Good day, everyone, and welcome American Superconductor’s First Quarter Conference Call. This call is being recorded. All participants will be in a listen-only mode until we reach the question-and-answer session. With us on the call this morning are American Superconductor’s Founder and CEO, Greg Yurek; Senior Vice President and CFO, David Henry; and Managing Director of Corporate Communications, Jason Fredette. For opening remarks, I would like to turn the call over to Mr. Jason Fredette. Please go ahead, sir.

Thanks, Jennifer, and welcome to the call everyone. Before we begin, please note that various remarks management may make on this conference call about American Superconductor’s future expectations, plans and prospects constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements, as a result of various important factors, including those discussed in the Risk Factors section of our annual report on Form 10-K for the fiscal year ended March 31, 2010, which is filed with the SEC. These forward-looking statements represent the company’s expectations only as of today and should not be relied upon as representing the company’s views as of any subsequent date. While American Superconductor anticipates that the subsequent events and developments may cause the company’s views to change, the company specifically disclaims any obligation to update these forward-looking statements. I also would like to note that we’ll be referring on today’s call to non-GAAP net income, or net income before amortization of acquisition-related intangibles, restructuring and impairments, stock-based compensation, other unusual charges and any tax effects related to those items. Non-GAAP net income with a non-GAAP financial metric, a reconciliation of non-GAAP to GAAP net income can be found 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 from the Investors’ page of our website at amsc.com. And finally, I would like to mention that we’ll be taking part in the Needham Clean Technology Conference in New York on August 9, and the Pacific Crest Technology Leadership Forum in Vail, Colorado on August 10. We’ll provide a live webcast from the Needham event that can be accessed on our website, more details on that webcast will be published next week. And now, I’ll turn the call over to Greg.

Thanks, Jason, and good morning, everyone. We’ve gone out to a great start in fiscal year 2010, and Dave Henry and I are looking forward to filling you in on all of the details. From a financial perspective, our first quarter was impressive. We generated a strong increase in revenues in both quarter-over-quarter and year-over-year. We increased backlog to a new record level approaching $1 billion, providing us with a substantial platform for profitable growth over the next several years. We delivered gross margins of 40% and operating margins approaching 17%, both new company records, and we more than doubled our earning year-over-year. All impressive results, indeed. As a result of the strong start and the strength of the markets we are serving, we have increased our financial forecast for the full fiscal year. Dave will go over all of the financial details in just a few moments. Under lined numbers are the following (ph) key facts; first, the spending in our end markets remains robust and is projected to continue increasing over the next decade; second, the demand for our differentiated solutions is as strong as ever, and getting stronger; third, our execution is excellent; and fourth, our solid balance sheet and cash generation are enabling us to make strategic investments to accelerate our near- and long-term profitable growth. I’ll touch on each of these points further, but let’s start with our primary market, Wind Power, in the Asia-Pacific region. The U.S. and European economies remain bogged down following the great recession, and the wind market in the U.S. is temporarily contracted due to the economic slowdown. In the meantime, Asia’s wind market has remained vibrant, thanks in large part to China. China boosted its annual wind power installations from 6 gigawatts in 2008 to 14 gigawatts in 2009.…

Thanks Greg, and good morning everyone. We got fiscal year 2010 off to a strong start, generating a 33% year-over-year increase in revenues and record growth of operating margins, by more than doubling our earnings in the first fiscal quarter. The strength of these results is owed to solid end-market demand for our wind and power grid offerings, crisp execution on our growth plan as well as some favorable foreign exchange tailwinds during the quarter. AMSC generated $97.2 million in revenues for the first quarter in fiscal year 2010, which is up approximately 11% from $87.6 million for the first quarter of fiscal 2009 and 33% from $73 million for the first quarter of fiscal 2009. Higher wind turbine component shipments were the main factor in our sequential and year-over-year growth. ASMC power systems contributed $94.9 million or 98% of our total first quarter revenues. This was a 34% increase from $70.7 million in power system revenues for the year-ago quarter. Our AMSC superconductor segment contributed the remaining $2.3 million or 2% of revenues. AMSC superconductors also generated $2.3 million in revenues for the first quarter of fiscal 2009. Sales to Sinovel represented 72% of total revenues in the first fiscal quarter, wind in total representing 84% of total revenues. Geographically, we generated 94% of our revenues outside of the U.S. Gross profit for the first quarter of fiscal 2010 was $39 million and our gross margin was a record 40.1%. This compares with a gross margin for the fourth quarter of fiscal 2009 of 37.8% and a gross margin for the first quarter of fiscal 2009 of 30.9%. As we highlighted on our last conference call, unlike many companies in the renewable energy industry, the recent weakening of the euro against both the renminbi and dollar has a beneficial…

Thank you. The question-and-answer session will be conducted electronically. (Operator Instructions). We’ll take our first question from Carter Shoop with Deutsche Bank. Carter Shoop – Deutsche Bank: Good morning and congratulations on a good quarter.

Thanks Carter.

Thank you. Carter Shoop – Deutsche Bank: As for my first question, can you tell us what the breakdown was for Sinovel in regards to 1.5 megawatt versus 2 megawatt turbines in the quarter?

No, we don’t give that breakout, Carter. That’s – never have and that’s a competition sensitive information right now.

We’ll go next to Jesse Pichel with Jeffries. Jesse Pichel – Jeffries: Yes, good morning, Jesse Pichel from Jeffries. Congratulations on the strong quarter, gentlemen. In our polling of certain wind developers in Europe and the US, we were surprised to hear that many will be placing orders for Chinese turbines using Chinese bank debt. And can you share with us your view on Chinese turbine ability to capture global share of the market outside of China using bank debt? And have you been involved in any of the conversations there with potential developers, since it was relying on your technology?

Yes Jesse. Well, first of all, we have been in discussions over time with, for example Sinovel US sales force, which they had on the grounds here in the US for over a year now actually. They have an office in Houston, opening one in Toronto as well, also one in London. So they’re going for the export market, that’s quite clear. We think they compete on equal quality, actually higher performance on the power curve as well. So the question is, do they have a bankable wind turbine? And the way I think they overcome that and steps are all ready going in place just to bring along the Chinese bank financing, so by definition they are therefore bankable. In support of all that, Jesse, you’re going to see here in this calendar year wind turbine is going in the United States from Sinovel 3 megawatt and 1.5 megawatt machines, so that’s underway. And, by the way, let’s not forget Hyundai for the industries. Their focus is on the North American market and they will be shipping turbines to the US, the 1.65 megawatt wind turbines to start. So, on top of all that, when you speak about Europe, I think we’re all thinking about the offshore market in the North Sea, primarily now around the UK and our customers, our licenses clearly have their sights set on the offshore market with the 3 megawatt, but primarily the 5 megawatt machines, and here I would point you to Sinovel, Hyundai and Dongfong for that matter who are now moving forward with their 5 megawatt machines. Future, of course, for the offshore, the dominant force we think is going to be the Sea Titan superconductor wind turbines, but more on that later.

We’ll go next to Theodore O’Neil with Wunderlich SEZ. Theodore O’Neil – Wunderlich SEZ: Thank you. Greg, when do you plan to have a 10 megawatt superconducting generator for us to see? And how do you plan to address reliability issues created when you add a refrigeration system to the mix?

Well, Theodor, we don’t think it’s that difficult at all to scale down from a 36.5 megawatt motor which was fully low tested by the US Navy about 18 months ago to a 10 megawatt size for a wind turbine, the higher torque, but we completely – clearly know how to handle that. I’ll tell you, the requirements for the refrigeration system are there, but we’ve been through a very tight screen with the US Navy. I’ve been in many a meeting with the US Admirals who’ve asked exactly the same question you have, and over a decade of work has been used on that using the base of cryo-refrigerators that have been in the market for a very long time from a semiconductor processing industry, for example for MRIs 8.9 mean – 8.9 years meantime between failure has been established there over time. So I think the answer is that’s reliable technology, it’s available, it’ll be used and we don’t see any issue with it whatsoever.

We’ll go next to Ben Schuman with Pacific Crest. Ben Schuman – Pacific Crest: Hi, guys. Two-part question on the D-VAR business; first, if you could tell us how much of the 12% non-Sinovel win business came from D-VARs for wind interconnection, that would be great; and then if you could just discuss kind of the trajectory of the D-VAR business by region and by application as you look out this year and beyond?

Well, on the first one, I’m not going to give you a detailed breakout on that, but I will say it’s mostly D-VAR for the grid market. And, in fact, this year we planned to be shipping a record number of D-VARs to our customers. And what was the second part of the question, Ben? I guess we lost him. Yes, and just a breakout of the D-VARs by market I believe.

Yes, so Ben, this is Jason Fredette. Our D-VAR is always in the grid side of the business, even though if it’s connecting a wind farm to the grid, it’s a grid application. So the remaining 12% of our wind business has all components there and licensing and development types of revenues to other customers.

Thank you. Next question.

We’ll go next to Vishal Shah with Barclays Capital. Jake Green Black – Barclays Capital: Hi guys, this is Jay Greenblatt for Vishal, congratulations on a nice quarter.

Thank you, Jake. Jake Green Black – Barclays Capital: Just a couple quick questions; looks like on the gross margins, I know you mentioned that 170 basis points on FX. It looks like there was some additional improvement. Could you give a little color on that? And any progress with the solar motor market?

Now, on the gross margins, I think that we just continue to execute well. We had – I mentioned superconductors, the operating loss there quarter-on-quarter and that’s because of improved wire manufacturing performance which has a favorable effect on our gross margins. So I will turn over to –

Yes, on the solar side, we announced in our last earnings call, a first the order for the solar industry basically a D-VAR solution for a solar power plant here in the United States and we are in a lot of discussions with many solar power plant developers, we’re very enthusiastic about this area, and I think you’ll hear more in terms of orders by the end of this fiscal year for sure.

We’ll go next to Jim Ricchiuti with Needham and Company. Jim Ricchiuti – Needham and Company: Thank you and good morning.

Good morning, Jim. Jim Ricchiuti – Needham and Company: Greg, just a question on the superconductor wire side of the business. Can you talk about where you are in terms of gross capacity now and where do you see yourself as you move forward with this next phase of investment for this new process, manufacturing for 100 millimeter? Is this something that will take over the next couple of quarters and a year? Maybe you can give us a sense of the timeline.

So, Jim, in the last few calls, we’ve stopped talking about gross capacity and all that sort of thing. Now that we’re entering a commercial market place, this is competition sensitive information. We don’t want to put out that information in the public for our competitors who do listen to these calls by the way. So I’m not going to be able to answer that question, but I can tell you that, as I said in my remarks that we’re moving forward on plan, tracking the plan, and do expect to be able to meet our customers’ demand. And, as I said, the question that we’re getting now from our customers and potential customers, our partners is, will we have the capacity to meet their demand? Our answer is a solid yes and I think we’re doing all the right things to be able to meet that demand in the years ahead.

We’ll go next to Stewart Bush with RBC Capital Markets. Stewart Bush – RBC Capital Markets: Yes, hi, good morning, guys.

Good morning. Stewart Bush – RBC Capital Markets: When you sign a contract with a wind customer to license a design, does that customer pay royalties on units that they ship indefinitely or is it limited to a certain number of units as it is with Hitachi? And to that point, do I understand correctly that a contract value that you announced includes both power electronic sales and royalties embedded together?

So, Stewart, I’m not sure what you’re talking about Hitachi, but that aside, we’ve said for years now that indicates where we do have royalties and it’s not every day. So we do development contracts, we do specific development and designs for certain customers and obviously they’re paying for that and there’s no royalty. But when we do license a design, especially the 1.65 megawatt to a CSR mobile energy and so forth, there is a royalty. And as we’ve again said, every time we put those announcements out, it’s for the first several hundred units maybe 300, 400, 500 wind turbines, they pay a royalty and then that goes away. In any case, the upfront payment, the upfront license fee and the royalty payments we’ve consistently said that that’s a very small amount of revenue relatively speaking; it’s very nice revenue because it mostly drops to the bottom line. But the real driver for our top and bottom line is the sales of the core components, which obviously have some pretty decent gross margins I would say.

The other thing to note, Stewart, is that we separate. Royalties are generally included on the licensing contracts when we have them. Any component contract we entered into, there’s no royalty component to it, it’s just the straight value for the components that we saw.

We’ll go next to John Hardy with Gleacher and Company. John Hardy – Gleacher and Company: Yes, thank you for taking my question. Maybe if I could ask Jim's question in a bit of a different way. So, you basically have three big components for HCS [ph] over the next year or two, we have Korean and China grid market, Tres Amigas, and as well as Sea Titan. I was wondering what you thought – what type of volume growth you would expect in maybe '11 and '12 based on those maybe three buckets? And during that ramp phase, what potential impact do you think that that could have on gross margins in '11 and '12?

Well, let’s step back. First of all, it’s not just Tres Amigas and the Korean grid, which we think is going to be huge for us obviously and not just Sea Titans for that matter. So we were addressing cable opportunities actively and have them in Europe. China, we’ve talked about state grid and their request for information out on the street. We think they’ll be putting their first order out in the next 12 months for the Chinese grid. So that’s we think it’s going to be obviously huge once that gets going, and we talked in the call here in my remarks about project hydro. So there’s a lot of activity going on not just in the ones you mentioned to start with. Beyond that, we don’t get into what our projected volumes are and the volumes for market at this stage of the game. But let me point out and I’ll just say the wire side and then I’m going to talk about what’s really going to tie to our top line and bottom line. On the wire side, it’s roughly 200,000 meters of wire per circuit mile of cable and that’s pretty much the case with DC or AC systems, and that’s I think a conservative number, it should be a bit more actually, and it’s about at least 200,000 meters of wire curve Sea Titan wind generator. So lot of wires gets involved. We’ve talked in the past about 3 million to 4 million meters of wire shipped out the door is our P&L breakeven, I don’t think we’re that many years away from achieving that now, but let me step back. The answers that I want to give you is that what’s going to drive our top line in the near term is not just the wire sales, but the revenue associated with the projects. We’re running the hydro-project in New York City, we will be supplying the cable system for Tres Amigas. So those project revenues are going to drive our top line and bottom line in addition to of course making money on the wire sales going forward.

We’ll go next to Timothy Arcuri with Citi. Seth – Citi: Hi guys, it’s Seth. Can you just talk about a little bit more color, hopefully, I guess, on what your outlook is for gross margins?

Yes. Seth, on the gross margin, we fully kind of stopped giving guidance on gross margin. We talked about it in our last call, but it was competition sensitive, sensitive information, so we preferred to not talk about gross margin guidance going forward. But, that being said, we've also talked about in the past opportunities to improve gross margins. We instituted cost reduction plans last year that we're still realizing the benefits from. So when you look at our gross margins on a year-over-year basis, you're seeing some of the effects of that and there's future gross margin opportunities that we think that are available to us to improve them going forward, and of course we'll look to pursue those. But we're shying away from right now giving any outlook on future gross margin.

We’ll go next to Ben Kallo with Baird. Ben Kallo – Baird: Hi, good morning, thanks for taking my question. I have two questions. And following on to that gross margin conversation, can you give us any kind of directional outlook for the wind business? As Sinovel becomes more of a larger portion of your revenue and the orders get bigger and you sign on different types of turbines with them, how should we think about margins going directionally there? Is there any pressure on pricing there? And then secondly, in the past you've given a percentage of your revenue guidance in backlog, could you update us on that?

So, we really have not seen the pricing pressure that you might be thinking about or might guess about in these orders with Sinovel or others. And I think the reason for that is that we are providing a highly proprietary, highly differentiated set of product, the core components, the control systems for these wind turbines. So – but having done that, and don’t anticipate that’ll be there. Obviously, as Dave said, we always prepare for that sort of thing by taking the cost out and we have an additional efforts and opportunities to remove more cost this year and going forward, we’re doing that. Since we go along with the PM-3100, I think that’s going to give us more opportunity there. So we think we’re in great shape in terms of our margins going forward. And, I guess I forgot, what was the rest of the question? How we change with bigger sizes?

I mean there was really not a significant difference in gross margin, if that was your question. There is not a significant difference in gross margin between say a 1.5 megawatt set of core components to say 3 megawatts set of core components, it doesn’t look a deal.

Next question.

We’ll go next to JinMing Liu with Ardour Capital. JinMing Liu – Ardour Capital: Good morning, nice quarter.

Thank you. JinMing Liu – Ardour Capital: In China, I noticed there are potentially two senders are regulating the connection between wind farms and the grid will come out in the very near future. Can you comment what impact that will have on your business? And also, David, can you give us any color on the dollar amount on the receivable collected from Sinovel in July?

So, I’ll take the first part of that. Your question was about great interconnection of wind farms in China. So for at least four years now, we have been in China speaking to State Grid which runs 88% of the power grid in China and Southern China as well, China [inaudible] as well, China Wind Energy Association and all of those discussions have been focused on, that they are going to need to take care of dynamic voltage control for the interconnection of wind farms to the grid in China as wind becomes a larger fraction of the total power generator. I think we started to get some really nice traction in the last year. We have three sites in China now, where our D-VAR is providing the grid interconnection, the Chinese customers, the grid operators are very happy with it. So I think we’re just getting started there. Through that entire process, you may now that part of our sales process is that these are transmission planning engineers, we call it our network solutions team, to provide the reasons and the ways you protect a grid from the wind farms and how the wind farms can be protected from the grid. You don’t set a [inaudible] on the grid. We’ve taken that team over to China. They’ve been in extensive meetings and providing seminars and so forth. So we think we’re actually helping to set the grid interconnection standards in China. So with those reference sites in place and influencing the grid interconnection standards, we see a very good future for D-VAR grid interconnection solutions going forward. And, by the way, not just for wind, but China is also doing large scale solar power plants, and we think we have our foot in the doors quite forwardly on that end. Dave, you want to comment on the receivables?

Yes, on the receivables, we’ve received a payment from Sinovel as I mentioned, roughly around the first week of July. But when you back out the BAT, which we just basically turn around in and remit to the government, net of $20 million we received.

We’ll go next to Jeremy Hellman with Divine Capital Markets. Jeremy Hellman – Divine Capital Markets: Hi, good morning, everybody.

Good morning. Jeremy Hellman – Divine Capital Markets: I just wanted to speak more broadly, given the shifting winds here in the US, Kerry-Lieberman bill is off the table, draft of bill from Senator Reed is out there. What broadly and also backing that up, was some commentary out of AWEA earlier this week that of course is going to cast things in more of a direr light as they try and advocate for a renewable energy standard here in the US. But when you speak to Sinovel and HHI or any of your other customers, what is your sense of their outlook for the US market?

Well, as I mentioned in my remarks, the US market is in a temporary slowdown. The forecast for this year, at least 40% lower, installations in last year, that looks to be the case. So everybody seems to be on board with that kind of forecast. Having said that, we’re starting to see some traction in terms of wind farm developers moving forward. And the industry expects, not just us that it’s going to pick up in 2011 and 2012 and beyond. Ultimately, we see and I think the industry sees a very healthy, very strong market in the US and our licensees with Sinovel and Hyundai, they’ll sure look at this and say, “Gee, that’s great, it’s slowing down, that gives us time to get our turbines fully qualified, you know, 60 hertz application here in the United States and so forth, get our financing lined, whatever it takes. Get our first reference sites here in the United States in 2010 and 2011.” So I think our licensees are going to take full advantage of this slowdown to be ready to go when the market starts picking up here again in the year. So we can fully look for whether there is something in the new energy bill or not, I think you can absolutely count on there being an extension of a production tax credits for wind farms on a going forward basis, there is actually absolutely no stoppage of that whatsoever. Look at the Wall Street Journal this morning and the reports on affirmation of the global warming, I think that’s going to resonate in Washington. And again, don’t look for an energy bill; I think that’s probably gone by the wayside. But look for a continuation of production tax credits in the future for sure.

Just to add on top of that, in Sinovel, [inaudible] talked about a substantially increasing their production capacity this year. And, just to be clear, that’s really not dependent upon anything going on with the US market. That’s really for internal consumption in China. So Sinovel is preparing, in terms of their capacity for meeting the demands that they see into their backlog and the growth of the China market is typical.

Yes, let me add, there was an earlier question I think as well on that remark that Sinovel is about a 25% market share in China as of now and we all see that growing. So basically growth I mentioned in our remarks, Sinovel publicly talking about doubling its output this year, that should get them up around 7 gigawatts. And so, as the China market for wind continues to grow strongly, look for Sinovel and I think our other Chinese licensees to contribute – take more market share. So, right now, we’re in more than 25% of the wind turbines in China. On a going forward basis, we see that going up to the 50% plus range.

We’ll go next to Pavel Molchanov with Raymond James. Pavel Molchanov – Raymond James: Thank you for taking my question. You said before that you're targeting signing up a US wind licensee. And given your comments about the comparatively slower opportunities in the US market, how does that play into that strategy?

Well, first of all, let me affirm that we expect to have our first US licensee, our wind licensee within the next – what is it, probably now 16, 17 months and pre-first that 24 months last November. So we are very much on track to accomplish our objective. And, once again, just like our foreign licensees, the US – potential US licensees are saying, “Look at the slowdown, that fuels up the chance to get into the market, get our production setup, and be ready to participate in the strong growth that we all see in the US market.” So – but we expect to have that licensee and more forward and smartly lift them.

We’ll go next to Carter Shoop with Deutsche Bank. Carter Shoop – Deutsche Bank: Hi. As a follow-up question, can you elaborate on your outlook for the superconductors business through the remainder of the year? Do you expect the loss per quarter to remain consistent with current levels?

Yes, we said that consistently that should be about the same quarter-over-quarter for this year.

On a full-year basis, we would expect superconductor’s operating loss to be roughly in line with the amounts that you saw last year.

And that’s consistent with what we said early. And, obviously, we’re in that investment and scale up mode right now, so I don’t think that’s a surprise.

We’ll go next to Carter Driscoll with Capstone. Carter Driscoll – Capstone: Hi, good morning, gentlemen. First question, just on the CapEx side, I think you said last quarter targeting roughly $40 million to $50 million for expenditures. Has that allocation shifted between plant expenditures or some of your planned projects, maybe on the ERP? Has anything changed meaningfully, gone up or down?

No that really hasn't changed. We're still expecting around $40 million to $50 million in CapEx. And we're talking about the superconductors’ investment in this call, because we see things and we'd like you to understand the reasons for the investment. But that being said, that doesn't mean the magnitude of the investment has changed any. It's still – so a component of that $40 million to $50 million it's not the majority of it, but it's a sizable component of it. We talked about other investments we're making. The ERP system you mentioned, we're going to be putting up wind turbines both in the US and in Europe to be able to test and qualify the next generation components. So, those plans have not changed. And as we said before and we continue to expect, the capital that we're seeing this year, we expect it to be substantially lower in fiscal ‘11.

And I think it’s worth repeating that that $40 million to $50 million is going to come from cash we generate from our operation. And at the end of the year, we expect to be net cash flow positive.

We’ll go next to Timothy Arcuri with Citi. Timothy Arcuri – Citi: Can you guys comment on your outlook? I mean, there's supposed to be a number of customers coming on line and going into production this year. Can you possibly give any status generally as to whether those timelines are still consistent with previous expectations?

Yes, we are. So no changes really on that going through. Everything’s on track.

We’ll take our final question from Ben Kallo with Baird. Ben Kallo – Baird: Guys, in the past you've given a percentage of your revenue guidance that 's all ready in backlog. Could you update us on that?

Yes, we typically give that at the beginning of the year and we don’t typically update that on a quarter-to-quarter basis. But we do have felt that we still need to get further – in terms of orders that we need to get in China for the rest of this year, but we wouldn’t have updated our revenue guidance today if we didn’t feel pretty confident about getting those orders, booking them, and being able to ship them.

And, at this time, there are no further questions. I’ll turn the call back to Mr. Greg Yurek.

Thanks for listening in today and for your great questions and we look forward to talking with you on the next quarterly call. Bye.

This does conclude today’s conference call. We thank you for your participation.