Financial Data and Key Metrics - Q4 2023 revenue reached a record 42million,a3234.2 million (up 21% YoY) and Wind business revenue at 7.8million(morethandoubledYoY)[10][15]−Fullfiscalyear2023revenuewas145.6 million, a 35% increase YoY, with Grid business representing 84% and Wind business 16% of total revenue [11][15] - Gross margin for Q4 2023 was 25%, up from 12% YoY, and full-year gross margin was 24%, up from 8% in fiscal 2022 [16] - Net loss for Q4 2023 was 1.6million(0.05 per share), compared to 6.9million(0.25 per share) YoY, while non-GAAP net income was 1.9million(0.06 per share) [17] - Cash, cash equivalents, and restricted cash at the end of fiscal 2023 stood at 92.3million,upfrom25.7 million at the end of fiscal 2022 [17] Business Line Performance - Wind business revenue grew by over 125% YoY in Q4 2023, driven by increased ECS shipments to Inox for both 2MW and 3MW turbines [10][15] - Grid business revenue grew by over 20% YoY in Q4 2023, supported by new energy power systems and ship protection systems [10][15] - The company secured 15millionin2MWwindturbineECSordersand13 million in 3MW ECS orders from Inox in fiscal 2023 [26] Market Performance - Military revenue reached nearly 20millioninfiscal2023,includingshipprotectionandnewenergypowersystems[13]−Renewableprojectsaccountedforaboutone−thirdoftotalsales,whileindustrial,mining,andsemiconductorprojectsrepresentedsignificantportionsoftherevenuemix[12]−Thecompanydeliveredandtesteditsfirstshipprotectionsystem,withtwomoresystemscurrentlybeingdelivered[13]StrategicDirectionandIndustryCompetition−Thecompanyisfocusingondiversifyingitsrevenuestreams,withsignificantgrowthopportunitiesinrenewableenergy,semiconductors,andmilitaryprojects[12][13][22]−TheInflationReductionActandCHIPSActintheUSareexpectedtodrivedemandforthecompany′snewenergypowersystems[29]−Thecompanyiswell−positionedtobenefitfromtheglobaltransitiontolow−carbonenergy,withstrongdemandforitsgridsolutionsinrenewableenergyandsemiconductormarkets[28][30]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−Managementhighlightedthecompany′sabilitytogeneratecashthroughimprovedoperatingleverageandexpectscontinuedgrowthinfiscal2024[10][20]−ThecompanyisguidingQ12024revenuetobeintherangeof38 million to 42million,withpotentialforfurthergrowthinsubsequentquarters[18][21]−Managementexpressedconfidenceinachieving50 million in quarterly revenue and potentially generating net income in the future [22][33] Other Important Information - The company decided to stop issuing press releases for new energy power systems orders, as growth is now coming from multiple business segments [12] - The 12-month backlog at the end of March 2024 stood at 140 million, providing visibility into future revenue [11] Q&A Session Summary Question: Growth in semiconductor-focused Grid business - The semiconductor market is expected to grow significantly over the next few years, with the company well-positioned to benefit from multiple chip fab projects [37][38] - The company has identified hundreds of millions of dollars in potential business from semiconductor customers and expects to become a preferred solution for future builds [40] Question: Wind business outlook - The Wind business is expected to see further improvement later in fiscal 2024, with potential follow-on orders from Inox [42][43] Question: Book and ship business and data center opportunities - The company is seeing some book and ship business within the quarter, but most orders have a lead time of nine months or more [50] - Data centers are on the company's radar, with potential for future growth as the company explores how its solutions can fit into this market [47][48] Question: Potential to reach 50 million in quarterly revenue - Management believes $50 million in quarterly revenue is achievable, though likely not within the next four quarters, with strong operating leverage and minimal CapEx investment required [54][55] Question: Larger order sizes and content per order - Larger order sizes are driven by both increased project sizes and higher content per order, with potential for further growth in the future [60][61]
