American Superconductor Company (NASDAQ:AMSC) Q1 2024 Earnings Convention Name August 7, 2024 10:00 AM ET
Firm Members
Nicol Golez – Director of Communications
Daniel McGahn – Chairman, President and CEO
John Kosiba – CFO, SVP and Treasurer
Convention Name Members
Eric Stine – Craig Hallum
Colin Rusch – Oppenheimer
Justin Clare – ROTH Capital Companions
Operator
Good day, and welcome to the AMSC First Quarter Fiscal 2024 Monetary Outcomes. [Operator Instructions] Please observe, this occasion is being recorded.
I’d now like to show the convention over to Nicol Golez, Director of Communications at AMSC. Please go forward.
Nicol Golez
Thanks, Dave. Good morning, everybody, and welcome to American Superconductor Company’s first quarter of fiscal yr 2024 earnings convention name. I’m Nicol Golez, Director of Communications. With us on at the moment’s name are Mr. Daniel McGahn, Chairman, President and Chief Govt Officer; and Mr. John Kosiba, Senior Vice President, Chief Monetary Officer and Treasurer.
American Superconductor issued its earnings launch for the primary quarter of fiscal yr 2024 yesterday after market closed. For many who haven’t seen the discharge, a duplicate is out there within the Traders web page of the corporate’s web site at www.amsc.com.
Earlier than beginning the decision, I want to remind you that varied remarks administration could make about American Superconductor’s future expectations, together with expectations relating to the corporate’s second quarter of fiscal yr 2024 monetary efficiency, plans and prospects represent forward-looking statements for functions of the protected harbor provision beneath the Non-public Securities Litigation Reform Act of 1995.
Precise outcomes could differ materially from these indicated by such forward-looking statements due to varied vital elements, together with these within the Danger Elements part of American Superconductor’s annual report on Type 10-Okay for the yr ended March 31, 2024, which the corporate filed with the Securities and Change Fee on Might 29, 2024, and the corporate’s different reviews filed with the SEC.
These forward-looking statements characterize administration’s expectations solely as of at the moment and shouldn’t be relied upon as representing administration’s views as of any date after at the moment. Whereas the corporate anticipates that subsequent occasions and developments could trigger the firm’s views to alter, the corporate particularly disclaims any obligation to replace these forward-looking statements.
Additionally, on at the moment’s name, administration will seek advice from non-GAAP web revenue or non-GAAP monetary measures. The corporate believes non-GAAP web revenue help administration and traders in evaluating the corporate’s efficiency throughout reporting intervals on a constant foundation by excluding these noncash, nonrecurring or different expenses that it doesn’t imagine are indicative of its core working efficiency.
The reconciliation of GAAP web loss to non-GAAP web revenue could be discovered within the first quarter of fiscal yr 2024 earnings press launch that the corporate issued and furnished to the SEC final evening on Type 8-Okay. American Superconductor’s press releases and SEC filings could be accessed from the Traders web page of its web site at www.amsc.com.
With that, I’ll now flip the decision over to Chairman, President and Chief Govt Officer, Mr. Daniel McGahn. Daniel?
Daniel McGahn
Thanks, Nicol, and good morning, everybody.
I am going to start at the moment by offering an replace on our grid and wind enterprise models, adopted by feedback on our current acquisition. John Kosiba will then present an in depth evaluate of our monetary outcomes for the primary fiscal quarter, which ended June 30, 2024, present steering for the second fiscal quarter, which is able to finish September 30, 2024, and touch upon the acquisition. Following our feedback, we’ll open up the road to questions from our analysts. We’re off to an excellent begin with our new fiscal yr.
The enterprise is flourishing, and we delivered one more exceptional quarter. Our group reported nice outcomes for the primary quarter of fiscal 2024. Whole income for the primary quarter got here in step with our steering vary and grew by greater than 30% versus the yr in the past interval.
Our first quarter income of $40 million was pushed by sturdy new vitality energy system shipments. Our grid income for the primary quarter of fiscal yr 2024 accounted for 80% of AMSC’s complete income and grew over 25% versus the yr in the past interval.
The rest of the income got here from our wind enterprise, which grew over 75% from a yr in the past. That is the second quarter in a row that we have been at this $40 million income stage. We exceeded our common gross margin ranges for the quarter by a mixture of sturdy initiatives and efficiency in every of our enterprise segments. We ended the primary quarter with greater than $95 million in money. We had very sturdy bookings within the first quarter with each new and present prospects for our merchandise.
We introduced a report $75 million order of ship safety programs from the Royal Canadian Navy whereas new Vitality Energy Methods got here in at about $33 million. Our new Vitality Energy Methods orders characterize sturdy contributions from utilities, industrials, renewables, semiconductors and mining.
We obtained our third follow-on order of over $12 million from our wind buyer Inox Winds, additionally, we generated greater than $125 million in new orders within the quarter. That is additionally a current report. We ended the quarter with a 12-month backlog of $160 million and a complete backlog of $250 million.
We entered the yr at $140 million 12-month backlog. These outcomes and achievements characterize our potential to ship enterprise diversification, monetary progress and expanded scale. We’re more than happy with these outcomes and inspired by our orders momentum. Our enterprise seems to be effectively positioned for the longer term.
Now I am going to flip the decision over to John Kosiba to evaluate our monetary outcomes for the primary quarter of fiscal 2024, present steering for the second quarter of fiscal 2024, which is able to finish September 30, 2024, and touch upon the addition of NWL to the AMSC household. John?
John Kosiba
Thanks, Daniel, and good morning, everybody.
AMSC generated revenues of $40.3 million for the primary quarter of fiscal 2024 in comparison with $30.3 million within the yr in the past quarter. Our grid enterprise unit accounted for 80% of complete revenues, whereas our wind enterprise unit accounted for 20%. The Grid enterprise unit revenues elevated by 26% within the first quarter versus the yr in the past quarter. This year-over-year change was led by income progress from our new vitality energy programs.
Wind enterprise unit revenues elevated by 76% within the first quarter versus the yr in the past quarter. This year-over-year change was pushed by ECS shipments. Wanting on the P&L in additional element. Gross margin for the primary quarter of fiscal 2024 was 30%. That is up from 21% within the yr in the past quarter.
Gross margin for the quarter was favorably impacted by the elevated revenues, the pricing will increase throughout our product traces, a positive product combine, together with sturdy service and spare elements income in addition to elevated ranges of manufacturing facility absorption throughout our product traces. We skilled this gross margin growth as a result of drivers I discussed.
This was an ideal fruits of occasions that yielded these elevated gross margins in Q1. We imagine that the actions taken during the last couple of years to increase our gross margins will proceed to have a constructive affect on our enterprise.
Shifting on to working bills. R&D and SG&A bills for the primary quarter of fiscal 2024 had been $11.2 million in comparison with $9.7 million within the yr in the past quarter. Roughly 11% of R&D and SG&A bills within the first quarter of fiscal 2024 had been noncash.
Our web loss within the first quarter of fiscal 2024 was $2.5 million or $0.07 per share. I might like to say that included in our web loss for the quarter was a $3.9 million contingent consideration revaluation expense associated to the NEPSI acquisition, which is a noncash merchandise. If we exclude the contingent consideration, AMSC would have generated $1.4 million of web revenue within the first quarter.
This compares to a web lack of $5.4 million or $0.19 per share within the yr in the past quarter. Our non-GAAP web revenue for the primary quarter of fiscal 2024 was $3 million or $0.09 per share in contrast with a non-GAAP web lack of $2.1 million or $0.08 per share within the yr in the past quarter. Please see our press launch issued final evening for a reconciliation of GAAP to non-GAAP outcomes. We ended the primary quarter of fiscal 2024 with $95.5 million in money, money equivalents and restricted money. This compares with $92.3 million on March 31, 2024.
We generated $3.1 million of working money stream within the first quarter of fiscal 2024. Now turning on to our monetary steering for the second quarter of fiscal 2024. We anticipate that our revenues might be within the vary of $38 million to $42 million. Our web loss on that income is anticipated to not exceed $1.7 million or $0.05 per share. Please observe that our web loss steering assumes no adjustments in contingent consideration.
We anticipate our non-GAAP web revenue to be no less than breakeven earlier than any affect of the acquisition. The corporate expects working money stream within the second quarter of fiscal 2024 to vary from breakeven to constructive $2 million. The corporate’s steering doesn’t embody the affect of the not too long ago introduced acquisition of NWL.
Moreover, this steering doesn’t ponder an roughly $8 million milestone cost that’s anticipated to be paid from our allied Navy in late September or early October. That cost might have a big favorable affect on our working money stream whether it is obtained inside the quarter.
Now I might prefer to take a second to offer a monetary abstract of the NWL acquisition. On August 1, 2024, AMSC acquired NWL, a non-public New Jersey-based firm that sells polysupplies and transformers to industrial and navy prospects. The whole consideration paid for the acquisition was roughly $61.4 million.
The consideration was comprised of $30 million in money, $25 million paid to closing and a further $5 million to be paid after contemplating varied changes set on within the inventory buy settlement. The remaining $31.4 million was paid by issuing 1.3 million restricted shares of AMSC widespread inventory to the sellers at closing.
The share value used to calculate the shares paid to the sellers was $24.16 which was the closing value of our inventory on the day previous to closing. Summarizing NWL revenue assertion, NWL has averaged $55 million in income during the last three years. They’ve skilled important progress of their most up-to-date yr with calendar 2023 revenues of $72.3 million. Gross margins for calendar 2023 had been 24% and working bills in calendar 2023 had been roughly $12 million. The working margin in calendar 2023 was roughly 11%.
Now shifting on to the stability sheet. We acquired the corporate on a debt-free foundation. The acquired stability sheet at closing had roughly $41.2 million in present property, $28.4 million in fastened property and $1.9 million in intangible property. The fastened property included two buildings in New Jersey valued at roughly $23 million, that are owned outright. We acquired roughly 12.1 million in short-term liabilities and a $6.5 million deferred tax legal responsibility in long-term liabilities.
Given the truth that AMSC has substantial loss carryforwards to use in opposition to future revenue, we anticipate that a lot of that deferred tax legal responsibility won’t be realized and might be taken as a tax revenue profit within the quarters forward. One different level to say, we acquired a 12-month backlog of roughly $44 million and a complete backlog of roughly $51 million.
Greater than half of that complete backlog is anticipated to ship earlier than December 31, 2024. As you possibly can see, we acquired an organization that we imagine has a stable historical past of economic efficiency, a powerful stability sheet and a backlog that demonstrates the present well being of their enterprise. In consequence, we expect this acquisition to have a right away constructive affect on our monetary efficiency.
Wanting forward, we’re working by remaining buy accounting reconciliations. As a result of buy and accounting actions that have to be finalized in Q2 of fiscal 2024, we’re unable to offer any particular steering relating to the monetary affect the acquisition could have on our fiscal 2024 monetary outcomes.
With that mentioned, our expectation is that NWL will contribute meaningfully to our consolidated income for Q2 fiscal 2024 and can add to our working money stream. One final observe, we filed an 8-Okay final evening with the SEC, which incorporates professional forma monetary info that reveals the favorable affect the acquisition would have had on our prior yr and June quarter if the acquisition had occurred as of April 1, 2023 and April 1, 2024. Please see the 8-Okay for extra info.
With that, I am going to flip the decision again over to Danny.
Daniel McGahn
Thanks, John.
We started fiscal yr 2024 with sturdy orders momentum, stable monetary outcomes and what we imagine to be a robust addition to our enterprise. A few days in the past, we introduced the acquisition of NWL. Previous to changing into a part of the AMSC household, NWL was a privately held firm in New Jersey. It has been owned and operated by the identical household for 2 generations for over 50 years.
NWL supplies energy provides for motor drives for quite a lot of vitality purposes in addition to for vital navy programs. The acquisition of NWL instantly aligns with our strategic priorities to speed up worthwhile progress, broaden our product providing and increase our market attain and market share. NWL has a historical past of worthwhile income with a 3 yr common of roughly $55 million per yr.
The acquisition of NWL is anticipated to enrich and lengthen our product choices within the industrial and navy sectors. As we increase our navy enterprise, we imagine NWL has the potential of multiplying our navy footprint inside the Division of Protection, particularly the U.S. Navy.
We see the likelihood that with NWL we could expedite our Navy growth from our ship safety programs to ship energy programs. At present, we set up ship safety programs that assist Navy ships keep hidden from our enemy threats. Along with Ship Energy Methods, we may help energy ship capabilities. We see NWL as a part of the following step from defending the fleet to powering the fleet.
With NWL we’re shopping for a enterprise that we like, that is run by individuals we like and run in a trend that we like. It is also an organization that we all know. NWL was a strategic provider to NEPSI. AMSC appeared to additionally qualify them as a provider. They’re recognized to unravel exhausting issues for his or her prospects and have an distinctive providing that is usually deployed in hardened industrial and navy environments.
We’ve got numerous respect for NWL and what has been constructed. Strategically, we made this acquisition with the expectation that it’ll enhance the long-term high quality of our revenues and earnings, with additional diversification by area, buyer and product.
And most significantly, we imagine that the acquisition will speed up our potential to attain our purpose to succeed in sustainable profitability. Along with the anticipated enchancment within the high quality of our revenues and earnings, we imagine that the acquisition of NWL can additional increase our industrial market penetration. NWL will present instant entry to prospects we should not have entry to at the moment.
Their buyer growth within the industrial facet, largely resides within the manufacturing facility, the place the shoppers we serve at the moment are on the substation stage. We imagine that our sturdy stability sheet and the addition of NWL positions us for continued progress. This transfer underscores how we proceed to give attention to constructing a extra predictable and diversified enterprise.
To conclude, we imagine the enterprise actually is in one of the best place it is ever been in and continues to enhance. We generated non-GAAP web revenue and constructive working money stream constantly over the previous 4 quarters, and we’re guiding for a doable fifth quarter.
Final quarter, we talked about the potential for doubling income from our fiscal 2021 ranges. Let me remind you these ranges had been within the $25 million 1 / 4 vary. Our notion of attending to $50 million 1 / 4 is now actually doable. At this $50 million quarterly stage, we now have the potential to generate web revenue. The addition of NWL coupled with our sturdy monetary efficiency, adjustments the size of our enterprise and may place us in a powerful place for continued diversified progress.
We’ve got a number of tailwinds generated by U.S. insurance policies and momentum in our wind and ship companies that hopefully will proceed to drive our firm’s progress. Throughout our first quarter, we introduced our first allied Navy contract with the Royal Canadian Navy for our Ship Safety Methods or SPS.
By this multiyear contract, we anticipate to ship our proprietary SPS {hardware}, present engineering companies, integration and commissioning of the system into a number of Canadian floor fight. We’re diligently working with Irving Shipbuilding, a Canadian shipbuilder that has constructed over 80% of Canada’s fleet at sea at the moment to ship our first SPS system by 2026.
We’re grateful to be contracted to offer world-class mine safety to the Canadian Floor Combatant platform and its sailors. As well as, we now have a complete of 5 SPS contracts for the U.S. Navy San Antonio Class LPD and are engaged on our proprietary Mine Countermeasure or MCM system. We’re designed into a number of ship platforms, LPD for the U.S. Navy and CSC for the Royal Canadian Navy, and we hope so as to add our U.S.
Navy ship platform with the addition of the MCM product when it goes into manufacturing. We see increasing alternatives, particularly within the navy enterprise. NWL’s navy progress, coupled with AMSC current an thrilling alternative to expedite AMSC’s Navy growth from ship safety programs to ship energy programs. The 2 corporations collectively are anticipated to offer a robust mixture. We’re keenly targeted on our potential to attain our purpose of sustainable profitability.
We’re very shut. Should you listened to John Kosiba’s feedback rigorously, you could perceive that we could already be there. If NWL can proceed to contribute in an analogous method as they’ve most not too long ago demonstrated then the sustainable a part of the purpose could also be achievable. That is really an thrilling time right here at AMSC and time will inform.
Our future-facing applied sciences assist harmonize the world’s want for decarbonization and clear vitality with the necessity for extra dependable, efficient and environment friendly energy supply. I stay up for reporting to you once more following the completion of our second fiscal quarter of 2024.
Dave, we’ll now take questions from our analysts.
Query-and-Reply Session
Operator
[Operator Instructions] Our first query comes from Eric Stine with Craig Hallum. Please go forward.
Eric Stine
Hello Daniel. Hello John.
Daniel McGahn
Hello Eric. Good to listen to your voice.
Eric Stine
Hello, good morning. So on NWL, I can recognize that you just set to work by some issues right here close to time period by way of specifics for the outlook. However I am curious, can you simply undergo among the traits which might be particularly impacting their enterprise? And is there any motive why there can be a change to the momentum in that enterprise, which is clearly above what you offered within the launch of that three yr common.
Daniel McGahn
Sure. I feel we needed to have the three yr common to get individuals to grasp form of the dimensions of the enterprise, how we consider it as we checked out valuing it, attempting to grasp what we see are the constructive elements of the enterprise. However I feel you are asking form of rightfully so. The latest efficiency from NWL is far stronger than that $55 million common reveals. Their enterprise has been rising and the margins have been bettering.
They’re principally delivering gross margins and working margins within the vary that we have talked about for all the enterprise. So it actually suits in strategically with what we’re doing and the financials fitted completely with every thing we have been speaking about.
Eric Stine
Acquired it. After which perhaps for my follow-up, simply on Inox. I do know you bought the 3-megawatt order. Are you able to simply remind us what the cadence of recognizing that might be? And is it protected to imagine that when by that, you’d anticipate extra orders doubtlessly sizable given the dimensions of Inox’s backlog?
Daniel McGahn
Sure, their backlog at the moment stands at north of two.7 gigawatts in complete, which is, in the event you keep in mind, even on previous calls, that is greater than double the place it had been at. Their enterprise is absolutely beginning to be positioned to take off particularly with the order that we now have, as we mentioned within the announcement, we anticipate that these merchandise to be shipped this fiscal yr.
So I feel that provides to the derisking of the projections that we have talked about for the long run for the enterprise this yr. So we predict Inox is in a fantastic place. We expect that place is bettering.
And we predict that they are out promoting a fantastic product, which is that this new 3-megawatt wind turbine that they’ve that comes from us from a expertise, from a management system standpoint. So once I have a look at this, Eric, once I have a look at all of the issues we’re hitting on between new vitality orders, Inox orders, this enormous, enormous order from the Navy, we actually really feel that we’re in a really completely different place than we had been even a few quarters in the past.
After which add in what we’re doing with NWL which I feel it sounds such as you get fairly effectively. It is a completely different firm once more than it was a yr in the past. And I do know we have been saying that every yr, however we really feel like we’re actually shifting the needle with the place this enterprise goes forward.
Eric Stine
Acquired it. Thanks.
Operator
The subsequent query comes from Colin Rusch with Oppenheimer. Please go forward.
Colin Rusch
Thanks a lot, guys. Dan, as you have a look at NWL and have a look at the shopper listing that they have and the synergy that you just guys might need, are you able to speak a bit bit about how a lot synergy there may be there for you guys and we would begin to see among the affect there? After which in the event you might converse to the identical round among the provide chain and price financial savings that you just would possibly see?
Daniel McGahn
Sure. I feel while you have a look at the shopper base, notably on the commercial facet, the beginning, the place they promote their energy provides and controls they go into the manufacturing facility. So in an industrial examine, it opens up a complete listing of extra prospects that we merely simply do not serve at the moment as a result of what we’re targeted on is for a really large-scale transformative initiatives so they’ll change plant gear and capability and functionality for our prospects. They usually want a substation stage energy management gear. Within the case of NWL they’re within the parts that go within the manufacturing facility that run on daily basis.
So I feel that is going to open up a complete new gross sales channel for us to consider how we are able to promote to these forms of industrial prospects. However you possibly can hear in my voice and my tenure, what I am actually enthusiastic about is the navy. It actually transforms our attain into the Division of occasions, particularly with the Navy, permits us to consider not simply defending ships however powering ships. However I feel additionally ought to assist expedite our potential to get our safety programs on the extra ship platforms inside the U.S. Navy.
So we predict the shopper half actually pulls. I feel on the availability chain as you are asking, sure, I feel there’s work to be completed there, and we are able to enhance the availability chain throughout the board. I feel scale on this enterprise issues and I feel scale will assist us in the long run to proceed to enhance monetary efficiency as effectively.
Colin Rusch
Thanks a lot. So I recognize the colour on the time that it’s worthwhile to work by among the monetary concerns. I have never gone by this a number of instances now with the platform, how lengthy do you suppose it can take to completely combine the operations as a way to have clear absolutely realized synergies right here. This seems like a bit bit cleaner story than among the different acquisitions that you’ve got made up to now.
Daniel McGahn
Sure. The distinction right here, I feel, is the size. So you’ve got an actual working enterprise producing actual working margin that is been in a position to try this constantly. They’ve a tradition. They’ve a system, they’ve a administration group.
That is completely different than the final two acquisitions in that. We’re including a bit that is very effectively constructed, very effectively established on a really good progress trajectory. So I feel the work in some ways goes to be extra easy, easier, simpler, much less dangerous, extra helpful to us than what we are able to do collectively, mixed. Our group is tremendous enthusiastic about NWL. I really feel from the group at NWL.
They’re tremendous enthusiastic about us serving to them to go to the following step and the following stage, the following chapter of their enterprise. So I feel it truly is one other transformative occasion for the corporate. I feel to consider from a monetary standpoint, it should take a number of months 1 / 4 right here to form of perceive all of the accounting, how all that is going to work.
It is going to take us in all probability that a bit bit extra to essentially get the distinction between a non-public firm and forecasting in a public firm, it is frankly completely different. Our potential to have a look at threat and assess threat is extra residence as a result of we’re used to speaking to you all and attempting to set expectations that we are able to meet and exceed.
I frankly do not know from their standpoint how effectively they’re in a position to try this. Time goes to indicate as we see the months go by 1 / 4 or two goes by. However from an integration standpoint, it is not a heavy raise to make this into an operation that is going to essentially assist us in efficiency. It is going to assist us with suppliers, going to assist us with prospects, assist us with extra market attain. We actually love this acquisition on so many dimensions.
It suits so effectively. It feels a lot like us already and part of a enterprise that we predict is critical wants for us to maneuver issues ahead with lots of the prospects that we now have at the moment. So we’re tremendous jazzed and we do not see it as a high-risk acquisition.
That being mentioned, the satan is at all times within the element. We attempt to perceive easy methods to work by that. We have seen the expertise that we have had with Nexan and [indiscernible], all very constructive. It took us a few quarters to form of get the beat with them and perceive how orders are going to come back in, how programs are going to work and all of these issues.
So I am hoping as we get to Christmas time on the finish of the fiscal yr, we’re not speaking about NWL anymore, we’re speaking solely about AMSC. We’re speaking about progress trajectory. We’re speaking concerning the nice markets and the good prospects we’re serving with great expertise.
Colin Rusch
Thanks a lot.
Operator
The subsequent query comes from Justin Clare with ROTH Capital Companions.
Justin Clare
Hello, good morning. Thanks. So I simply needed to start out right here additionally on NWL. Do you — might you doubtlessly share the combination of their navy revenues versus their industrial revenues? Or simply give us a way for the relative dimension of every of these companies? After which is it doable to share the gross margin profile for every of these companies? Is it meaningfully completely different between them? Or are they beautiful comparable? After which additionally curious on NWL, simply what number of ship platforms they could be supplying into at this time limit.
Daniel McGahn
Sure. So let me be certain, Justin, I hit all these since you requested numerous good questions that I feel are vital for everyone to grasp. So while you have a look at the share of navy versus industrial, it form of depends upon interval, in the event you’re backlog versus income that is delivered. However usually, I might say between 20% and 30% of the enterprise was pushed by navy, we’re indicating that we predict that is a serious progress engine that may occur for us. I will not say within the subsequent couple of quarters, however actually within the subsequent couple of years or so.
We expect that is actually a helpful piece of what we’re doing. Secondly, from a margin standpoint, while you have a look at what we put on the market, it suits proper within the margin that we’re doing this quarter. I imply, it simply provides on to the good enterprise that we have already constructed, extra of that, which we predict is extra helpful, not solely to us however to our prospects as effectively. After which there’s a third piece of the query, Justin, that allow me be certain I hit.
Justin Clare
Sure. Simply curious on what number of ship platforms NWL is supplying proper now? After which simply including on to that, curious on the relative progress that you’ve got seen between the navy and the commercial companies of NWL. Has one been rising meaningfully quicker than the opposite not too long ago? Simply curious on the traits there.
Daniel McGahn
Sure. The reply particularly platforms. I do not need to go to a selected quantity, nevertheless it’s a number of. They’re on platforms that we need to get to, we’re on platforms that they need to get to. So all additive, proper? All form of helps general. I see personally, I am going to simply offer you my opinion. I see that the navy backlog is powerful, rising places the enterprise in a pleasant place that that is going to develop into a vital a part of the enterprise general. It is in all probability so far as I need to go and supplying you with coloration on that.
Justin Clare
Okay. After which only one extra. I need to be certain I heard you appropriately. Did you say that the 12-month backlog for NWL was $44 million, after which there is a complete backlog of $150 million. So I needed to verify in on that. After which I simply need to ask additionally concerning the potential to perhaps ship above the $44 million within the subsequent 12 months based mostly on the timeline of book-to-bill. So perhaps, sure, in the event you might tackle that. Thanks.
Daniel McGahn
Sure, let me discuss book-to-bill timetable and John can undergo and clarify the numbers extra particularly. However they’re usually getting orders that they are going to ship three, 4 months out for some initiatives, it could be 5, six.
So it is a faster flip enterprise than the opposite elements of our enterprise, which we love, proper? It offers us the flexibility to generate orders at the moment and ship extra income in December quarter, extra income within the March quarter and positively extra income for subsequent yr. They usually have a pleasant historical past of having the ability to carry that order guide in at a pleasant beat, they usually’ve been capable of have a progress trajectory general with their order guide, and due to this fact, it interprets into their income.
So that they’re in a very, actually good place. And we had heard what we predict can be a nice backlog that helps bolster the place we’ll be within the subsequent few quarters right here.
John Kosiba
Sure. On the backlog, simply to be sure you heard me appropriately, it was $44 million in 12-month backlog, $51 million in complete backlog. And I additionally talked about that greater than half of that $51 million will — is anticipated to ship earlier than December 31, 2024. So that can — by definition, that 12-month backlog is the second half of that interval can have guide and burn in since a giant chunk of the 12-month backlog is being indicated that’s anticipated to shift by 12/31.
Daniel McGahn
So out of that 51%, half of it within the subsequent 5 months, proper?
John Kosiba
And also you subtract that from the 44% that will let you know that there is a substantial quantity of guide and burn that is anticipated.
Daniel McGahn
However finally, that is what they do. Should you have a look at the outcomes as they did for the primary half, you possibly can see the extent that they have been at, and we imagine that, that is the extent the enterprise could be at and hopefully develop past.
Justin Clare
Okay. Acquired it. Respect the clarification, and thanks for the time.
Operator
This concludes our question-and-answer session. I want to flip the decision again over to Mr. Dan for any closing remarks.
Daniel McGahn
Properly, I hope you guys see how excited I’m. That is in all probability probably the most excited I have been on any of those calls. And normally, you guys at all times inform me, boy, that was extra thrilling than the final one. So hopefully, we hold constructing the thrill right here. We delivered a exceptional starting of fiscal yr 2024 with actually excellent monetary efficiency.
We’re on a complete new stage of efficiency while you have a look at income gross margin. Nice orders quarter, proper? So a report $75 million ship safety system order transformative for the enterprise, not solely at the moment, however for the longer term for a number of years. And this inserts our system into considered one of our Allied Navy’s most important chip platforms. We’ve got this sturdy acquisition, which you’ll be able to hear we’re tremendous enthusiastic about, and we imagine permits us to succeed in our purpose of sustainable profitability.
The enterprise delivered excellent monetary efficiency with over $3 million of working money stream, proper? That is one thing we have completed quite a bit not too long ago, and now the enterprise is at this stage. We have expanded gross margins to 30%. You guys have been asking John and I about effectively, the place can we go? How can we get to, proper?
And it is a stage of gross margins that is greater than what we have talked about at this income stage for positive. And we grew income by over 30% once we have a look at the quarter versus a yr in the past. $127 million in new orders talked about what we did with Canada, however $33 million in new vitality energy programs orders, so at and above what the trailing common has been. So we proceed to construct that enterprise. And it is our third 3-megawatt ECS order from Inox Wind, which that enterprise goes to proceed.
We added NWL which actually adjustments the size of our enterprise and may place us in a powerful place to proceed our path to diversifying our progress, notably within the industrial and navy sectors. And I feel within the base enterprise, we ended the quarter with $160 million in 12-month backlog and $250 million in complete backlog. That is with out including NWL. And we’ll — give us the time you are going to see subsequent name, how will we carry out? How is NWL doing?
How does it add? We’re tremendous enthusiastic about the place the enterprise has been up to now few quarters. And now the place the enterprise goes to go within the subsequent few quarters with the addition of a powerful order guide that we now have and the addition of the good enterprise of NWL. So I am very excited to have the ability to speak to you guys in a couple of quarter’s time about this nice enterprise that we have constructed and the outcomes that we proceed to ship. Thanks, all people.
Operator
The convention has now concluded. Thanks for attending at the moment’s presentation. It’s possible you’ll now disconnect.