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These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) Three Months Ended Twelve Months Ended March 31, March 31, 2025 2024 2025 2024 Revenues Grid$55,592 $34,211 $187,170 $122,065 Wind 11,063 7,817 35,648 23,574 Total revenues 66,655 42,028 222,818 145,639 Cost of revenues 48,964 31,598 160,964 110,356 Gross margin 17,691 10,430 61,854 35,283 Operating expenses: Research and development 3,493 2,298 11,425 7,991 Selling, general and administrative 12,101 7,953 43,091 31,600 Amortization of acquisition related intangibles 444 538 1,733 2,152 Change in fair value of contingent consideration — 1,870 6,682 4,922 Restructuring — — — (14)Total operating expenses 16,038 12,659 62,931 46,651 Operating income (loss) 1,653 (2,229) (1,077) (11,368) Interest income, net 807 784 3,708 1,302 Other expense, net (49) (117) (265) (736)Income (loss) before income tax (benefit) expense 2,411 (1,562) 2,366 (10,802) Income tax (benefit) expense 1,204 17 (3,667) 309 Net income (loss)$1,207 $(1,579) $6,033 $(11,111) Net income (loss) per common share Basic$0.03 $(0.05) $0.16 $(0.37)Diluted$0.03 $(0.05) $0.16 $(0.37) Weighted average number of common shares outstanding Basic 37,672 33,139 36,990 29,825 Diluted 38,516 33,139 37,718 29,825 CONSOLIDATED BALANCE SHEET(In thousands, except per share data) March 31, March 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents$79,494 $90,522 Accounts receivable, net 46,186 26,325 Inventory, net 71,169 41,857 Prepaid expenses and other current assets 8,055 7,295 Restricted cash 1,613 468 Total current assets 206,517 166,467 Property, plant and equipment, net 38,572 10,861 Intangibles, net 5,916 6,369 Right-of-use assets 3,829 2,557 Goodwill 48,164 43,471 Restricted cash 4,274 1,290 Deferred tax assets 1,178 1,119 Equity-method Investments 1,113 — Other assets 958 637 Total assets$310,521 $232,771 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses$32,282 $24,235 Lease liability, current portion 685 716 Debt, current portion — 25 Contingent consideration — 3,100 Deferred revenue, current portion 66,797 50,732 Total current liabilities 99,764 78,808 Deferred revenue, long term portion 9,336 7,097 Lease liability, long term portion 2,684 1,968 Deferred tax liabilities 1,595 300 Other liabilities 28 27 Total liabilities 113,407 88,200 Stockholders' equity: Common stock, $0.01 par value, 75,000,000 shares authorized; 39,887,536 and 37,343,812 shares issued and 39,484,185 and 36,946,181 shares outstanding at March 31, 2025 and 2024, respectively 399 373 Additional paid-in capital 1,259,540 1,212,913 Treasury stock, at cost, 403,351 and 397,631 at March 31, 2025 and 2024, respectively (3,765) (3,639)Accumulated other comprehensive income 1,565 1,582 Accumulated deficit (1,060,625) (1,066,658)Total stockholders' equity 197,114 144,571 Total liabilities and stockholders' equity$310,521 $232,771 CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) Year Ended March 31, 2025 2024 Cash flows from operating activities: Net income (loss)$6,033 $(11,111)Adjustments to reconcile net income (loss) to net cash provided by operations: Depreciation and amortization 5,560 4,494 Stock-based compensation expense 7,794 4,652 Provision for excess and obsolete inventory 1,532 1,970 Amortization of operating lease right-of-use assets 976 321 Deferred income taxes (4,304) 65 Earnings from equity method investments 132 — Change in fair value of contingent consideration 6,682 4,922 Other non-cash items (587) 44 Unrealized foreign exchange gain on cash and cash equivalents (41) (2)Changes in operating asset and liability accounts: Accounts receivable (3,213) 4,340 Inventory (7,707) (6,841)Prepaid expenses and other current assets 543 5,992 Operating leases (1,563) (327)Accounts payable and accrued expenses 3,209 (13,498)Deferred revenue 13,239 7,117 Net cash provided by operating activities 28,285 2,138 Cash flows from investing activities: Purchases of property, plant and equipment (2,415) (934)Cash paid to settle NWL contingent consideration liability (3,278) — Cash paid for NWL Acquisition, net of cash acquired (29,577) — Change in other assets 64 (27)Net cash used in investing activities (35,206) (961) Cash flows from financing activities: Repurchase of treasury stock (126) — Repayment of debt (25) (65)Cash paid related to registration of common stock shares (148) — Proceeds from public equity offering, net — 65,227 Proceeds from exercise of employee stock options and ESPP 307 279 Net cash provided by financing activities 8 65,441 Effect of exchange rate changes on cash, cash equivalents and restricted cash 14 (13) Net (decrease) increase in cash, cash equivalents and restricted cash (6,899) 66,605 Cash, cash equivalents and restricted cash at beginning of year 92,280 25,675 Cash, cash equivalents and restricted cash at end of year$85,381 $92,280 RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME(In thousands, except per share data) Three Months Ended March 31, Year Ended March 31, 2025 2024 2025 2024 Net income (loss)$1,206 $(1,579) $6,033 $(11,111)Stock-based compensation 2,855 1,044 7,794 4,652 Amortization of acquisition-related intangibles 706 538 2,433 2,158 Change in fair value of contingent consideration — 1,870 6,682 4,922 Acquisition costs — — 1,095 — Non-GAAP net income 4,767 1,873 24,037 621 Non-GAAP net income per share - basic$0.13 $0.06 $0.65 $0.02 Non-GAAP net income per share - diluted$0.12 $0.05 $0.64 $0.02 Weighted average shares outstanding - basic 37,672 33,139 36,990 29,825 Weighted average shares outstanding - diluted 38,516 34,447 37,718 30,909 Reconciliation of Forecast GAAP Net Income to Non-GAAP Net Income(In millions, except per share data) Three months ending June 30, 2025 Net income$1.0 Stock-based compensation 2.6 Amortization of acquisition-related intangibles 0.4 Non-GAAP net income$4.0 Non-GAAP net income per share$0.10 Shares outstanding 38.7 Note: Non-GAAP net income (loss) is defined by the Company as net income (loss) before; stock-based compensation; amortization of acquisition-related intangibles; changes in fair value of contingent consideration; acquisition costs; other non-cash or unusual charges, and the tax effect of adjustments calculated at the relevant rate for our non-GAAP metric. The Company believes non-GAAP net income (loss) and non-GAAP net income (loss) per share assist management and investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding these non-cash, non-recurring or other charges that it does not believe are indicative of its core operating performance. Actual GAAP and non-GAAP net income (loss) and net income (loss) per share for the fiscal quarter ending June 30, 2025, including the above adjustments, may differ materially from those forecasted in the table above, including as a result of changes in the fair value of contingent consideration.
Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; While we generated positive operating cash flow in fiscal 2024 and the prior year, we have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; Changes in exchange rates could adversely affect our results of operations; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may be required to issue performance bonds, which restricts our ability to access any cash used as collateral for the bonds; We may not realize all of the sales expected from our backlog of orders and contracts; If we fail to implement our business strategy successfully, our financial performance could be harmed; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; Our contracts with the U.S.government are subject to audit, modification or termination by the U.S.government and include certain other provisions in favor of the government.
If this customer’s business is negatively affected, it could adversely impact our business; Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits; Many of our revenue opportunities are dependent upon subcontractors and other business collaborators; Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share; Many of our customers outside of the United States may be either directly or indirectly related to governmental entities, and we could be adversely affected by violations of the United States Foreign Corrupt Practices Act and similar worldwide anti-bribery laws outside the United States; We or third parties on whom we depend may be adversely affected by natural disasters, including events resulting from climate change, and our business continuity and disaster recovery plans may not adequately protect us or our value chain from such events; Pandemics, epidemics, or other public health crises may adversely impact our business, financial condition and results of operations; Adverse changes in domestic and global economic conditions could adversely affect our operating results; Our international operations are subject to risks that we do not face in the United States, which could have an adverse effect on our operating results; Our products face competition, which could limit our ability to acquire or retain customers; We have operations in, and depend on sales in, emerging markets, including India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these markets.
