American Superconductor Corporation

Ladies and gentlemen, you are currently on hold for today's conference call. At this time, we're assembling today's audience and plan to be underway shortly. Thank you for your patience and please remain on the line. Good day and welcome to the American Superconductor Fourth Quarter Fiscal 2021 Earnings Conference Hall. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. John Hileshorn. Please go ahead, sir.

Thank you, Mary. Good morning, everyone, and welcome to American Superconductor Corporation's fourth quarter and full fiscal year 2021 earnings conference call. I am John Heilshorn of LHA Investor Relations, AMSE's Investor Relations Agency of Record. With us on today's call are Daniel McCann, Chairman, President, and Chief Executive Officer, and John Cassivo, Senior Vice President, Chief Financial Officer, and Treasurer. American Superconductor issued its earnings release for the fourth quarter in full fiscal 2021 yesterday after the market closed. For those of you who have not yet seen the release, a copy is available in the investors' page of the company's website at www.amsc.com. Before I start the call, I would like to remind you that various remarks that management may make during today's call about American Superconductor's future expectations. including expectations regarding the company's first quarter of fiscal 2022 financial performance. Plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including those set forth in the risk factors section of the American Superconductors Annual Report on Form 10-K, where the year ended March 31, 2022, which the company filed with the Securities and Exchange Commission on June 1, 2022, and the company's other reports filed with the SEC. These forward-looking statements represent management's expectations only as of today and should not be relied upon as representing management's views as of any date subsequent to today. While the company anticipates that subsequent events and developments may cause the company's views to change, The company specifically disclaims any application of these court-looking statements. Also, on today's call, management will refer to non-GAAP net loss and non-GAAP financial measure. The company believes that non-GAAP net loss assists management and investors in comparing the company's performance across reporting periods on a consistent basis by excluding these non-cash, non-recurring, or other charges that it does not believe are indicative of its core operating performance. The reconciliation of GAAP debt loss and non-GAAP debt loss can be found in the fourth quarter and fiscal year 2021 earnings press release that the company issued and furnished to the SEC last night on Form 8K. All of American Superconductors' press releases and SEC filings can be accessed from the company's investors page of its website at www.amsc.com. With that, I will now turn the call over to Chairman, President, and Chief Executive Officer Daniel McCann.

Daniel. Thanks, John, and good morning, everyone. I'll begin today with a recap of fiscal 2021, which ended March 31, 2022. John Kaseba will then provide a detailed review of our financial results for the fourth quarter and full fiscal year of 2021. He will also provide guidance for the first quarter of fiscal 2022, which will end June 30, 2022. Following our remarks, we'll open up the line for questions from our analysts. Fiscal 2021 was a year of growth and significant diversification for AMSC. Full year revenues for the entire AMSC business increased by nearly 25% year over year, driven by growth in grid. Our grid business grew by more than 40%, our seventh year in a row of grid growth. AMSC's grid revenue in fiscal 2021 was more than 90% of our business achieved through organic growth and strategic M&A. Just a few years ago, grid revenue was 60% of the total business. In fiscal 2021, we accomplished significant business diversification by expanding our product offering, extending our geographic reach, and broadening our end market. We diversified our grid product offering with the addition of Nealtran. Our new energy power systems now include our dynamic power correction platforms, as well as our static power correction line of capacitor banks, harmonic filter systems, as well as rectifiers and transformers. We diversified our business by geography. In fiscal 2021, over 60% of revenue was U.S.-based, while nearly 40% supported international projects including Singapore, India, Australia, and the United Kingdom. Overall, the number of countries we shipped to is increasing. And most importantly, we diversified our business by end market. In fiscal 2021, the renewables market accounted for approximately 25% of sales. The semiconductor market accounted for roughly 20% of sales, while the materials, metals, and mining market accounted for more than 10%. During fiscal 2021, we announced approximately $85 million of new energy power system orders from customers in Australia, the United Kingdom, Spain, Chile, Canada, and the United States, among other countries. Our intention for fiscal 2021, as we outlined in our FY20 shareholder letter, was to continue to execute our strategy of delivering a more sustainable and diversified business, both of which we successfully accomplished. Fiscal 2021 was a pivotal moment in the history of the company and superconductors. we commercialized high-temperature superconductor technology in two separate markets in the same year as predicted. First, we commercialized our resilient electric grid product, or REG. The system was delivered, integrated, energized, and successfully operated in the power grid of Chicago. The REG system was designed by our team and manufactured using AMSC's proprietary Amperium superconductor wire. Second, we delivered our first breakthrough ship protection system for the USS Fort Lauderdale. This represents the first of four contracted AMSC ship protection systems, or SPS, for the San Antonio-class platform. The commercialization of SPS, an advanced superconductor degassing system, marked a watershed moment for our company and for superconductor technology. We have a culture of delivery and believe that the delivery of the system demonstrates momentum for our company and for the naval industry to adopt change. Fiscal year 2021 also ended with another key milestone in our wind business, the design certification of our three megawatt class wind turbine. With this certification, the three megawatt class wind turbine is ready to start operations. Now I'll turn the call over to John Kasiba to review our financial results for the fourth quarter and full fiscal year 2021 and provide guidance for the first quarter of fiscal 2022, which will end June 30, 2022. John? Thanks, Daniel.