DEVENS, Mass.--(BUSINESS WIRE)--Aug. 5, 2008--American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, today reported financial results for the first quarter of fiscal year 2008 ended June 30, 2008.

Revenues for the first quarter of fiscal 2008 were a record $39.8 million, a 101 percent increase from $19.8 million for the first quarter of fiscal 2007. Gross margin for the first quarter of fiscal 2008 was 29.2 percent, compared to 18.1 percent for the first quarter of fiscal 2007.

The company recorded a net loss for the first quarter of fiscal 2008 of $6.1 million, or $0.15 per share. This compares to a net loss for the first quarter of fiscal 2007 of $9.7 million, or $0.27 per share. Net loss for the first quarter of fiscal 2008 includes a non-cash charge of $2.4 million, or $0.06 per share, for a mark-to-market adjustment on an outstanding warrant driven by the increase in the company's stock price during the quarter. This compares with a $1.0 million, or $0.03 per share, mark-to-market charge in the first quarter of fiscal 2007. In addition to the mark-to-market adjustments on an outstanding warrant, net loss in each period includes non-cash, pre-tax charges for amortization of acquisition-related intangibles and stock-based compensation expense. Such charges totaled $5.2 million for the first quarter of fiscal 2008, compared to $3.2 million for the first quarter of fiscal 2007.

Earnings before interest, taxes, other income and expense, depreciation, amortization and stock-based compensation (EBITDAS) was a positive $1.7 million for the first quarter of fiscal 2008. EBITDAS for the first quarter of fiscal 2007 was a negative $5.3 million. Please refer to the financial schedules attached to this press release for reconciliation of EBITDAS to GAAP net loss.

AMSC generated a record $3.2 million in cash from operations for the first quarter of fiscal 2008. Cash, cash equivalents, marketable securities and restricted cash at June 30, 2008 were $131.5 million, an increase of $12.1 million from $119.4 million at March 31, 2008.

The company reported backlog as of June 30, 2008 of approximately $634 million compared with $199 million as of March 31, 2008 and $73 million as of June 30, 2007.

"We executed to our expectations in the first quarter, delivering continued sequential revenue growth, generating record bookings and achieving other key financial metrics, including positive EBITDAS and positive cash flow from operations," said Greg Yurek, AMSC's founder and chief executive officer. "Operationally, the quarter was marked by two significant highlights. First, we completed a multi-year project by commissioning the world's first superconductor power transmission cable system in a commercial power grid. Operating in the heart of Long Island Power Authority's grid since April, this system has sparked a new wave of interest in superconductor cables among electric utilities worldwide. Second, we received a $450 million order from China's Sinovel Wind for our wind turbine core electrical components, providing us with a significant platform for continued growth through calendar year 2011."

Financial Forecast

"AMSC's performance in the first quarter from a revenue and bookings perspective has positioned us for another strong year of growth in fiscal 2008," said David Henry, senior vice president and chief financial officer. "We are increasing our revenue guidance for the fiscal year by $10 million to a range of $175 million to $185 million. The increase in our revenue forecast will drive higher EBITDAS. We now expect EBITDAS for fiscal 2008 to be in the range of $7 million to $10 million, up from our previous guidance of $3 million to $7 million. Because of the significant increase in our stock valuation during the first quarter and the resulting increase in non-cash charges associated with stock compensation, the mark-to-market adjustment on our warrant and other non-operating factors, we are increasing our net loss guidance to a range of $13 million to $15 million, or $0.30 to $0.35 per share, compared with our previous range of $9 million to $12 million, or $0.21 to $0.28 per share."

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 913-905-3164 and using conference ID 3774017. A telephonic playback of the call will be available from 1:00 p.m. ET on August 5, 2008 through 1:00 p.m. ET on August 12, 2008. Please call (719) 457-0820 and refer to conference ID 3774017 to access the playback.

Note: EBITDAS is a non-GAAP financial measure defined by the company as net income before interest, taxes, other income and expense, 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, taxes associated with AMSC Windtec, 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 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 turbine 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^™, 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, D-VAR, PQ-IVR, PowerModule, 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