USA: AMSC Reports Q2 Financial Results

AMSC, a global solutions provider serving wind and grid leaders, has reported financial results for its second quarter of fiscal year 2012 ended September 30, 2012. 

Revenues for the second quarter of fiscal 2012 were $20.9 million, which compares with $20.8 million for the second quarter of fiscal 2011. AMSC increased revenues from its Grid business segment by approximately 20 percent while revenues from the company’s Wind segment declined by approximately 10 percent year over year.

For the second quarter of fiscal 2012, AMSC reported a net loss of $15.9 million, or $0.31 per share. This figure includes a $3.3 million non-cash “mark-to-market” benefit driven by the re-valuation of the derivative liability and warrants associated with the company’s debt financings. For the second quarter of fiscal 2011, AMSC’s net loss was $51.7 million, or $1.02 per share. This figure included approximately $28.2 million in charges related to the termination of a proposed acquisition, litigation expenses against Sinovel Wind Group Co., Ltd. and corporate restructuring activities and impairments.

The company’s non-GAAP net loss for the second quarter of fiscal 2012 was $15.2 million, or $0.29 per share. This compares with a non-GAAP net loss of $22.1 million, or $0.44 per share, for the second quarter of fiscal 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 September 30, 2012 totaled $73.1 million. This compares with $66.2 million as of March 31, 2012. The increase in cash, cash equivalents, marketable securities and restricted cash was driven by the financings that were completed and announced in the first quarter of fiscal 2012.

“AMSC delivered on its stated financial targets in the second fiscal quarter,” said AMSC President and Chief Executive Officer Daniel P. McGahn. “Our Grid business segment performed well, capitalizing on stable spending in the Transmission & Distribution market, generating year-over-year growth and nearly filling its order book for fiscal 2012. As has been previously reported, conditions in the wind power market are currently challenging, with increased government oversight slowing installations in China and global installations flattening. While second-quarter wind turbine electrical control system shipments from our Wind business segment declined year over year, we are expecting to increase shipments in the second half of the fiscal year based on our existing orders and discussions with our customers.”

Looking Forward

“We expect to improve our top- and bottom-line performance both sequentially and year over year in the third fiscal quarter,” said McGahn. “As we strive to extend our track record of execution, we will also continue to closely monitor the macro environment, manage our expenses and conserve our cash with the aim to continue improving our financial performance.”

For the third fiscal quarter ending December 31, 2012, AMSC expects that its revenues will exceed $26 million. AMSC expects that its net loss for the quarter will be less than $19 million, or $0.36 per share. This guidance assumes no impact from mark-to-market adjustments related to the derivative liability and warrants. AMSC expects that its non-GAAP (as defined below) net loss for the third quarter of fiscal 2012 will be less than $14 million, or $0.26 per share.

AMSC expects to reduce its balance of restricted cash in the third fiscal quarter by paying or settling the majority of its remaining liabilities for adverse purchase commitments, which amounted to approximately $12 million as of September 30, 2012. Factoring in these expected payments and settlements, AMSC expects to have more than $52 million in cash, cash equivalents, marketable securities and restricted cash on December 31, 2012.

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Press release, November 7, 2012; Image: AMSC