AMSC Reports Third Quarter Financial Results

Revenues for the third quarter of fiscal 2011 were $18.1 million. This compares with $31.6 million for the third quarter of fiscal 2010 and $20.8 million for the second quarter of fiscal 2011. The year-over-year decline is due primarily to lower shipments from the company’s Grid segment while the quarter-over-quarter decline was due to slightly lower shipments of wind turbine power electronics and controls from the company’s Wind segment.

AMSC reported a net loss for the third fiscal quarter of $26.3 million, or $0.52 per share. This figure includes approximately $6.5 million in expenses related to the company’s litigation against Sinovel Wind Group Co., Ltd. and restructuring and impairment charges related to the workforce reduction that was announced in November 2011. For the third quarter of fiscal year 2010, AMSC reported a net loss of $18.2 million, or $0.38 per share. AMSC reported a net loss of $51.7 million, or $1.02 per share, for the second quarter of fiscal year 2011.

The company’s non-GAAP net loss for the third quarter of fiscal 2011 was $17.5 million, or $0.34 per share. This compares with a non-GAAP net loss of $13.4 million, or $0.28 per diluted share, for the third quarter of fiscal 2010 and a non-GAAP net loss of $22.1 million, or $0.44 per share, for the second quarter of fiscal year 2011. Please refer to the financial table below for a reconciliation of GAAP to non-GAAP results.

AMSC’s cash, cash equivalents, marketable securities and restricted cash at December 31, 2011 totaled $75.5 million. This is in line with the company’s guidance and compares with $108.3 million as of September 30, 2011.

The company’s total backlog as of December 31, 2011, excluding contracts related to Sinovel, increased to $300 million from $298 million as of September 30, 2011.

“I am pleased to report that AMSC exceeded each of its financial targets for the third fiscal quarter,” said AMSC President and Chief Executive Officer Daniel P. McGahn. “We again generated a diversified revenue stream, with solid contributions from both our Wind and Grid segments and with Australia, India, Korea and the United States each contributing more than 10 percent of our total quarterly revenues. We further streamlined our cost structure in the third fiscal quarter, allowing us to reduce our cash usage and better position AMSC for sustainable profitability. In addition, on the orders front, we continued building our order book for fiscal 2012, which begins on April 1, 2012.”

Looking Forward

“The pipeline of business we have built and the organizational changes we have made provide us with confidence that we will post sequential growth and will reduce our cash usage in the fourth fiscal quarter,” McGahn continued. “Our outlook continues to brighten, and we look forward to finishing fiscal year 2011 on a positive note.”

For the quarter ending March 31, 2012, AMSC expects that its revenues will exceed $27 million. AMSC expects that its net loss for the fourth quarter of fiscal 2011 will be less than $24 million, or $0.47 per share. AMSC expects that its non-GAAP net loss for the fourth fiscal quarter will be less than $20 million, or $0.39 per share.

AMSC estimates that it will have approximately $50 million in cash, cash equivalents, marketable securities and restricted cash on March 31, 2012. The company expects that its net cash usage will be further reduced in subsequent quarters as revenues grow year over year, working capital requirements are minimized and the benefits of recent cost reduction efforts are fully realized. AMSC believes that it has sufficient cash to fund its operations for at least the next 12 months.

Conference Call Reminder

In conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at 10:00 a.m. Eastern Time today to discuss the company’s results and its business outlook. 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 also can be accessed by dialing 719-457-2637 and using conference ID 7201664.