DEVENS, Mass., May 08, 2008 (BUSINESS WIRE) -- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, today reported financial results for the fourth quarter and full fiscal year 2007 ended March 31, 2008.

Revenues for the fourth quarter of fiscal 2007 were a record $38.4 million, a 101 percent increase from $19.1 million in revenues for the fourth quarter of fiscal 2006. Gross margin for the fourth quarter of fiscal 2007 was 33.2 percent, which compares with 5.7 percent for the fourth quarter of fiscal 2006.

The company's net loss for the fourth quarter of fiscal 2007 was $1.8 million, or $0.04 per share. This figure includes $3.6 million in restructuring and impairment charges related primarily to the previously announced consolidation of AMSC's operations in Massachusetts, and a gain of $0.9 million primarily resulting from a mark-to-market adjustment on an outstanding warrant. This compares to a net loss for the fourth quarter of fiscal 2006 of $11.4 million, or $0.33 per share. Net loss in each period 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 $1.0 million for the fourth quarter of fiscal 2007, compared to $2.1 million for the fourth quarter of fiscal 2006.

Earnings before interest, taxes, other income and expense, depreciation, amortization and stock-based compensation (EBITDAS) was a positive $0.4 million for the fourth quarter of fiscal 2007. This figure was negatively impacted by the aforementioned $3.6 million in restructuring and impairment charges. This compares to an EBITDAS loss of $8.7 million for the fourth quarter of fiscal 2006. Please refer to the financial schedules attached to this press release for reconciliation of EBITDAS to GAAP net loss.

Revenues for full year fiscal 2007 were $112.4 million, an increase of 115 percent from $52.2 million for full year fiscal 2006. Gross margin for full year fiscal 2007 was 28.5 percent, which compares with a negative gross margin of 0.6 percent for full year fiscal 2006. The company's net loss for full year fiscal 2007 was $25.4 million, or $0.65 per share, which compares to a net loss for full year fiscal 2006 of $34.7 million, or $1.04 per share. Net loss for fiscal 2007 includes approximately $12.4 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 $4.7 million of such non-cash, pre-tax charges for fiscal 2006. The company's EBITDAS loss for full year fiscal 2007 was $9.1 million, which compares with an EBITDAS loss of $28.1 million for the prior fiscal year.

Cash, cash equivalents, and marketable securities at March 31, 2008 were $106.2 million, a decrease of $1.6 million from cash, cash equivalents and marketable securities of $107.8 million at December 31, 2007. Of the aforementioned decrease, $0.7 million of cash was reclassified as restricted cash. Cash, cash equivalents and marketable securities decreased by approximately $0.9 million in the fourth quarter of fiscal 2007 net of amounts reclassified to restricted cash.

The company reported backlog as of March 31, 2008 of approximately $199 million compared with $168 million as of December 31, 2007 and $76.8 million as of March 31, 2007.

"The fourth quarter was a resounding financial success for AMSC," said Greg Yurek, AMSC's founder and chief executive officer. "We generated record revenues and gross margins based on the strength of our commercial sales into the wind power and electric utility markets. In addition, AMSC achieved positive EBITDAS for the fourth quarter. This capped off a strong year of growth and operational enhancements at AMSC, including the integration of two acquisitions, the consolidation of our Massachusetts operations and the formation of AMSC China. We are confident that fiscal 2008 will be an even greater success for AMSC."

Financial Forecast

"AMSC entered the first quarter of fiscal 2008 with significant momentum and visibility, providing us with confidence that our strong growth rate will continue through this fiscal year," said David Henry, senior vice president and chief financial officer. "We anticipate that revenues for fiscal 2008 will increase to a range of $165 million to $175 million. We expect our bottom line to improve significantly again and anticipate a net loss of $9 million to $12 million, or $0.21 to $0.28 per share, for fiscal 2008. For fiscal 2008, we expect EBITDAS in the range of $3 million to $7 million."

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) 312-0419 and using conference ID 3463050. A telephonic playback of the call will be available from 1:00 p.m. ET on May 8, 2008 through 1:00 p.m. ET on May 15, 2008. Please call (719) 457-0820 and refer to conference ID 3463050 to access the playback.

(1) 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 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^™, 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 Corporation

American Superconductor Corporation (NASDAQ: AMSC)
Jason Fredette, 978-842-3177
Director of Investor & Media Relations
jfredette@amsc.com