AMSC (Nasdaq:AMSC), a global solutions provider serving wind and
power grid industry leaders, today announced that it has
successfully installed and commissioned three D-VAR® STATCOM
systems in Africa and the United States. The new installations are
connecting renewable power plants to the grid and ensuring power
quality at industrial sites. Additionally, AMSC announced that it
has won four new D-VAR contracts in Australia, North America, and
South Africa. For all of these new contracts, the D-VAR system will
be used to meet grid interconnection standards and safely and
efficiently connect wind and solar energy generation plants to the
power grid.
Renewable Installations
Located at the wind or solar plant substation, AMSC's D-VAR
STATCOM provides a renewable energy integration solution that
allows power plants to stay online and helps prevent the nuisance
tripping of solar inverters and wind turbine generators. Customers
utilize AMSC's D-VAR solutions to provide dynamic voltage control,
power factor correction and post-contingency reactive compensation
to stabilize the power grid and prevent undesirable events such as
voltage collapse. The new installations include:
- Kahuku Wind project in Oahu, Hawaii: First
Wind, an independent U.S.-based wind energy company, is using the
solution to connect the 30 megawatt (MW) Kahuku Wind project to the
Hawaiian Electric Company's (HECO) grid.
- Cookhouse Wind Farm near Port Elizabeth, South
Africa: Consolidated Power Projects (CONCO), South
Africa's largest high voltage construction company, has installed
the D-VAR system as part of its efforts to connect the 140 MW
project to the Eskom's grid. Eskom is South Africa's primary
electric utility.
Industrial Installations
Every year, billions of dollars in revenue are lost due to
momentary power quality problems. The slightest variations in
voltage can cause hours of downtime, resulting in lost productivity
and the need to recalibrate equipment. When used to enhance power
quality, AMSC's D-VAR system can cost effectively provide
efficiency, protection, and a secure connection, helping industrial
facilities achieve smooth operation and realize their full profit
potential. AMSC also installed a D-VAR system for a power quality
application at the Yellowstone Valley Electric Co-op in Montana,
United States. The Yellowstone Valley Electric Co-op is using a
D-VAR system to mitigate the voltage sags and flicker caused by
large power draw from a local car shredding facility.
"To achieve our financial targets, we remain focused on winning
new orders in both existing and emerging markets," said Daniel P.
McGahn, President and CEO, AMSC. "The new orders we announced
today, in conjunction with the new installations, demonstrate our
accomplishments in our core markets of Australia and the United
States as well as in Africa, one of our targeted emerging
markets."
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 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 http://www.amsc.com.
AMSC, Windtec and Gridtec are trademarks or registered
trademarks of American Superconductor Corporation. All other brand
names, product names, trademarks or service marks belong to their
respective holders.
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 future expectations, plans, prospects, and our ability to win
new orders in existing and emerging markets to achieve our fiscal
targets 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: We have experienced recurring
operating losses and recurring negative cash flows from operations
which raise substantial doubt about our ability to continue as a
going concern. This substantial doubt has resulted in a qualified
opinion from our auditors with an explanatory paragraph regarding
our ability to continue as a going concern. We believe this opinion
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; we may not
realize all of the sales expected from our backlog of orders and
contracts; our business and operations would be adversely impacted
in the event of a failure or security breach of our information
technology infrastructure; 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, 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; 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 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 have experienced recurring losses from operations and
negative operating cash flow; these factors raise substantial doubt
regarding our ability to continue as a going concern; we have a
history of operating losses, and we may incur additional losses in
the future; our operating results may fluctuate significantly from
quarter to quarter and may fall below expectations in any
particular fiscal quarter; we may require additional funding in the
future and may be unable to raise capital when needed; our debt
obligations include certain covenants and other events of default;.
Should we not comply with the covenants or incur an event of
default, we may be required to repay our debt obligations in cash,
which could have an adverse effect on our liquidity; 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; 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; growth of the wind
energy market depends largely on the availability and size of
government subsidies and economic incentives; we depend on sales to
customers in 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;
the commercial uses of superconductor products are limited today,
and a widespread commercial market for our products may not
develop; 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 to purported stockholder
class actions and stockholder derivative complaints, 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, 2013, 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 Mar 2024 to Apr 2024
American Superconductor (NASDAQ:AMSC)
Historical Stock Chart
From Apr 2023 to Apr 2024