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American Superconductor
Corporation has added a news release to its Investor Relations website.
Title: AMSC Reports Second Quarter Fiscal
2007 Financial Results
Date: 11/1/2007 7:30:01
AM
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--
Revenues Increased 125% Year Over Year -- Record Quarter of Bookings Posted
as Backlog Grows 140 Percent to $180 Million as of September 30, 2007 --
Revenues Forecasted to Grow Approximately 100 Percent in Fiscal 2007 to a
Range of $100 Million to $110 Million -- On Track to be EBITDAS Positive in
Fiscal 2008 -- Consolidation of Massachusetts Facilities Being Implemented
in Fiscal 2007
WESTBOROUGH, Mass., Nov 01, 2007 (BUSINESS
WIRE) -- American Superconductor Corporation (NASDAQ: AMSC), a leading
energy technologies company, today reported financial results for its
fiscal second quarter ended September 30, 2007.
Revenues for the second
quarter of fiscal 2007, which ends March 31, 2008, were $21.6 million, a
125 percent increase from $9.6 million in revenues for the second quarter
of fiscal 2006. Gross margin for the second quarter of fiscal 2007
increased to 26.0 percent of revenues from 5.0 percent of revenues for the
second quarter of fiscal 2006. The company's net loss for the second
quarter of fiscal 2007 was $6.7 million, or $0.17 per share, compared with
a net loss for the prior-year quarter of $7.0 million, or $0.21 per share.
Earnings before
interest, taxes, other income and expense, depreciation, amortization and
stock-based compensation (EBITDAS) was a loss of $2.3 million for the
quarter ended September 30, 2007 compared to a loss of $5.5 million for the
quarter ended September 30, 2006. Please refer to the financial schedules
attached to this press release for reconciliation of EBITDAS to GAAP net
loss.
Revenues for the first
six months of fiscal 2007 were $41.4 million, an increase of 75 percent
from $23.6 million in the first six months of fiscal 2006. Gross margin
increased to 22.2 percent of revenues for the first six months of fiscal
2007, compared to 2.5 percent for the first six months of fiscal 2006. The
company's net loss was $16.3 million, or $0.44 per share, for the first six
months of fiscal 2007. This compares with a net loss of $13.7
million, or $0.42 per share, for the first six months of fiscal 2006. The
net loss figure for the first six months of fiscal 2007 included
approximately $2.9 million, or $0.08 per share, of unusual charges in the
first quarter. EBITDAS for the first six months of fiscal 2007 was a loss
of $7.6 million, compared with a loss of $11.1 million for the first six
months of fiscal 2006.
The company ended the second quarter of fiscal 2007 with $118.2 million
in cash, cash equivalents and short-term investments, which includes
approximately $94 million raised by the company in a follow-on stock
offering it completed in July 2007. This compares with $30.5 million on
June 30, 2007.
The company generated approximately $129 million in bookings during the
quarter, increasing AMSC's total backlog of orders and contracts to
approximately $180 million on September 30, 2007. AMSC's backlog on June
30, 2007 was approximately $75 million.
"Based on the growth in orders and backlog in the second quarter,
we are poised to deliver solid revenue growth for the remainder of this
fiscal year," said Greg Yurek, chief executive officer and founder.
"Our backlog for recognition as revenue next fiscal year has continued
to increase strongly and is now over $100 million. This supports our
forecast to be EBITDAS positive in fiscal 2008. With accelerating growth in
international orders and sales in the wind energy industry, our Power
Systems business unit generated an operating profit in the second quarter.
Our Superconductors business unit is successfully executing multiple
projects, including Project HYDRA in Manhattan, and it remains on track to
initiate volume production of 344 superconductors in December 2007."
AMSC's recent accomplishments include:
-- Receiving a record $90 million in orders from Sinovel Wind in the
second quarter, which underscores the strength of the wind market in China.
-- Launching a new SVC product line, demonstrating the company's
commitment to the electric utility market. AMSC also received its first two
multi-million-dollar SVC orders.
-- Signing two multi-million-dollar licensing agreements with AAER Inc.
of Canada for a 2 megawatt (MW) wind turbine design. AAER is AMSC Windtec's
first licensee in North America.
-- Commencing work on a fault current limiter project in partnership
with the Department of Energy and Southern California Edison.
-- Entering into a research joint venture with TECO-Westinghouse for the
development of core technologies for superconductor generators that can
power 10 MW class wind turbines.
"We have continued to grow our business in the global wind energy
market," said Yurek. "In the second quarter, we signed our first
licensee in North America, and we also received our first turbine
electrical system order from China's Zhuzhou Electric, our second such
customer in China. We continue to expect that approximately 65 percent of
our total revenues in fiscal 2007 will come from the wind market."
"We are also growing our business in the power grid market on
multiple fronts," said Yurek. "Orders from electric utilities for
our D-VAR(R) and SVC grid infrastructure solutions, and contracts for
superconductor power cable and fault current limiter development projects
during the first half of this fiscal year increased to approximately $24
million compared with $2 million for the same period last fiscal
year."
The company recently established AMSC China, a new division that will
serve the Asia-Pacific wind energy, power grid and industrial markets. This
division will be providing manufacturing, sales and service for the
company's power electronics and superconductor product lines in the region.
AMSC China currently employs 25 Chinese citizens in its Suzhou and Beijing
operations. The company expects approximately 50 percent of its fiscal 2007
revenues will come from the Asia-Pacific region.
"We recognize that execution at this stage of rapid growth is
critical, and we are taking the steps necessary to support our global
expansion," said Yurek. "These steps include establishing
operations in the Asia-Pacific region and hiring aggressively at AMSC both
in the U.S. and internationally. These investments, along with the
associated training and globalization of this workforce, are vital to
enabling us to achieve our financial objectives this fiscal year and
next."
Financial Forecast
"We expect our revenue growth to accelerate during the remainder of
the fiscal year," said David Henry, senior vice president and chief
financial officer. "We now expect revenues will double from our
previous fiscal year to a range of $100 million to $110 million. This
compares with our previous forecast of $85 million to $90 million in fiscal
2007 revenues. In addition, with more than $100 million of backlog already
in hand for fiscal 2008, our strong growth rate is set to continue into
fiscal 2008 as well."
Today, the company also announced that it has decided to implement a
plan it had announced it was considering earlier this year to consolidate
its operations in Massachusetts. This consolidation of facilities, which is
anticipated to be substantially completed by the end of the third quarter
of fiscal 2007, is expected to result in a total cash restructuring charge
for lease termination, relocation and other costs in the range of $5.5 to
$6.0 million, of which $4.5 million to $5.0 million is expected to be
recorded in the last two quarters of fiscal 2007, with the majority of that
occurring in the third quarter. The remaining amount is expected to be recorded
ratably over the remaining term of the lease, which expires in May 2009. In
the fourth quarter of fiscal 2007, the company expects to begin realizing
annual savings of approximately $2.5 million per year from this initiative,
excluding continuing restructuring charges associated with the lease.
"We are revising our net loss guidance for fiscal 2007 to include
the restructuring charge related to our Massachusetts facilities
consolidation. We also are anticipating increased operating expenses to
support our rapid growth, higher stock compensation expense as a result of
higher than anticipated stock prices, and unabsorbed overhead in our AMSC
Superconductors business unit as a result of delays in certain projects,
which are expected to offset the fall through from higher AMSC Power
Systems revenues," said Henry. "With these additional items, we
now expect that our net loss for the full fiscal year will be in the range
of $27.0 million to $31.0 million, or $0.70 to $0.81 per share. This
compares with our previous guidance, which excluded the restructuring
charge, of $21.0 million to $24.0 million, or $0.54 to $0.62 per share.
Including the restructuring charge, we now expect that our EBITDAS loss for
the year will be in the range of $10 million to $12 million, compared to
our previous guidance for a loss of $8 million to $10 million. We continue
to expect that the company will approach positive EBITDAS in the fourth
quarter of fiscal 2007, and we remain on track to be EBITDAS positive in
fiscal 2008."
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)
312-1453 and using conference ID 3764979. A telephonic playback of the call
will be available from 1:00 p.m. ET on November 1, 2007 through 1:00 p.m.
ET on November 8, 2007. Please call (719) 457-0820 and refer to conference
ID 3764979 to access the playback.
AMERICAN SUPERCONDUCTOR CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) Three months Six months ended ended September September 30, 30, ----------------- ------------------- 2007 2006 2007 2006 -------- -------- --------- --------- Revenues: Power Systems $19,185 $ 6,473 $ 33,554 $ 10,021 Superconductors 2,438 3,127 7,838 13,625 -------- -------- --------- --------- Total revenues 21,623 9,600 41,392 23,646 Cost of revenues 16,004 9,120 32,191 23,045 -------- -------- --------- --------- Gross profit 5,619 480 9,201 601 Operating expenses: Research and development 3,792 3,539 8,006 7,601 Selling, general and administrative 7,151 4,418 13,269 7,915 Amortization of acquisition related intangibles 1,772 -- 2,934 -- Restructuring and impairments 93 -- 911 -- -------- -------- --------- --------- Total operating expenses 12,808 7,957 25,120 15,516 -------- -------- --------- --------- Operating loss (7,189) (7,477) (15,919) (14,915) Interest income 1,204 591 1,550 1,269 Other expense, net (151) (91) (1,165) (54) -------- -------- --------- --------- Loss before income tax (6,136) (6,977) (15,534) (13,700) Income tax expense 537 -- 792 -- -------- -------- --------- --------- Net loss $(6,673) $(6,977) $(16,326) $(13,700) ======== ======== ========= ========= Net loss per common share Basic and Diluted $ (0.17) $ (0.21) $ (0.44) $ (0.42) ======== ======== ========= ========= Weighted average number of common shares outstanding Basic and Diluted 39,208 32,898 37,249 32,852 ======== ======== ========= ========= CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) September March 31, 30, 2007 2007 ----------- ---------- ASSETS Current assets: Cash and cash equivalents $ 87,139 $ 15,925 Marketable securities 31,047 19,399 Accounts receivable, net 22,756 18,053 Inventory 8,458 6,853 Prepaid expenses and other current assets 4,397 1,505 Deferred tax assets 218 514 ----------- ---------- Total current assets 154,015 62,249 Property, plant and equipment, net 51,670 49,928 Assets held for sale 898 2,171 Goodwill 8,187 5,126 Other intangibles, net 12,895 12,849 Other assets 4,572 110 ----------- ---------- Total assets $ 232,237 $ 132,433 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 24,309 $ 23,532 Deferred revenue and customer deposits 7,732 3,775 ----------- ---------- Total current liabilities 32,041 27,307 Non-current liabilities: Deferred revenue and customer deposits 2,099 867 Deferred tax liabilities 2,145 2,518 Other non-current liabilities 97 120 ----------- ---------- Total liabilities 36,382 30,812 Stockholders' equity: Common stock 409 350 Additional paid-in capital 595,596 486,194 Deferred contract costs - warrant (10) (13) Accumulated other comprehensive income 1,240 145 Accumulated deficit (401,380) (385,055) ----------- ---------- Total stockholders' equity 195,855 101,621 ----------- ---------- Total liabilities and stockholders' equity $ 232,237 $ 132,433 =========== ========== Reconciliation of Net Loss to EBITDAS (1) (In thousands) Three months Six months ended ended September September 30, 30, ------------------------------------- 2007 2006 2007 2006 -------- -------- --------- --------- Net Loss $(6,673) $(6,977) $(16,326) $(13,700) Interest income (1,204) (591) (1,550) (1,269) Other expense, net 151 91 1,165 54 Income tax expense 537 -- 792 -- Depreciation and amortization 2,951 996 5,261 2,064 -------- -------- --------- --------- EBITDA (4,238) (6,481) (10,658) (12,851) Stock-based compensation 1,946 1,019 3,023 1,799 -------- -------- --------- --------- EBITDAS $(2,292) $(5,462) $ (7,635) $(11,052) ======== ======== ========= ========= Reconciliation of Forecast Net Loss to Forecast EBITDAS (1) (In thousands) High Low ------------------- Net Loss $(31,000)$(27,000) Interest income (4,000) (4,000) Other expense, net 2,000 2,000 Income tax expense 2,500 2,000 Depreciation and amortization 12,500 11,500 ------------------- EBITDA (18,000) (15,500) Stock-based compensation 6,000 5,500 ------------------- EBITDAS $(12,000)$(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.
About American Superconductor (NASDAQ: AMSC)
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.
SOURCE: American Superconductor
American Superconductor Corporation Jason Fredette, 508-621-4177 Director of Investor & Media Relations jfredette@amsc.com |