AMSC Announces Preliminary Financial Results
April 26 2017 - 4:15PM
AMSC (NASDAQ:AMSC), a global solutions provider serving wind and
power grid industry leaders, today provided preliminary financial
results for the fourth fiscal quarter and full fiscal year ended
March 31, 2017.
For the fourth quarter of fiscal year 2016, AMSC expects its
revenues will be in the range of $15 million - $16 million,
compared to its previous fourth quarter revenue guidance of $22
million - $26 million. For the full fiscal year 2016,
AMSC expects its revenues to be in the range of $74 million - $75
million. The lower than expected revenue in the fourth quarter was
driven primarily by fewer than anticipated electrical control
system (“ECS”) shipments to Inox Wind Ltd. (“Inox”), due to what is
believed by Inox to be a temporary demand dislocation caused by the
reaction in certain states in India to a recent national wind
energy auction that resulted in a record-low power purchase tariff.
As a result of the revenue shortfall, AMSC’s net loss and non-GAAP
net loss for the fourth quarter of fiscal 2016 are both expected to
be higher than its previous guidance.
The Company expects its cash, cash equivalents, and restricted
cash (“cash”) at March 31, 2017 to be approximately $27.7 million
which includes $2.5 million of net proceeds from the sale of
379,693 shares in the fourth quarter under the Company’s
At-the-Market Issuance Sales Facility (“ATM”). This represents an
increase of $1.7 million compared to the cash balance at December
31, 2016, which is in line with the Company’s previous guidance for
cash burn of less than $2 million in the fourth quarter.
Preliminary Business Outlook
For the first quarter ending June 30, 2017, AMSC
currently expects that its revenues will be in the range of $8
million to $9 million, taking into account anticipated seasonally
lower ECS shipments to Inox as well as the temporary demand
dislocation previously discussed. The Company expects cash burn in
the range of $7 million to $8 million in the first quarter.
The preliminary, unaudited information provided
above is based on the Company’s current estimate of results from
operations for the fourth quarter and full fiscal year 2016, and
its cash at March 31, 2017, and remains subject to change based on
the Company’s closing procedures, including the Company’s execution
of its internal controls over financial reporting, and the
subsequent occurrence or identification of events prior to the
formal issuance of the annual financial statements. The Company
expects to report its final fiscal 2016 financial results on or
about May 25, 2017.
About AMSC (NASDAQ:AMSC) AMSC generates the
ideas, technologies and solutions that meet the world’s demand for
smarter, cleaner … better energy™. Through its Windtec™ Solutions,
AMSC provides wind turbine electronic controls and systems, designs
and engineering services that reduce the cost of wind energy.
Through its Gridtec™ Solutions, AMSC provides the engineering
planning services and advanced grid systems that optimize network
reliability, efficiency and performance. The Company’s solutions
are now powering gigawatts of renewable energy globally and are
enhancing the performance and reliability of power networks in more
than a dozen countries. Founded in 1987, AMSC is headquartered near
Boston, Massachusetts with operations in Asia, Australia, Europe
and North America.
AMSC, Windtec, Gridtec, and Smarter, Cleaner … Better Energy are
trademarks or registered trademarks of American Superconductor
Corporation. All other brand names, product names, trademarks, or
service marks belong to their respective holders.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"). Any statements in this
release about our expectations regarding shipments to Inox and the
temporary demand dislocation in India, our financial results for
the fourth quarter of fiscal 2016 and the full fiscal year 2016,
our anticipated cash balance at March 31, 2017 and our cash burn
during the quarter ending June 30, 2017, and other statements
containing the words "believes," "anticipates," "plans," "expects,"
"will" and similar expressions, constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Any statements in this release about our
expectations regarding anticipated financial results, strong
revenues in the fourth quarter and other statements containing the
words "believes," "anticipates," "plans," "expects," "will" and
similar expressions, constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements represent management's
current expectations and are inherently uncertain. There are a
number of important factors that could materially impact the value
of our common stock or cause actual results to differ materially
from those indicated by such forward-looking statements. These
important factors include, but are not limited to: A significant
portion of our revenues are derived from a single customer, Inox,
and shipments to Inox may not occur in the time frame we expect; We
have a history of operating losses and negative operating cash
flows, which may continue in the future and require us to secure
additional financing in the future; Our operating results may
fluctuate significantly from quarter to quarter and may fall below
expectations in any particular fiscal quarter; Our financial
condition may have an adverse effect on our customer and supplier
relationships; Our success in addressing the wind energy market is
dependent on the manufacturers that license our designs; Our
success is dependent upon attracting and retaining qualified
personnel and our inability to do so could significantly damage our
business and prospects; We rely upon third-party suppliers for the
components and subassemblies of many of our Wind and Grid products,
making us vulnerable to supply shortages and price fluctuations; We
may not realize all of the sales expected from our backlog of
orders and contracts; Our success depends upon the commercial use
of high temperature superconductor ("HTS") products, which is
currently limited, and a widespread commercial market for our
products may not develop; Growth of the wind energy market depends
largely on the availability and size of government subsidies and
economic incentives; We have operations in and depend on sales in
emerging markets, including India and China, and global conditions
could negatively affect our operating results or limit our ability
to expand our operations outside of these countries; We face risks
related to our intellectual property; We face risks related to our
legal proceedings; and the important factors discussed under the
caption "Risk Factors" in Part 1. Item 1A of our Form 10-K for the
fiscal year ended March 31, 2016, and our other reports filed with
the SEC. These important factors, among others, could cause actual
results to differ materially from those indicated by
forward-looking statements made herein and presented elsewhere by
management from time to time. Any such forward-looking statements
represent management's estimates as of the date of this press
release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
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.
AMSC Contact:
Brion D. Tanous
AMSC Investor Relations
Phone: 424-634-8592
Email: Brion.Tanous@amsc.com
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