American Superconductor Corporation (NASDAQ:AMSC) Q2 2023 Earnings Call Transcript

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Justin Clare: 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.

Daniel McGahn: 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. 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.

Justin Clare: 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?

Daniel McGahn: 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 .

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

Daniel McGahn: 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. 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.

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

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