AMSC (Nasdaq: AMSC), a leading system provider of
megawatt-scale power resiliency solutions
that orchestrate the rhythm and harmony of power on the
grid™ and protect and expand the capability and
resiliency of our Navy’s fleet, today reported financial
results for its first quarter of fiscal year 2024 ended
June 30, 2024.
Revenues for the first quarter of
fiscal 2024 were $40.3 million compared with $30.3
million for the same period of fiscal 2023. The year-over-year
increase was driven by increased shipments of new energy
power systems and electrical control system shipments, versus the
year ago period.
AMSC’s net loss for the first quarter of
fiscal 2024 was $2.5 million, or $0.07 per share,
compared to a net loss of $5.4 million, or $0.19 per share, for the
same period of fiscal 2023. The Company’s non-GAAP net income
for the first quarter of fiscal 2024 was $3.0 million, or
$0.09 per share, compared with a non-GAAP net loss of $2.1 million,
or $0.08 per share, in the same period of fiscal 2023. Please refer
to the financial table below for a reconciliation of GAAP to
non-GAAP results.
Cash, cash equivalents, and restricted cash
on June 30, 2024, totaled $95.5 million, compared with
$92.3 million at March 31, 2024.
"We are building a fundamentally stronger
company and reporting another quarter of solid results to start our
fiscal 2024. AMSC delivered over $3 million of operating cash
flow, expanded gross margins and grew revenue by over 30% when
compared to the same period last year,” said Daniel P. McGahn,
Chairman, President and CEO, AMSC. “During the first quarter of
fiscal 2024, we booked over $127 million of new orders, including
our first Ship Protection System contract with an allied navy and
our third 3MW ECS order from Inox Wind. We ended the quarter with
$160 million in 12-month backlog and $250 million in total backlog.
Our performance reflects our ability to deliver business
diversification, financial growth and expanded scale, which we
intend to leverage further in 2024 with our recent acquisition
announcement. We believe we are in a strong position for continued
diversified Grid growth in the industrial and military
sectors."
Business OutlookFor
the second quarter ending September 30, 2024, AMSC expects
that its revenues will be in the range of $38.0 million to
$42.0 million. The Company’s net loss for the second
quarter of fiscal 2024 is expected not to exceed
$1.7 million, or $0.05 per share. The Company’s net
loss guidance assumes no changes in fair value of contingent
consideration. The Company's non-GAAP net loss (as defined
below) is expected to be at least breakeven on a total
and per share basis. The Company expects operating cash flow
to be breakeven to a positive cash generation of $2.0 million in
the second quarter of fiscal 2024. The Company's guidance
does not include the impact of the recently announced acquisition
of NWL.
Conference Call ReminderIn
conjunction with this announcement, AMSC management will
participate in a conference call with investors beginning at 10:00
a.m. Eastern Time on Wednesday, August 7, 2024, to discuss the
Company’s financial results and business outlook. Those who wish to
listen to the live or archived conference call webcast should visit
the “Investors” section of the Company’s website
at https://ir.amsc.com. The live call can be accessed by
dialing 1-844-481-2802 or 1-412-317-0675 and asking to join
the AMSC call. A replay of the call may be accessed 2 hours
following the call by dialing 1-877-344-7529 and using
conference passcode 9653245.
About AMSC (Nasdaq: AMSC)AMSC
generates the ideas, technologies and solutions that meet the
world’s demand for smarter, cleaner … better energy™. Through its
Gridtec™ Solutions, AMSC provides the engineering planning services
and advanced grid systems that optimize network reliability,
efficiency and performance. Through its Marinetec™
Solutions, AMSC provides ship protection systems and is developing
propulsion and power management solutions designed to help
fleets increase system efficiencies, enhance power quality and
boost operational safety. Through its Windtec®
Solutions, AMSC provides wind turbine electronic controls and
systems, designs and engineering services that reduce the cost of
wind energy. The Company’s solutions are enhancing the performance
and reliability of power networks, increasing the operational
safety of navy fleets, and powering gigawatts of renewable energy
globally. Founded in 1987, AMSC is headquartered near Boston,
Massachusetts with operations in Asia, Australia, Europe and North
America. For more information, please visit www.amsc.com.
AMSC, American Superconductor, D-VAR, D-VAR VVO,
Gridtec, Marinetec, Windtec, Neeltran, NEPSI, Smarter, Cleaner …
Better Energy, and Orchestrate the Rhythm and Harmony of Power
on the Grid are trademarks or registered trademarks of
American Superconductor Corporation. All other brand names, product
names, trademarks or service marks belong to their respective
holders.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Any
statements in this release regarding our goals and strategies;
backlog; growing markets for our products; customer lead
times; expectations regarding year over year revenue growth for
fiscal 2024; our expected GAAP and non-GAAP financial results for
the quarter ending September 30, 2024; our expected cash
generation during the quarter ending September 30, 2024;
functionality, performance and capabilities of our products,
systems and solutions; momentum, and other statements containing
the words "believes," "anticipates," "plans," "expects," "will" and
similar expressions, constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements represent management's
current expectations and are inherently uncertain. There are a
number of important factors that could materially impact the value
of our common stock or cause actual results to differ materially
from those indicated by such forward-looking statements. These
important factors include, but are not limited to: We have a
history of operating losses, which may continue in the
future. Our operating results may fluctuate significantly from
quarter to quarter and may fall below expectations in any
particular fiscal quarter; We have a history of negative operating
cash flows, and we may require additional financing in the future,
which may not be available to us; Our technology and products could
infringe intellectual property rights of others, which may require
costly litigation and, if we are not successful, could cause us to
pay substantial damages and disrupt our business; Changes in
exchange rates could adversely affect our results of operations; We
may be required to issue performance bonds or provide letters of
credit, which restricts our ability to access any cash used as
collateral for the bonds or letters of credit; If we fail to
maintain proper and effective internal control over financial
reporting, our ability to produce accurate and timely financial
statements could be impaired and may lead investors and other users
to lose confidence in our financial data; We may not realize all of
the sales expected from our backlog of orders and
contracts; Our contracts with the U.S. government are subject
to audit, modification or termination by the U.S. government and
include certain other provisions in favor of the government. The
continued funding of such contracts remains subject to annual
congressional appropriation, which, if not approved, could reduce
our revenue and lower or eliminate our profit; Changes in U.S.
government defense spending could negatively impact our financial
position, results of operations, liquidity and overall business;
Pandemics, epidemics or other public health crises may adversely
impact our business, financial condition and results of operations;
We rely upon third-party suppliers for the components and
subassemblies of many of our Grid and Wind products, making us
vulnerable to supply shortages and price fluctuations, which could
harm our business; Uncertainty surrounding our prospects and
financial condition may have an adverse effect on our customer
and supplier relationship; Our success is dependent upon attracting
and retaining qualified personnel and our inability to do so could
significantly damage our business and prospects; A significant
portion of our Wind segment revenues are derived from a single
customer. If this customer’s business is negatively affected, it
could adversely impact our business; Our success in addressing the
wind energy market is dependent on the manufacturers that license
our designs; Our business and operations would be adversely
impacted in the event of a failure or security breach of our or any
critical third parties' information technology infrastructure and
networks; We may acquire additional complementary businesses or
technologies, which may require us to incur substantial costs for
which we may never realize the anticipated benefits; Failure to
comply with evolving data privacy and data protection laws and
regulations or to otherwise protect personal data, may adversely
impact our business and financial results; Many of our revenue
opportunities are dependent upon subcontractors and other business
collaborators; If we fail to implement our business strategy
successfully, our financial performance could be harmed; Problems
with product quality or product performance may cause us to incur
warranty expenses and may damage our market reputation and prevent
us from achieving increased sales and market share; Many of our
customers outside of the United States may be either directly or
indirectly related to governmental entities, and we could be
adversely affected by violations of the United States Foreign
Corrupt Practices Act and similar worldwide anti-bribery laws
outside the United States; We have had limited success marketing
and selling our superconductor products and system-level solutions,
and our failure to more broadly market and sell our products and
solutions could lower our revenue and cash flow; We or third
parties on whom we depend may be adversely affected by natural
disasters, including events resulting from climate change, and our
business continuity and disaster recovery plans may not adequately
protect us or our value chain from such events; Adverse changes in
domestic and global economic conditions could adversely affect our
operating results; Our international operations are subject to
risks that we do not face in the United States, which could have an
adverse effect on our operating results; Our products face
competition, which could limit our ability to acquire or retain
customers; We have operations in, and depend on sales in, emerging
markets, including India, and global conditions could negatively
affect our operating results or limit our ability to expand our
operations outside of these markets. Changes in India’s political,
social, regulatory and economic environment may affect our
financial performance; Our success depends upon the commercial
adoption of the REG system, which is currently limited, and a
widespread commercial market for our products may not develop;
Industry consolidation could result in more powerful competitors
and fewer customers; Increasing focus and scrutiny on environmental
sustainability and social initiatives could increase our costs, and
inaction could harm our reputation and adversely impact our
financial results; Growth of the wind energy market depends largely
on the availability and size of government subsidies, economic
incentives and legislative programs designed to support the growth
of wind energy: Lower prices for other energy sources may reduce
the demand for wind energy development, which could have a material
adverse effect on our ability to grow our Wind business; We may be
unable to adequately prevent disclosure of trade secrets and other
proprietary information; Our patents may not provide meaningful or
long-term protection for our technology, which could result in us
losing some or all of our market position; There are a number of
technological challenges that must be successfully addressed before
our superconductor products can gain widespread commercial
acceptance, and our inability to address such technological
challenges could adversely affect our ability to acquire customers
for our products; Third parties have or may acquire patents that
cover the materials, processes and technologies we use or may use
in the future to manufacture our Amperium products, and our success
depends on our ability to license such patents or other proprietary
rights; Our common stock has experienced, and may continue to
experience, market price and volume fluctuations, which may prevent
our stockholders from selling our common stock at a profit and
could lead to costly litigation against us that could divert our
management’s attention; Unfavorable results of legal proceedings
could have a material adverse effect on our business, operating
results and financial condition; and the other important
factors discussed under the caption "Risk Factors" in Part 1. Item
1A of our Form 10-K for the fiscal year ended March 31, 2024, and
our other reports filed with the SEC. These important factors,
among others, could cause actual results to differ materially from
those indicated by forward-looking statements made herein and
presented elsewhere by management from time to time. Any such
forward-looking statements represent management's estimates as of
the date of this press release. While we may elect to update such
forward-looking statements at some point in the future, we disclaim
any obligation to do so, even if subsequent events cause our views
to change. These forward-looking statements should not be relied
upon as representing our views as of any date subsequent to the
date of this press release.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except per share data) |
|
|
Three Months Ended |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
Grid |
$ |
32,336 |
|
|
$ |
25,737 |
|
Wind |
|
7,954 |
|
|
|
4,517 |
|
Total revenues |
|
40,290 |
|
|
|
30,254 |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
28,065 |
|
|
|
23,972 |
|
|
|
|
|
|
|
|
|
Gross margin |
|
12,225 |
|
|
|
6,282 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
2,286 |
|
|
|
1,853 |
|
Selling, general and administrative |
|
8,898 |
|
|
|
7,868 |
|
Amortization of acquisition-related intangibles |
|
412 |
|
|
|
538 |
|
Change in fair value of contingent consideration |
|
3,920 |
|
|
|
1,350 |
|
Restructuring |
|
— |
|
|
|
6 |
|
Total operating expenses |
|
15,516 |
|
|
|
11,615 |
|
|
|
|
|
|
|
|
|
Operating loss |
|
(3,291 |
) |
|
|
(5,333 |
) |
|
|
|
|
|
|
|
|
Interest income, net |
|
1,120 |
|
|
|
174 |
|
Other expense, net |
|
(160 |
) |
|
|
(118 |
) |
Loss before income tax
expense |
|
(2,331 |
) |
|
|
(5,277 |
) |
|
|
|
|
|
|
|
|
Income tax expense |
|
193 |
|
|
|
121 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(2,524 |
) |
|
$ |
(5,398 |
) |
|
|
|
|
|
|
|
|
Net loss per common share |
|
|
|
|
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
(0.19 |
) |
Diluted |
$ |
(0.07 |
) |
|
$ |
(0.19 |
) |
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding |
|
|
|
|
|
|
|
Basic |
|
35,676 |
|
|
|
28,258 |
|
Diluted |
|
35,676 |
|
|
|
28,258 |
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In
thousands, except per share data) |
|
|
June 30, 2024 |
|
|
March 31, 2024 |
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
93,455 |
|
|
$ |
90,522 |
|
Accounts receivable, net |
|
23,529 |
|
|
|
26,325 |
|
Inventory, net |
|
45,149 |
|
|
|
41,857 |
|
Prepaid expenses and other current assets |
|
10,424 |
|
|
|
7,295 |
|
Restricted cash |
|
468 |
|
|
|
468 |
|
Total current assets |
|
173,025 |
|
|
|
166,467 |
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
10,529 |
|
|
|
10,861 |
|
Intangibles, net |
|
5,957 |
|
|
|
6,369 |
|
Right-of-use assets |
|
4,096 |
|
|
|
2,557 |
|
Goodwill |
|
43,471 |
|
|
|
43,471 |
|
Restricted cash |
|
1,600 |
|
|
|
1,290 |
|
Deferred tax assets |
|
1,114 |
|
|
|
1,119 |
|
Other assets |
|
351 |
|
|
|
637 |
|
Total assets |
$ |
240,143 |
|
|
$ |
232,771 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
$ |
22,309 |
|
|
$ |
24,235 |
|
Lease liability, current portion |
|
862 |
|
|
|
716 |
|
Debt, current portion |
|
9 |
|
|
|
25 |
|
Contingent consideration |
|
7,020 |
|
|
|
3,100 |
|
Deferred revenue, current portion |
|
55,984 |
|
|
|
50,732 |
|
Total current liabilities |
|
86,184 |
|
|
|
78,808 |
|
|
|
|
|
|
|
|
|
Deferred revenue, long term portion |
|
6,929 |
|
|
|
7,097 |
|
Lease liability, long term portion |
|
3,359 |
|
|
|
1,968 |
|
Deferred tax liabilities |
|
300 |
|
|
|
300 |
|
Other liabilities |
|
27 |
|
|
|
27 |
|
Total liabilities |
|
96,799 |
|
|
|
88,200 |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Common stock |
|
374 |
|
|
|
373 |
|
Additional paid-in capital |
|
1,214,320 |
|
|
|
1,212,913 |
|
Treasury stock |
|
(3,765 |
) |
|
|
(3,639 |
) |
Accumulated other comprehensive income |
|
1,597 |
|
|
|
1,582 |
|
Accumulated deficit |
|
(1,069,182 |
) |
|
|
(1,066,658 |
) |
Total stockholders' equity |
|
143,344 |
|
|
|
144,571 |
|
Total liabilities and stockholders' equity |
$ |
240,143 |
|
|
$ |
232,771 |
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
|
|
Three Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(2,524 |
) |
|
$ |
(5,398 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operations: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,008 |
|
|
|
1,119 |
|
Stock-based compensation expense |
|
1,229 |
|
|
|
1,357 |
|
Provision for excess and obsolete inventory |
|
503 |
|
|
|
384 |
|
Amortization of operating lease right-of-use assets |
|
192 |
|
|
|
195 |
|
Deferred income taxes |
|
(2 |
) |
|
|
(1 |
) |
Change in fair value of contingent consideration |
|
3,920 |
|
|
|
1,350 |
|
Other non-cash items |
|
(3 |
) |
|
|
5 |
|
Changes in operating asset and liability accounts: |
|
|
|
|
|
|
|
Accounts receivable |
|
2,786 |
|
|
|
549 |
|
Inventory |
|
(3,799 |
) |
|
|
(6,272 |
) |
Prepaid expenses and other assets |
|
(3,099 |
) |
|
|
6,738 |
|
Operating leases |
|
(195 |
) |
|
|
(195 |
) |
Accounts payable and accrued expenses |
|
(1,734 |
) |
|
|
(9,394 |
) |
Deferred revenue |
|
5,127 |
|
|
|
7,318 |
|
Net cash provided by (used in) operating activities |
|
3,409 |
|
|
|
(2,245 |
) |
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(265 |
) |
|
|
(214 |
) |
Change in other assets |
|
245 |
|
|
|
(79 |
) |
Net cash used in investing
activities |
|
(20 |
) |
|
|
(293 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Repayment of debt |
|
(16 |
) |
|
|
(17 |
) |
Employee taxes paid related to net settlement of equity awards |
|
(126 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(142 |
) |
|
|
(17 |
) |
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
(4 |
) |
|
|
2 |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
3,243 |
|
|
|
(2,553 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
92,280 |
|
|
|
25,675 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
95,523 |
|
|
$ |
23,122 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME
(LOSS) |
(In
thousands, except per share data) |
|
|
Three Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
Net loss |
$ |
(2,524 |
) |
|
$ |
(5,398 |
) |
Stock-based compensation |
|
1,229 |
|
|
|
1,357 |
|
Amortization of
acquisition-related intangibles |
|
412 |
|
|
|
544 |
|
Change in fair value of
contingent consideration |
|
3,920 |
|
|
|
1,350 |
|
Non-GAAP net income
(loss) |
$ |
3,037 |
|
|
$ |
(2,147 |
) |
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) per
share - basic |
$ |
0.09 |
|
|
$ |
(0.08 |
) |
Non-GAAP net income (loss) per
share - diluted |
$ |
0.08 |
|
|
$ |
(0.08 |
) |
Weighted average shares
outstanding - basic |
|
35,676 |
|
|
|
28,258 |
|
Weighted average shares
outstanding - diluted |
|
37,032 |
|
|
|
28,258 |
|
|
|
|
|
|
|
|
|
Reconciliation of Forecast GAAP Net Loss to Non-GAAP Net
Loss |
(In millions, except per share data) |
|
|
Three Months Ending |
|
|
September 30, 2024 |
|
Net loss |
$ |
(1.7 |
) |
Stock-based compensation |
|
1.3 |
|
Amortization of
acquisition-related intangibles |
|
0.4 |
|
Non-GAAP net loss |
$ |
0.0 |
|
Non-GAAP net loss per
share |
$ |
0.0 |
|
Shares outstanding |
|
35.9 |
|
|
|
|
|
Note: Non-GAAP net income (loss) is defined by
the Company as net loss before; stock-based compensation;
amortization of acquisition-related intangibles; change in
fair value of contingent consideration; other non-cash or unusual
charges, and the tax effect of adjustments calculated at the
relevant rate for our non-GAAP metric. The Company believes
non-GAAP net income (loss) and non-GAAP net income (loss) per share
assist management and investors in comparing the Company’s
performance across reporting periods on a consistent basis by
excluding these non-cash, non-recurring or other charges that it
does not believe are indicative of its core operating
performance. Actual GAAP and non-GAAP net loss for the fiscal
quarter ending September 30, 2024, including the above
adjustments, may differ materially from those forecasted in the
table above, including as a result of changes in the fair
value of contingent consideration. Generally, a non-GAAP financial
measure is a numerical measure of a company's performance,
financial position or cash flow that either excludes or includes
amounts that are not normally excluded or included in the most
directly comparable measure calculated and presented in accordance
with GAAP. The non-GAAP measure included in this release,
however, should be considered in addition to, and not as a
substitute for or superior to, operating income or other measures
of financial performance prepared in accordance with GAAP. A
reconciliation of GAAP to non-GAAP net loss is set forth in the
table above.
AMSC ContactsInvestor Relations
Contact:LHA Investor RelationsCarolyn Capaccio(212)
838-3777amscIR@lhai.com
AMSC Director, Communications:Nicol
Golez978-399-8344Nicol.Golez@amsc.com
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