NuScale(SMR)2024-05-10 01:50Financial Data and Key Metrics Changes - NuScale reported cash and equivalents of 125.4 million at the end of Q4 2023, with no debt [15] - Revenue for Q1 2024 was 5.5 million in Q1 2023, while the net loss increased to 35.6 million in the same period [15][25] - The company anticipates annualized cost savings of 60 million starting in Q2 2024, with a projected cash burn rate of approximately 20 million per quarter [15][25] Business Line Data and Key Metrics Changes - The company is transitioning from an R&D-based model to commercial operations, which includes a one-time charge of 3.2 million related to cost reduction efforts [25] - NuScale has deployed six E2 centers, with four at U.S. universities and two internationally, to support its power plants [13] Market Data and Key Metrics Changes - The U.S. added 32 gigawatts of zero-emissions electricity generation in 2023, but still falls short of the 46 to 79 gigawatts needed to meet Paris Agreement targets [9] - Electricity demand from data centers globally is projected to exceed 1,000 terawatt hours by 2026, more than double the levels of 2022 [10] Company Strategy and Development Direction - NuScale aims to leverage its small modular reactor (SMR) technology to meet the growing demand for clean, reliable energy, particularly from data centers and AI companies [14][20] - The company has formed a strategic partnership with Inter One Energy to enhance its power plant development and ownership capabilities [12] - NuScale is focusing on maintaining competitive advantages in technology, safety, and regulatory success to support its growth in the energy sector [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the urgency for clean energy solutions driven by the electrification of various sectors, including transportation and technology [18] - The company is optimistic about the market, noting significant interest from hyperscale data center companies and the need for immediate energy solutions [28][45] - Management emphasized that nuclear energy is a critical component of the global energy transition, providing a reliable and sustainable energy source [14][69] Other Important Information - NuScale's standard design approval application for a 77-megawatt design was accepted for review by the U.S. Nuclear Regulatory Commission, with a conclusion expected by July 2025 [13] - The company is actively working on the RoPower project in Romania, with planning for Phase 2 engineering design work ongoing [23][66] Q&A Session Summary Question: What is the timeline for orders from hyperscale data center companies? - Management indicated that there is significant momentum in discussions with hyperscale data center companies, with an immediate demand for energy solutions [54][55] Question: Are there any implications from restrictions on Russian uranium imports? - Management confirmed that there are no implications for NuScale, as the company uses conventional fuel manufactured in the U.S. [30] Question: How many commercial operations are expected before the end of the decade? - Management stated that the capacity to execute is crucial, and they are currently focused on securing long-term power purchase agreements [33] Question: What is the status of the sales and marketing agreement with Inter One? - Management noted that the agreement is for development purposes and is part of a broader strategy to create bankable projects [35][36] Question: What is the cash burn outlook for the second quarter? - Management projected that cash use in the second quarter should be around $20 million, factoring in the anticipated cost savings [37]