American Superconductor (US:AMSC)2022-06-02 19:09Financial Data and Key Metrics Changes - Total revenues for Q4 2021 were $28.3 million, a 34% increase from $21.2 million in the same quarter last year [13] - Full fiscal year revenues reached $108.4 million, representing over 24% growth year-over-year [13] - Gross margin for Q4 2021 was 11.6%, down from 13.9% in the previous year [14] - Full fiscal year gross margin was 12.4%, down from 20% in fiscal year 2020 [14][17] - Net loss for Q4 2021 was $5 million or $0.18 per share, compared to a net loss of $7.6 million or $0.29 per share in the prior year [16] - Non-GAAP net loss for Q4 2021 was $4.7 million or $0.17 per share, compared to $5.6 million or $0.21 per share in the year-ago quarter [16] Business Line Data and Key Metrics Changes - Grid business revenues for Q4 2021 were $25.7 million, a 33% increase year-over-year [13] - Wind business revenues for Q4 2021 were $2.6 million, a 46% increase compared to the previous year [13] - For the full fiscal year, grid business revenues grew by 40%, accounting for 91% of total revenues [13][14] - Wind business revenues decreased by 42% in fiscal 2021 due to reduced ECS shipments [14] Market Data and Key Metrics Changes - Over 60% of revenue in fiscal 2021 was U.S.-based, with nearly 40% from international projects [9] - The renewables market accounted for approximately 25% of sales, while the semiconductor market accounted for roughly 20% [10] Company Strategy and Development Direction - The company aims to continue diversifying its business through product offerings, geographic reach, and end markets [9] - AMSC has commercialized high-temperature superconductor technology in two markets, enhancing its product portfolio [11] - The company is focused on creating a sustainable and diversified business model, capitalizing on global decarbonization efforts [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the renewables market, particularly in India and the U.S. [19][20] - The semiconductor industry is expected to see significant capital investment, providing a strong tailwind for AMSC [21] - Management acknowledged challenges from inflation and supply chain issues but believes these will improve over time [66] Other Important Information - The company ended fiscal year 2021 with $49.5 million in cash, down from $52.6 million at the end of 2020 [17] - Guidance for Q1 2022 anticipates revenues between $23 million and $26 million, with a net loss of no more than $8.9 million [17] Q&A Session Summary Question: What drove the sequential decline in margins? - Management indicated that both the Neeltran backlog and material cost inflation impacted the sequential decline in gross margin [35][37] Question: How long until price increases result in margin improvement? - Management expects to see improvement in margins over the next few quarters, with full impact anticipated by late fiscal 2022 [40][42] Question: What steps are needed to secure orders for the wind segment? - Management is assessing supply chain risks and preparing for discussions with Inox regarding future orders [43][44] Question: What is the potential for cross-selling with utility customers? - Management sees untapped potential for cross-selling various products to utility customers, particularly in the context of electrification challenges [50][51] Question: What indicators will signal a rebound in the wind business? - Management highlighted the health of the order book and relationships with key partners as primary indicators for future growth [55][56]