AMSC Reports First Quarter Financial Results

2008-08-05 06:30:00

AMSC Reports First Quarter Financial Results

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 companys

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, AMSCs 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 Authoritys

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 Chinas

Sinovel Wind for our wind turbine core electrical components, providing

us with a significant platform for continued growth through calendar

year 2011.

Financial Forecast

AMSCs

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 companys results and its

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

webcast should visit the Investors

section of the companys 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
jfredette@amsc.com

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