• Total Revenue: $61.4 million for Q3 2024, up from $39.4 million in the year-ago quarter.
• Grid Revenue: 85% of total revenue, increased by 56% year-over-year.
• Wind Revenue: 15% of total revenue, increased by 58% year-over-year.
• Gross Margin: 27% for Q3 2024, up from 25% in the year-ago quarter.
• Operating Expenses (R&D and SG&A): $14.6 million for Q3 2024, up from $10 million in the year-ago quarter.
• Non-GAAP Net Income: $6 million or $0.16 per share for Q3 2024, compared to $900,000 or $0.03 per share in the year-ago quarter.
• Net Income: $2.5 million or $0.07 per share for Q3 2024, compared to a net loss of $1.6 million or $0.06 per share in the year-ago quarter.
• Cash Position: $80 million at the end of Q3 2024, compared to $74.8 million at the end of Q2 2024.
• Operating Cash Flow: $5.9 million generated in Q3 2024.
• CapEx: $500,000 for Q3 2024.
• New Orders: Over $57 million received in Q3 2024, with 75% from grid business and 25% from wind business.
• 12-Month Backlog: Above $200 million.
• Total Backlog: Above $300 million.

• Warning! GuruFocus has detected 4 Warning Signs with AMSC.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• American Superconductor Corp (NASDAQ:AMSC) reported a record revenue of over $60 million for the third quarter of fiscal year 2024, exceeding their guidance range.
• The company achieved a 55% growth in grid revenue and a 60% growth in wind revenue compared to the previous year.
• AMSC has secured over $57 million in new orders, with a diverse set of markets including renewables, industrials, utilities, and military.
• The company ended the third quarter with $80 million in cash, demonstrating strong financial health.
• AMSC has achieved two consecutive quarters of net income and six consecutive quarters of positive operating cash flow.

Negative Points

• Operating expenses increased to $14.6 million in the third quarter of fiscal 2024, up from $10 million in the previous year, largely due to the acquisition of NWL.
• The company expects a net loss not to exceed $1 million for the fourth quarter of fiscal 2024.
• There are concerns about the capacity to meet growing demand, which may require future capital expenditure for expansion.
• The wind business, while growing, is heavily reliant on a single customer, Inox Wind, which could pose a risk if demand fluctuates.
• AMSC's renewables business in the US is a small fraction of their overall operations, limiting their exposure to potential growth in this sector.

Q & A Highlights

Q: Can you provide more detail on the "deep pipeline" you mentioned, and how it has grown over the last year or two with the new acquisitions? A: The pipeline growth rate is greater than the company's growth rate, with increased diversity in opportunities. We've expanded our offerings across various industries, which is reflected in the pipeline. We have multiple pathways for growth, including wind in India, industrials in the US, and military projects. The acquisitions have enhanced our ability to offer a broader range of products to our customers. - Daniel Mcgahn, CEO

Q: How do you envision the wind business playing out with Inox Wind, given their backlog and your exclusive supply agreement? A: We expect a batch-to-batch order pattern from Inox, focusing on smaller, more frequent orders. This approach aligns with their financial stability and our long-term relationship. The pace of orders will depend on Inox's customer's payment schedules, but we anticipate continued acceleration in the wind business. - Daniel Mcgahn, CEO

Q: With the company's growth, how are you addressing capacity needs and what can we expect in terms of operating leverage? A: We aim to ensure revenue growth outpaces fixed cost increases. While we may need to expand capacity in the future, the cost is manageable given our strong cash position. We focus on leveraging financial and manufacturing capabilities without significantly increasing fixed costs. - Daniel Mcgahn, CEO

Q: How are you approaching the data center market, and what products could fit this sector? A: We see opportunities in enhancing grid reliability for data centers, with utilities facing challenges that our products can solve. Our offerings include capacity buffering, power quality improvement, and increased power supply. While timing is uncertain, this sector could drive future growth. - Daniel Mcgahn, CEO

Q: How is the semiconductor opportunity evolving with the Chips Act funding, and do you see potential acceleration? A: The policy and funding are in place, and projects are being constructed. We have several key semiconductor orders in our pipeline, ready for construction. Long-term, increased capacity needs from semiconductor customers could lead to more projects for us. - Daniel Mcgahn, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.