Financial Performance - Total revenues increased 56% to $61.4 million for the three months ended December 31, 2024, and increased 51% to $156.2 million for the nine months ended December 31, 2024, compared to $39.4 million and $103.6 million for the same periods in 2023[140]. - The Grid business segment accounted for 85% of total revenues for the three months ended December 31, 2024, with revenues increasing 56% to $52.3 million, while the Wind segment accounted for 15% with revenues increasing 58% to $9.1 million[141][142]. - Net income was $2.5 million for the three months ended December 31, 2024, and $4.8 million for the nine months ended December 31, 2024, compared to net losses of $1.6 million and $9.5 million for the same periods in 2023[154]. - Non-GAAP net income was $6.0 million for the three months ended December 31, 2024, and $19.3 million for the nine months ended December 31, 2024, compared to $0.9 million and a non-GAAP net loss of $1.3 million for the same periods in 2023[156]. - Gross margin improved to 27% and 28% for the three and nine months ended December 31, 2024, respectively, compared to 25% and 24% for the same periods in 2023, driven by higher revenues and a favorable product mix[143]. Business Segments - The company operates under two business segments: Grid and Wind, focusing on power resiliency solutions and advanced power electronics[132]. - The Grid business segment provides transmission planning services and sells ship protection products to the U.S. Navy, enhancing power grid efficiency and reliability[133]. - The Wind business segment supplies advanced power electronics and control systems to wind turbine manufacturers, with a design portfolio including drivetrains of 2 megawatts and higher[133]. Acquisitions and Investments - The acquisition of Megatran was completed for an aggregate consideration of $61.4 million, including a cash payment of $25.0 million at closing and additional payments totaling $8.3 million[137]. - Net cash used in investing activities for the nine months ended December 31, 2024, was $34.1 million, primarily due to the acquisition of Megatran[165]. - The company acquired Megatran for an aggregate consideration of $61.4 million, which included a cash purchase price of $25.0 million and additional stock and cash payments[162]. Liquidity and Capital Resources - As of December 31, 2024, the company had cash, cash equivalents, and restricted cash totaling $80.0 million, a decrease of $12.3 million from $92.3 million as of March 31, 2024[164]. - The company believes it has sufficient liquidity to fund operations and capital expenditures for the next twelve months, having raised $65.2 million in February 2024[170]. - The company filed a shelf registration statement allowing it to offer and sell up to $250 million of securities to fund future capital needs[160]. - The company continues to monitor expenses and may reduce operating and capital spending to enhance liquidity if required[170]. Tax Credits - The company reported a total of $3.3 million in payroll tax credits recognized in the quarter ended March 31, 2023, related to the Employee Retention Credit under the CARES Act[135]. - The company anticipates receiving the remaining balance of the payroll tax credits during fiscal 2025[135]. Research and Development - Research and development expenses increased 36% to $3.0 million for the three months ended December 31, 2024, and 39% to $7.9 million for the nine months ended December 31, 2024, primarily due to the addition of Megatran R&D expenses[144]. Financial Challenges - The company recorded a loss of $3.4 million related to the change in fair value of contingent consideration for the acquisition of NEPSI during the nine months ended December 31, 2024[147]. - As of December 31, 2024, the company had an accumulated deficit of $1,061.8 million[158]. - The condensed consolidated statements of comprehensive loss for the three and nine months ended December 31, 2024, and 2023 highlight the company's financial challenges[187]. Regulatory and Compliance - The report was signed by John W. Kosiba, Jr., the Chief Financial Officer, indicating accountability for the financial disclosures[190]. - The filing date of the report is February 5, 2025, which is relevant for regulatory compliance[191].
American Superconductor (AMSC) - 2025 Q3 - Quarterly Report