AMSC (Nasdaq:AMSC), a global solutions provider serving wind and
power grid industry leaders, today provided preliminary financial
results for the fourth quarter and full fiscal year 2014, ended
March 31, 2015.
For the fourth quarter of fiscal year 2014, AMSC expects its
revenues will be in the range of $24-$25 million, the upper end of
its previously guided range. For the full fiscal year 2014, AMSC
expects its revenues to be in the range of $69 to $70 million. In
addition, the Company expects to end the fiscal year with
approximately $24.5 million of cash, cash equivalents, and
restricted cash, which reflects payment made to Ghodawat Energy Pvt
Ltd during the fourth quarter of fiscal 2014 in final settlement of
their arbitration claim.
During the first half of fiscal 2015, the Company expects to
announce:
- A large wind order; - A new city conducting a
deployment study of the Resilient Electric Grid solution; and -
Orders for its D-VAR® system.
In the longer term, the Company expects:
- To receive additional business from the U.S. Navy; and
- Have a decision on the second phase of its Resilient
Electric Grid project in Chicago.
"In fiscal year 2014, we put pieces of the business into place
to drive sustainable future growth. We believe that through the
achievement of items noted, the business will be well positioned on
the path towards sustainable positive cash flows," said Daniel P.
McGahn, President and CEO, AMSC.
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 2014, and its cash, cash
equivalents, and restricted cash as of March 31, 2015, and remains
subject to change based on the Company's closing procedures,
including our execution of our 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 year
2014 financial results in June 2015.
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 enables manufacturers to launch
best-in-class wind turbines quickly, effectively and profitably.
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
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. For more information, please visit
www.amsc.com.
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 expectations regarding expectations regarding our fourth
quarter and fiscal year 2014 financial results; our cash, cash
equivalents and restricted cash as of March 31, 2015; expected wind
orders, anticipated deployment and deployment studies for our
Resilient Electric Grid solution, expectations regarding a decision
on the second phase of our Resilient Electric Grid project with
Chicago, anticipated orders for our D-VAR® system, expectations for
additional business from the U.S. Navy, our plan for achieving
sustainable positive cash flows and future growth 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. Such factors include: The fact that the
preliminary statement of our financial results and cash, cash
equivalents and short-term investments contained in this press
release is subject to change pending the finalization of our
quarterly closing procedures and the subsequent occurrence or
identification of events prior to the formal issuance of our
quarterly financial statements; We have a history of operating
losses, which may continue in the future. Our operating results may
fluctuate significantly from quarter to quarter and may fall below
expectations in any particular fiscal quarter; 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 Term
Loans include certain covenants and other events of default. Should
we not comply with these covenants or incur an event of default, we
may be required to repay our obligation in cash, which could have
an adverse effect on our liquidity; We may be required to issue
performance bonds or provide letters of credit, which restricts our
ability to access any cash used as collateral for the bonds or
letters of credit; Changes in exchange rates could adversely affect
our results from operations; If we fail to maintain proper and
effective internal controls 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; 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 may not realize all of the sales
expected from our backlog of orders and contracts; Our financial
condition may have an adverse effect on our customer and supplier
relationships; Failure to successfully execute the consolidation of
our Grid manufacturing operations or achieve expected savings could
adversely impact our financial performance; Our business and
operations would be adversely impacted in the event of a failure or
security breach of our information technology infrastructure; We
may not be able to launch operations at our newly leased
manufacturing facility in Romania, and, if we are able to do so, we
may have manufacturing quality issues, which would negatively
affect our revenues and financial position; 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, which could harm our business;
Many of our revenue opportunities are dependent upon subcontractors
and other business collaborators; If we fail to implement our
business strategy successfully, our financial performance could be
harmed; 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; New regulations related to conflict-free minerals may force
us to incur significant additional expenses; 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. The continued funding of such contracts
remains subject to annual congressional appropriation which, if not
approved, could reduce our revenue and lower or eliminate our
profit; Many of our customers outside of the United States are,
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 have limited
experience in marketing and selling our superconductor products and
system-level solutions, and our failure to effectively market and
sell our products and solutions could lower our revenue and cash
flow; 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; 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 China and India,
and global conditions could negatively affect our operating results
or limit our ability to expand our operations outside of these
countries. Changes in China's or India's political, social,
regulatory and economic environment may affect our financial
performance; Our products face intense competition, which could
limit our ability to acquire or retain customers; 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; Adverse changes in domestic and global economic conditions
could adversely affect our operating results; We may be unable to
adequately prevent disclosure of trade secrets and other
proprietary information; Our patents may not provide meaningful
protection for our technology, which could result in us losing some
or all of our market position; There are a number of technological
challenges that must be successfully addressed before our
superconductor products can gain widespread commercial acceptance,
and our inability to address such technological challenges could
adversely affect our ability to acquire customers for our products;
We have not manufactured our Amperium wire in commercial
quantities, and a failure to manufacture our Amperium wire in
commercial quantities at acceptable cost and quality levels would
substantially limit our future revenue and profit potential; Third
parties have or may acquire patents that cover the materials,
processes and technologies we use or may use in the future to
manufacture our Amperium products, and our success depends on our
ability to license such patents or other proprietary rights; 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; We have filed a demand for arbitration and other
lawsuits against our former largest customer, Sinovel, regarding
amounts we contend are overdue. We cannot be certain as to the
outcome of these proceedings; We have been named as a party in
various legal proceedings, and we may be named in additional
litigation, all of which will require significant management time
and attention, result in significant legal expenses and may result
in an unfavorable outcome, which could have a material adverse
effect on our business, operating results and financial condition;
Our common stock has experienced, and may continue to experience,
significant market price and volume fluctuations, which may prevent
our stockholders from selling our common stock at a profit and
could lead to costly litigation against us that could divert our
management's attention.
These 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, 2014, and our other reports filed with the
SEC, 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.
CONTACT: AMSC Contact:
Kerry Farrell
Phone: 978-842-3247
Email: kerry.farrell @ amsc.com
American Superconductor (NASDAQ:AMSC)
Historical Stock Chart
From Aug 2024 to Sep 2024
American Superconductor (NASDAQ:AMSC)
Historical Stock Chart
From Sep 2023 to Sep 2024