Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total revenue for the first quarter grew by more than 30% compared to the same period last year, reaching $40 million.
- Grid revenue accounted for 80% of total revenue and grew over 25% year-over-year.
- Wind business revenue increased by 75% from the previous year.
- Gross margin for the first quarter was 30%, up from 21% in the year-ago quarter.
- The company ended the first quarter with more than $95 million in cash and generated $3.4 million in operating cash flow.
Negative Points
- Net loss for the first quarter was $2.5 million, or $0.07 per share.
- R&D and SG&A expenses increased to $11.2 million from $9.7 million in the previous year.
- The company's guidance for the second quarter of fiscal 2024 expects a net loss not to exceed $1.7 million.
- The acquisition of NWL. adds complexity and integration risks, despite its potential benefits.
- The company's financial guidance does not include the impact of the recently announced acquisition of NWL., adding uncertainty to future projections.
Q & A Highlights
Q: Can you discuss the recent trends impacting NWL's business and whether there are any changes in momentum?
A: The recent performance of NWL has been stronger than the three-year average of $55 million in revenue. Their business has been growing, and margins have been improving, aligning well with our strategic and financial goals. (Daniel Mcgahn, CEO)
Q: What is the expected cadence for recognizing the three megawatt order from Inox Wind?
A: We expect to ship the products within this fiscal year. Inox Wind's backlog stands at over 2.7 gigawatts, more than double from previous levels, indicating strong positioning and improving business prospects. (Daniel Mcgahn, CEO)
Q: Can you elaborate on the synergies and potential cost savings from the NWL acquisition?
A: NWL opens up new sales channels, particularly in industrial settings, and strengthens our military reach. We expect supply chain improvements and better financial performance due to increased scale. (Daniel Mcgahn, CEO)
Q: How long will it take to fully integrate NWL and realize synergies?
A: Integration should be straightforward and less risky compared to past acquisitions. We expect to understand the full financial impact within a few months and aim to have a seamless operation by the end of the fiscal year. (Daniel Mcgahn, CEO)
Q: What is the mix of NWL's military versus industrial revenues, and how many ship platforms are they supplying?
A: Approximately 20-30% of NWL's business is military, with multiple ship platforms supplied. The military backlog is strong and growing, indicating a valuable part of our business. (Daniel Mcgahn, CEO)
Q: Can you confirm the 12-month and total backlog for NWL, and discuss the potential for delivering above the $44 million in the next 12 months?
A: NWL has a 12-month backlog of $44 million and a total backlog of $51 million. More than half of the total backlog is expected to ship before December 31, 2024, indicating a strong book-to-bill timetable. (John Kosiba, CFO)
Q: What are the financial expectations for the second quarter of fiscal 2024?
A: We expect revenues between $38-42 million, with a net loss not exceeding $1.7 million or $0.05 per share. Non-GAAP net income is expected to be at least breakeven, excluding the impact of the NWL acquisition. (John Kosiba, CFO)
Q: How does the NWL acquisition align with AMSC's strategic priorities?
A: The acquisition accelerates our growth, broadens our product offerings, and expands our market reach, particularly in the industrial and military sectors. It positions us well for sustainable profitability. (Daniel Mcgahn, CEO)
Q: What are the key financial highlights from the first quarter of fiscal 2024?
A: We reported $40.3 million in revenue, a 30% increase year-over-year, with a gross margin of 30%. We ended the quarter with $95.5 million in cash and generated $3.4 million in operating cash flow. (John Kosiba, CFO)
Q: Can you provide more details on the recent $75 million order from the Royal Canadian Navy?
A: This record order for Ship Protection Systems will be delivered over multiple years, marking a significant milestone for our business and expanding our footprint in the military sector. (Daniel Mcgahn, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
