American Superconductor Corporation (NASDAQ:AMSC) Q4 2019 Earnings Conference Call - Final Transcript
Jun 06, 2019 • 10:00 am ET
Sure sir. Thank you. (Operator Instructions) We'll now take our first question from Eric Stine from Craig-Hallum.
Hi, Daniel. Hi, John.
Hello, Eric. Good morning.
John W. Kosiba, Jr.
Good morning. So I just want to start with a couple of questions in the grid segment. So in D-VAR I mean you've clearly had a noticeable acceleration of that business couple months ago you had two orders within a couple of weeks. And that kind of breaks from your typical pattern of a couple orders a year. I'm just curious what -- maybe more detail what you attribute that to. I mean is it the expansion into the industrial? Is this something that you see as sustainable going forward?
Yeah, I think it fits twofold, Eric. I think one, we've seen beachhead orders in some new markets for renewables and then as you said, industrial customers as well. It does appear to be sustainable in that the geographies we're going into it renewables have policies in place for the next several years that will keep wind moving in the right direction. And then with industrial customers kind of the macro trends in the industries that we're serving there, all seem to be at least for the near-term very favorable to us. So we anticipate that good feeling in the D-VAR part of the grid business to continue, we hope for some time.
Okay. Got it. Then maybe just turning into Navy, LPD 30 just looking back at some past transcripts, I think you were expecting the second piece of LPD 30 on the order front to come later in fiscal '19 and I know that it came quite a bit sooner. So just curious, I mean maybe does that change your view of how growth plays out in that segment? And then just as a reminder, how many more ships are part of this kind of next gen platform?
Sure. So I think you're accurately kind of describing the tenure and the temperament we had probably a few calls ago. And to remind you and everybody else, LPD 30 really is our introduction into the ship builder. As we're doing LPD 28, we're doing that directly with the Navy. LPD 30 is with the ship builder. So we have two active ships right now. LPD 29, we're coming due forth at some point, hopefully in the next year or so, as well as LPD 31. So we should continue to see doing basically two shifts at a time for the next few years. We called out the revenue. I think last call we talked about revenue mostly in 2020 and into 2021 for the ships. We look at the total tale, there's another I believe 13 shifts beyond LPD 30, but we talked about originally, I think we talked about 15 ships in total. So there's many year series of orders and then hopefully continued revenue there. And then we mentioned on the call that we're not just working on LPD, we're looking