American Superconductor (US:AMSC)2022-11-02 18:00Financial 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]