Moving Massachusetts Facility
April 04 2017 - 12:00PM
AMSC (NASDAQ: AMSC), a global solutions provider serving wind and
grid leaders, today announced plans to reduce operating costs and
align the organization for anticipated Grid segment growth. AMSC
intends to focus on optimizing the manufacturing capacity
requirements of the company, as well as aligning our headcount to
effectively support our targeted revenue growth.
AMSC is currently exploring options for moving its manufacturing
and administrative operations at Devens, MA to a nearby,
smaller-scale building. A smaller-scale facility and its associated
reduction in operating costs is anticipated to boost manufacturing
efficiency, optimize the business for near-term revenues, and help
further align with our vision for growth.
“Our company was founded 30 years ago with the purpose of
manufacturing superconductor wire. Over the past several
years, we’ve worked to diversify our product portfolio and
transition the company to become the systems provider we are
today,” said AMSC President and Chief Executive Officer Daniel P.
McGahn. “We’ve evolved from manufacturing 1G superconductor wire to
delivering full systems with our 2G wire process. We are delivering
sustainable systems for the U.S. Navy fleet, grid infrastructure
and wind turbine generators. As a result, our 16-year-old
manufacturing facility is no longer suitable or sized for our
current or near-term business needs.”
AMSC expects to reduce its annualized expenses by approximately
$4 to $5 million once the savings are fully realized, which is
expected to occur by the end of fiscal year 2017. AMSC anticipates
that it will incur cash-related restructuring charges of
approximately $1.5 to $2 million for severance-related costs in the
fiscal quarter ending June 30, 2017.
In conjunction with this announcement, AMSC management will
participate in a conference call with investors beginning at 10:00
am Eastern Time on April 5, 2017. Those who wish to listen to the
live or archived conference call webcast should visit the
“Investors” section of the company’s website at
http://www.amsc.com/investors. The live call can also be accessed
by dialing 800-419-9895 and using conference ID 3155363.
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. 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 our expectations regarding
anticipated financial results; optimizing the manufacturing
capacity requirements of the Company; aligning our headcount to
effectively support our targeted revenue growth; moving the
Company’s and administrative operations to a smaller-scale
facility, and associated benefits; anticipated reduction in
annualized expenditures; anticipated cash-related restructuring
charges; 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: inability to locate or
secure a lease for a suitable new facility in Massachusetts; A
significant portion of our revenues are derived from a single
customer, Inox, and shipments to Inox may not commence in the time
frame we expect or at all; We have a history of operating losses
and negative operating cash flows, which may continue in the future
and require us 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 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 sub-assemblies 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
CleanTech IR, Inc.
Phone: 424-634-8592
Email: Brion.Tanous@amsc.com
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