American Superconductor Corporation

Good morning and welcome to the AMSC first quarter fiscal 2023 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal 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 touchstone phone. To withdraw from the question queue, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to John Halshorn, of LHA. Please go ahead.

Good morning, Anthony. Good morning, everyone, and welcome to American Superconductor Corporation's first quarter of fiscal 2023 earnings conference call. I am John Heilshorn of LHA Investor Relations, AMSC's Investor Relations Agency of Record. With us on today's call are Daniel McGann, Chairman, President, and Chief Executive Officer, and John Kaseba, Senior Vice President, Chief Financial Officer, and Treasurer. American Superconductor issued its earnings release for the first quarter of fiscal 2023 yesterday after the market closed. For those of you who have not yet seen the release, the 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 Superconductor's future expectations, including expectations regarding the company's second quarter of fiscal 2023 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 American Superconductors' annual report on Form 10-K for the year ending March 31, 2023, which the company filed with the Securities and Exchange Commission on May 31, 2023 and 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 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 obligation to update these forward-looking statements. Also on today's call, management will refer to non-GAAP net loss and non-GAAP financial measures. 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 first quarter of fiscal 2020 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 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.

We're very excited to be here with you today. I'll begin today by providing an update and sharing a few remarks on our business. John Cassiva will then provide a detailed review of our financial results for the first fiscal quarter, which ended June 30, 2023, and provide guidance for the second fiscal quarter, which will end September 30, 2023. Following our comments, we'll open up the line to questions from our analysts. We began fiscal year 2023 with strong orders momentum and notably improved margin performance. Total revenues for the first quarter of fiscal year 2023 exceeded our expectations and came in above our guidance range. Our first quarter revenue of over $30 million was driven by strong new energy power system shipments. Our grid segment revenue for the first quarter of fiscal year 2023 accounted for over 85% of AMSC's total revenue and grew 30% versus the year ago period. The remainder of the revenue came from our wind business. Our grid visibility now extends into fiscal 2024, and our sales team is already focused on orders for delivery next fiscal year. We believe the work over the past two years will begin to pay off this fiscal year. We have a more diverse and more sustainable business with new and existing customers. During our first quarter, we generated over $34 million in new energy power system orders. Over the past several quarters, the business delivered an average of $40 million of orders per quarter. New energy power system orders have averaged about $30 million per quarter. Realize that our lead times have extended to over a year for certain products. We see a diverse set of orders from renewables to semiconductor to materials and mining to industrials and new orders for new military applications. These new energy power system orders come from serving the U.S. military, providing efficient and reliable shore power to Navy vessels. This represents an exciting new opportunity for new energy power systems. We certainly see potential future repeat business for this application. We also received orders from the U.S. Navy for additional installation support services for our ship protection system. During the first quarter, we saw diverse revenues from renewables, industrials, semiconductor, as well as Navy projects. About one quarter of our sales were to renewable projects. These include shipments of ECS to INOX, as well as grid revenues for a 150-megawatt wind project and a 150-megawatt solar project. The Navy business was above 10% of total revenue, and the remainder of shipments came from a variety of industrial projects. We see strong diversity of revenues. Now I'll turn the call over to John Kasiba to review our financial results for the first quarter of fiscal 2023 and provide guidance for the second quarter. 30, 2023. John? Thanks, Daniel.