American Superconductor Corp. (AMSC) is maintaining a laser focus on expanding in China, despite its disastrous relationship with Sinovel Wind Group Co. Ltd. (601558.SH), China's largest wind-turbine maker.

The Massachussetts-based company, which makes software and hardware for wind turbines and electric transmission systems, has seen its revenue and stock price plunge since March, when American Superconductor, or AMSC, says Sinovel stopped paying its invoices and stopped accepting previously scheduled shipments.

On Thursday, AMSC booked revenue of about $48 million for the nine months ended Dec. 31, about one-fifth of its revenue for the same period in 2010.

AMSC is seeking $1.2 billion in payments and damages from Sinovel in lawsuits and an arbitration proceeding it filed last year in China. The U.S. company has accused Sinovel of stealing valuable trade secrets, copying protected software and canceling contracts.

A court in China's Hainan province dismissed one of the three lawsuits last week. AMSC had sought $200,000 for copyright infringement from Sinovel and Guotong Electric Co. Ltd. AMSC said although the amount is relatively small, it plans to appeal the decision.

In September, a former AMSC employee was convicted in an Austrian court of corporate espionage after admitting to having stolen AMSC's wind-power control software and having sold it to Sinovel through an intermediary.

Despite the setback, AMSC is expanding in China, where half the global wind-power market is centered and where interest in grid improvements is rising, AMSC Chief Executive Dan McGahn said Thursday.

"I don't believe this is a referendum on China or the Chinese wind industry," McGahn said in an interview, referring to the company's cases against Sinovel. "It's the action of one company."

McGahn said China is rapidly developing and building infrastructure for nearly all types of energy, including energy conservation, which is a key market for AMSC's smart-grid products.

"The way that the Chinese build anything, they do as many things as they possibly can in parallel, as fast as they possibly can," said McGahn, who said he spent half his time in China when he ran AMSC's Asian business in 2007 and 2008, before being named CEO last year.

After a major restructuring and with about $300 million in contracts, the company aims to expand both its wind-power and electric-grid businesses in several countries to become profitable, McGahn said.

Some analysts said that although AMSC has made progress, it has a long way to go.

Earnings "and operating cash flow are set to stay negative for the foreseeable future," said Raymond James analyst Pavel Molchanov. "As the company turns the page from the Sinovel chapter of its history, the focus is now squarely on rebuilding its order book."

The company has manufacturing facilities in China, the U.S. and Europe. It also licenses its technology to other manufacturers.

AMSC's Chinese partners include China State Grid; Beijing Jingcheng Machinery Electric Holding Co. Ltd.; Dongfang Electric Corp. Ltd. (DNGFF, 600875.SH, 1072.HK) and Shenyang Blower Works Group.

In South Korea, AMSC has partnerships with Doosan Heavy Industries & Construction Co. Ltd. (034020.SE) and Hyundai Heavy Industries Co. Ltd. (009540.SE) and in India, it is a partner with Inox Group.

On Thursday, AMSC reported a loss for its fiscal third quarter of $26.3 million, or 52 cents a share, on revenue of $18.1 million. That compares to a loss of $18.2 million, or 38 cents a share a year earlier. The company forecast a fiscal fourth-quarter loss of less than 42 cents a share on revenue of more than $27 million

AMSC shares closed 7.6% lower Thursday at $5.57 and were down about 80% from a year ago.

-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468; cassandra.sweet@dowjones.com