American Superconductor Inc. Q4 2008 Earnings Call Transcript

American Superconductor (AMSC)

Q4 2008 Earnings Call

May 08, 2008 10:00 am ET

Executives

Jason Fredette – Director of Investor Relations

Gregory Yurek – Chairman, President and Chief Executive Officer

David Henry – Senior Vice President, Chief Financial Officer and Treasurer

Analysts

Carter Shoop – Deutsche Bank

Ben Kallo – Stanford Group

Corey Tobin – William Blair and Company

Jim Ricchiuti – Needham & Co

Stuart Bush – RBC Capital Markets

Michael Carboy – Signal Hill

Walter Nasdeo – Ardour Capital

Pavel Molchanov – Raymond James

Brian Yerger – Jesup and Lamont

Pete Patterson – Patterson Investments

Presentation

Operator

Good day, everyone, and welcome to American Superconductors Fourth Quarter Fiscal 2008 Conference Call. Today’s call is being recorded. With us on the call this morning are American Superconductor’s Founder and CEO, Greg Yurek; Senior Vice President and CFO, David Henry; and Investor Relations Director, Jason Fredette.

For opening remarks and introductions I’d like to turn the call over to Mr. Jason Fredette. Please go ahead, sir.

Jason Fredette – Director of Investor Relations

Thanks Dana. I would like to point out that certain remarks we make this morning regarding our financial forecasts and other beliefs, plans and expectations constitute forward-looking statements.

There are number of risks and uncertainties that may cause actual results to differ significantly from these statements. Please refer to our 10-K, which was filed with the SEC on June 14, 2007 and our subsequent 10-Qs for information about these risks and uncertainties.

I would also like to note that we will be referring to EBITDAS this morning for earnings before interest income, other non-operating expense, income taxes, depreciation, amortization and stock compensation.

EBITDAS is a non-GAAP financial metric. A reconciliation of EBITDAS to net loss on a GAAP basis is included in the press release we issued and filed with the SEC this morning on Form 8-K. All of our SEC filings can be accessed in the Investor Section of our website at www.amsc.com.

And now, I’ll turn the call over to Greg.

Gregory Yurek – Chairman, President and Chief Executive Officer

Thanks Jason. And good morning everyone. We had a very successful fourth quarter and fiscal year on many different fronts. I’ll start with the financial highlights, and then review some of our product development progress. Revenues increased by over 100% year-over year to more than $38 million in the fourth quarter and approximately 112 million for the full fiscal year 2007, both new records for AMSC. We were EBITDAS positive in the fourth quarter for the first time in Company history, and that was accomplished despite the fact that we incurred 2.6 million in restructuring charges for the quarter. We also cut our net loss significantly during both the fourth quarter and the fiscal year, and we grew our backlog to $199 million as of March 31, which puts us in a great starting position for further strong growth in fiscal 2008.

Before we review the outlook for fiscal 2008, let’s discuss some of the trends we are seeing in our business in our core markets, namely wind power and electric power grids. Let’s start with the power grid market and high temperature superconductor wires, or HTS wires, for short. On April the 22nd, we energized the world’s first superconductor transmission cable system in the commercial power grid of Long Island Power Authority, or LIPA. This is a watershed event for our company and the electric utility industry…to read more visit http://seekingalpha.com/