American Superconductor Corporation

Good day, and welcome to the AMSC Second Quarter Fiscal 2024 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please send to 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. Now I turn the conference over to Nicole Goles, AMSC's Director of Communications. Please go ahead.

Thank you, Keith. Good morning, everyone, and welcome to American Superconductor Corporation's second quarter of fiscal year 2024 conference call. I am Nicole Goles, AMSC's Director of Communications. On today's call, I am joined by Daniel McGann, Chairman, President, and Chief Executive Officer. and John Cassiva, Senior Vice President, Chief Financial Officer, and Treasurer. American Superconductor issued its earnings release for the second quarter of fiscal year 2024 yesterday after the market closed. For those who have not seen the release, a copy is available in the investor page of the company's website at www.amsc.com. The earnings press release contains forward-looking statements with respect to future financial results. These statements are not guarantees of future performance. The company's actual results may differ materially from the anticipated events, performance, or results expressed or implied by these forward-looking statements, including due to the risk factors detailed in the SEC filings, which can also be accessed through the company's website. The company 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. Tables of reconciliation of GAAP to adjusted financial measures can be found in the company's earnings test release. With that, I will now turn the call over to Chairman, President, and Chief Executive Officer, Daniel McGann. Daniel?

Thanks, Nicole, and good morning, everybody. We're really excited to have this call today. We're meeting some milestones I know many of you have really hoped the company would see. So we're really, really enthusiastic about where we are today. I'll begin today by providing an update and sharing a few remarks on our business. John Kaseba will then provide a detailed review of our financial results. for the second fiscal quarter, which ended September 30, 2024, and provide guidance for the third fiscal quarter, which will end December 31, 2024. Following our comments, we'll open up the line to questions from our analysts. Today, we're reporting revenue of over $54 million for the September ending quarter. Total revenue for the second quarter came in at the high end of our updated guidance range and grew by 60% versus the year-ago period. Grid was driven by the acquisition of NWL and strong new energy power system shipments. When I talk about new energy power today, assume that that does not include the acquisition of NWL. The remainder of the revenue came from our wind business, which grew nearly 40% from the year-ago period. Both grid and wind grew. Grid also grew organically, again, without the addition of NWL. We ended the second quarter with nearly $75 million in cash. We booked nearly $60 million of new orders with new energy power systems orders coming in stronger than we had previously demonstrated. Our new energy power systems orders represent strong contributions from industrials, renewables, utilities, semiconductors, and mining. Industrials accounted for about 40% of total orders followed by renewables at about 30%, and the remaining 30% came from semiconductors, mining, utilities, and some other applications. We ended the quarter with a 12-month backlog of over $200 million and a total backlog of more than $300 million. Our backlog is really very strong. We see lead times for the newly acquired products starting at about six months Other products take about 12 to 15 months or potentially more depending upon the project. Our second quarter results exceeded our forecast with recent record revenue and a fifth consecutive quarter of non-GAAP net income. Our ability to generate cash through the improved operating leverage is now built into our business at these revenue levels. We believe our company is in a much stronger growth operating, and cash generative position, and we have demonstrated the ability to generate cash. This is a tremendous milestone, and we're very proud of this accomplishment. We are pleased with these results and encouraged by our order's momentum. Now I'll turn the call over to John Kasiba to review our financial results from the second quarter of fiscal 2024 and provide guidance for the third quarter of fiscal 2024, which will end December 31, 2024. John?