AMSC (NASDAQ:AMSC), a global solutions provider serving wind and
power grid industry leaders, today announced preliminary financial
results for its third fiscal quarter ended December 31, 2016. For
the third quarter of fiscal year 2016, AMSC expects its revenues to
be in the range of $26 - $27 million, compared to the Company's
previous third quarter revenue guidance of $23 -$25 million.
Revenues are expected to increase in both the Wind and Grid
segments in the third fiscal quarter compared to the same quarter a
year ago.
The Company expects its net loss to be in the range of $2.5 -
$3.0 million, which is improved compared to the Company’s previous
guidance for net loss of less than $8.0 million. In addition, the
Company’s cash, cash equivalents, and restricted cash for the
period ended December 31, 2016 was approximately $26.0 million.
The preliminary, unaudited information provided above is based
on the Company’s current estimate of results from operations for
the third quarter of fiscal year 2016, and its cash, cash
equivalents, and restricted cash as of December 31, 2016.
This information remains subject to change based on the Company’s
quarter-end closing procedures, including its execution of its
internal controls over financial reporting and the subsequent
occurrence or identification of events prior to the formal issuance
of the quarterly financial statements.
In addition, on January 27, 2017, AMSC entered into an At Market
Issuance (“ATM”) Sales Agreement (“Sales Agreement”) with FBR
Capital Markets & Co. (“FBR”), pursuant to which the Company
may sell from time to time, at its option, up to an aggregate of
$10.0 million of its shares of common stock through FBR, as sales
agent. Sales of the common stock made pursuant to the Sales
Agreement, if any, will be made in sales that are deemed to be “at
the market offerings” defined in Rule 415 under the Securities Act
of 1933, as amended, including sales made directly on or through
The Nasdaq Global Select Market or other existing trading market
for our common stock, under the Company’s previously filed and
currently effective Registration Statement on Form S-3 (File No.
333-198851) by means of ordinary brokers’ transactions at market
prices, or any other methods permitted by law. FBR will use its
commercially reasonable efforts to sell the Company’s common stock
from time to time, based upon the Company’s instructions (including
any price, time or size limits or other customary parameters or
conditions the Company may impose).
Any proceeds from the ATM are expected to be used to fund growth
initiatives in the Company’s Grid segment, including but not
limited to product development activities and to collateralize
performance bonds on future customer contracts, with the remainder,
if any, to be used for other general corporate and working capital
purposes.
Sales in the ATM offering, if any, would be made pursuant to the
prospectus supplement dated January 27, 2017, which supplements the
prospectus dated October 1, 2014, included in the shelf
registration statement that AMSC filed with the Securities and
Exchange Commission (“SEC”) on September 19, 2014.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy, nor may there be any sale of
AMSC’s common stock in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities law of any state or
jurisdiction.
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.
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. Any statements in this release about our expectations
regarding our anticipated financial results; potential “at the
market” sales of the common stock under the Sales Agreement and the
prospectus supplement dated January 27, 2017; use of proceeds
related to any “at the market” sales of the common stock made
pursuant to the Sales Agreement and the prospectus supplement dated
January 27, 2017; FBR’s use of commercially reasonable efforts in
selling the Company’s common stock; 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. Actual results
may differ materially from what we expect because of various risks
and uncertainties, including the risks that our actual financial
results may vary from the anticipated financial results; that the
Sales Agreement may not result in any actual sale of the common
stock or the anticipated use of proceeds; and that FBR may not use
commercially reasonable efforts or perform otherwise under the
Sales Agreement as expected in selling the common stock. Other
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 include, but are
not limited to: 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 subassemblies 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. 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
AMSC Investor Relations
Phone: 424-634-8592
Email: Brion.Tanous@amsc.com
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