American Superconductor Corp (AMSC) 2023 Q2 法說會逐字稿

Good day, and welcome to the AMSC Second Quarter Fiscal 2023 Financial Results Call. (Operator Instructions) Please note that this event is being recorded. I'd like to turn the call over to Mr. John Heilshorn. LHA. Please go ahead.

美好的一天，歡迎參加 AMSC 2023 財年第二季財務業績電話會議。 （操作員說明）請注意，該事件正在被記錄。我想把電話轉給約翰·海爾肖恩先生。 LHA。請繼續。

Thank you, Nick. Good morning, everyone, and welcome to American Superconductor Corporation's Second Quarter of Fiscal 2023 Earnings Conference Call. I am John Heilshorn of LHA Investor Relations, AMSC's Investor Relations agency of record. With us on today's call are Daniel McGahn, Chairman, President and Chief Executive Officer; and John Kosiba, Senior Vice President, Chief Financial Officer and Treasurer. American Superconductor issued its earnings release for the second quarter of fiscal 2023 yesterday after the market closed.

謝謝你，尼克。大家早安，歡迎參加美國超導公司 2023 財年第二季財報電話會議。我是 LHA 投資者關係部的 John Heilshorn，LHA 投資者關係部是 AMSC 的投資者關係登記機構。出席今天電話會議的有董事長、總裁兼執行長 Daniel McGahn；約翰‧科西巴 (John Kosiba)，資深副總裁、財務長兼財務主管。昨天收盤後，美國超導公司發布了 2023 財年第二季的財報。

For those of you who have not yet seen the release, a copy is available in the Investors page of the company's website at www.amsc.com. Before starting the call, I'd like to remind you that various remarks that management may make during today's call about American Superconductor's future expectations, including expectations regarding the company's third quarter of fiscal 2023 financial performance, plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.

對於尚未看到該新聞稿的人，可以在該公司網站 www.amsc.com 的投資者頁面上取得該新聞稿的副本。在開始電話會議之前，我想提醒您，管理層在今天的電話會議上可能發表的有關美國超導公司未來預期的各種言論，包括對該公司2023 財年第三季度財務業績、計劃和前景的預期，均構成前瞻性陳述。1995 年 《私人證券訴訟改革法案》中安全港條款的目的。

Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including those set forth in the Risk Factors section of American Superconductor's annual report on Form 10-K for the year ended March 31, 2023, which the company filed with the Securities and Exchange Commission on May 31, 2023, and the company's other reports filed with the SEC.

由於各種重要因素，包括美國超導公司截至2023 年3 月31 日的10-K 表格年度報告的風險因素部分中列出的因素，實際結果可能與此類前瞻性陳述所示的結果存在重大差異，該公司於2023年5月31日向美國證券交易委員會提交的報告，以及該公司向美國證券交易委員會提交的其他報告。

These forward-looking statements represent management's expectations only as of today and should not be relied upon as representing management's views as of any date subsequent to today. While the company anticipates that subsequent events and developments may cause the company's views to change, the company specifically disclaims any obligation to update these forward-looking statements.

這些前瞻性陳述僅代表管理階層截至今日的預期，不應被視為代表管理階層截至今日任何日期的觀點。儘管該公司預計後續事件和事態發展可能會導致該公司的觀點發生變化，但該公司明確表示不承擔更新這些前瞻性聲明的任何義務。

Also on today's call, management will refer to non-GAAP net income loss, which are non-GAAP financial measures. The company believes that non-GAAP net income loss assist management and investors in comparing to the company's performance across reporting periods on a consistent basis by excluding these noncash, nonrecurring or other charges, and it does not believe are indicative of its core operating performance.

在今天的電話會議上，管理階層也將提及非公認會計準則淨利潤損失，這是非公認會計準則財務指標。該公司認為，透過排除這些非現金、非經常性或其他費用，非公認會計原則淨利潤損失有助於管理層和投資者在一致的基礎上與公司在報告期間的業績進行比較，但它並不認為這顯示了其核心經營績效。

The reconciliation of GAAP net loss to GAAP net profit -- net income loss can be found on the second quarter of fiscal 2023 earnings press release that the company issued and furnished to the SEC last night on Form 8-K. All of the American Superconductor's press releases and SEC filings can be accessed from the Investors page of its website at www.amsc.com.

GAAP 淨虧損與 GAAP 淨利潤（淨收入損失）的對帳可在該公司昨晚以 8-K 表格形式向 SEC 發布並提供的 2023 財年第二季收益新聞稿中找到。美國超導公司的所有新聞稿和 SEC 文件均可從其網站 www.amsc.com 的投資者頁面存取。

With that, I will now turn the call over to Chairman, President and Chief Executive Officer, Daniel McGahn. Daniel?

現在，我將電話轉給董事長、總裁兼執行長 Daniel McGahn。丹尼爾？

Thanks, John, and good morning, everyone. I'll begin today by providing an update and sharing a few remarks on our business, John Kosiba will then provide a detailed review of our financial results for the second fiscal quarter, which ended September 30, 2023, and provide guidance for the third fiscal quarter, which will end December 31, 2023. Following our comments, we'll open up the line to questions from our analysts.

謝謝約翰，大家早安。今天，我將首先提供最新情況並分享有關我們業務的一些評論，然後 John Kosiba 將詳細審查我們截至 2023 年 9 月 30 日的第二財季的財務業績，並為第三財季提供指導該季度將於2023 年12 月31 日結束。在發表評論後，我們將開放熱線接受分析師提問。

Several quarters ago, we discussed possible business performance scenarios that could lead to increased shareholder value. We discussed revenue growth, margin expansion and expense control as factors driving potential cash breakeven and cash generating scenarios. Our second quarter results stand as proof that this can be done. For the second quarter of fiscal 2023, we generated a modest non-GAAP net income. We had positive operating cash flow. We showed expanded gross margins, we showed higher revenue, and we delivered another quarter of strong orders.

幾個季度前，我們討論了可能導致股東價值增加的業務績效情境。我們討論了收入成長、利潤率擴張和費用控製作為推動潛在現金收支平衡和現金產生情境的因素。我們第二季的業績證明這是可以做到的。 2023 財年第二季度，我們產生了適度的非公認會計準則淨利。我們有正的經營現金流。我們的毛利率有所擴大，收入有所增加，我們又交付了一個季度的強勁訂單。

All signs this quarter are quite positive. I believe we are ahead of schedule. Total revenues for the second quarter of fiscal year 2023 exceeded our expectations and came in above our guidance range. Our second quarter revenue of $34 million, was driven primarily by strong new energy power system shipments. Our grid segment revenue for the second quarter accounted for over 80% of AMSC's total revenue and grew over 10% versus the year ago period.

本季度的所有跡像都非常積極。我相信我們比計劃提前了。 2023 財年第二季的總收入超出了我們的預期，並高於我們的指導範圍。我們第二季的營收為 3,400 萬美元，主要得益於強勁的新能源電力系統出貨量。第二季我們的電網部門營收佔AMSC總營收的80%以上，較去年同期成長超過10%。

The remainder of the revenue came from our wind business, which also grew significantly as a percentage from a year ago. We had very strong bookings in the second quarter with both new and existing customers for our products. We announced a near record $37 million of new energy power systems orders in October and have a strong 12-month backlog of over $128 million.

其餘收入來自我們的風電業務，該業務的百分比也比一年前大幅成長。第二季度，我們的產品新舊客戶的預訂量非常大。 10 月份，我們宣布了近乎創紀錄的 3,700 萬美元新能源電力系統訂單，並且 12 個月的積壓訂單超過 1.28 億美元。

Our backlog grew nearly 30% versus the year ago period. If you look at the 12-month backlog over time back into fiscal 2020, we had about $50 million in backlog. In fiscal 2021, backlog grew to $80 million. Last fiscal year, it reached $100 million. And as you can see, we're now approaching $130 million, again, in 12-month backlog. We see general improvement in our pipeline, orders and overall business. We have a more diversified and more sustainable business with new and existing customers.

我們的積壓訂單與去年同期相比成長了近 30%。如果你回顧一下 2020 財年 12 個月的積壓情況，你會發現我們的積壓金額約為 5,000 萬美元。 2021 財年，積壓訂單增加至 8,000 萬美元。上一財年，這一數字達到了 1 億美元。正如您所看到的，在 12 個月的積壓中，我們現在再次接近 1.3 億美元。我們看到我們的管道、訂單和整體業務普遍改善。我們與新舊客戶擁有更多元化、更永續的業務。

Our business has turned a corner. It feels like we've arrived. Over the past several quarters, the business secured an average of $40 million of total orders per quarter. Orders for the second quarter totaled over $40 million, giving us visibility into fiscal year 2024. We see lead times for certain products starting to decrease to under 12 months. We were seeing long lead times take about 15 or more months to procure. This is good news for our business and for our customers.

我們的生意已經出現轉機。感覺我們已經到了。在過去的幾個季度中，該公司平均每季獲得 4000 萬美元的總訂單。第二季的訂單總額超過 4,000 萬美元，讓我們能夠了解 2024 財年。我們看到某些產品的交貨時間開始縮短至 12 個月以下。我們發現採購週期很長，大約需要 15 個月或更長。這對我們的業務和客戶來說都是個好消息。

During our second quarter, we shipped systems to renewable projects in the U.S. and Canada, a mining project in Canada, semiconductor projects in the U.S. and Taiwan. And please note, this is to multiple different chip manufacturers. SPS systems to the U.S. Navy projects and projects supporting the supply chain for batteries and electric vehicles in the U.S. We saw a diverse set of orders from renewables, to semiconductors to materials and mining, to industrials as well as for utilities and military applications.

在第二季度，我們將系統運送到美國和加拿大的可再生能源項目、加拿大的採礦項目、美國和台灣的半導體項目。請注意，這是針對多個不同晶片製造商的。美國海軍專案的 SPS 系統以及支援美國電池和電動車供應鏈的專案。我們看到了從再生能源到半導體、材料和採礦、工業以及公用事業和軍事應用的各種訂單。

We are pleased with these results and excited about the rest of our year. Now I'll turn the call over to John Kosiba to review our financial results for the second quarter of fiscal 2023 and provide guidance for the third quarter of fiscal 2023, which will end December 31, 2023. John?

我們對這些結果感到滿意，並對今年剩下的時間感到興奮。現在我將把電話轉給約翰·科西巴(John Kosiba)，他將審查我們2023 財年第二季度的財務業績，並為2023 財年第三季度（將於2023 年12 月31 日結束）提供指導。約翰？

Thanks, Daniel, and good morning, everyone. I'd like to start off by saying I'm pleased with our second quarter results. As many of you may recall from our investor call back in the third quarter of fiscal [2020-'22], I mentioned we had taken several strategic steps to lower our overhead cost structure. In addition to our revenue growth, these steps have clearly paid off.

謝謝丹尼爾，大家早安。首先我想說我對我們第二季的業績感到滿意。你們中的許多人可能還記得我們在[2020-'22]財年第三季的投資者電話會議中，我提到我們已經採取了幾項策略措施來降低我們的間接成本結構。除了我們的收入成長之外，這些步驟顯然也得到了回報。

I also elaborated that, as we moved into fiscal 2023, there would be several scenarios where cash gross margins could approach 25% and operating cash flow breakeven could be achieved as revenue approached $35 million in a quarter. I am pleased to report that in the second quarter, we reported gross margins of 25% and generated $900,000 of operating cash flow. AMSC generated revenues of $34 million for the second quarter of fiscal 2023 compared to $27.7 million in the year ago quarter.

我還詳細闡述了，當我們進入 2023 財年時，在多種情況下，現金毛利率可能會接近 25%，並且當一個季度的收入接近 3500 萬美元時，營運現金流可能會實現盈虧平衡。我很高興地報告，第二季的毛利率為 25%，營運現金流為 90 萬美元。 AMSC 2023 財年第二季的營收為 3,400 萬美元，而去年同期為 2,770 萬美元。

Our grid business unit accounted for 84% of total revenues, while our wind business unit accounted for 16%. Grid business unit revenues increased 11% in the second quarter versus the year ago quarter and wind business unit revenues increased 177% over that same time period as we are shipping more ECS to our India wind licensee.

我們的電網業務部門佔總收入的84%，而風電業務部門佔16%。第二季電網業務部門營收較去年同期成長 11%，風電業務部門營收同期成長 177%，因為我們向印度風電許可證持有者運送了更多 ECS。

Looking at the P&L in more detail. Gross margin for the second quarter of fiscal 2023 was 25% compared to 7% in the year ago quarter. Gross margin for this quarter was favorably impacted by increased revenues and a favorable product mix driven by revenue growth across our most profitable product lines. Additionally, increased service and spares revenue had a meaningful impact on gross margins in the quarter.

更詳細地查看損益表。 2023 財年第二季的毛利率為 25%，去年同期為 7%。本季的毛利率受到收入增加和我們最盈利的產品線收入成長推動的有利產品組合的有利影響。此外，服務和備件收入的增加對該季度的毛利率產生了重大影響。

And lastly, the price increases we implemented over a year ago are starting to work their way through our backlog and had a favorable impact on our gross margins. All these factors contributed to the improved gross margin we reported in the quarter. Now moving on to operating expenses. R&D and SG&A expenses for the second quarter of fiscal 2023 were $9.6 million compared to $9.7 million in the year ago quarter. Approximately 11% of R&D and SG&A expenses in the second quarter of fiscal 2023 were noncash.

最後，我們一年多前實施的漲價已經開始解決我們的積壓訂單，並對我們的毛利率產生了有利的影響。所有這些因素都促成了我們本季報告的毛利率的提高。現在轉向營運費用。 2023 財年第二季的研發與銷售、一般行政費用為 960 萬美元，去年同期為 970 萬美元。 2023 財年第二季度，約 11% 的研發和銷售、一般管理費用為非現金。

We generated a modest non-GAAP net income for the second quarter of fiscal 2023 of less than $0.1 million or $0.00 per share compared with a non-GAAP net loss of $6.5 million or $0.23 per share in the year ago quarter. Our net loss in the second quarter of fiscal 2023 was $2.5 million or $0.09 per share. This compares to a net loss of $9.9 million or $0.35 per share in the year ago quarter.

2023 財年第二季度，我們的非 GAAP 淨利低於 10 萬美元，即每股 0.00 美元，而去年同期的非 GAAP 淨虧損為 650 萬美元，即每股 0.23 美元。 2023 財年第二季我們的淨虧損為 250 萬美元，即每股 0.09 美元。相比之下，去年同期淨虧損 990 萬美元，即每股淨虧損 0.35 美元。

Please see our press release issued last night for a reconciliation of GAAP to non-GAAP results. We ended the second quarter of fiscal 2023 with $24 million in cash, cash equivalents and restricted cash. This compares with $23.1 million on June 30, 2023. We generated operating cash flow in the second quarter of fiscal 2023 of $900,000. We generated this cash flow through the strength of our operating results and continue to have a strong balance sheet with no debt.

請參閱我們昨晚發布的新聞稿，以了解 GAAP 與非 GAAP 業績的對帳情況。截至 2023 財年第二季末，我們擁有 2,400 萬美元的現金、現金等價物及限制性現金。相較之下，2023 年 6 月 30 日為 2,310 萬美元。我們在 2023 財年第二季的營運現金流量為 90 萬美元。我們透過強勁的經營業績產生了現金流，並繼續擁有強勁的資產負債表，沒有債務。

Now turning to our financial guidance for the third quarter of fiscal 2023. We expect that our revenues will be in the range of $33 million to $36 million. Our net loss on that revenue is expected not to exceed $4.3 million or $0.15 per share. Our non-GAAP net loss is expected not to exceed $2.5 million or $0.08 per share. The company expects operating cash flow to be breakeven to a positive cash generation of $2 million. We expect to end the third quarter with no less than $24 million of cash, cash equivalents and restricted cash.

現在轉向我們 2023 財年第三季的財務指引。我們預計我們的營收將在 3,300 萬美元至 3,600 萬美元之間。我們該收入的淨虧損預計不會超過 430 萬美元或每股 0.15 美元。我們的非 GAAP 淨虧損預計不會超過 250 萬美元或每股 0.08 美元。該公司預計營運現金流將實現損益平衡，產生 200 萬美元的正現金流。我們預計第三季末現金、現金等價物和限制性現金將不少於 2,400 萬美元。

With that, I'll turn the call back over to Daniel.

這樣，我會將電話轉回給丹尼爾。

Thanks, John. Strong market demand from industrials, renewables and utilities drove orders for our second quarter of fiscal year 2023. We see government mandates as well as federal policies, such as the Inflation Reduction Act, supporting fossil fuel retirement, renewables growth and electric vehicle sector developments.

謝謝，約翰。來自工業、再生能源和公用事業的強勁市場需求推動了我們2023 財年第二季的訂單。我們看到政府的指令以及聯邦政策（例如《通貨膨脹削減法案》）支持化石燃料淘汰、可再生能源成長和電動汽車產業的發展。

In calendar year 2022, renewable energy generation, including hydropower, exceeded coal-fired power. During the first half of this calendar year 2023, data shows that wind and solar power produced more U.S. power than traditional coal. We see power generation from coal progressively declining and being replaced by natural gas and renewables. We see opportunities for our products and services as utilities address the addition of distributed power generation into the electric grid.

2022 年，包括水力發電在內的再生能源發電量超過了燃煤發電。數據顯示，2023 年上半年，美國風能和太陽能發電量超過了傳統煤炭發電量。我們看到煤炭發電量逐漸下降，並被天然氣和再生能源所取代。隨著公用事業公司解決將分散式發電納入電網的問題，我們看到了我們的產品和服務的機會。

Recently, the U.S. retired nearly 14 gigawatts of coal capacity, nearly 7% of the coal fleet since 2022. Nearly 2/3 of fossil fuel-fired electricity generation capacity is expected to cease by 2035. Solar, wind and natural gas made up more than 90% of the capacity added to the U.S. electric grid in 2021. Investment in clean energy sources in 2021 increased by 10% from the prior year to about $50 billion and was estimated to grow by 16% to nearly $60 billion in 2022.

最近，美國退役了近14 吉瓦的煤炭發電量，佔2022 年以來煤炭發電量的近7%。預計到2035 年，近2/3 的化石燃料發電量將停止。太陽能、風能和天然氣佔更多2021年美國電網新增容量的90%以上。2021年清潔能源投資較上年增長10%，達到約500億美元，預計2022年將成長16%，達到近600億美元。

The market drivers for a low-carbon economy and a modern, reliable and secure power grid are in our favor. Our applications help harmonize the world's desire for decarbonization and clean energy with the need for more reliable, effective and efficient power delivery. That's why we believe to be well positioned for the longer term. We have a robust pipeline of opportunities, thanks to strong market demand, and we are aggressively going after those opportunities.

低碳經濟和現代化、可靠、安全的電網的市場驅動力對我們有利。我們的應用有助於協調世界對脫碳和清潔能源的渴望與更可靠、有效和高效的電力傳輸的需求。這就是為什麼我們相信從長遠來看我們處於有利地位。由於強勁的市場需求，我們擁有大量的機會，我們正在積極尋求這些機會。

We are committed to the continued diversification of our business, expanding our scale and reach domestically and internationally and investing in resilient markets that create a path for a more sustainable world. Our key growth markets are renewables; mining; materials and metals, particularly for electric vehicles; semiconductors, utilities; and military. We believe the march towards a more sustainable world will be a driver for the markets we serve in the foreseeable future.

我們致力於業務的持續多元化，擴大我們的規模並擴大國內和國際影響力，並投資於有彈性的市場，為更永續的世界創造一條道路。我們的主要成長市場是再生能源；礦業;材料和金屬，特別是電動車；半導體、公用事業；和軍事。我們相信，在可預見的未來，邁向更永續發展的世界將成為我們所服務的市場的驅動力。

Our products are expected to play a central role in this evolution, and we continue to intensify our efforts in collaboration to take advantage of these trends. We continue to work towards growing a business that's supporting power management at the substation level for renewables, mining and metals, utilities and for military uses as well as supporting customers in the semiconductor industry.

我們的產品預計將在這一演變中發揮核心作用，我們將繼續加大合作力度，以利用這些趨勢。我們繼續致力於發展支援再生能源、採礦和金屬、公用事業和軍事用途的變電站級電源管理以及支援半導體產業客戶的業務。

We have turned a corner and delivered another remarkable quarter. We aren't looking back. We can see that the fundamentals of our business are well grounded. We generated cash and expect robust performance during the third quarter.

我們已經度過了一個轉折點，並交付了另一個出色的季度。我們不會回頭。我們可以看到我們業務的基本面是紮實的。我們產生了現金，並預計第三季業績強勁。

In conclusion, we delivered a strong first half of fiscal 2023. We are executing on orders from Inox Wind. We delivered multiple sets of 2-megawatt electrical control systems this quarter. We are supporting Inox Wind as they expand their offering to include an exceptional 3-megawatt class wind turbine. We are supporting Doosan as they commissioned their 100-megawatt offshore wind farm with our 5.5-megawatt wind turbine design, which they intend to complete next year.

總而言之，我們在 2023 財年上半年實現了強勁成長。我們正在執行 Inox Wind 的訂單。本季交付多套2兆瓦電控系統。我們正在支援 Inox Wind，因為他們擴大了產品範圍，包括卓越的 3 兆瓦級風力渦輪機。我們為斗山公司提供支持，他們採用我們的 5.5 兆瓦風力渦輪機設計來調試其 100 兆瓦離岸風電場，並計劃於明年完成。

We are broadening our revenue base with multiple products for the U.S. Navy. We have won a total of 5 Ship Protection System contracts for the San Antonio-class LPD. We've delivered and installed 1 Ship Protection System and are currently in the process of commissioning that system. We are delivering our second Ship Protection System this fiscal year. We have a major utility project driven by environmental mandates to reduce greenhouse gas emissions and are aggressively pursuing others.

我們正在為美國海軍提供多種產品來擴大我們的收入基礎。我們共贏得了5份聖安東尼奧級LPD船舶保護系統合約。我們已經交付並安裝了一套船舶保護系統，目前正在調試該系統。我們將在本財政年度交付第二個船舶保護系統。我們有一個由環境指令驅動的大型公用事業項目，旨在減少溫室氣體排放，並且正在積極尋求其他項目。

Our installed resilient electric grid system in Chicago is performing as planned and has become a showcase for the technology. Our current backlog is strong, well diversified and growing. We delivered strong revenue of over $30 million in the first quarter and over $34 million for the second quarter and expect robust revenue during the third quarter of fiscal year 2023.

我們在芝加哥安裝的彈性電網系統正在按計劃運行，並已成為該技術的展示。我們目前的積壓訂單數量充足、多元化且不斷成長。我們在第一季實現了超過 3,000 萬美元的強勁收入，在第二季實現了超過 3,400 萬美元的強勁收入，並預計 2023 財年第三季將實現強勁的收入。

We believe we are ahead of our plans, and that's very positive. Overall, the business is performing well, and we are serving an expanded set of customers in our grid business. Already, our transformative power solutions are moving the world forward. We are executing on our vision and believe that our creativity can meet today's challenges and help us progress to a better future.

我們相信我們已經提前完成了計劃，這是非常積極的。總體而言，該業務表現良好，我們正在為電網業務中的更多客戶提供服務。我們的變革性電力解決方案已經在推動世界前進。我們正在實現我們的願景，並相信我們的創造力能夠應對當今的挑戰並幫助我們邁向更美好的未來。

This means using future-facing technologies to harmonize the world's desire for decarbonization and clean energy with the need for more reliable, effective and efficient power delivery. We believe empowering progress by designing, developing and deploying power control solutions that harmonize an increasingly complex energy system. We are very excited about our future. I look forward to reporting back to you at the completion of our third fiscal quarter of 2023.

這意味著使用面向未來的技術來協調世界對脫碳和清潔能源的渴望與更可靠、有效和高效的電力傳輸的需求。我們相信，透過設計、開發和部署電力控制解決方案來協調日益複雜的能源系統，可以推動進步。我們對我們的未來感到非常興奮。我期待在 2023 年第三財季結束時向您報告。

Nick, we'll now take lines -- questions from our analysts that are on the line.

尼克，我們現在要聽聽分析師的提問。

(Operator Instructions) First question will be from Colin Rusch of Oppenheimer.

（操作員說明）第一個問題將由 Oppenheimer 的 Colin Rusch 提出。

Congrats on the progress here. It's great to see you guys delivering on the cash flow metrics. Can you talk a little bit about where you're winning and how you're winning on the grid side and the cadence of orders? And then the follow-up question, I'll just hop back in the queue after this, is really around your ability to start rolling through lower component costs and potentially lower in working capital as you move forward, given some of the rebalancing on supply chain?

恭喜這裡的進展。很高興看到你們實現了現金流量指標。您能談談您在哪些方面獲勝、如何在電網方面獲勝以及訂單節奏嗎？然後，接下來的問題，我會在這之後跳回到隊列中，實際上是關於你開始滾動降低組件成本以及隨著你的前進而可能降低營運資金的能力，考慮到供應上的一些再平衡鏈？

Thanks for the compliment, Colin. So we're winning on -- with utilities, we're winning with mines, we're winning with things for EV, we're winning big in semiconductor. I mentioned multiple customers. It's the first time I've said that. We continue to win in renewables. So it's really across the board. We've tried to build this robust, diverse, sustainable business, and we feel like it's now fully been built and we've been able to demonstrate it.

謝謝你的誇獎，科林。因此，我們在公用事業方面取得了勝利，在礦山方面取得了勝利，在電動車方面取得了勝利，在半導體方面取得了巨大的勝利。我提到了多個客戶。這是我第一次這麼說。我們繼續在再生能源領域獲勝。所以這確實是全面的。我們一直在努力建立這個強大、多元化、可持續的業務，我們覺得它現在已經完全建成，我們已經能夠展示它。

John telegraphed back a few quarters that this was possible. And I think that we're here probably earlier than we thought. So the business is really, really performing even much better than we had anticipated. Do you want to take his other question?

約翰在幾個季度後回電說這是可能的。我認為我們到達這裡的時間可能比我們想像的還要早。因此，該業務的表現確實比我們預期的要好得多。你想回答他的另一個問題嗎？

Colin, can you repeat the second question? I didn't quite fully understand it entirely.

柯林，你能重複第二個問題嗎？我並沒有完全理解它。

I think you were asking something about component cost as it's drop and how it could impact working capital? We haven't quite seen -- I wouldn't say we've seen component costs drop yet. I think we have stabilized. I think what we're hoping is that we've got a nice stable supply chain, one, with lead times are starting to come down and prices are stable. As prices come down, that might change.

我想您是在問有關零件成本下降的問題，以及它如何影響營運資金？我們還沒有看到——我不會說我們已經看到零件成本下降。我認為我們已經穩定下來了。我認為我們所希望的是我們擁有一個良好且穩定的供應鏈，其中交貨時間開始縮短且價格穩定。隨著價格下降，這種情況可能會改變。

As far as working capital, I don't see how that changes for us as much. Remember, our business is highly tied to milestone billings. So our working capital tends to be funded from our orders based on the milestone bill and schedule. But we can take this offline if you have any further questions.

就營運資金而言，我認為這對我們來說沒有太大變化。請記住，我們的業務與里程碑帳單密切相關。因此，我們的營運資金往往是根據里程碑帳單和時間表從我們的訂單中提供資金。但如果您還有任何其他問題，我們可以將其下線。

Yes. I think the key point is more -- we're focused more on trying to control lead times, so our customers can get their projects started on time. That's really been the focus of the team, and we're seeing some benefits there.

是的。我認為關鍵點在於——我們更加專注於控制交貨時間，以便我們的客戶能夠按時啟動他們的專案。這確實是團隊的焦點，我們也看到了一些好處。

Next question will be from Eric Stine of Craig-Hallum.

下一個問題將由 Craig-Hallum 的 Eric Stine 提出。

So maybe I'll just touch on margins you laid out. I mean, great to see the improvement. I'll second that. You laid out some of the reasons mix in other areas for that improvement. But could you maybe just drill down, I mean, should we look at this as evidence that you're finally through the Neeltran backlog, the low-price backlog that, that's kind of a thing in the past. I mean is this a level, plus or minus that we should view as sustainable?

所以也許我會談談你所安排的利潤。我的意思是，很高興看到進步。我會附議。您列出了其他領域實現這項改進的一些原因。但你是否可以深入研究一下，我的意思是，我們是否應該將此視為你終於完成了 Neeltran 積壓訂單、低價積壓訂單的證據，那已經是過去的事情了。我的意思是，我們應該將這個水平（加還是減）視為可持續的？

I'll answer the sustainable part. I mean given the guide, clearly, we're guiding to potentially increased revenues and increased operating cash flow. So when you look at the backlog, the backlog is the thing that's really given us the confidence there. We'll be able to sustain about this revenue level for the next 12 months. We're looking to get new orders into 2024, which hopefully will help be able to add additional growth on top of that. So we're very bullish on what the business looks like, obviously, for next quarter and beyond. But we're really only guiding out the 1 quarter in time as we eventually do.

我來回答可持續發展的部分。我的意思是，根據該指南，顯然，我們正在指導潛在的收入增加和營運現金流增加。因此，當您查看積壓訂單時，您會發現積壓訂單真正給了我們信心。我們將能夠在未來 12 個月內維持這一收入水準。我們希望在 2024 年獲得新訂單，這有望有助於增加額外的成長。因此，顯然，我們非常看好下季度及以後的業務狀況。但正如我們最終所做的那樣，我們實際上只是及時指導了第一季的情況。

Yes. Understood. But that bullishness extends to margins, right, just to confirm?

是的。明白了。但這種看漲情緒延伸到了利潤率，對吧，只是為了確認？

Yes. I mean -- so we don't guide to margins, so I want to be careful on that. But I will say -- what I will say is that if you look at what I explained for the gross margins, one of them is we had a -- we're starting to see the impact of our price increases. Well, that's kind of -- in theory, that's going to continue. We did have a very strong service revenue this quarter. We put a lot of efforts to do that. That wasn't by accident. So to the extent we can continue to deliver on a strong service component of our total revenue, that's going to help our margins as we move forward.

是的。我的意思是——所以我們不指導利潤率，所以我想對此保持謹慎。但我要說的是，如果你看看我對毛利率的解釋，其中之一就是我們開始看到價格上漲的影響。嗯，從理論上講，這種情況將會持續下去。本季我們的服務收入確實非常強勁。我們為此付出了很多努力。這並非偶然。因此，只要我們能夠繼續在總收入中提供強大的服務部分，這將有助於我們前進的利潤率。

And then lastly, as our margins overall, our product mix changes, we are seeing strength in our best-performing product lines. So to the extent we can do that, we're going to continue to see strong gross margins. To comment on your Neeltran, surely, as we shift off that backlog, that surely is having an impact on our margin growth.

最後，隨著我們的整體利潤率、產品組合的變化，我們看到了表現最佳的產品線的優勢。因此，只要我們能做到這一點，我們將繼續看到強勁的毛利率。評論一下你的 Neeltran，當然，隨著我們擺脫積壓，這肯定會對我們的利潤成長產生影響。

I think, though, Eric, to be very blunt with you, we're going to stop talking about either the acquisitions. They've been integrated, they're working. Everything is behind us that we have. We really like the business, how it sits today, how it complements each other. We like the constituent components and the team is now selling everything as a full solution. So I think that mission accomplished with trying to get both of these pieces of the business becoming part of the main part of the business.

不過，艾瑞克，我認為，坦白說，我們將停止談論這兩項收購。他們已經整合在一起，正在發揮作用。我們所擁有的一切都在我們身後。我們真的很喜歡這項業務，喜歡它今天的狀況，喜歡它如何互補。我們喜歡其組成部分，團隊現在將所有內容作為完整的解決方案進行銷售。因此，我認為透過努力讓這兩個業務部分成為業務主要部分的一部分，任務就完成了。

So going forward, we're really just focused on how do we grow grid, how do we help continue to support our wind customers. And hopefully, we'll see some wins in the future as well on the Navy side and more cities for REG for sure.

因此，展望未來，我們實際上只專注於如何發展電網，如何幫助繼續支持我們的風電客戶。希望未來我們能在海軍方面看到一些勝利，並且肯定會在更多城市看到 REG。

Okay. That's helpful. And maybe last one for me, just on wind. Obviously, another good quarter. I think last quarter, you had talked about that the -- that this is maybe a level to expect for the next several quarters and that the next step would come when you start to get ECS orders for the 3-megawatt platform from Inox. Is that still the way that we should think about things here going forward, both near term and then longer term?

好的。這很有幫助。也許對我來說最後一次，只是在風中。顯然，又一個好季度。我認為上個季度，您曾談到，這可能是未來幾個季度的預期水平，當您開始從 Inox 獲得 3 兆瓦平台的 ECS 訂單時，下一步就會到來。這仍然是我們思考未來事情的方式嗎，無論是短期還是長期？

Yes. I think if you continue to see the orders come from Inox, you see steps forward, not backwards. You see the potential for growth. They were very positive on their most recent call about where they are with the 3-megawatt platform. They seem highly excited about it, probably even more than they were 3 months ago. So we will work with our constituency, including you, you'll see, if we get orders, we'll certainly look to announce them or mention them on calls or what have you because we know they're important to people seeing progress. But yes, we are at a different level in wind. And then given, again, with the backlog, it's able to support the overall business, as I said earlier.

是的。我認為，如果您繼續看到來自 Inox 的訂單，您會看到前進，而不是倒退。您將看到成長的潛力。他們在最近一次電話會議中對 3 兆瓦平台的進展非常樂觀。他們似乎對此感到非常興奮，甚至可能比三個月前還要興奮。因此，我們將與我們的選民合作，包括你們，你們會看到，如果我們收到命令，我們肯定會宣布它們或在電話中提及它們或你們有什麼，因為我們知道它們對人們看到進展很重要。但是，是的，我們在風方面處於不同的水平。然後，再次考慮到積壓，它能夠支援整體業務，正如我之前所說。

(Operator Instructions) Next question will be from Justin Clare, ROTH MKM.

（操作員說明）下一個問題將由 ROTH MKM 的 Justin Clare 提出。

So I guess the first one I wanted to ask about is you did talk about the gross margins, where if you're at a level of, say, $35 million in revenue, 25% margins are an expectation or a reasonable expectation. As you move to higher levels of revenue, if you get to 40% or above, can your gross margin continue to expand in that type of scenario?

所以我想我想問的第一個問題是您確實談到了毛利率，如果您的收入水平為 3500 萬美元，那麼 25% 的利潤率是一個預期或一個合理的預期。當你的收入水準提高時，如果達到 40% 或以上，在這種情況下你的毛利率還能繼續擴大嗎？

Absolutely. That's -- we're trying to get leverage. We want to drive the top line disproportionately to the cost line. So we think there's a great deal of leverage in the business. We haven't put out just on any numbers. We've kind of put this out. John has mentioned in the time period of it, it wasn't that long ago. And we've been able to make that. I know probably people are going to now say, well, what's next and where do you go?

絕對地。那就是——我們正在努力獲得影響力。我們希望使收入與成本線不成比例。因此，我們認為該業務具有很大的槓桿作用。我們還沒有公佈任何數字。我們已經把這個放出來了。約翰在那個時期提到過，那並不是很久以前的事。我們已經能夠做到這一點。我知道人們現在可能會說，接下來會發生什麼，你要去哪裡？

I think the overall probably theme what you guys are after is the sustainability. And I think it's in the backlog. The pricing is there. We're doing a great job on the service side. We've been able to see robust revenue across the product line. So we're very happy and very pleased with where we are, and I believe where we're going to go next.

我認為你們所追求的整體主題可能是永續性。我認為這是積壓的。定價就在那裡。我們在服務方面做得很好。我們已經看到整個產品線的強勁收入。所以我們對我們現在的處境感到非常高興和滿意，我相信我們下一步將走向何方。

Got it. Okay. And then you got strong bookings in Q2 here. I was wondering if you could talk about the trend that you're seeing in project sizes that you can supply and then also the content per project and that ability to cross-sell between the different various product offerings that you have. If you could speak to that, that would be helpful.

知道了。好的。然後你在第二季度獲得了強勁的預訂。我想知道您是否可以談談您可以提供的項目規模的趨勢，以及每個項目的內容以及您擁有的不同產品之間交叉銷售的能力。如果你能談談這一點，那將會很有幫助。

Sure. You're kind of lead and cause and effect. So we're now selling more content for project, which means the revenue for a project is going up, and that's part of the strategy and the leverage of selling the different products together as a complete solution. So that's working out very nicely. And we've seen it very specifically in semi, we've seen some in renewables, we've certainly seen it in the mining and the materials as well as kind of general industrial.

當然。你是主角、因果。因此，我們現在正在銷售更多的專案內容，這意味著專案的收入正在上升，這是策略的一部分，也是將不同產品作為完整解決方案一起銷售的槓桿作用的一部分。所以效果非常好。我們在半成品行業中看到了這一點，在可再生能源中看到了一些，我們當然在採礦和材料以及一般工業中也看到了它。

So we feel we're a very different business today than we were. We've talked about getting there. Now I feel like we're there, and we want to go and continue to do more and more in the future.

所以我們覺得今天的企業跟以前有很大不同。我們已經討論過如何到達那裡。現在我覺得我們就在那裡，我們想要繼續前進，並在未來繼續做越來越多的事情。

Okay. And then just one more, shifting gears to wind. And it might be a little bit early for this one. But Inox was talking about that their 3-megawatt turbine is a more profitable turbine than the 2-megawatt. So I was wondering if there is an opportunity there for you to potentially have a better margin profile for the 3 versus the 2 if your customer is capturing greater value for the product that you're providing?

好的。然後又是一件事，換檔到風。對於這個來說可能有點早。但 Inox 表示，他們的 3 兆瓦渦輪機比 2 兆瓦渦輪機更有利可圖。因此，我想知道，如果您的客戶為您提供的產品獲取了更大的價值，那麼您是否有機會獲得 3 比 2 更好的利潤狀況？

Yes. With respect to our customer, we don't talk and break out margin by product line. I'm certainly not going to break it up by customers. So I don't want to offend you, Justin, but I'm just not going to answer.

是的。對於我們的客戶，我們不會談論並按產品線細分利潤。我當然不會被客戶拆散。所以我不想冒犯你，賈斯汀，但我只是不會回答。

That ends the question-and-answer session. I'd like to turn the call back over to Mr. Daniel McGahn for closing remarks.

問答環節就此結束。我想將電話轉回給 Daniel McGahn 先生做總結發言。

Great. I think we're at a whole new place here, guys. We said that we were nominally positive with non-GAAP. I'm not an accountant to break through what all that means with GAAP and non-GAAP. But the good news is, John predicted it, the business has delivered it. It's a result that we haven't been able to do since back in 2010. This is a huge, huge, huge milestone for the company.

偉大的。我想我們已經到了一個全新的地方了，夥計們。我們說過，我們名義上對非公認會計準則持樂觀態度。我不是一名會計師，無法突破 GAAP 和非 GAAP 的含義。但好消息是，約翰預測，公司已經實現了這個目標。這是我們自 2010 年以來一直未能實現的成果。這對公司來說是一個巨大、巨大、巨大的里程碑。

Most of you investors that have been with us for a long time have always asked me when this going to happen? We've always talked about how. And then as I said, John telegraphed how, and now we've delivered it. So we think onward and upward, the backlog really is strong, the pipeline is very strong. There's a lot of diversity. There's a strong move in the world to decarbonization, and we're really right at the center of it, and we hope to benefit from it. So thank you all for your support, your attention and look forward to getting back to you in about 3 months' time. Thank you, everyone.

大多數長期與我們合作的投資者總是問我什麼時候會發生這種情況？我們一直在討論如何做。然後正如我所說，約翰電報瞭如何交付，現在我們已經交付了。所以我們認為，向前和向上，積壓確實很強大，管道也非常強大。有很多多樣性。世界上正在大力推動脫碳，而我們確實處於其中的中心，我們希望從中受益。感謝大家的支持和關注，並期待在大約 3 個月的時間內回覆您。謝謝大家。

Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。