- Revenues now expected to be in the range of $22
million to $24 million
AMSC (NASDAQ:AMSC), a global solutions provider serving wind and
power grid industry leaders, today announced updated financial
guidance for its third fiscal quarter ending December 31,
2015. The company now expects its revenues to be in the range
of $22 million to $24 million for the third quarter of fiscal 2015,
which is higher than its previous guidance of $19 million to $22
million. The improved outlook on third quarter revenues is
driven primarily by higher than anticipated revenues in the
company’s Wind segment. As a result of the higher than
anticipated revenues, the company now expects its net loss to be
less than $4.5 million, or $0.33 per share, compared to its
previous forecast of less than $5.5 million or $0.40 per
share. The company’s non-GAAP net loss is now expected to be
less than $7.5 million or $0.54 per share, compared to its previous
forecast of less than $8.5 million or $0.62 per share. Please
refer to the financial table below for a reconciliation of GAAP to
non-GAAP forecasted results.
“We now believe revenues in our Wind segment will be higher than
we previously expected,” said Daniel P. McGahn, President and CEO,
AMSC. “As a result of these higher than anticipated revenues
and improved collections, we now expect our cash flows in the third
fiscal quarter to be roughly neutral, resulting in an expected
ending balance of cash, cash equivalents and restricted cash at the
end of the third fiscal quarter to be roughly equivalent to the
balance at the end of the second fiscal
quarter.”
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 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 future expectations, plans and prospects for the company,
including, without limitation, our expectation regarding
future financial results, our expectation that our cash flows in
the third fiscal quarter will be roughly neutral, and
our expectation that our balance of cash, cash equivalents and
restricted cash at the end of the third fiscal quarter of 2015 will
be roughly equivalent compared to the end of the second fiscal
quarter of 2015, 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 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 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; A significant portion of our revenues are derived from a
single customer, 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 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 ramp up production at our new
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; 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,
particularly in China, 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 India and China, and global conditions could
negatively affect our operating results or limit our ability to
expand our operations outside of these countries. Changes in
India's or China'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; 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; and 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, 2015, 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.
|
Reconciliation of Forecast GAAP Net Loss to
Non-GAAP Net Loss |
(In millions, except per share
data) |
|
|
|
|
Three months ending |
Dec. 31, 2015 |
Net
loss |
$ |
(4.5 |
) |
Stock-based
compensation |
|
0.6 |
|
Gain on
sale of investment in Blade Dynamics |
|
(2.4 |
) |
Non-cash
interest expense |
|
0.1 |
|
Consumption
of zero-cost inventory |
|
(1.3 |
) |
Non-GAAP
net loss |
$ |
(7.5 |
) |
Non-GAAP
net loss per share |
$ |
(0.54 |
) |
Shares
outstanding |
|
13.8 |
|
|
|
|
|
Note: Non-GAAP net loss is defined by the Company as net loss
before stock-based compensation; amortization of
acquisition-related intangibles; restructuring and impairment
charges; consumption of zero cost-basis inventory; gain on sale of
investment in Blade Dynamics; non-cash interest expense;
change in fair value of derivatives and warrants; and other
unusual charges, net of any tax effects related to these items. The
Company believes non-GAAP net loss assists 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. The Company also regards non-GAAP net loss
as a useful measure of operating performance to complement
operating loss, net loss and other GAAP financial performance
measures. In addition, the Company uses non-GAAP net loss as a
factor in evaluating management’s performance when determining
incentive compensation and to evaluate the effectiveness of its
business strategies.
Generally, a non-GAAP financial measure is a numerical measure
of a company's performance, financial position or cash flow that
either excludes or includes amounts that are not normally excluded
or included in the most directly comparable measure calculated and
presented in accordance with GAAP. The non-GAAP measures included
in this release, however, should be considered in addition to, and
not as a substitute for or superior to, operating income, cash
flows, or other measures of financial performance prepared in
accordance with GAAP. A reconciliation of non-GAAP to GAAP net loss
is set forth in the table above.
AMSC Contact:
Brion D. Tanous
CleanTech IR, Inc.
Phone: 978-842-3247
Email: Brion.Tanous@amsc.com
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