American Superconductor Corporation

Good morning and welcome to the AMSC third quarter fiscal year 2022 financial results conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to John Heilshorn of LHA. Please go ahead.

Thank you, Gary. Good morning, everyone, and thank you. Welcome to American Superconductor Corporation's third quarter of fiscal 2022 earnings conference call. I am John Heilshorn of LHA Investor Relations, AMAC's Investor Relations Agency of Records. With us on today's call are Daniel McGann, Chairman, President, Chief Executive Officer, and John Kaseva, Senior Vice President, Chief Financial Officer, and Treasurer. American Superconductor issued its earnings release for the third quarter of fiscal 2022 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 starting the call, I would like to remind you that various remarks that management may make during today's call about American Superconductors' future expectations, including expectations regarding the company's fourth 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 Risk Factors section of America's Superconductors Annual Report on Form 10-K for the year end of 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 subsequent date to today. While the company anticipates that subsequent events and developments may cause the company's views to change, the company specifically disclaims any obligation to update these forward-looking statements. Also on today's call, management will refer to non-GAAP net loss, a 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 net loss to non-GAAP net loss can be found in the third quarter of fiscal 2022 earnings press release that the company issued and furnished to the SEC last night on Form 8K. Pardon me. All of American Superconductors' press releases and SEC filings can be accessed from the 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 McGann. Daniel.

Thanks, John, and good morning, everyone, and thank you for joining us. I will begin today by providing an update and sharing a few remarks on our business. John Kasaba will then provide a detailed review of our financial results for the third fiscal quarter which ended December 31, 2022, and will provide guidance for the fourth fiscal quarter, which will end March 31, 2023. Separately, John will update our operating models and talk about actions we took that are expected to lower operating expenses. Following our comments, we'll open up the line to questions from our analysts. During our third quarter of fiscal year 2022, we are delivering on our strategic priority of a more diversified business. Total revenues for the third quarter of fiscal year 2022 came in within our guidance range. Our third quarter revenue of nearly $24 million was driven by new energy power system shipments. Our grid segment revenue for the third quarter of fiscal year 2022 accounted for over 85% of AMSC's total revenue. The remainder of the revenues came from our wind business. During our third quarter, we saw a diverse set of product shipments. We shipped voltage compensators, capacitor banks, harmonic filters, transformers, rectifiers, volt-var optimizers, ship protection systems, and electrical control systems. These products went into renewables and a variety of industrials markets, including semiconductor mining, as well as our Navy projects. We ended the third quarter with more than $30 million in cash. And I'm happy to announce that we have met our obligations in the Chicago project. The $5 million of restricted cash for the resilient electric grid project in Chicago are expected to become unrestricted and hit our books during our fourth quarter of this fiscal year, 2022. During our third quarter, we booked $43 million of new orders and grew our backlog to over $110 million. Our backlog at the end of the third quarter increased by nearly 40% when compared to the same quarter a year ago. We announced our shift protection system contract with Huntington Ingalls to be deployed on the San Antonio-class amphibious ship LPD32. The LPD32 contract marks AMSC's fifth ship protection system for the San Antonio-class ship platform. Over the past several years, we've taken a series of very deliberate actions to diversify our business and grow through our grid business. Over a four-year period, we doubled our business. Over the same period, we nearly tripled our grid business. Fiscal year 2022 has been a year of transition for the company to a broader product portfolio, pricing and cost changes where possible, and aligning our fixed costs better with historical revenues. John Kaseba will provide more color on this today. We have expanded the markets we serve, and that has translated into into a higher order intake rate. We do not intend to stop here. We have a lot of work ahead of us, but our longer term priority is to build a sustainable business that's well positioned to not only take advantage in renewables, but also in semiconductor, mining and materials, as well as in defense. We believe that this sustainable business is not so far off in the future. John is going to update our operating models later in the call. I will provide a deeper review of some of the drivers of our business going forward. For now, I'll turn the call over to John Kasiba to review our financial results for the third quarter of fiscal year 2022 and provide guidance for the fourth quarter of fiscal year 2022, which will end March 31, 2023. John?