First-Quarter Revenues Doubled Year Over Year to Record $39.8

Million

Positive Cash Flow Generated from Operations

Total Backlog Increased to $634 Million as of June 30, 2008

Fiscal 2008 Revenue and EBITDAS Forecasts Increased

DEVENS, Mass.–(EMWNews)–American Superconductor Corporation (NASDAQ: AMSC), a leading energy

technologies company, today reported financial results for the first

quarter of fiscal year 2008 ended June 30, 2008.

Revenues for the first quarter of fiscal 2008 were a record $39.8

million, a 101 percent increase from $19.8 million for the first quarter

of fiscal 2007. Gross margin for the first quarter of fiscal 2008 was

29.2 percent, compared to 18.1 percent for the first quarter of fiscal

2007.

The company recorded a net loss for the first quarter of fiscal 2008 of

$6.1 million, or $0.15 per share. This compares to a net loss for the

first quarter of fiscal 2007 of $9.7 million, or $0.27 per share. Net

loss for the first quarter of fiscal 2008 includes a non-cash charge of

$2.4 million, or $0.06 per share, for a mark-to-market adjustment on an

outstanding warrant driven by the increase in the company’s

stock price during the quarter. This compares with a $1.0 million, or

$0.03 per share, mark-to-market charge in the first quarter of fiscal

2007. In addition to the mark-to-market adjustments on an outstanding

warrant, net loss in each period includes non-cash, pre-tax charges for

amortization of acquisition-related intangibles and stock-based

compensation expense. Such charges totaled $5.2 million for the first

quarter of fiscal 2008, compared to $3.2 million for the first quarter

of fiscal 2007.

Earnings before interest, taxes, other income and expense, depreciation,

amortization and stock-based compensation (EBITDAS) was a positive $1.7

million for the first quarter of fiscal 2008. EBITDAS for the first

quarter of fiscal 2007 was a negative $5.3 million. Please refer to the

financial schedules attached to this press release for reconciliation of

EBITDAS to GAAP net loss.

AMSC generated a record $3.2 million in cash from operations for the

first quarter of fiscal 2008. Cash, cash equivalents, marketable

securities and restricted cash at June 30, 2008 were $131.5 million, an

increase of $12.1 million from $119.4 million at March 31, 2008.

The company reported backlog as of June 30, 2008 of approximately $634

million compared with $199 million as of March 31, 2008 and $73 million

as of June 30, 2007.

“We executed to our expectations in the first

quarter, delivering continued sequential revenue growth, generating

record bookings and achieving other key financial metrics, including

positive EBITDAS and positive cash flow from operations,”

said Greg Yurek, AMSC’s founder and chief

executive officer. “Operationally, the

quarter was marked by two significant highlights. First, we completed a

multi-year project by commissioning the world’s first superconductor

power transmission cable system in a commercial power grid. Operating in

the heart of Long Island Power Authority’s

grid since April, this system has sparked a new wave of interest in

superconductor cables among electric utilities worldwide. Second, we

received a $450 million order from China’s

Sinovel Wind for our wind turbine core electrical components, providing

us with a significant platform for continued growth through calendar

year 2011.”

Financial Forecast

“AMSC’s

performance in the first quarter from a revenue and bookings perspective

has positioned us for another strong year of growth in fiscal 2008,”

said David Henry, senior vice president and chief financial officer. “We

are increasing our revenue guidance for the fiscal year by $10 million

to a range of $175 million to $185 million. The increase in our revenue

forecast will drive higher EBITDAS. We now expect EBITDAS for fiscal

2008 to be in the range of $7 million to $10 million, up from our

previous guidance of $3 million to $7 million. Because of the

significant increase in our stock valuation during the first quarter and

the resulting increase in non-cash charges associated with stock

compensation, the mark-to-market adjustment on our warrant and other

non-operating factors, we are increasing our net loss guidance to a

range of $13 million to $15 million, or $0.30 to $0.35 per share,

compared with our previous range of $9 million to $12 million, or $0.21

to $0.28 per share.”

Conference Call Reminder

In conjunction with this announcement, AMSC management will participate

in a conference call with investors beginning at 10:00 a.m. ET today to

discuss the company’s results and its

business outlook. Those who wish to listen to the live conference call

webcast should visit the “Investors”

section of the company’s website at www.amsc.com/investors.

The live call also can be accessed by dialing 913-905-3164 and using

conference ID 3774017. A telephonic playback of the call will be

available from 1:00 p.m. ET on August 5, 2008 through 1:00 p.m. ET on

August 12, 2008. Please call (719) 457-0820 and refer to conference ID

3774017 to access the playback.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
		Three months ended June 30,
		2008			2007
Revenues:
	Power Systems	$	35,930		$	14,369
	Superconductors		3,887			5,400
	Total revenues		39,817			19,769
Cost of revenues			28,196			16,187
Gross profit			11,621			3,582
Operating expenses:
	Research and development		4,913			4,214
	Selling, general and administrative		8,893			6,118
	Amortization of acquisition related intangibles		503			1,162
	Restructuring and impairments		–			818
	Total operating expenses		14,309			12,312
Operating loss			(2,688)			(8,730)
Interest income			775			346
Other income (expense), net			(2,471)			(1,014)
Loss before income tax			(4,384)			(9,398)
Income tax expense			1,719			255
Net loss		$	(6,103)		$	(9,653)
Net loss per common share
	Basic and Diluted	$	(0.15)		$	(0.27)
Weighted average number of common shares outstanding
	Basic and Diluted		41,686			35,268

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
				June 30,			March 31,
					2008			2008
ASSETS
Current assets:
	Cash and cash equivalents			$	69,570		$	67,834
	Marketable securities				48,301			38,398
	Accounts receivable, net				33,042			37,108
	Inventory				12,033			10,907
	Restricted cash				11,754			12,312
	Prepaid expenses and other current assets				6,411			4,467
	Deferred tax assets, net				896			2,293
		Total current assets			182,007			173,319
Property, plant and equipment, net					54,323			54,308
Goodwill					23,011			18,530
Intangibles, net					11,184			11,583
Long-term restricted cash					1,856			860
Other assets					2,727			2,634
		Total assets		$	275,108		$	261,234
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable and accrued expenses				39,307			38,356
	Deferred revenue				11,025			10,629
		Total current liabilities			50,332			48,985
Non-current liabilities
	Deferred revenue				3,378			2,043
	Deferred tax liabilities, net				1,147			1,244
	Other non-current liabilities				64			510
American Superconductor Corporation Jason Fredette, 978-842-3177 Director of Investor & Media Relations [email protected] Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89 Get Unlimited Organic Website Traffic to your Website  TheNFG.com now offers Organic Lead Generation & Traffic Solutions