DEVENS, Mass., Apr 05, 2011 (BUSINESS WIRE) --
American Superconductor Corporation (NASDAQ: AMSC), a global power
technologies company, today issued an update regarding its anticipated
financial results for its fourth quarter and fiscal year 2010 ended
March 31, 2011. AMSC expects to report final fourth quarter and full
fiscal year 2010 results in May 2011.
On March 31, 2011, Sinovel Wind Group Co., Ltd. (Sinovel) refused to
accept contracted shipments of 1.5 megawatt (MW) and 3 MW wind turbine
core electrical components and spare parts that AMSC was prepared to
deliver. AMSC believes that Sinovel intends to reduce its level of
inventory before accepting further shipments.
These delayed shipments are the primary cause for lower-than-anticipated
financial results for AMSC's fourth quarter and full fiscal year 2010.
AMSC currently expects total revenues for its fourth fiscal quarter will
be less than $42 million and that it will generate a net loss for the
fourth quarter on both a GAAP and non-GAAP basis. As a result, AMSC
currently expects its full year fiscal 2010 revenues to be less than
$355 million. This compares with the company's prior forecast for fiscal
2010 revenues of $430 million to $440 million. AMSC also expects that
its GAAP and non-GAAP earnings for full year fiscal 2010 will be well
below the company's previous forecasts.
AMSC estimates that its balance of cash, cash equivalents, marketable
securities and restricted cash as of March 31, 2011 was approximately
$240 million. This is down from $260.5 million as of December 31, 2010.
AMSC's cash balance was negatively impacted by an increased inventory
level related to the refusal of shipments by Sinovel, and Sinovel's
failure to pay AMSC for certain contracted shipments made in fiscal year
2010. As a result of both accumulated aged accounts receivable due to
payment delays and Sinovel's recent refusal to accept March deliveries,
AMSC is reviewing the appropriateness of the timing of its revenue
recognition on approximately $56 million of unpaid shipments in the
second, third and fourth quarters of fiscal 2010.
AMSC continues to have active discussions with Sinovel to determine when
Sinovel will accept further shipments and when it will pay for past
shipments. In the meantime, AMSC has taken certain actions to reduce
expenses, and the company is in the process of implementing plans to
better align spending with near-term revenues while continuing to
maintain a high level of service and support for its global Wind and
Grid customers.
About
American Superconductor (NASDAQ: AMSC)
AMSC offers an array of proprietary technologies and solutions spanning
the electric power infrastructure - from generation to delivery to end
use. The company is a leader in renewable
energy, providing proven, megawatt-scale wind turbine designs and
electrical control systems. The company also offers a host of Smart
Grid technologies for power grid operators that enhance the
reliability, efficiency and capacity of the grid, and seamlessly
integrate renewable energy sources into the power infrastructure. These
include superconductor power cable systems, grid-level surge protectors
and power electronics-based voltage stabilization systems. AMSC's
technologies are protected by a broad and deep intellectual property
portfolio consisting of hundreds of patents and licenses worldwide. More
information is available at www.amsc.com.
American Superconductor and design, Revolutionizing the Way the World
Uses Electricity, AMSC, Powered by AMSC, Amperium, D-VAR, dSVC,
FaultBlocker, PowerModule, PowerPipelines, PQ-IVR, PQ-SVC, SeaTitan,
SuperGEAR and Windtec and design are trademarks or registered trademarks
of American Superconductor Corporation or its subsidiaries. All other
brand names, product names or trademarks belong to their respective
holders.
Any statements in this release about future expectations, plans and
prospects for the company, including our expectations regarding the
financial performance of the company 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. 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: we
have a history of operating losses, and we may incur losses in the
future; our operating results may fluctuate significantly from quarter
to quarter and may fall below expectations in any particular fiscal
quarter, including any expectations resulting from financial guidance
issued by us; a significant portion of our revenues are derived from a
single customer, Sinovel, and revenues from this customer may decline in
future periods; any failure by this customer (or other customers) to
honor contractual obligations to accept products or to pay for products
may have a material adverse impact on our financial condition or results
from operations;additional or unanticipated issues leading
Sinovel to refuse to accept or pay for shipments; we may be subject to
restatement of financial information from prior periods, identification
of deficiencies in our internal control over financial reporting or
disclosure control and procedures, and/or additional unanticipated
accounting, audit and internal control issues; adverse changes in
domestic and global economic conditions could adversely affect our
business; changes in exchange rates could adversely affect our financial
results; we may not realize all of the sales expected from our backlog
of orders and contracts; we rely upon third party suppliers for the
components and subassemblies of many of our products, making us
vulnerable to supply shortages and price fluctuations; 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; and our patents may not provide meaningful protection
for our technology, which could result in us losing some or all of our
market position. Reference is made to these and other factors discussed
in the "Risk Factors" section of the company's most recent quarterly or
annual report filed with the Securities and Exchange Commission. In
addition, any forward-looking statements included in this press release
represent the company's views as of the date of this release. While the
company anticipates that subsequent events and developments may cause
the company's views to change, the company specifically disclaims any
obligation to update these forward-looking statements. These
forward-looking statements should not be relied upon as representing the
company's views as of any date subsequent to the date this press release
is issued.

SOURCE: American Superconductor Corporation
AMSC Contact:
Jason Fredette, 978-842-3177
Managing Director, Corporate Communications
jfredette@amsc.com