

Daniel McGahn

that's Yes, exactly right.

expectations we them we at They to to quickly as too leak quarters. credit, to first higher. third sure do make the really to it could with depends best But sure bit and that pretty X I or be possible. roughly paying think at a between they're a we supply don't support but as want possibly fast our It the I going manage chain, We're into quarter. in least upon really they've to be can, as everything good on It which want can, X will point at. I the make now as been the possibly we wanted but to your even their -- -- hand it mouth to everybody December our risk. call quarter term, understands that balanced set them short as time, the want ability on starts where recently,

Eric Stine

majority December QX, would the of for that How turbine be little is about there. or I I quarter, the might on that? there wind we with the that sticking -- X mean, just systems then And X-megawatt in understood. the bit your X-megawatt should that right? I mean of assume No, -- a Yes. think

Daniel McGahn

for Yes. just ago. the of going beginnings We're starting maybe back of order get at X-megawatt received history that's all X maybe megawatt. that happen the size, It's X-megawatt early we're correct. slide on a a India to where again orders, size. to probably we try have to be were we're of series actually and start hoping of we get now, deliver have from believe the really that a couple to in show ready they'll kind that, point the successive chart we hopefully, we quarters where to in a they'll to And Eric, QX, from in going with that the we that We're lead in in we're the grow to similar us X. the see deck, and But signs Inox

Eric Stine

Okay.

X quarters the nearly mean like mean, think the I looks kind might higher? I order of about knowing here $X when this number top? is -- that do this X-megawatt, primarily we on X-megawatt million the run about so for million have now how And of layer that for out -- that -- kind the $X taking representative a again, 'XX? through quarterly you are you Or you What a rate, think X fiscal right?

Daniel McGahn

Yes.

and that at are I back, the that's say, think X. so X probably at rate, and the if look looking previous, go we with quarters you let's run where

with the I forecast focused think to customers. so that much market business customer. their down capital Xs able in could customer there are But sell hamper their to to a again, going of some to more they're But it. well. to indications or have love to on they're as why as this it's always Part we grid their be is or starts ability help access great deliver Inox, we up, their slows hard either

And to our and to So think, we waiting is we come business we support the messages to literally start in this back. back to of the been feel like key should can today, them. wind for really years think a I 'XX. on we now everything strong, we India, for have do want We've one

Eric Stine

Yes. No, great. that's

for? past. should was kind me like misread ship about than maybe You've waiting if into about Maybe been time know and to Navy was -- quite know that we some in seems or I new a to look it It today on quite turning to get my just Navy's platforms. I've Curious of next business. you've your talked stronger some heard for part time. Allied I looking intentional you've been the commentary signpost for the on that's that

Daniel McGahn

you're it's hearing Yes. me. what what they not say, it's hear In and you communication,

see on we clearly, the more horizon. So ships

words These different last different messages you kind see we to is a We the So before It winds are on supported at It them. a message the of rate. in say is quarter, take-home great horizon X a today. not a particularly orders energy new that. converting here We're the feeling. business the that's are have feel just we and by more and our back, on path backlog. a the clear quarter India, heard consistent very me ships

Operator

from The next question Rusch Oppenheimer. with is Colin

Colin Rusch

talk about how mix impact And growth and pricing calendar the you your on in of we driving growth acceleration of unit year-over-year quarter? the in should the think 'XX? Could here top about growth pricing line

Daniel McGahn

We to needs customers' that support hope the same cost initiatives time. behind we've pricing us, to try and the good at are done think, to been pricing. reconcile We've able we really job, our a

we many projects product when X X pricing, size only line, right? So renewables, look is X, but Many absolute and the in greater. many semiconductor well. up project are are it a the value of as it for So is in order part as at projects just growth the not part leveraging or average mining of going of projects projects in maybe is the

So expect pricing well we've that to and respond pressure. ensure very inflationary able delivery those that there's I wouldn't work, We'll a But I to with price more we it. been I to to is a piece things. continue. that still guess customers think have of to timely competitive. is our think,

But for that that the premium-priced larger. are we are forward, pipeline proprietary have We reflective to I content us of We be order everything a is do going really, garner to think getting do, growth and those product. Colin, so the should convert sizes the going ability orders that. the in and

Colin Rusch

on some lumpiness availability then side, terms obviously, the some And supply and through the gone dislocations. supply in Fantastic. of you've

a manufacturing talk can ability little the guys bit efficiencies your perspective incremental and you out from of as and scale well? normalizes that about cost driving As products start bit, little to a a cost you some

Daniel McGahn

Yes.

seeing allow to look we're in business. the Obviously, start a partner see will make doing will very of chain you're multiples potentially going of ECS this for in and providing optimistic allow different in previous that pricing. there calls, sure same it parts supply volume look them that, we're you their SPS come on demand, and because copies us winds think proper rise, said they I've to good and to you it that and as thing, the reflect that grow that and when that that cost I for over making as over as those reduction. we're at our I'm be --

I inflationary us. pressures most risk. think in the always won't the of I So that behind there's because near say are all, term,

of We're seeing of have and think I indicator the lead pressures to customers deliver been lot start push of health business. is, start the to times seeing able availability which to reduced. the a to faster, shrink, great I think, we're a be us

Colin Rusch

And how of demonstration conversations order? solution. is performance the the and think talking folks you Chicago lieu many customer to, Great. project about in one follow-on to for are how and final around maturing grid bit or for those Can you're me a conversations maturity the with how in talk potential then just of evolution ongoing about little a another

Daniel McGahn

another of. that's the asset operational that all. don't I I demonstration more the capability in and X want It's want an and demonstration, see got to at the to do a do first recovery. as full wants rate Yes, an don't they utility grid, It's it's

say, quiet with probably to, You're hearing start I'll my REG. me rhetoric

have feedback have getting about REG of we right you excited particularly customers, that those really very now. needed the in been a from solution a that's that I'm the while, I think we're around means. you understand and me for do what For U.S.,

anything we'll I don't progress have updates, as but to I So say there, more make more progress, think we today. demonstrable else give

Operator

next question The Justin from Clare ROTH is MKM. with [Operator Instructions]

Justin Clare

give could larger comprehensive customers' first getting of did project if more other this guess, Is what's I there increasing? are portfolio? Maybe just orders? I you driving function a here. order little larger you was color wondering that those Are talk a product about So just mention sizes can you on that. sizes factors are off, your a

Daniel McGahn

Yes.

think contributing I are both factors.

as us. now known the becoming We're the projects in all as side well. and it now first larger that But one that side we're driver. a the deliver is the think at being shop, I one-stop main looking able the industrial with on of of lot work of larger market bidding or the helping kind as also a think a think I is be the in that We're to I projects, scope. are renewable

business. we those about indicators all So good health are think the the of

Justin Clare

that Okay. expanding think how looking do And further that portfolio, development further it's products whether then of you at or could your support potentially about in-house Great. acquisition product products?

Daniel McGahn

Yes.

we've track fact a have X I appetite, recently these expand. deals now have think record the doing that had at helped we given this demonstrated

The about good in the Navy. content then getting the years We're previous traffic and as here. acquirer. talked that. of was of X And inbound more be an we've to first known last market work a one We're a over for the the a lot lot couple in with potentially company

business. we more certainly about to do to we allows something content we be grow want and We think want should choosy to quickly, try then that to and So us we what consider. more the acquiring extend grow if that's

Justin Clare

it. Got

gears a shifting bit here. And then Okay. little

You in mention improving supply to lead times that be chain. did your seemed

last products. Do think how in convert on trending mentioned projects see could revenue? ahead And moving XX acceleration under months you you for horizon? here? this I to improvement things then you further your to wondering quarter, I months to see for ability backlog potentially things was an XX the from some enable some or had

Daniel McGahn

Yes, I is potential think there. the

lead we closer here impact can and some next on to line, generate I product that the have quarter, now means XX fiscal X year. upon think next are to this which our times depending months orders still quarter

-- we just I the robust business, results. the on prospects probably So we there. close. a I'm been And excited, excited most important out. I've figured see that's to But haven't pipeline it tremendously an trying we're make the that very the think of and not to of things we're working comment about

Operator

any turn closing concludes like I to Daniel remarks. the session. This McGahn our would conference back question-and-answer for over to

Daniel McGahn

few want I a just points key to here. make

talking from ever when diversity, built and you the position we've numbers in performance. The think now been about, We've this Our business about business we've business you a think again of built. past really strong the been that the about able the a hasn't been operations able manage, in the quarter. to new new add cash markets, pricing. discussed, in pieces been we've and we generated to do to expect as has in that X We've and March quarters

there's We of part and tailwinds new series growing. capacity by are here We U.S. change the the a driven climate reshoring and electric driving our vehicles. to the of to are think move business, energy stay, more that of semiconductor are including

Wind in India appears to be strengthening.

We and have like a new feels product that's winds they're It back. with again. different grow It in on our about partner's us much hands, to now. business the their and build feels our

We also on see more ships horizon. the

We this we I to has and Navy. that progress coming, know done ships enough. of an indeed. it's we that can't is stress the soon. very the where After see go with the have feel exciting see the We efforts could on team development all what expansion hopefully, them with moment quite horizon, made work U.S. business near our on

a believe Lastly, that continue been pieces content, our to multiple to markets broader our more can to means about business. I add it our future as are growth. speak as quickly. offering able we continue today, we've in excited we you I as push hearing hope more and attack with at successfully We could more after integrate deeper, get acquisitions for are to

clear in harder. and our multiple multiple tailwinds. that me it see to cash from quarters of more specifically, business business the appears and generates it that We We back For has That a a those operations. the why have India, on We why AMSC is will policy have for you on asked path see blow to now? ships horizon and wind demonstrated them. feel start

looking continue results. integrated future. our I'm and that report hope we and have day. talking again fourth We forward the to to full multiple successfully to Thank acquisitions you, and good when in you quarter year

Operator

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

may disconnect. You now

American Superconductor (AMSC) 25 Jan 242024 Q3 Earnings call transcript