American Superconductor Corp (AMSC) 2024 Q2 法說會逐字稿

Good day and welcome to the AMSC Q2 Fiscal 2024 financial results Conference Call. (Operator Instructions.) Oh, now I can comment and Nicol Golez AMSC's Director of Communications. Please go ahead.

美好的一天，歡迎參加 AMSC 2024 年第二季財務業績電話會議。（操作員指示。）哦，現在我可以和 AMSC 的通訊總監 Nicol Golez 發表評論了。請繼續。

Thank you, Keith. Good morning, everyone and welcome to American Superconductor Corporation's Q2 of fiscal year 2024 Conference Call. I am Nicol Golez AMSC's Director of Communication. And today's call, I am joined by 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 year 2024 yesterday, after the market closed.

謝謝你，基斯。大家早安，歡迎參加美國超導公司 2024 財年第二季電話會議。我是 Nicol Golez AMSC 的傳播總監。董事長、總裁兼執行長 Daniel McGahn 和高級副總裁、財務長兼財務主管 John kosiba 出席了今天的電話會議。昨天收盤後，美國超導公司發布了 2024 財年第二季的財報。

For those who have not seen the release. A copy is available in the investor page of the company's website. At www.AMSC.com. The earnings press release contains forward-looking statements with respect to future financial results. These statements are not guarantees of future performance.

對於那些還沒有看到發布的人。該公司網站的投資者頁面上提供了一份副本。網址：www.AMSC.com。收益新聞稿包含有關未來財務表現的前瞻性陳述。這些陳述並不是對未來業績的保證。

The company's actual results may differ materially from the anticipated events, performance or results expressed or implied by these forward-looking statements including due to the risk factors detailed in the SEC filings which can also be accessed through the company's website.

本公司的實際結果可能與這些前瞻性陳述明示或暗示的預期事件、績效或結果有重大差異，包括由於 SEC 文件中詳細說明的風險因素，這些文件也可以透過公司網站存取。

The company disclaims any obligation to update these forward-looking statements. Also on today's call management will refer to non-GAAP net income on GAAP financial measure. Tables of reconciliation of GAAP to adjusted financial measures can be found in the company's earnings press release with that, I will now turn the call over to Chairman, President, and Chief Executive Officer Daniel McGahn. Daniel,

該公司不承擔更新這些前瞻性陳述的任何義務。另外，在今天的電話會議上，管理階層將參考 GAAP 財務指標的非 GAAP 淨利潤。公認會計原則與調整後的財務指標的調節表可以在公司的收益新聞稿中找到，我現在將把電話轉給董事長、總裁兼首席執行官丹尼爾·麥加恩(Daniel McGahn)。丹尼爾，

Thanks, Nicol and good morning, everybody. We're really excited to have this call today. We're beating some milestones, I know many of you have really hoped the company would see. So we're really enthusiastic about where we are today.

謝謝尼科爾，大家早安。我們今天很高興接到這個電話。我們正在實現一些里程碑，我知道你們中的許多人都非常希望公司能夠看到這一點。因此，我們對今天的處境非常充滿熱情。

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, 2024, and provide guidance for the third fiscal quarter which will end December 31, 2024. Following our comments, we'll open up the line to questions from our analysts.

今天我將首先提供最新情況並分享一些關於我們業務的評論。John kosiba 隨後將對我們截至 2024 年 9 月 30 日的第二財季的財務業績進行詳細審查，並為截至 2024 年 12 月 31 日的第三財季提供指導。在我們發表評論後，我們將開放接受分析師提問的專線。

Today we're reporting revenue of over $54 million for the September ending quarter, total revenue for the second quarter came in at the high end of our updated guidance range and grew by 60% versus the year ago period. Grid was driven by the acquisition of NWL and strong new energy power system shipments. When I talk about new energy power today assume that does not include the acquisition of NWL.

今天，我們報告 9 月結束的季度收入超過 5,400 萬美元，第二季的總收入達到我們更新的指導範圍的高端，並且與去年同期相比增長了 60%。Grid 受到收購 NWL 和強勁的新能源電力系統出貨量的推動。我今天講新能源動力時假設不包括收購NWL。

The remainder of the revenue came from our wind business which grew nearly 40% from the year ago period. Both grid and wind grew, grid also grew organically again without the addition of NWL, we ended the second quarter with nearly $75 million in cash.

其餘收入來自我們的風電業務，較去年同期成長了近 40%。電網和風電都實現了增長，在沒有 NWL 加入的情況下，電網也再次有機增長，第二季度結束時我們擁有近 7500 萬美元的現金。

We booked nearly $60 million of new orders with new energy power systems orders coming in stronger than we had previously demonstrated. Our new energy power systems orders represent strong contributions from industrials, renewables, utilities, semiconductors, and mining. Industrials accounted for about 40% of total orders followed by renewables at about 30% and the remaining 30% came from semiconductors, mining utilities and some other applications.

我們預訂了近 6000 萬美元的新訂單，其中新能源電力系統訂單的數量比我們之前展示的要強。我們的新能源電力系統訂單代表了工業、再生能源、公用事業、半導體和採礦業的巨大貢獻。工業訂單約佔總訂單的 40%，其次是再生能源訂單，約佔 30%，其餘 30% 來自半導體、採礦公用事業和其他一些應用。

We ended the quarter with a 12-month backlog of over $200 million and a total backlog of more than $300 million. Our backlog is really very strong. We see lead times for the newly acquired product starting at about six months, other products take about 12 to 15 months or potentially more depending upon the project.

本季末，我們 12 個月的積壓訂單超過 2 億美元，積壓訂單總額超過 3 億美元。我們的積壓訂單確實非常多。我們認為新收購的產品的交貨時間約為 6 個月，其他產品大約需要 12 至 15 個月，甚至可能更長，具體取決於項目。

Our second quarter results exceeded our forecast with recent record revenue and 1/5 consecutive quarter of non-GAAP net income. Our ability to generate cash through the improved operating leverage is now built into our business at these revenue levels.

我們第二季的業績超出了我們的預期，營收創歷史新高，非 GAAP 淨利潤連續季度達到 1/5。我們透過改善營運槓桿產生現金的能力現已融入我們的業務中，達到這些收入水準。

We believe our company is in a much stronger growth, operating and cash generative position and we have demonstrated the ability to generate cash. This is a tremendous milestone and we're very proud of this accomplishment. We are pleased with these results and encouraged by our orders momentum.

我們相信，我們公司的成長、營運和現金產生能力都更加強勁，我們已經證明了產生現金的能力。這是一個巨大的里程碑，我們對此成就感到非常自豪。我們對這些結果感到滿意，並對我們的訂單動能感到鼓舞。

Now I'll turn the call over to John kosiba to review our financial results in the second quarter of fiscal 2024 and provide guidance for the third quarter of fiscal 2024 which will end December 31,2024. John,

現在我將把電話轉給 John kosiba，以審查我們 2024 財年第二季的財務業績，並為將於 2024 年 12 月 31 日結束的 2024 財年第三季提供指導。約翰，

Thanks. Daniel, and good morning, everyone AMSC generated revenues of $54.5 million for the second quarter of fiscal 2024 compared to $34 million in the year ago quarter. Our grid business unit accounted for 86% of total revenues while our wind business unit accounted for 14%. Grid business unit revenues increased by 65% in the second quarter versus the year ago quarter.

謝謝。丹尼爾，大家早安，AMSC 在 2024 財年第二季的營收為 5,450 萬美元，而去年同期為 3,400 萬美元。我們的電網業務部門佔總收入的86%，而風電業務部門佔14%。第二季電網業務部門營收較去年同期成長 65%。

The increase in revenue was primarily driven by the acquisition of NWL and increased shipments of new energy power systems. Wind business unit revenues increased 37% versus the same period. The increase in revenue was primarily driven by additional shipments of electrical control systems.

營收的成長主要得益於收購NWL以及新能源動力系統出貨量的增加。風電業務部門營收年增 37%。收入的成長主要是由電氣控制系統的出貨量增加所推動的。

Looking at the P&L in more detail, gross margin for the second quarter of fiscal 2024 was 29% compared to 25% in the year ago quarter. The increase in gross margin was due to higher revenues, a favorable product mix and the positive impacts of price increases across our product lines.

更詳細檢視損益表，2024 財年第二季的毛利率為 29%，去年同期為 25%。毛利率的成長是由於收入增加、有利的產品組合以及整個產品線價格上漲的正面影響。

Now, moving on to operating expenses R&D and SG&A expenses in the second quarter of fiscal 2024 were $13.2 million compared to $9.6 million in the year ago quarter. This increase is primarily driven by the inherited operating costs of NWL as well as the onetime acquisition related expenses in the quarter.

現在，轉向營運支出，2024 財年第二季的研發和銷售、一般管理費用為 1,320 萬美元，而去年同期為 960 萬美元。這一增長主要是由 NWL 繼承的營運成本以及本季一次性收購相關費用所推動的。

Approximately 7% of R&D and SG&A expenses in the second quarter of fiscal 2024 were noncash. We generated non-GAAP net income for the second quarter of fiscal 2024 of $9.9 million or $27 per share compared with a non-GAAP net income of less than $100,000 or $0.00 per share in the year ago quarter.

2024 財年第二季度，約 7% 的研發和銷售、一般管理費用為非現金。2024 財年第二季度，我們的非 GAAP 淨利潤為 990 萬美元，即每股 27 美元，而去年同期的非 GAAP 淨利潤不到 100,000 美元，即每股 0.00 美元。

Our net income in the second quarter of fiscal 2024 was $4.9 million or $0.13 per share. This compares to a net loss of $2.5 million or $0.09 per share in the year ago quarter. Included in both net income and non-GAAP Net income was the release of a $5.1 million valuation allowance due to the recording of the deferred tax liability from the acquisition of NWL. This was a non-cash expense reduction in the quarter.

2024 財年第二季我們的淨利為 490 萬美元，即每股 0.13 美元。相比之下，去年同期淨虧損為 250 萬美元，即每股淨虧損 0.09 美元。由於記錄了收購 NWL 的遞延稅負債，淨利潤和非 GAAP 淨利潤均包含 510 萬美元的估值備抵。這是本季非現金費用的減少。

Additionally, included in net income was $2.8 million in contingent consideration expense related to the NEPSI and NWL acquisitions. This contingent consideration for NEPSI and NWL were retired in the second quarter, and we do not anticipate any further contingent consideration related to our recent acquisitions.

此外，淨利潤還包括與 NEPSI 和 NWL 收購相關的 280 萬美元或有對價費用。NEPSI 和 NWL 的或有對價已於第二季取消，我們預計不會有任何與我們最近的收購相關的進一步或有對價。

Please see our press release issued last night for a reconciliation of GAAP to non-GAAP results. We ended the second quarter of fiscal 2024 with $74.8 million in cash, cash equivalents and restricted cash, which compares with $95.5 million on June 30, 2024 included in the quarter was the acquisition of NWL which included a total cash consideration of $33.6 million.

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2024 財年第二季度，我們的現金、現金等價物和限制性現金為7,480 萬美元，而截至2024 年6 月30 日，該季度的現金為9,550 萬美元，其中包括收購NWL，其中現金對價總額為3,360 萬美元。

That cash consideration concluded our financial obligations under the SPA for the acquisition of NWL. We generated operating cash flow in the second quarter of fiscal 2024 of $12.7 million. (inaudible) exceeded our guidance range due to a large grid milestone payment that was received in the quarter ahead of schedule.

該現金對價結束了我們在 SPA 下收購 NWL 的財務義務。2024 財年第二季我們的營運現金流量為 1,270 萬美元。 （聽不清楚）由於提前在本季度收到了大筆電網里程碑付款，超出了我們的指導範圍。

In addition to that milestone, we generated positive operating cash flow through the strength of our operating results across both our grid and wind segments. We believe the acquisition of NWL further strengthens our already strong balance sheet and we continue to be debt free.

除了這個里程碑之外，我們還透過電網和風電領域的經營業績產生了積極的經營現金流。我們相信，收購 NWL 將進一步加強我們本已強勁的資產負債表，並且我們將繼續保持無債務狀態。

Now, turning to financial guidance for the third quarter of fiscal 2024 we expect that our revenues will be in the range of $55million to $60 million. A net loss on that revenue is expected not to exceed $1 million or $0.03 per share. And our non-GAAP net income is expected to exceed $2 million or $0.05 per share.

現在，轉向 2024 財年第三季的財務指引，我們預計我們的營收將在 5,500 萬美元至 6,000 萬美元之間。該收入的淨虧損預計不會超過 100 萬美元或每股 0.03 美元。我們的非 GAAP 淨利潤預計將超過 200 萬美元，即每股 0.05 美元。

As the company transitions to the next phase of maturity, we will shift our focus and guide on revenue and profitability metrics, due to the nature of our milestone billing mechanisms on new orders we do not anticipate any significant changes to our working capital demands of the business.

隨著公司過渡到下一個成熟階段，我們將把重點轉向收入和盈利指標，由於我們對新訂單的里程碑計費機制的性質，我們預計我們的營運資金需求不會發生任何重大變化。

Lastly, our capital expenditure requirements as the business expands as a reminder, most of our business is light assembly with minimal capital expenditure requirements. We believe that the historical run rate of capital expenditures sufficiently supports our current operating needs. As our business scales over time, we could see a need to increase our capital requirements in areas such as ERP software upgrades or possible plant expansions. Neither of those scenarios are in on their term plans, as we reach levels of increased capital expenditure requirements, I plan to provide guidance when appropriate with that, I'll turn the call back over to Daniel.

最後，隨著業務擴展，我們的資本支出要求提醒我們，我們的大部分業務都是輕型組裝，資本支出要求最低。我們認為，資本支出的歷史運作率足以支持我們當前的營運需求。隨著我們的業務規模不斷擴大，我們可能會發現需要增加 ERP 軟體升級或可能的工廠擴建等領域的資本需求。這兩種情況都不在他們的任期計劃中，當我們達到增加資本支出要求的水平時，我計劃在適當的時候提供指導，我會將電話轉回給丹尼爾。

Thanks John. We delivered an outstanding second quarter. We reported higher revenue, we generated greater net income, we showed significant positive operating cash flow, and we had another quarter of strong orders. This was a remarkable and exceptionally strong quarter.

謝謝約翰。我們第二季的業績非常出色。我們報告了更高的收入，我們產生了更多的淨利潤，我們顯示出顯著的正營運現金流，並且我們又一個季度獲得了強勁的訂單。這是一個非凡且異常強勁的季度。

I'd like to discuss a few historical years of operational results to give you a sense of where we've come from and lay the groundwork for where we intend to go. Our annual revenue back in 2017 was under $50 million annually, not quarterly, fast forward four years to fiscal year 2021 and we doubled annual revenue to over $100 million.

我想討論一下歷史上幾年的營運業績，讓您了解我們從哪裡來，並為我們打算去往的地方奠定基礎。2017 年，我們的年收入（而非季度收入）低於 5,000 萬美元，快轉四年到 2021 財年，我們的年收入翻了一番，達到 1 億美元以上。

This is the first time in recent history that we've reported revenue of over $50 million for a quarter. We're halfway through fiscal year 2024 in total revenue for the past two quarters is nearly $95 million. This means we're close to doubling revenue from our fiscal year 2021 level. It's 2024, so it's only three years later when looking at our compound annual growth rate this means that we grew at nearly 20% from the year 2017 to 2021 and now over 25% over the past three years.

這是近年來我們首次報告一個季度的收入超過 5000 萬美元。2024 財年已過半，過去兩季的總營收接近 9,500 萬美元。這意味著我們的收入接近 2021 財年水準的兩倍。現在是 2024 年，所以僅僅三年後，從我們的複合年增長率來看，這意味著我們從 2017 年到 2021 年增長了近 20%，而現在在過去三年中增長了 25% 以上。

In addition, we see significant macro tailwinds for power requirements driving our growth. In fact, in the industrial space we see demand from the reshoring of domestic industrial production and upgrading of existing industrial manufacturing.

此外，我們看到電力需求的巨大宏觀推動力推動了我們的成長。事實上，在工業領域，我們看到了國內工業生產回流和現有工業製造升級的需求。

Our newly acquired products help us further expand our industrial market penetration. NWL provides immediate access to customers we did not have access too. This customer expansion in the industrial side largely resides at the factory , in the renewable space maintaining grid resiliency for renewable connectivity and increased electrification is paramount.

我們新收購的產品有助於我們進一步擴大工業市場滲透率。NWL 為我們無法存取的客戶提供即時存取。工業方面的客戶擴張主要集中在工廠，而在再生能源領域，保持再生能源連接的電網彈性和增加電氣化至關重要。

We serve a broad range of customers at the substation level in the renewables market. We also see opportunities for products and services as utilities address the changing landscape of the electric grid. We are seeing this more and more. The growing power demand for AI data centers and the electrification of transportation has energized utilities and led to unprecedented power agreements. They're now even talking about bringing back power generation from nuclear power plants.

我們在再生能源市場的變電站層面為廣泛的客戶提供服務。隨著公用事業公司應對不斷變化的電力網格局，我們也看到了產品和服務的機會。我們越來越多地看到這種情況。人工智慧資料中心和交通電氣化不斷增長的電力需求為公用事業公司注入了活力，並促成了前所未有的電力協議。他們現在甚至正在討論恢復核電廠發電。

Equally, we see investments in domestic mining as well as in semiconductor manufacturing driven in part by the Chips and Science Act or the Chips Act. The Chips Act has allocated over $36 billion in proposed funding across multiple states and proposed to invest billions more in research and innovation. Multiple companies have already signed agreements and are set to benefit from funding under the Chips Act.

同樣，我們看到國內採礦業以及半導體製造領域的投資部分受到《晶片與科學法案》或《晶片法案》的推動。《晶片法案》已在多個州撥款超過 360 億美元，並提議在研究和創新方面再投資數十億美元。多家公司已經簽署了協議，並將受益於《晶片法案》的資助。

According to the Semiconductor Industry Association, we've seen 90 new semiconductor ecosystem projects announced across the US. These projects include the construction of new semiconductor manufacturing facilities, expansion of existing sites and facilities that supply the materials as well as the equipment used in ship manufacturing.

據半導體行業協會稱，美國各地宣布了 90 個新的半導體生態系統項目。這些項目包括建造新的半導體製造設施、擴大現有場地和供應船舶製造所用材料和設備的設施。

Today semiconductor and electronics companies have announced nearly $450 billion in private investments across dozens of states. Just last week, the government announced a $325 million investment to commission a new semiconductor facility in Michigan, this is great for America. We see significant investments going into Arizona, Idaho, New York, and Texas, as well as a handful of other states.

如今，半導體和電子公司已宣佈在數十個州進行近 4,500 億美元的私人投資。就在上週，政府宣布投資 3.25 億美元在密西根州調試一座新的半導體工廠，對美國來說是件好事。我們看到大量投資進入亞利桑那州、愛達荷州、紐約州和德克薩斯州以及其他一些州。

Increased fab construction drives investments by suppliers of materials, chemicals, and equipment. As a result, companies that supply the equipment and materials used to produce chips including chemical specialty gasses and Wafers announced plans to invest in several facilities to support increased domestic manufacturing capacity.

晶圓廠建設的增加推動了材料、化學品和設備供應商的投資。因此，供應用於生產晶片（包括化學特種氣體和晶圓）的設備和材料的公司宣布計劃投資多個設施，以支持提高國內製造能力。

Industrial manufacturers of these essential materials must be able to power their factories in ways that add scale without adding complexity or size. This is where we believe AMSC's products are uniquely well positioned to address market demand.

這些重要材料的工業製造商必須能夠在不增加複雜性或規模的情況下擴大規模，為工廠提供動力。我們相信 AMSC 的產品在滿足市場需求方面具有獨特的優勢。

We began and remain focused on strong execution for fiscal year 2024, we have solid orders momentum and robust financial results. We believe that our strong balance sheet and the addition of new customers and new opportunities position us nicely for continued growth, profitability, and cash flow generation.

我們開始並將繼續專注於 2024 財年的強勁執行力，我們擁有強勁的訂單勢頭和強勁的財務業績。我們相信，我們強大的資產負債表以及新客戶和新機會的增加使我們能夠很好地實現持續成長、獲利能力和現金流產生。

We believe the business is positioned to benefit from a large and growing end market driven by significant macro tailwinds. We've generated non-GAAP net income and positive operating cash flow consistently over the past five quarters. We have exceeded our notion of getting to $50 million a quarter of revenue and potentially generating that income. We only said this a few months ago that it was possible and now it has already happened.

我們相信，該業務將受益於由重大宏觀利好推動的龐大且不斷成長的終端市場。在過去的五個季度中，我們持續產生了非公認會計準則淨利潤和正營運現金流。我們已經超越了每季收入達到 5000 萬美元並有可能產生該收入的設想。幾個月前我們才說這是可能的，現在它已經發生了。

The addition of NWL coupled with our strong financial performance changes the scale of our business and should place us in a strong position for continued diversified growth. We have several tailwinds generated by US policies and momentum in our wind and ship businesses that hopefully will continue to drive our company's growth.

NWL 的加入加上我們強勁的財務業績，改變了我們的業務規模，並使我們處於持續多元化成長的有利地位。我們的風電和船舶業務受到美國政策和動力的推動，預計將繼續推動我們公司的成長。

We are diligently working with urban ship building, the Canadian supplier who's constructed most of Canadian Navy at sea today to deliver our first SPS system in 2026. We're really grateful to be contracted to provide world class buying protection to the Canadian surface combatant as well as the US platform that we're designed into.

我們正在與 Urban Ship Construction 密切合作，該公司是一家加拿大供應商，目前在海上建造了加拿大大部分海軍艦艇，預計將於 2026 年交付我們的首個 SPS 系統。我們非常感謝能夠簽約為加拿大水面戰艦以及我們設計的美國平台提供世界級的購買保護。

We do have a total of five SPS contracts for the US Navy's San Antonio class LPD and we're working on our next product for our ship business our proprietary mine countermeasure system. We see expanding opportunities, especially in the military business.

我們確實與美國海軍的聖安東尼奧級 LPD 簽訂了總共五份 SPS 合同，並且我們正在為我們的船舶業務開發我們的下一個產品，即我們專有的水雷對抗系統。我們看到了不斷擴大的機會，尤其是在軍事領域。

Our wind partner in India, Inox wind is reporting their largest order book with over 3 gigawatts of wind capacity coming online in the coming years. We believe Inox is in a good position to start expanding its business with the 3-megawatt class wind turbine which we expect will translate into an expanded order book for us. I hope to be able to talk more about that soon.

我們在印度的風電合作夥伴 Inox Wind 報告稱，他們的訂單量最大，未來幾年將有超過 3 吉瓦的風電裝置容量上線。我們相信 Inox 處於有利位置，可以開始擴展 3 兆瓦級風力渦輪機業務，我們預計這將轉化為我們擴大的訂單。我希望很快能夠更多地談論這個問題。

This is truly an exciting time for us here at AMSC and you can see the growing domestic investments in semiconductors may be a new term growth driver for us more winds and more chips. Our future facing technologies help harmonize the world's desire for decarbonization and clean energy with the need for more reliable effective and efficient power delivery. I look forward to reporting to you again following the completion of our third quarter, fiscal of 2024.

對於我們 AMSC 來說，這確實是一個激動人心的時刻，您可以看到國內半導體投資的不斷增長可能會成為我們新的成長動力，帶來更多的風和更多的晶片。我們面向未來的技術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。我期待在 2024 財年第三季結束後再次向您報告。

Keith will now take questions from our analysts.

基斯現在將回答我們分析師的問題。

Yes, thank you. We will now begin the question-and-answer session to ask a question. (Operator Instruction.) And the first question comes from Eric Stine with Craig Hallum.

是的，謝謝。我們現在將開始問答環節來提出問題。（操作員說明。） 第一個問題來自 Eric Stine 和 Craig Hallum。

Hi Daniel. Hi John.

嗨丹尼爾。嗨約翰。

Hey, good to hear your voice.

嘿，很高興聽到你的聲音。

Yes, good morning. So maybe just sticking with wind, you touched on Inox's backlog at over 3 gigawatts, when I look back here in fiscal '15, your wind revenues were close to $70 million and Inox's backlog was just a little over a gigawatt, is there any reason why your business in wind can't be dramatically larger? Obviously, you need to see the orders and there are reasons to be quite optimistic about more orders potentially near term, is that the right way to think about it you're really just kind of getting started with supply for the 3 megawatts, and this business could be a lot larger.

是的，早安。所以也許只是堅持風能，你提到了Inox 的積壓超過3 吉瓦，當我回顧15 財年時，你的風能收入接近7000 萬美元，而Inox 的積壓僅略多於1 吉瓦，有什麼原因嗎？顯然，您需要查看訂單，並且有理由對近期可能出現的更多訂單感到非常樂觀，這是正確的思考方式，您實際上只是開始提供 3 兆瓦的供應，而這生意可能會大很多。

That's some great analysis there, you kind of nailed it what people are going to hope. what we're trying to do is follow the money. If the customer starts to ramp, we want to make sure that they're paying, they're doing timely. They've been a great customer for us. We've been a very patient partner and supplier. We think that their business is well poised for growth. It looks like it's just about to start. And as I said, in the remarks, stay tuned, we have more to report on this, relatively soon.

這是一些很棒的分析，你差不多滿足了人們的希望。我們要做的就是追隨金錢。如果客戶開始增加，我們要確保他們及時付款。他們一直是我們的重要客戶。我們一直是非常有耐心的合作夥伴和供應商。我們認為他們的業務已經做好了成長的準備。看來一切才剛開始。正如我在評論中所說，請繼續關注，我們很快就會對此進行更多報導。

Got it. Okay. That's great. And then, maybe just on the new acquisition, you've had it for what it showed up in results for two months. But, just curious market feedback, early impressions, maybe some things that have surprised you versus your expectations when you made the deal.

知道了。好的。那太棒了。然後，也許就在新的收購中，你已經得到了兩個月的結果。但是，只是好奇的市場回饋、早期印象，也許是一些讓你驚訝的事情，而不是你在達成交易時的預期。

The surprises and the positive things are, we knew it was a great company, but we hear that over and over again from the customers. It's really a well-run operation they have a great team. It really extends our team with what they're doing there, and we think it presents some great opportunities for us in the future with. They didn't talk a lot about military today because I really think in the near term, we're really going to see a run here on the industrial side driven by chips.

令人驚訝和積極的事情是，我們知道這是一家偉大的公司，但我們一次又一次從客戶那裡聽到這一點。這確實是一家運作良好的公司，他們擁有一支優秀的團隊。它確實擴展了我們團隊的工作，我們認為這為我們未來提供了一些很好的機會。他們今天沒有太多談論軍事，因為我真的認為在短期內，我們真的會看到由晶片驅動的工業方面的發展。

But that doesn't mean in the longer term, we won't see, see more military business coming. Those things are a longer cycle. But we think the combined effort really, what we have in military now should help make that part of our business be a, a relatively substantial part in the coming years. But in the coming quarters, we see wind and we see chips helping to drive that and that's across the entire business, right? We do things in renewables across many of the product lines.

但這並不意味著從長遠來看，我們不會看到更多的軍事業務出現。那些事情週期比較長。但我們認為，我們現在在軍事方面的共同努力確實應該有助於使我們業務的這一部分在未來幾年成為相對重要的部分。但在接下來的幾個季度，我們會看到風，我們會看到晶片有助於推動這一趨勢，這將貫穿整個業務，對嗎？我們在許多產品線中從事再生能源的工作。

We do things in semiconductor across many of the product lines. So far, we're only two months in theirs, we've accomplished a lot in this two months. It will take some more time to digest them, but we're very pleased with what we see. We're very happy with what we know and we think that the team is operating and executing very well.

我們在半導體領域的許多產品線都開展業務。到目前為止，我們在他們那裡只有兩個月的時間，這兩個月我們已經取得了許多成就。消化它們需要更多時間，但我們對所看到的感到非常滿意。我們對所了解的情況感到非常滿意，我們認為團隊運作和執行得非常好。

And you're in fact seeing those new customers that the doors that are now opening has there been a, how's the reaction been from those new customers to your offering? Which obviously they didn't have access to or weren't accessing.

事實上，您正在看到那些現在正在開啟的新客戶，這些新客戶對您的產品的反應如何？顯然他們無權訪問或沒有訪問。

Yeah, it's only been two months in, so I'd love to be able to give you food for father in the coming quarters to say, here's an example of what we saw. I'd rather show you what we see than tell you what we see, that our investors at least like our approach that we're kind of a under promise over deliver kind of group. There are areas there where combined we can be more than these are separate offerings. But let me show you more proof and I'm hinting at it pretty strongly with what I'm talking about in semiconductor.

是的，才過去兩個月，所以我很樂意在接下來的幾個季度裡給你父親提供食物，告訴你，這是我們所看到的一個例子。我寧願向您展示我們所看到的，而不是告訴您我們所看到的，我們的投資者至少喜歡我們的方法，我們是一種承諾不足的團隊。在某些領域，我們聯合起來可以取得比這些單獨提供的更多的成果。但讓我向您展示更多證據，我在半導體中所談論的內容非常強烈地暗示了這一點。

Yeah, understood. Thank you.

是的，明白了。謝謝。

Thanks, Eric.

謝謝，埃里克。

Thank you. And the next question because I'm calling on Rusch with Oppenheimer.

謝謝。下一個問題是因為我要請魯施和奧本海默一起發言。

Thanks so much guys, can you talk a little bit about the HART-IP within the power quality space? and where you're winning some of this has been around kind of density of power management and some of it's been around performance. I just want to get a better sense from where you're winning and why.

非常感謝大家，您能談談電能品質領域中的 HART-IP 嗎？你所贏得的一些勝利是圍繞著電源管理的密度，還有一些是圍繞著效能。我只是想更好地了解你在哪裡獲勝以及為什麼獲勝。

Yeah, if you get into the (inaudible) and you can include superconductors in this, we can make things less complicated and smaller so we can fit equipment into areas that's easier, we can replace things more easily. To focus on a fab, we can do a retrofit of an existing or an expansion relatively easy, so time to delivery, cost of permitting all those types of things become an advantage and really, it's around the HART-IP is, we work a lot on thermal management We work a lot on system level controls.

是的，如果你進入（聽不清楚）並且可以在其中包含超導體，我們可以使事情變得不那麼複雜和更小，這樣我們就可以將設備安裝到更容易的區域，我們可以更容易地更換東西。為了專注於晶圓廠，我們可以相對容易地對現有晶圓廠進行改造或擴建，因此交付時間、允許所有這些類型的事物的成本成為優勢，實際上，它是圍繞HART-IP 的，我們致力於我們在熱管理方面做了大量工作，在系統級控制方面做了很多工作。

We want to find things that are, probably priced at a premium but deliver premium value to that customer because it's just easier for them to do it with us than doing it other ways. And that really, those are kind of both, sides of the coin, the proprietary nature of what we do is why we win and then we want to continue to invest to make sure we can win on more and more proprietary technology.

我們希望找到價格可能很高但能為客戶帶來超值價值的東西，因為對他們來說，與我們一起做比以其他方式做更容易。事實上，這些都是硬幣的兩面，我們所做的事情的專有性質是我們獲勝的原因，然後我們希望繼續投資以確保我們能夠在越來越多的專有技術上獲勝。

This is super helpful and then, just as if you, you now are a little bit bigger business, can you talk a little bit about how the mix shifts within grid and how we should think about margins as you see a little bit of growth coupled with some mix shift from quarter to quarter.

這非常有幫助，然後，就像您現在的業務規模更大一點一樣，您能談談網格內的組合如何變化，以及當您看到一點點增長時我們應該如何考慮利潤率每個季度都會有一些混合變化。

Yeah, at the at the revenue levels that we're at now presenting there is some potential variability and gross margin depending upon exactly the right revenue level and exactly the right product mix. In general, the margins in the business are all very similar with the only outlier, really significant outlier being the ship systems business because we're not quite at scale, with the addition of revenue coming in the future quarters, with Canada, that will help fix a lot of that problem, maybe not fully, it'll contribute more nicely than certainly it does today at the current scale.

是的，在我們現在呈現的收入水平上，存在一些潛在的變化和毛利率，這取決於正確的收入水平和正確的產品組合。總的來說，業務的利潤率都非常相似，唯一的異常值，真正重要的異常值是船舶系統業務，因為我們的規模還不夠大，隨著未來幾季加拿大的收入增加，這將有助於解決很多這個問題，也許不是完全，它的貢獻肯定會比現在在當前規模上做出的貢獻更好。

So I see this level of revenue and these kinds of margins where we've been kind of to be expected. John, if you want to comment further on that, do that? I know my mission is how do we continue to grow revenues at these margins and get better leverage to improve margin with additional scale?

因此，我認為這種收入水平和這種利潤率是我們所期望的。約翰，如果你想對此發表進一步評論，可以嗎？我知道我的使命是如何在這些利潤率下繼續增加收入，並獲得更好的槓桿作用，透過擴大規模來提高利潤率？

Yeah. No, you're right then as the revenue scales up and we get more scale, we should have less volatility within any one or two projects back in the old days, one or two projects could impact margins more substantially than say today. But you do have mix issues, this last quarter we had a very strong mix of the products that generate the most gross margin for us. So that was an example of a good, a really good mix. But the volatility you'll see in the company performance will shrink over time as we have more projects, and it just gets smooth out.

是的。不，你是對的，隨著收入規模的擴大，我們規模的擴大，過去任何一兩個項目的波動性都應該較小，一兩個項目對利潤率的影響可能比今天更大。但確實存在混合問題，上個季度我們擁有非常強大的產品組合，為我們帶來了最高的毛利率。所以這是一個很好的、非常好的組合的例子。但隨著時間的推移，隨著我們有更多的項目，你會看到公司業績的波動性會縮小，並且會變得穩定。

Fantastic guys. Thanks so much.

很棒的傢伙。非常感謝。

Thank you. And the next question, Justin Clare with Roth Capital Partners.

謝謝。下一個問題是賈斯汀·克萊爾 (Justin Clare) 與羅斯資本合夥人 (Roth Capital Partners) 的合作。

Hey morning. Thanks for taking our questions here. So I just wanted to follow up on the last question here in terms of the Navy business. Can you update us on when you think the revenue from the Canadian contract will start ramping? we have been expecting sometime in fiscal '25. But if you could help us understand the ramp there.

嘿早安。感謝您在這裡提出我們的問題。所以我想就海軍業務方面跟進最後一個問題。您能否向我們介紹您認為加拿大合約的收入何時開始增加的最新情況？我們一直預計 25 財年的某個時候。但如果你能幫助我們了解那裡的坡道。

Yeah. No, that's exactly right. What we said before is basically assume it starts in '25, we're delivering in '26. The first system, there are further systems contracted for the 75 and we said basically once we start delivering, which is probably the second half of next year, you can basically take the 75 and linearize it by quarters. I went through at the time, the number of years it was to deliver in the contract. I don't have that right in front of me to remind you of that.

是的。不，完全正確。我們之前所說的基本上是假設它從 25 年開始，我們將在 26 年交付。第一個系統，還有更多針對 75 的系統，我們說基本上一旦我們開始交付（可能是明年下半年），您基本上可以採用 75 並按季度進行線性化。我當時就考慮了合約中規定的交付年資。我面前沒有這個來提醒你。

But the assumptions specifically just in what you have is probably right and what you presented to us. So, and the market in your models, what we have to do is now go execute on those things. So the challenge with the Canadian contract is there is development in it. The challenge with the mine countermeasure project that we have is there is development in it.

但是，您所擁有的以及您向我們提供的內容中的假設可能是正確的。因此，對於模型中的市場，我們現在要做的就是執行這些事情。因此，加拿大合約的挑戰在於它的發展。我們的地雷對策計畫面臨的挑戰是它的發展。

And those things if there are challenges that present themselves that may change timetables, but we feel really good about both those programs where we are now, what our customers are pushing to do, the timetables seem to be intact. So we feel as strongly as we did when we announced that a few months ago, that those timetables will come to bear.

如果出現的挑戰可能會改變時間表，但我們對我們現在所處的這兩個項目以及我們的客戶正在推動的事情感到非常滿意，時間表似乎完好無損。因此，我們與幾個月前宣布這些時間表將得到實施時一樣強烈地感覺到。

Okay. Got it, appreciate it. And so just thinking through this a little bit next year, it's possible that we see wind revenue ramp up and then if you add this contract in for the Navy Business, it seems like you have an opportunity for margin uplift in both of those different areas. Is that a fair way to characterize it?

好的。明白了，欣賞一下。因此，明年稍微考慮一下這一點，我們可能會看到風能收入增加，然後如果您將這份合約添加到海軍業務中，那麼您似乎有機會在這兩個不同領域提高利潤率。這是描述它的公平方式嗎？

There is potential we do have to be sensitive over the overall project mix and when we talk about project, but some of it relates to service, some of it relates to customer type it becomes more about the scale of the project it comes more about competition than it does about a specific product. But as I tried to say, and I tried to get John's help to say it more cleanly, which he did. Is that as revenue scales, we think there'll be gross margin expansion opportunities.

我們確實必須對整個專案組合保持敏感，當我們談論專案時，其中一些與服務有關，有些與客戶類型有關，它更多地與專案的規模有關，更多地與競爭而不是針對特定產品。但正如我試圖說的那樣，我試著讓約翰幫忙說得更清楚，他做到了。隨著收入規模的擴大，我們認為將會有毛利率擴張的機會。

Got it. Okay. And then wanted to ask it seems like grid congestion is becoming an increasingly challenging problem here. Transmission is a key constraint. Was wondering if you see potential opportunity to address this challenge, could you look at using your high temperature superconducting wire for transmission? Is that something you're exploring or are there other solutions that you can bring to the market that that could address these challenges?

知道了。好的。然後想問一下，似乎電網擁塞正在成為這裡越來越具有挑戰性的問題。傳輸是一個關鍵限制。想知道您是否看到了解決這項挑戰的潛在機會，您可以考慮使用高溫超導線進行傳輸嗎？這是您正在探索的事情嗎？

Superconductor solution is probably a year or more away to have any impact on what we're doing financially. So a lot of what we're trying to focus on is the macro trend. Yes, there's more investment utilities are going to be challenged to do more and we're going to be able to supply them with what we do in new energy.

超導解決方案可能需要一年或更長時間才能對我們的財務狀況產生影響。因此，我們試圖關注的許多內容都是宏觀趨勢。是的，更多的投資公用事業公司將面臨採取更多行動的挑戰，而我們將能夠為他們提供我們在新能源領域所做的工作。

NWL really is more industrial so its really new energy being able to solve those problems. And we're in a very interesting situation, the grid has to evolve over the next years to be able to allow either reclassification of your traditional power sources trying to invest in bringing plans like that back online. Or where you think on the demand side, what semiconductor is going to drive, what data centers and AI are going to drive.

NWL 確實更工業化，因此它真正的新能源能夠解決這些問題。我們正處於一個非常有趣的情況，電網必須在未來幾年內不斷發展，以便能夠對傳統電源進行重新分類，嘗試投資使此類計劃重新上線。或者你從需求方面考慮，半導體將驅動什麼，資料中心和人工智慧將驅動什麼。

This is another disruption for the grid that we think we're in a great position to solve those systematic grid problems in a way that's comfortable for be at the end customer or the utility. So, I've said this a few times a rising tide lifts, all boats, our tide is rising, and which means our boat will be lifted as these markets move forward. We're in a wonderful situation.

這是對電網的另一次破壞，我們認為我們能夠以最終客戶或公用事業公司滿意的方式解決這些系統性電網問題。所以，我已經說過好幾次了，潮水上漲，所有的船，我們的潮水正在上漲，這意味著隨著這些市場的前進，我們的船將會被抬起。我們的處境非常好。

Things we've talked about now for many years are now really starting to happen in the market and we're well positioned with our sales efforts and our business development efforts to try to take advantage of those.

我們多年來談論的事情現在真正開始在市場上發生，我們的銷售工作和業務開發工作已做好準備，試圖利用這些優勢。

Okay, great. I appreciate it.

好的，太好了。我很感激。

Thank you. And this concludes our question-and-answer session. I would like to turn the conference back over to Dan again for any closing comments.

謝謝。我們的問答環節到此結束。我想再次將會議轉回丹以徵求結束意見。

Thanks Keith. We delivered a really remarkable second quarter. I don't want that to be lost on anybody with these recent record revenue getting to 50 we were really happy if a few quarters ago getting the 30 getting to 40. This is driven by strong organic growth from new energy as well as the acquisition of NWL. We want to make sure you understand, the business is doing extremely well.

謝謝基斯。我們的第二季業績非常出色。我不想讓最近創紀錄的收入達到 50 的人忽視這一點，如果幾個季度前將 30 提高到 40，我們真的很高興。這是由新能源強勁的有機成長以及收購 NWL 所推動的。我們希望確保您了解，公司的業務發展得非常好。

And the addition of NWL sets us up for what we think is going to come hopefully in the future, we generate a greater net income than we've been. Right. Almost $5 million we delivered significant operating cash flow, nearly [$13 million] in the quarter. We booked nearly $60 million in new orders. We reported a growing 12 month backlog of over $200 million and we have a total backlog of about $300 million, slightly north of $300 million, we have a cash balance of nearly $75 million.

NWL 的加入使我們為我們認為未來有望實現的目標做好了準備，我們產生了比以往更多的淨利潤。正確的。我們在本季交付了近 500 萬美元的大量營運現金流，接近 [1,300 萬美元]。我們預訂了近 6000 萬美元的新訂單。我們報告稱，12 個月的積壓已超過 2 億美元，積壓總額約為 3 億美元，略高於 3 億美元，我們的現金餘額接近 7,500 萬美元。

So we are starting from a point where we go into the significant macro tailwinds where we really can take advantage of it. There's significant investment in semiconductor domestically. We're targeting that and we see that as something that can drive growth for us in the coming quarters in the coming years, we do see more wind coming as well as I mentioned we hope to be able to talk about that in the future.

因此，我們從一個我們真正可以利用的重大宏觀順風的時刻開始。國內半導體領域有大量投資。我們的目標是這一點，我們認為這可以在未來幾年推動我們未來幾季的成長，我們確實看到更多的風潮即將到來，正如我所提到的，我們希望能夠在未來討論這一點。

And for those of you were looking at growth, a lot of times people want to challenge you. What do you, where are you going to grow? Let me talk about what our growth has happened over the past year. So just over the past three years, it was about 25% and that accelerated from the previous few years at about 20%. This is a nice platform that we think can continue to grow. And then I don't like to comment on the guidance that John talks about, but we're talking about revenues now approaching 60 and only a couple of quarters ago, we were excited about the chance of getting the 50 right. A year ago, we were really excited we broke through 30 eventually got to 40 right. This is the first time I can really remember. We're guiding to non-GAAP to be positive.

對於那些追求成長的人來說，很多時候人們想要挑戰你。你做什麼，要在哪裡成長？我先講一下我們這一年來的成長情況。就在過去的三年裡，這一數字約為 25%，並且比前幾年加速了約 20%。這是一個很好的平台，我們認為可以繼續發展。然後，我不想評論約翰談到的指導，但我們談論的是現在接近 60 的收入，就在幾個季度前，我們對有機會達到 50 的目標感到興奮。一年前，我們真的很興奮我們突破了 30，最終達到了 40。這是我第一次真正記得。我們對非公認會計原則的指導是積極的。

We're really in a great situation. I want you to hear that. I want you to feel it. And we'll see where things go with the market and the election and all those things, but this company is really in a great position. Thank you all for your attention, your support, and we look forward to talking to you again in a few months’ time.

我們的處境確實很好。我想讓你聽聽。我想讓你感受一下。我們將看看市場、選舉以及所有這些事情的發展方向，但這家公司確實處於有利地位。感謝大家的關注和支持，我們期待在幾個月後再次與您交談。

Thank you.

謝謝。

Thank you. The conference is now concluded. Thank you for attending today's presentation and not centralize.

謝謝。會議現已結束。感謝大家參加今天的演講，而不是集中討論。