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New
Release -- Superconductor Week does not edit or endorse the following
news release: AMSC Reports
First Quarter Fiscal 2007 Financial Results
-- Revenues Increased 41% Year Over Year
-- AMSC Power Systems Revenues Increased 305% Year Over Year
-- Backlog of $75 Million as of June 30 Increased to
Approximately $140 Million in July
-- Fiscal 2007 Revenue Forecast Increased to a Range of $85
Million to $90 Million
-- Company Expects to Approach Positive EBITDAS in Q4 FY2007; on
Track to Achieve Positive EBITDAS for FY2008
-- Balance Sheet Strengthened with $94 Million in Net Proceeds
from Follow-on Offering
Westborough, MA,
9 August 2007:
American Superconductor
Corporation (NASDAQ:
AMSC), a leading energy
technologies company, today reported financial results for its fiscal first
quarter ended June 30, 2007.
Revenues for the first quarter (ended June 30,
2007) of fiscal 2007 (ending March 31, 2008) were $19.8 million, a 41 percent
increase from $14.0 million in revenues for the first quarter of fiscal 2006.
The company's net loss for the first quarter of fiscal 2007, which included a
number of unusual items, was $9.7 million, or $0.27 per share. The unusual items
in this figure included approximately $2.9 million, or $0.08 per share, in
charges primarily related to a higher mark to market valuation adjustment on an
outstanding warrant required by increases in the company's stock price,
restructuring and impairment charges in the company's AMSC Superconductors
business unit, and the write off of a SuperVAR(R) synchronous condenser the
company had planned to ship to a customer. The net loss also includes $1.2
million of amortization of acquisition-related intangibles that were not
included in the prior-year quarter's net loss. The company's net loss for the
prior-year quarter was $6.7 million, or $0.20 per share.
Earnings before interest, taxes, other income and
expense, depreciation, amortization and stock-based compensation (EBITDAS) was a
loss of $5.3 million for the quarter ended June 30, 2007 compared to a loss of
$5.6 million for the prior-year quarter ended June 30, 2006. Please refer to the
financial schedules attached to this press release for a reconciliation between
net loss and EBITDAS.
The company ended the first quarter of fiscal
2007 with $30.5 million in cash, cash equivalents and short-term investments,
compared with $35.3 million on March 31, 2007. Subsequent to the close of the
quarter, AMSC completed a follow-on stock offering that yielded approximately
$94 million in net proceeds to the company.
The company's total backlog of orders and
contracts was $75 million on June 30, 2007. Subsequent to the close of the
quarter, the company received a record commercial order from Sinovel Wind in
China, which contributed to an increase in backlog to approximately $140 million
as of July 31, 2007. This figure does not include awards of up to $24 million
and $21.7 million from the Department of Homeland Security (DHS) and the
Department of Energy (DOE), respectively. The terms and conditions for these
awards are being negotiated and are expected to be finalized in fiscal 2007.
AMSC's backlog on March 31, 2007 was approximately $80 million.
"AMSC got off to a strong start in fiscal 2007 as
AMSC Power Systems delivered another record quarter of revenues and AMSC
Superconductors won several significant new project awards," said Greg Yurek,
founder and chief executive officer. "AMSC Power Systems generated several
additional orders for our D-VAR(R) grid interconnection solution for wind farms,
received a contract to develop a wind turbine system for a Chinese company - the
third Chinese manufacturer to adopt our wind turbine designs - and won a series
of new orders from industrial companies for our new PQ-SVC(TM) industrial power
quality product. With a broad suite of offerings for the wind power, utility and
industrial markets, AMSC Power Systems is poised to double its sales yet again
this fiscal year.
"The first quarter of fiscal 2007 was also a time
of great accomplishment for AMSC Superconductors," Yurek continued. "In May, we
announced a powerful new solution for utilities - Secure Super Grids(TM). This
high temperature superconductor (HTS) solution enables utilities to deliver more
power through the grid while also suppressing power surges that can disrupt
service. We are currently negotiating the terms of a contract to deploy our
Secure Super Grids technology in Consolidated Edison's grid in Manhattan."
In addition, in June 2007, AMSC received two of
five competitively bid project awards from DOE for the development and
deployment of HTS power grid solutions that will incorporate the company's
proprietary 344 superconductors. One is for an HTS cable project with Long
Island Power Authority and the other is for a fault current limiter project with
Southern California Edison.
Recent Developments
-- $70 Million Wind Power Order: In July 2007, AMSC received a
follow-on $70 million order for wind turbine electrical
systems from Beijing-based Sinovel Wind Corporation Limited.
The order calls for AMSC's wholly-owned subsidiary, AMSC
Windtec, to ship the customized electrical systems to Sinovel
in calendar 2008 for use in Sinovel's 1.5 megawatt (MW) wind
energy systems. To date, AMSC Windtec has received
approximately $120 million worth of electrical system orders
from Sinovel.
-- Stock Offering: On July 25, 2007, AMSC completed an
underwritten public offering of 4,700,000 shares of its common
stock at a price to the public of $21.25 per share, yielding
approximately $94 million in net proceeds to the company.
-- PQ-SVC(TM) Orders: AMSC announced in July 2007 a series of
orders for its Power Quality-Static VAR Compensator, or
PQ-SVC, offering. The PQ-SVC solution was added to AMSC's
product suite through the acquisition in April 2007 of
Pennsylvania-based Power Quality Systems, Inc. This product
eliminates voltage sags and flicker, giving electric
distribution companies and manufacturing operations a
cost-effective way to safely connect large electrical loads to
the local power grid.
Financial Forecast Update
"The foundation has been laid for solid growth in
the coming quarters," said David Henry, Senior Vice President and Chief
Financial Officer. "With the resources to fully capitalize on our growth
opportunities now available as a result of our recently completed stock
offering, we are driving hard to achieve our profitability objectives. Based on
the momentum we continued to build in the first quarter, we are now anticipating
revenues for fiscal 2007 to increase approximately 67 percent year over year to
a range of $85 million to $90 million, up from our previous forecast of $75
million to $80 million. We expect our net loss for the fiscal year will be in
the range of $21 million to $24 million, or $0.54 to $0.62 per share, based on
an expected 39 million weighted average shares outstanding. This compares with
our previous forecast of $22 million to $25 million.
"We believe we will approach positive EBITDAS in
the fourth quarter of fiscal 2007, and we remain on track to be EBITDAS positive
in fiscal 2008," Henry continued. "For fiscal 2007, we now anticipate that our
EBITDAS loss for the year will be in the range of $8 million to $10 million, an
improvement from our previous forecast of $9 million to $11 million."
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) 981-5592 and using conference ID
8759914. A telephonic playback of the call will be available from 1:00 p.m. ET
today through midnight on August 15, 2007. Please call (719) 457-0820 and refer
to conference ID 8759914 to access the playback.
AMERICAN SUPERCONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Three months ended June 30,
---------------------------
2007 2006
-------------- ------------
Revenues:
Superconductors $ 5,400 $ 10,498
Power Systems 14,369 3,548
-------------- ------------
Total revenues 19,769 14,046
Costs of revenue 16,187 13,925
-------------- ------------
Gross profit 3,582 121
Operating expenses:
Research and development 4,214 4,063
Selling, general and administrative 6,118 3,496
Amortization of acquisition related
intangibles 1,162 --
Restructuring and impairments 818 --
-------------- ------------
Total costs and expenses 12,312 7,559
-------------- ------------
Operating loss (8,730) (7,438)
Interest income 346 678
Other income (expense), net (1,014) 37
-------------- ------------
Loss before income tax (9,398) (6,723)
Income tax expense 255 --
-------------- ------------
Net loss $ (9,653) $ (6,723)
============== ============
Net loss per common share
Basic and Diluted $ (0.27) $ (0.20)
============== ============
Weighted average number of common shares
outstanding
Basic and Diluted 35,268 32,805
============== ============
Reconciliation of Net Loss to EBITDAS (1)
(In thousands)
Three months ended June 30,
---------------------------
2007 2006
------------- -------------
Net Loss $ (9,653) $ (6,723)
Interest income (346) (678)
Other income (expense), net 1,014 (37)
Income tax expense 255 --
Depreciation and amortization 2,310 1,068
------------- -------------
EBITDA (6,420) (6,370)
Stock-based compensation 1,077 780
------------- -------------
EBITDAS $ (5,343) $ (5,590)
============= =============
Reconciliation of Forecast Net Loss to Forecast EBITDAS (1)
(In thousands)
High Low
--------- ---------
Net Loss $(21,000) $(24,000)
Interest income (3,700) (3,700)
Other income (expense), net 1,600 1,600
Income tax expense 600 600
Depreciation and amortization 10,000 10,500
--------- ---------
EBITDA (12,500) (15,000)
Stock-based compensation 4,500 5,000
--------- ---------
EBITDAS $ (8,000) $(10,000)
========= =========
(1) EBITDAS is a non-GAAP financial measure
defined by the company as net income before interest, taxes, other income and
expense, net, depreciation and amortization, and stock-based compensation. The
company believes EBITDAS is an important measurement for management and
investors given the increasing effect that non-cash charges such as stock
compensation, amortization related to acquisitions and depreciation of capital
equipment will have on the company's net income (loss). The company regards
EBITDAS as a useful measure of operating performance and cash flow to complement
operating income, net income and other GAAP financial performance measures.
Additionally, management believes that EBITDAS will provide meaningful
comparisons of past, present and future operating results. Generally, a non-GAAP
financial measure is a numerical measure of a company's performance, financial
position or cash flow that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable measure calculated
and presented in accordance with GAAP. This measure, however, should be
considered in addition to, and not as a substitute or superior to, operating
income, cash flows, or other measures of financial performance prepared in
accordance with GAAP. A reconciliation of EBITDAS to GAAP net income (loss) is
set forth in the table above.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, March 31,
2007 2007
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 15,142 $ 15,925
Marketable securities 15,343 19,399
Accounts receivable, net 21,149 18,053
Inventory 6,629 6,853
Prepaid expenses and other current assets 2,552 1,505
Deferred tax assets 311 514
---------- ----------
Total current assets 61,126 62,249
Property, plant and equipment, net 50,537 49,928
Assets held for sale 1,563 2,171
Goodwill 7,935 5,126
Other intangibles, net 14,166 12,849
Other assets 93 110
---------- ----------
Total assets $ 135,420 $ 132,433
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 20,824 $ 23,532
Deferred revenue & customer deposits 7,681 3,775
---------- ----------
Total current liabilities 28,505 27,307
Non-current liabilities:
Deferred revenue & customer deposits 814 867
Deferred tax liabilities 2,422 2,518
Other non-current liabilities 94 120
---------- ----------
Total liabilities 31,835 30,812
Stockholders' equity:
Common stock 359 350
Additional paid-in capital 497,666 486,194
Deferred contract costs - warrant (12) (13)
Accumulated other comprehensive income 280 145
Accumulated deficit (394,708) (385,055)
---------- ----------
Total stockholders' equity 103,585 101,621
---------- ----------
Total liabilities and stockholders' equity $ 135,420 $ 132,433
========== ==========
About AMSC
AMSC (American Superconductor Corporation -
NASDAQ: AMSC) is a leading energy technologies company offering an array of
solutions based on two proprietary technologies: programmable power electronic
converters and high temperature superconductor (HTS) wires. The company's
products, services and system-level solutions enable cleaner, more efficient and
more reliable generation, delivery and use of electric power. AMSC is a leader
in alternative energy, offering grid interconnection solutions as well as
licensed wind energy designs and electrical systems. As the world's principal
supplier of HTS wire, the company is enabling a new generation of compact,
high-power electrical products, including power cables, grid-level surge
protectors, Secure Super Grids(TM), motors, generators, and advanced
transportation and defense systems. AMSC also provides utility and industrial
customers worldwide with voltage regulation systems that dramatically enhance
power grid capacity, reliability and security, as well as industrial
productivity. The company's technologies are protected by a broad and deep
intellectual property portfolio consisting of hundreds of patents and licenses
worldwide. More information is available at www.amsc.com.
American Superconductor and design,
Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC,
SuperVAR, D-VAR, DVC, PQ-IVR, PowerModule, PQ-SVC, Secure Super Grids, Windtec
and SuperGEAR are trademarks or registered trademarks of American Superconductor
Corporation or its subsidiaries.
Any statements in this release about future
expectations, plans and prospects for the company, including our expectations
regarding the future financial performance of the company 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. There are a number of
important factors that could cause actual results to differ materially from
those indicated by such forward-looking statements. Such factors include:
uncertainties regarding the company's ability to obtain anticipated funding from
corporate and government contracts, to successfully develop, manufacture and
market commercial products, and to secure anticipated orders; the risk that a
robust market may not develop for the company's products; the risk that
strategic alliances and other contracts may be terminated; the risk that certain
technologies utilized by the company will infringe intellectual property rights
of others; and the competition encountered by the company. Reference is made to
these and other factors discussed in the "Risk Factors" section of the company's
most recent quarterly or annual report filed with the Securities and Exchange
Commission. In addition, the forward-looking statements included in this press
release represent the company's views as of the date of this release. While the
company anticipates that subsequent events and developments may cause the
company's views to change, the company specifically disclaims any obligation to
update these forward-looking statements. These forward-looking statements should
not be relied upon as representing the company's views as of any date subsequent
to the date this press release is issued.
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