American Superconductor Corporation

Good day, and welcome to the AMSC first quarter fiscal 2024 financial results. 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 a question. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, and then two. Also, please limit yourself to one question and one follow-up. Please note this event is being recorded. I would now like to turn the conference over to Nicole Gilles, Director of Communications at AMSC. Please go ahead.

Thank you, Dave. Good morning, everyone, and welcome to American Superconductor Corporation's first quarter of fiscal year 2024 earnings conference call. I am Nicole Gilles, Director of Communications. With us on today's call are Mr. Daniel McGann, Chairman, President, and Chief Executive Officer, and Mr. John Kusiba, Senior Vice President, Chief Financial Officer, and Treasurer. American Superconductor issued its earnings release for the first quarter of fiscal year 2024 yesterday after market closed. For those who have not 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 management may make about American Superconductors' future expectations, including expectations regarding the company's second quarter of fiscal year 2024 financial performance, Plans and prospects constitute forward-looking statements for purpose of the safe harbor provision under the private securities litigation reform act of 1995. Actual results may differ materially from those indicated by such forward-looking statements because of various important factors, including those in the risk factors section of American Superconductors' annual report on Form 10-K, for the year ended March 31, 2024, which the company filed with the Securities and Exchange Commission on May 29, 2024, 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 day after 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 income, a non-GAAP financial measure. The company believes non-GAAP net income 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 income can be found in the first quarter of fiscal year 2024 earnings press release that the company issued and furnished to the SEC last night on Form 8K. American Superconductors press releases and SEC filings can be accessed from the investor page of its website at www.amsc.com. With that, I will now turn the call over to Chairman, President, and Chief Executive Officer, Mr. Daniel McGann. Daniel?

Thanks, Nicole, and good morning, everyone. I'll begin today by providing an update on our grid and wind business units, followed by comments on our recent acquisition. John Cassiva will then provide a detailed review of our financial results for the first fiscal quarter, which ended June 30, 2024, provide guidance for the second fiscal quarter, which will end September 30, 2024, and comment on the acquisition. Following our comments, we'll open up the line to questions from our analysts. We're off to a very good start with our new fiscal year. The business is thriving, and we delivered yet another remarkable quarter. Our team reported great results for the first quarter of fiscal 2024. Total revenue for the first quarter came in line with our guidance range and grew by more than 30%. versus the year-ago period. Our first quarter revenue of $40 million was driven by strong new energy power system shipments. Our grid revenue for the first quarter of fiscal year 2024 accounted for 80% of AMSE's total revenue and grew over 25% versus the year-ago period. The remainder of the revenue came from our wind business, which grew over 75% from a year ago. This is the second quarter in a row that we've been at this $40 million revenue level. We exceeded our average gross margin levels for the quarter through a combination of strong projects and performance in each of our business segments. We ended the first quarter with more than $95 million in cash. We had very strong bookings in the first quarter with both new and existing customers for our products. We announced a record $75 million order of ship protection systems from the Royal Canadian Navy, while new energy power systems came in at about $33 million. Our new energy power systems orders represent strong contributions from utilities, industrials, renewables, semiconductors, and mines. We received our third follow-on order of over $12 million from our wind customer, InoxWinds. All told, we generated more than $125 million in new orders in the quarter. This is also a recent record. We ended the quarter with a 12-month backlog of $160 million and a total backlog of $250 million. We entered the year at $140 million 12-month backlog. These results and achievements represent our ability to deliver business diversification, financial growth, and expanded scale. We are very pleased with these results and encouraged by our order's momentum. Our business appears to be well positioned for the future. Now I'll turn the call over to John Kasiba to review our financial results for the first quarter of fiscal 2024, provide guidance for the second quarter of fiscal 2024, which will end September 30, 2024, and comment on the addition of NWL to the AMSC family. John?