American Superconductor Corporation (NASDAQ: AMSC) has 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® 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.
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® 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.”
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