One day after winning a modest-size contract to supply wind turbine electrical control systems to a wind turbine manufacturer in India, shares of American Superconductor (AMSC 9.46%) shot 10% higher this morning. As of 11:55 a.m. ET, the stock remains up 8%.Helping to sustain the momentum: A price target hike this morning from investment bank Craig-Hallum, which specifically cited the Indian contract as a reason to buy American Superconductor stock.Super news for American SuperconductorAs American Supercond ...

American Superconductor Corporation (NASDAQ:AMSC) Q2 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants John Heilshorn - Lippert/Heilshorn & Associates John Kosiba - CFO, SVP & Treasurer Daniel McGahn - Chairman, President & CEO Conference Call Participants Colin Rusch - Oppenheimer Eric Stine - Craig-Hallum Justin Clare - ROTH MKM Partners Operator Good day, and welcome to the AMSC Second Quarter Fiscal 2023 Financial Results Call. [Operator Instructions]. Please note that this ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____. Commission File Number: 0-19672 American Superconductor Corporation (Exact name of registrant as specified in its charter) Delaware 04-2959321 (State or ...

American Superconductor Corporation (NASDAQ:AMSC) Q1 2023 Earnings Conference Call August 10, 2023 10:00 AM ET Company Participants John Heilshorn - Investor Relations Daniel McGahn - Chairman, President and Chief Executive Officer John Kosiba - Senior Vice President, Chief Financial Officer and Treasurer Conference Call Participants Eric Stine - Craig-Hallum Colin Rusch - Oppenheimer Justin Clare - ROTH Capital Partners Operator Good morning and welcome to the AMSC First Quarter Fiscal 2023 Financial Resul ...

Financial Performance - Revenues for the three months ended June 30, 2023, were $30,254,000, representing a 33.5% increase from $22,679,000 in the same period of 2022[16] - Gross margin improved to $6,282,000 for the three months ended June 30, 2023, compared to $2,221,000 in the prior year, indicating a significant increase in profitability[16] - Operating loss decreased to $(5,333,000) for the three months ended June 30, 2023, from $(8,869,000) in the same period of 2022, reflecting improved operational efficiency[16] - Net loss for the three months ended June 30, 2023, was $(5,398,000), a reduction from $(8,710,000) in the same quarter of 2022, showing progress in financial performance[16] - The company reported a basic net loss per common share of $(0.19) for the three months ended June 30, 2023, compared to $(0.32) for the same period in 2022[16] - The net loss for the three months ended June 30, 2023, was $5.398 million, an improvement from a net loss of $8.710 million in the same period of 2022, representing a 38.5% reduction[24] - Cash used in operating activities for the three months ended June 30, 2023, was $2.245 million, down from $5.863 million in the prior year, indicating a 61.7% improvement[24] - Non-GAAP net loss improved to $2.1 million, or $0.08 per share, from $6.8 million, or $0.25 per share, in the prior year[156] - Net loss was reduced to $5.4 million for the three months ended June 30, 2023, compared to $8.7 million in the same period of 2022[153] Assets and Liabilities - Total current assets decreased to $102,194,000 as of June 30, 2023, down from $106,173,000 as of March 31, 2023[13] - Total liabilities decreased to $92,716,000 as of June 30, 2023, compared to $93,764,000 as of March 31, 2023, indicating a slight improvement in the company's financial position[13] - Total stockholders' equity decreased to $77,918,000 as of June 30, 2023, from $81,797,000 as of March 31, 2023[13] - The company had an accumulated deficit of $1.061 billion as of June 30, 2023[29] - Cash and cash equivalents were $22,005,000 as of June 30, 2023, down from $23,360,000 as of March 31, 2023[13] - Cash equivalents decreased from $7,913,000 on March 31, 2023, to $7,658,000 on June 30, 2023, representing a decline of approximately 3.2%[68] - Total accounts payable decreased from $13,935,000 on March 31, 2023, to $10,878,000 on June 30, 2023, a reduction of approximately 22%[83] - The company had $0.6 million of restricted cash included in long-term assets and $0.5 million in current assets as of June 30, 2023[106] Revenue Segments - Total revenue for the three months ended June 30, 2023, was $25,737 million, an increase from $19,829 million in the same period of 2022, representing a growth of approximately 29%[45] - The Grid business segment generated revenues of $25.737 million for the three months ended June 30, 2023, compared to $19.829 million in the same period of 2022, reflecting a growth of approximately 29.8%[114] - The Wind business segment reported revenues of $4.517 million for the three months ended June 30, 2023, up from $2.850 million in the same period of 2022, indicating an increase of approximately 58.5%[114] - The Grid business unit accounted for 85% of total revenues, generating $25.7 million, a 30% increase from $19.8 million in the prior year[138] - The Wind business unit revenues increased by 58% to $4.5 million, driven by additional shipments of electrical control systems[139] Cost Management - The company undertook a reduction in force involving approximately 5% of its global workforce, expected to incur $1.0 million in cash expenses and result in annualized cost savings of approximately $5.0 million[32] - Selling, general, and administrative expenses increased by 4% to $7.9 million, attributed to higher compensation and stock compensation expenses[145] - Research and development expenses decreased by 30% to $1.9 million from $2.7 million in the prior year[144] - Stock-based compensation expense for the three months ended June 30, 2023, totaled $1,357 million, up from $1,033 million in the same period of 2022, reflecting an increase of approximately 31%[51] Market Conditions - The company continues to face inflationary pressures and supply chain delays, which have increased costs and decreased gross margins[31] - The company continues to face inflationary pressures and supply chain disruptions, which have increased the cost of revenues and decreased gross margin[134] - The company’s liquidity is highly dependent on its ability to increase revenues and control operating costs, with potential adverse effects from macroeconomic conditions[33] Future Outlook - The company has filed a shelf registration statement allowing it to offer and sell up to $250 million of securities to fund future capital needs[30] - The company believes it has sufficient liquidity to fund operations and capital expenditures for the next twelve months, but may seek to raise additional capital through loans, convertible debt, or equity[164] - The company continues to monitor expenses and may reduce operating and capital spending to enhance liquidity if necessary[164] Internal Controls and Compliance - As of June 30, 2023, the company's disclosure controls and procedures were evaluated as effective at the reasonable assurance level by the CEO and CFO[170] - There were no changes to the internal control over financial reporting during the quarter ended June 30, 2023, that materially affected the internal control[171] - The company did not repurchase any shares during the three months ended June 30, 2023, in connection with stock-based compensation plans[174] - The company adopted ASU 2016-13 and ASU 2021-08 as of April 1, 2023, with no material impact on the condensed consolidated financial statements noted[166][167] Legal and Risk Factors - The company is involved in various legal and administrative proceedings, recording liabilities when losses are known or probable[165] - There have been no material changes to the risk factors described in the Annual Report for the fiscal year ended March 31, 2023[173] - The company continues to face potential impacts on liquidity due to global instability, including the COVID-19 pandemic and geopolitical tensions[164]

American Superconductor Corporation (NASDAQ:AMSC) Q4 2022 Earnings Conference Call June 1, 2023 10:00 AM ET Company Participants John Heilshorn - LHA IR Daniel McGahn - Chairman, President and CEO John Kosiba - SVP, CFO and Treasurer Conference Call Participants Eric Stine - Craig Hallum Colin Rusch - Oppenheimer Justin Clare - ROTH Capital Partners Chip Moore - EF Hutton Operator Good morning, and welcome to the AMSC Fourth Quarter Fiscal Year 2022 Financial Results Conference Call. All participants will b ...

PART I [Item 1. BUSINESS](index=5&type=section&id=Item%201.%20BUSINESS) AMSC provides megawatt-scale power resiliency solutions for grid and U.S. Navy, leveraging smart materials and software for clean, reliable power - AMSC is a leading system provider of **megawatt-scale** power resiliency solutions for the grid and U.S. Navy, utilizing proprietary **'smart materials'** and **'smart software and controls'** to enhance power flow performance[10](index=10&type=chunk) - The company's solutions improve energy efficiency, alleviate power capacity constraints, enhance system resiliency, and increase renewable energy adoption, driven by modernized grids, U.S. Navy fleet electrification, and increased renewable energy sources[13](index=13&type=chunk) - AMSC estimates its total annual addressable global market for products and solutions to be nearly **$9 billion**, driven by investments in renewables, materials for electrification (EVs, semiconductors), and U.S. military ship systems[13](index=13&type=chunk)[14](index=14&type=chunk) [Overview](index=5&type=section&id=Overview) AMSC, founded in 1987, delivers megawatt-scale power solutions for grid and U.S. Navy, harmonizing clean energy with reliable delivery - AMSC was founded on **April 9, 1987**, focusing on future-facing technologies to harmonize decarbonization and clean energy with reliable power delivery[10](index=10&type=chunk) - The company is a leading system provider of **megawatt-scale** power resiliency solutions for the grid and protection systems for the U.S. Navy fleet, utilizing proprietary **'smart materials'** and **'smart software and controls'**[10](index=10&type=chunk) - AMSC's products support the evolution of a reliable and resilient grid, integration of renewable energy, and power for energy-intensive factories (e.g., semiconductor manufacturing), while also providing advanced superconductor-based systems for U.S. Navy mine field protection[11](index=11&type=chunk)[12](index=12&type=chunk) [Market Opportunities](index=5&type=section&id=Market%20opportunities) AMSC's solutions address global demand for renewable energy, transportation electrification, semiconductors, and Naval fleet electrification - AMSC provides solutions addressing four key market drivers: global demand for renewable energy, materials for electric vehicles, semiconductors, and the electrification of the Naval fleet[15](index=15&type=chunk) - For renewables, AMSC designs wind turbines, provides electrical control systems, and offers grid interconnection solutions (dynamic/static voltage management, harmonic filters) for wind and solar farms[16](index=16&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - For the Navy, AMSC provides advanced ship protection systems, including degaussing systems, and is developing power management and generation solutions[18](index=18&type=chunk)[21](index=21&type=chunk) - The company's power system products serve transmission grids (congestion, power quality, interconnection), distribution grids (reliability, resiliency, industrial power), and urban grid infrastructure (reliability, security, capacity, instantaneous outage recovery)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Competitive Strengths](index=8&type=section&id=Competitive%20strengths) AMSC's strengths include differentiated technologies, turnkey solutions, scalable manufacturing, a robust patent portfolio, and integrated expertise - AMSC leverages differentiated technologies, including proprietary **Amperium®** high-temperature superconductor (HTS) wire and **PowerModule™** power converters, for enhanced power flow resiliency and performance[25](index=25&type=chunk) - The company offers turnkey system solutions, enabling direct sales to customers and leveraging application expertise beyond core products[26](index=26&type=chunk) - AMSC maintains a scalable, low-cost manufacturing platform for wind turbine electrical control systems and power electronics, with modular techniques for **Amperium®** superconductor wire[27](index=27&type=chunk) - The company holds a robust portfolio of awarded patents and applications globally, complemented by engineering expertise and unique integrated solutions for wind turbine manufacturers and power grid operators[28](index=28&type=chunk) [Strategy](index=8&type=section&id=Strategy) AMSC's strategy focuses on revenue growth and improved operating results through best-in-class engineering, megawatt-scale offerings, and global market expansion - AMSC's strategy is to drive revenue growth and enhance operating results by providing best-in-class engineering, support, technologies, and solutions from power generation to delivery[29](index=29&type=chunk) - The company focuses on **megawatt-scale** power offerings, including power electronics for large wind turbines and systems for stabilizing power flows and integrating renewable energy[29](index=29&type=chunk) - Key product innovation efforts include the **Resilient Electric Grid (REG) system**, **Ship Protection Systems (SPS)** for the U.S. Navy, and **D-VAR VVO®** for distribution grids[30](index=30&type=chunk) - AMSC pursues emerging overseas markets and serves key markets locally with sales and field service personnel to understand market dynamics and anticipate customer needs[30](index=30&type=chunk) [Grid Market Overview](index=8&type=section&id=Grid%20market%20overview) The global grid faces modernization challenges from renewables and EVs, with government acts driving demand for AMSC's solutions to improve performance - Global electricity grids require modernization due to challenges like severe weather, cyber-attacks, expanded renewable generation (wind and PV), and new loads like electric vehicles[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - The Biden Administration's energy plan, Inflation Reduction Act of **2022**, and CHIPS Act of **2022** are expected to positively impact demand for AMSC's new energy power systems solutions by spurring investment in clean energy, grid modernization, and domestic semiconductor manufacturing[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - AMSC's grid solutions include **D-VAR® Systems** for power flow/voltage control and renewable integration, **actiVAR® Systems** for reactive compensation and voltage sag mitigation, **armorVAR™ Systems** for reactive compensation and power factor correction, custom Transformers and DC Rectifiers for industrial processes, **D-VAR VVO®** for distribution grid voltage control, and **Resilient Electric Grid (REG) Systems** for urban grid reliability and capacity[40](index=40&type=chunk)[41](index=41&type=chunk) [Marine Market Overview](index=12&type=section&id=Marine%20market%20overview) The U.S. Navy is electrifying its fleet, and AMSC provides advanced HTS-based ship protection and power solutions to address capacity and efficiency challenges - The U.S. Navy's **2022** shipbuilding plan calls for a larger, modernized, sustainable, and lethal Navy, with the fleet numbering **296 battle force ships** as of **April 17, 2023**[43](index=43&type=chunk)[44](index=44&type=chunk) - Navy fleets face challenges in power capacity for high-power density weapon systems, space and weight limitations for new power solutions, and efficiency for routine operations due to heavy copper-based cable systems[45](index=45&type=chunk)[46](index=46&type=chunk) - AMSC's solutions for the marine market include HTS-based **Ship Protection Systems (SPS)** (degaussing) that reduce system weight by **50-80%** and are designed into the San Antonio-class amphibious warfare ship platform[44](index=44&type=chunk)[47](index=47&type=chunk) - The company is expanding HTS technology for in-board power delivery, power generation, and electric propulsion systems to enable high-density energy transfer, more power in the same machinery space, and increased fuel efficiency for the Navy's 'electrify the fleet' mission[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) [Wind Market Overview](index=14&type=section&id=Wind%20market%20overview) The global wind power market is growing due to incentives and technology, with AMSC providing turbine designs, electrical control systems, and support - The global energy mix is transitioning to renewable energy, with wind power being a major pillar; approximately **85 GW** of wind generation capacity was added worldwide in calendar **2022**, with **88 GW** anticipated in **2023**[52](index=52&type=chunk) - Future growth in the wind power market is driven by government incentives, technological improvements, turbine cost reductions, offshore wind development, and increasing cost competitiveness[53](index=53&type=chunk) - AMSC provides **Electrical Control Systems (ECS)** to wind turbine manufacturers, regulating voltage, controlling power flows, and maximizing turbine efficiency, having shipped components for over **17,000 MW** of wind power[54](index=54&type=chunk) - The company designs state-of-the-art onshore and offshore wind turbines (**2 MW** and higher) and offers extensive customer support services, including plant designs, supply chain localization, and employee training[55](index=55&type=chunk) [Customers](index=14&type=section&id=Customers) AMSC serves **over 100** global grid customers and key wind manufacturers, with **Fuji Bridex Pte Ltd** being a significant revenue contributor - AMSC serves **over 100 customers** globally in the grid market, including Commonwealth Edison, YMC Incorporated, the U.S. Navy, SSE plc, and Ergon Energy[57](index=57&type=chunk) - Key wind turbine manufacturing customers include **Inox Wind Limited** (India) and Doosan Heavy Industries (South Korea)[57](index=57&type=chunk) Revenue Concentration by Customer | Customer | Fiscal 2022 Revenue Share | Fiscal 2021 Revenue Share | | :---------------- | :------------------------ | :------------------------ | | Fuji Bridex Pte Ltd | 15% | 14% | [Facilities and Manufacturing](index=14&type=section&id=Facilities%20and%20Manufacturing) AMSC's primary facilities are in Massachusetts for Grid manufacturing and Austria for Wind engineering, with global sales offices and diverse raw material sourcing - AMSC's corporate headquarters and Grid segment manufacturing are located in Ayer, Massachusetts, with additional Grid manufacturing in Westminster, MA, Queensbury, NY, and New Milford, CT[59](index=59&type=chunk)[60](index=60&type=chunk) - The Wind segment's engineering, R&D, and customer support are based in Klagen

American Superconductor Corporation (NASDAQ:AMSC) Q3 2022 Earnings Conference Call February 2, 2023 10:00 AM ET Company Participants John Heilshorn - LHA IR Daniel McGahn - Chairman, President and CEO John Kosiba - SVP, CFO and Treasurer Conference Call Participants Eric Stine - Craig Hallum Colin Rusch - Oppenheimer Justin Clare - ROTH Capital Partners Chip Moore - EF Hutton Operator Good morning, and welcome to the AMSC Third Quarter Fiscal Year 2022 Financial Results Conference Call. [Operator Instructio ...

[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended December 31, 2022, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, reporting a net loss of **$9.6 million** for the quarter and **$28.2 million** for the nine months, with total assets decreasing to **$165.1 million** and total liabilities increasing [Condensed Consolidated Balance Sheets](index=4&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheets present the company's financial position, showing a decrease in total assets and an increase in total liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2022 | Mar 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$165,072** | **$173,887** | **-$8,815** | | Total Current Assets | $94,165 | $94,336 | -$171 | | Cash and cash equivalents | $23,685 | $40,584 | -$16,899 | | Inventory, net | $38,725 | $23,666 | +$15,059 | | **Total Liabilities** | **$77,865** | **$64,498** | **+$13,367** | | Total Current Liabilities | $68,053 | $53,964 | +$14,089 | | Deferred revenue, current | $34,239 | $22,812 | +$11,427 | | **Total Stockholders' Equity** | **$87,207** | **$109,389** | **-$22,182** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The statements of operations detail the company's revenues, expenses, and net loss for the reported periods Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2022 | Nine Months Ended Dec 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$23,881** | **$26,799** | **$74,241** | **$80,126** | | Gross Margin | $517 | $3,572 | $4,708 | $10,201 | | Operating Loss | $(9,209) | $(4,380) | $(26,170) | $(16,182) | | **Net Loss** | **$(9,581)** | **$(4,324)** | **$(28,171)** | **$(14,161)** | | Net Loss Per Share (Basic & Diluted) | $(0.34) | $(0.16) | $(1.01) | $(0.52) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The cash flow statements summarize the company's cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary for Nine Months Ended Dec 31 (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(17,067) | $(15,925) | | Net cash used in investing activities | $(1,164) | $(7,056) | | Net cash provided by financing activities | $71 | $49 | | **Net decrease in cash, cash equivalents and restricted cash** | **$(18,135)** | **$(22,983)** | [Notes to Financial Statements](index=10&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and additional information supporting the financial statements - The company has a history of recurring operating losses, with an accumulated deficit of **$1.049 billion** as of December 31, 2022, and cash and cash equivalents of **$23.7 million** at period-end[30](index=30&type=chunk) - In January 2023, a reduction in force affecting approximately **5%** of its global workforce is expected to result in annualized cost savings of about **$5 million** starting in fiscal year 2023[33](index=33&type=chunk) Revenue by Segment (in thousands) | Segment | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2022 | Nine Months Ended Dec 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | Grid | $20,809 | $25,050 | $66,337 | $73,169 | | Wind | $3,072 | $1,749 | $7,904 | $6,957 | | **Total** | **$23,881** | **$26,799** | **$74,241** | **$80,126** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting an **11%** decrease in total revenues for the third quarter and a **7%** decrease for the nine-month period ended December 31, 2022, primarily due to lower D-VAR revenues in the Grid segment, with gross margin falling significantly due to lower revenues, contract losses, unfavorable product mix, and supply chain inflation, resulting in an increased net loss and a **$18.1 million** decrease in cash, cash equivalents, and restricted cash [Executive Overview](index=36&type=section&id=Executive%20Overview) This overview details the company's business units, operational challenges, and strategic cost-saving initiatives - The company operates through two business units: **Grid**, which enables utilities, industrial facilities, and renewable projects, and **Wind**, which enables wind turbine manufacturers[147](index=147&type=chunk) - Significant inflationary pressure in the supply chain and material sourcing delays have increased costs and reduced gross margins[153](index=153&type=chunk) - A reduction in force in January 2023, affecting about **5%** of the workforce, is anticipated to generate approximately **$5 million** in annualized cost savings starting in fiscal 2023[154](index=154&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) This section analyzes the company's revenue performance, gross margin trends, and net loss for the reported periods Revenue Comparison (in thousands) | Period | Q3 FY2022 | Q3 FY2021 | % Change | 9M FY2022 | 9M FY2021 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$23,881** | **$26,799** | **-11%** | **$74,241** | **$80,126** | **-7%** | | Grid Revenues | $20,809 | $25,050 | -17% | $66,337 | $73,169 | -9% | | Wind Revenues | $3,072 | $1,749 | +76% | $7,904 | $6,957 | +14% | - Gross margin decreased to **2%** for the three months and **6%** for the nine months ended Dec 31, 2022, down from **13%** in both prior-year periods, attributed to lower revenues, contract losses, unfavorable product mix, and supply chain inflation[158](index=158&type=chunk) - Net loss increased to **$9.6 million** for the third quarter and **$28.2 million** for the nine-month period, compared to **$4.3 million** and **$14.2 million** in the respective prior-year periods, primarily due to increased operating loss from lower revenues and gross margins[172](index=172&type=chunk) [Non-GAAP Financial Measure](index=42&type=section&id=Non-GAAP%20Financial%20Measure) This section provides a reconciliation of GAAP net loss to non-GAAP net loss, adjusting for specific non-recurring or non-cash items Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (in thousands) | Description | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2022 | Nine Months Ended Dec 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | Net loss (GAAP) | $(9,581) | $(4,324) | $(28,171) | $(14,161) | | Stock-based compensation | 1,440 | 1,120 | 3,492 | 3,513 | | Amortization of acquisition-related intangibles | 696 | 690 | 2,096 | 1,979 | | Change in fair value of contingent consideration | (220) | (2,110) | (340) | (4,440) | | China dissolution | — | — | 1,921 | — | | **Non-GAAP net loss** | **$(7,665)** | **$(4,624)** | **$(21,002)** | **$(12,428)** | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, cash flow activities, and ability to fund future operations - As of December 31, 2022, the company had cash, cash equivalents, and restricted cash of **$31.4 million**, a decrease of **$18.1 million** from **$49.5 million** at March 31, 2022[180](index=180&type=chunk) - Net cash used in operating activities for the nine months ended December 31, 2022, was **$17.1 million**, an increase from **$15.9 million** in the same period of the prior year, primarily due to increased inventory purchases[181](index=181&type=chunk) - The company believes it has sufficient liquidity to fund operations for the next twelve months but acknowledges its liquidity is highly dependent on increasing revenues, controlling costs, and potentially raising additional capital[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that this item is not applicable for the reporting period - Not Applicable[192](index=192&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of December 31, 2022, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of December 31, 2022, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[193](index=193&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended December 31, 2022, that have materially affected, or are reasonably likely to materially affect, internal controls[194](index=194&type=chunk) [PART II—OTHER INFORMATION](index=48&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that there were no legal proceedings during the period - None[196](index=196&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended March 31, 2022 - There have been no material changes to the risk factors described in the company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no stock repurchase activity during the three months ended December 31, 2022 - The company did not repurchase any shares of its common stock during the three months ended December 31, 2022[198](index=198&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed with the Form 10-Q, which includes certifications from the CEO and CFO as required by the Sarbanes-Oxley Act of 2002, and financial statements formatted in Inline XBRL - The report includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[202](index=202&type=chunk) - Financial statements and notes are provided in Inline XBRL format as part of the filing[203](index=203&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for Q2 FY 2022 were nearly $28 million, exceeding expectations and guidance, driven by strong new energy power system shipments [8][9] - Revenues for Q2 FY 2022 were $27.7 million compared to $27.9 million in the year-ago quarter, with a gross margin of 7% compared to 12% in the previous year [12][13] - Non-GAAP net loss for Q2 FY 2022 was $6.5 million or $0.23 per share, compared to $5.1 million or $0.19 per share in the year-ago quarter [14] Business Line Data and Key Metrics Changes - The Grid segment accounted for over 90% of total revenue, with a 4% increase year-over-year, while the Wind business unit saw a 40% decrease [9][12] - Approximately one-third of shipments were to renewable projects, with significant contributions from industrial, semiconductor, mining, and Navy projects [9][10] Market Data and Key Metrics Changes - The company is positioned to benefit from global decarbonization efforts, with projected growth in the renewables market and increased investments in semiconductor capacity [10][17] - The global semiconductor market was valued at $556 billion in 2021 and is expected to grow nearly 14% in 2022, with significant investments announced in the U.S. [17] Company Strategy and Development Direction - The company aims to create a more diversified and sustainable business, focusing on new energy power systems, semiconductors, and mining materials [10][27] - Recent acquisitions are expected to enhance the company's fundamentals and address broader market opportunities [27][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong order books and the potential for revenue growth in new energy shipments [27][60] - The company is managing supply chain challenges effectively and remains focused on customer requirements [26][27] Other Important Information - The company ended Q2 FY 2022 with over $37 million in cash, down from $43.1 million at the end of Q1 [15] - Guidance for Q3 FY 2022 anticipates revenues between $22 million and $26 million, with a net loss not to exceed $9 million [15] Q&A Session All Questions and Answers Question: Can you talk about the trajectory of your win rate in mining and semiconductor buildouts? - Management highlighted that their comprehensive solutions and understanding of the grid provide a competitive advantage in these markets [30] Question: Are you seeing movement on budget activity in the military sector? - Management noted that the technology has been derisked and there is increasing interest from the Navy for further collaboration [33] Question: What is driving the wider expected net loss in Q3 versus Q2? - Management explained that a significant project has been rescheduled from Q3 to Q4, impacting revenue expectations [36][38] Question: When do you expect to see a supply agreement for the three-megawatt turbine? - Management indicated that the timing depends on the partner's ability to pay and market demand [44] Question: Is the project that pushed out related to the Inflation Reduction Act? - Management clarified that the project was rescheduled for reasons unrelated to the Act, emphasizing transparency in communication [47]