|
American Superconductor Corporation has added a news release to its Investor Relations website.
Title: AMSC Reports Third-Quarter Fiscal 2007 Financial ResultsDate: 1/31/2008 7:30:00 AM For a complete listing of our news releases, please click here
-- Record Revenues Posted as Sales Increased 245 Percent Year
Over Year
-- Gross Margin Grows to a Record 28.7 Percent
-- Fiscal 2007 Financial Forecast Revised Upward
-- Backlog for Fiscal 2008 Continues to Grow
-- Consolidation of Massachusetts Operations Completed
DEVENS, Mass.--(BUSINESS WIRE)--Jan. 31, 2008--American
Superconductor Corporation (NASDAQ: AMSC), a leading energy
technologies company, today reported financial results for its third
quarter of fiscal 2007 ended December 31, 2007.
Revenues for the third quarter of fiscal 2007 were a record $32.6
million, a 245 percent increase from $9.5 million in revenues for the
third quarter of fiscal 2006. Gross margin for the third quarter of
fiscal 2007 was a record 28.7 percent, which compares with a negative
gross margin of 21.1 percent for the third quarter of fiscal 2006.
The company's net loss for the third quarter of fiscal 2007 was
$7.3 million, or $0.18 per share. This figure includes approximately
$2.9 million in restructuring and impairment charges related primarily
to the previously announced consolidation of AMSC's operations in
Massachusetts. The company's net loss in the third quarter of fiscal
2006 was $9.5 million, or $0.29 per share. The fiscal 2006 net loss
included approximately $3.5 million in charges related to two
government programs. Net loss in each period also includes non-cash,
pre-tax charges for amortization of acquisition-related intangibles,
stock compensation expense and mark-to-market adjustments on an
outstanding warrant. Such charges totaled $4.2 million for the third
quarter of fiscal 2007, compared to $0.8 million for the third quarter
of fiscal 2006.
Earnings before interest, taxes, other income and expense,
depreciation, amortization and stock-based compensation (EBITDAS) was
a loss of $1.9 million for the quarter ended December 31, 2007. This
includes the aforementioned $2.9 million in restructuring and
impairment charges and compares with a loss of $8.3 million for the
quarter ended December 31, 2006. Please refer to the financial
schedules attached to this press release for reconciliation of EBITDAS
to GAAP net loss.
Revenues for the first nine months of fiscal 2007 were a record
$74.0 million, an increase of 124 percent from $33.1 million in the
first nine months of fiscal 2006. Gross margin for the first nine
months of fiscal 2007 was 25.1 percent, which compares with a negative
gross margin of 4.2 percent for the first nine months of fiscal 2006.
The company's net loss for the first nine months of fiscal 2007 was
$23.6 million, or $0.61 per share, which compares to a net loss for
the first nine months of fiscal 2006 of $23.2 million, or $0.71 per
share. Net loss for the first nine months of fiscal 2007 includes
approximately $11.4 million of non-cash, pre-tax charges for
amortization of acquisition related intangibles, stock compensation
and mark-to-market adjustments on an outstanding warrant, compared to
$2.6 million of such non-cash, pre-tax charges for the first nine
months of fiscal 2006. For the first nine months of fiscal 2007, the
company's EBITDAS loss was $9.5 million, which compares with an
EBITDAS loss of $19.3 million for the first nine months of fiscal
2006.
Cash, cash equivalents, and marketable securities at December 31,
2007 were $107.8 million, a decrease of $10.4 million from cash, cash
equivalents and marketable securities of $118.2 million at September
30, 2007. Of the aforementioned decrease, $8.2 million of cash was
reclassified as restricted cash in the third quarter as collateral for
new, limited-term performance bonds related to new AMSC Power Systems
orders. Cash, cash equivalents and marketable securities decreased by
approximately $2.2 million in the third quarter of fiscal 2007 net of
amounts reclassified to restricted cash.
The company reported an ending backlog on December 31, 2007 of
approximately $168 million. This figure does not include more than $25
million in bookings received in January related primarily to the
company's contract with the Department of Homeland Security for
Project HYDRA and recent orders for wind turbine electrical components
and systems.
"We are pleased to report record quarterly revenues, with sales
more than tripling year over year," said Greg Yurek, AMSC's founder
and chief executive officer. "AMSC Power Systems continued to be our
growth engine as that business unit continued ramping orders and sales
with significantly improved gross margins. We also cut our EBITDAS
losses significantly during the quarter. In fact, excluding charges
for the consolidation of our Massachusetts operations, AMSC generated
positive EBITDAS for the third quarter - a key milestone on our path
to GAAP profitability."
Financial Forecast
"We expect strong revenues again in the fourth quarter and remain
on track to achieve our financial objectives for the year," said David
Henry, senior vice president and chief financial officer. "For fiscal
2007, we now expect revenues in the range of $105 million to $110
million, up from our previous forecast of $100 million to $110
million. Our net loss for fiscal 2007 is now expected to be in the
range of $27.0 million to $29.0 million, or approximately $0.69 to
$0.74 per share. This compares with our previous forecast for a net
loss of $27.0 million to $31.0 million, or $0.70 to $0.81 per share.
We continue to expect we will approach EBITDAS positive results for
the fourth fiscal quarter and now expect an EBITDAS loss of $9 million
to $11 million for fiscal 2007, an improvement from our previously
guided range of $10 million to $12 million."
Henry continued, "We expect our strong growth will continue as we
complete fiscal 2007 and move into fiscal 2008. We also reiterate our
earlier forecast for fiscal 2008, which calls for revenues to exceed
$150 million and EBITDAS to be positive for full fiscal year 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) 312-0940 and using conference ID 4948869. A telephonic playback
of the call will be available from 1:00 p.m. ET on January 31, 2008
through 1:00 p.m. ET on February 7, 2008. Please call (719) 457-0820
and refer to conference ID 4948869 to access the playback.
AMERICAN SUPERCONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Three months ended Nine months ended
December 31, December 31,
------------------ -------------------
2007 2006 2007 2006
-------- --------- --------- ---------
Revenues:
Power Systems $28,936 $ 7,118 $ 62,490 $ 17,139
Superconductors 3,688 2,334 11,526 15,959
-------- --------- --------- ---------
Total revenues 32,624 9,452 74,016 33,098
Cost of revenues 23,251 11,451 55,442 34,496
-------- --------- --------- ---------
Gross profit 9,373 (1,999) 18,574 (1,398)
Operating expenses:
Research and development 3,242 4,099 11,248 11,700
Selling, general and
administrative 7,737 4,112 21,006 12,027
Amortization of acquisition
related intangibles 1,634 -- 4,568 --
Restructuring and impairments 2,910 -- 3,821 --
-------- --------- --------- ---------
Total operating expenses 15,523 8,211 40,643 23,727
-------- --------- --------- ---------
Operating loss (6,150) (10,210) (22,069) (25,125)
Interest income 1,342 510 2,892 1,779
Other income (expense), net (1,393) 154 (2,558) 100
-------- --------- --------- ---------
Loss before income tax (6,201) (9,546) (21,735) (23,246)
Income tax expense 1,108 -- 1,900 --
-------- --------- --------- ---------
Net loss $(7,309) $ (9,546) $(23,635) $(23,246)
======== ========= ========= =========
Net loss per common share
Basic and Diluted $ (0.18) $ (0.29) $ (0.61) $ (0.71)
======== ========= ========= =========
Weighted average number of
common shares outstanding
Basic and Diluted 40,882 32,966 38,464 32,890
======== ========= ========= =========
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, March 31,
2007 2007
------------ ----------
ASSETS
Current assets:
Cash and cash equivalents $ 71,331 $ 15,925
Marketable securities 36,489 19,399
Accounts receivable, net 25,877 18,053
Inventory 8,137 6,853
Prepaid expenses and other current assets 11,190 1,505
Deferred tax assets - 514
------------ ----------
Total current assets 153,024 62,249
Property, plant and equipment, net 53,434 49,928
Goodwill 8,326 5,126
Other intangibles, net 11,377 12,849
Other assets 7,464 2,281
------------ ----------
Total assets $ 233,625 $ 132,433
============ ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 27,215 $ 23,532
Deferred revenue and customer deposits 5,893 3,775
Deferred tax liabilities 267 -
------------ ----------
Total current liabilities 33,375 27,307
Non-current liabilities:
Deferred revenue and customer deposits 2,580 867
Deferred tax liabilities 1,313 2,518
Other non-current liabilities 100 120
------------ ----------
Total liabilities 37,368 30,812
Stockholders' equity:
Common stock 414 350
Additional paid-in capital 602,650 486,181
Accumulated other comprehensive income 1,883 145
Accumulated deficit (408,690) (385,055)
------------ ----------
Total stockholders' equity 196,257 101,621
------------ ----------
Total liabilities and stockholders' equity $ 233,625 $ 132,433
============ ==========
Reconciliation of Net Loss to EBITDAS (1)
(In thousands)
Three months ended Nine months ended
December 31, December 31,
------------------ -------------------
2007 2006 2007 2006
--------- -------- --------- ---------
Net Loss $ (7,309) $(9,546) $(23,635) $(23,246)
Interest income (1,342) (510) (2,892) (1,779)
Other income (expense), net 1,393 (154) 2,558 (100)
Income tax expense 1,108 -- 1,900 --
Depreciation and amortization 2,908 993 8,169 3,057
--------- -------- --------- ---------
EBITDA (3,242) (9,217) (13,900) (22,068)
Stock-based compensation 1,335 920 4,358 2,719
--------- -------- --------- ---------
EBITDAS $ (1,907) $(8,297) $ (9,542) $(19,349)
========= ======== ========= =========
Reconciliation of Forecast Net Loss to Forecast EBITDAS (1)
(In thousands)
High Low
--------- ---------
Net Loss $(29,000) $(27,000)
Interest income (4,000) (4,000)
Other expense, net 2,000 2,000
Income tax expense 3,000 3,000
Depreciation and amortization 11,000 11,000
--------- ---------
EBITDA (17,000) (15,000)
Stock-based compensation 6,000 6,000
--------- ---------
EBITDAS $(11,000) $ (9,000)
========= =========
(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.
CONTACT: American Superconductor Corporation
Jason Fredette, 978-842-3177
Director of Investor & Media Relations
jfredette@amsc.com
SOURCE: American Superconductor Corporation
|