AMSC Reports Third Quarter Financial Results
Revenues for the third quarter of fiscal 2011 were
AMSC reported a net loss for the third fiscal quarter of
The company's non-GAAP net loss for the third quarter of fiscal 2011 was
The company's total backlog as of
"I am pleased to report that AMSC exceeded each of its financial targets for the third fiscal quarter," said AMSC President and Chief Executive Officer
Looking Forward
"The pipeline of business we have built and the organizational changes we have made provide us with confidence that we will post sequential growth and will reduce our cash usage in the fourth fiscal quarter," McGahn continued. "Our outlook continues to brighten, and we look forward to finishing fiscal year 2011 on a positive note."
For the quarter ending
AMSC estimates that it will have approximately
Conference Call Reminder
In conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at
AMSC generates the ideas, technologies and solutions that meet the world's demand for smarter, cleaner ... better energy. Through its Windtec™ Solutions, AMSC enables manufacturers to launch best-in-class wind turbines quickly, effectively and profitably. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. The company's solutions are now powering gigawatts of renewable energy globally and enhancing the performance and reliability of power networks in more than a dozen countries. Founded in 1987, AMSC is headquartered near
The AMSC logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11339
AMSC, Windtec and Gridtec are trademarks or registered trademarks of
Any statements in this release about future expectations, plans and prospects for the company, including without limitation our prospects for future growth, expectations regarding the sufficiency of our existing cash balance, expectations regarding future financial results and liquidity 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 materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: a significant portion of our revenues has been derived from Sinovel Wind Group Co. Ltd., ("Sinovel"), which has stopped accepting scheduled deliveries and refused to pay amounts outstanding; the disruption in our relationship with Sinovel has materially and adversely affected our business and results of operations and if, as we expect, Sinovel continues to refuse to accept shipments from us, our business and results of operations will be further materially and adversely affected; we intend to seek additional funding in the future and may be unable to raise capital when needed; we have a history of operating losses, and we may incur additional losses in the future; our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; changes in exchange rates could adversely affect our results from operations; we have identified material weaknesses in our internal control over financial reporting and if we fail to remediate these weaknesses and maintain proper and effective internal controls over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; if we fail to implement our business strategy successfully, our financial performance could be harmed; we may not realize all of the sales expected from our backlog of orders and contracts; many of our revenue opportunities are dependent upon subcontractors and other business collaborators; our products face intense competition, which could limit our ability to acquire or retain customers; our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; we may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits; our international operations are subject to risks that we do not face in
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except per share data) | ||||||||
Three months ended |
Nine months ended |
|||||||
2011 | 2010 | 2011 | 2010 | |||||
Revenues: | ||||||||
Wind | $ 10,125 | $ 10,840 | $ 27,836 | $ 183,162 | ||||
Grid | 7,933 | 20,730 | 20,080 | 43,691 | ||||
Total revenues | 18,058 | 31,570 | 47,916 | 226,853 | ||||
Cost of revenues | 18,918 | 31,528 | 57,810 | 149,167 | ||||
Gross profit | (860) | 42 | (9,894) | 77,686 | ||||
Operating expenses: | ||||||||
Research and development | 5,928 | 8,417 | 21,339 | 23,610 | ||||
Selling, general and administrative | 15,402 | 14,192 | 54,952 | 46,724 | ||||
Write-off of advance payment | -- | -- | 20,551 | -- | ||||
Amortization of acquisition related intangibles | 287 | 393 | 891 | 1,154 | ||||
Restructuring and impairments | 4,092 | -- | 8,393 | -- | ||||
Total operating expenses | 25,709 | 23,002 | 106,126 | 71,488 | ||||
Operating (loss) income | (26,569) | (22,960) | (116,020) | 6,198 | ||||
Interest (expense) income, net | (11) | 171 | 232 | 549 | ||||
Other income (expense), net | 393 | 2,136 | 1,313 | 4,745 | ||||
(Loss) income before income tax expense (benefit) | (26,187) | (20,653) | (114,475) | 11,492 | ||||
Income tax expense (benefit) | 84 | (2,495) | 1,185 | 12,642 | ||||
Net loss | $ (26,271) | $ (18,158) | $ (115,660) | $ (1,150) | ||||
Net loss per common share | ||||||||
Basic | $ (0.52) | $ (0.38) | $ (2.28) | $ (0.02) | ||||
Diluted | $ (0.52) | $ (0.38) | $ (2.28) | $ (0.02) | ||||
Weighted average number of common shares outstanding | ||||||||
Basic | 50,933 | 48,068 | 50,789 | 46,017 | ||||
Diluted | 50,933 | 48,068 | 50,789 | 46,017 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(In thousands) | ||
December 31, 2011 |
March 31, 2011 |
|
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | ||
Marketable securities | 5,261 | 116,126 |
Accounts receivable, net | 14,764 | 15,259 |
Inventory | 34,021 | 25,828 |
Prepaid expenses and other current assets | 29,789 | 32,759 |
Restricted cash | 9,049 | 5,566 |
Deferred tax assets | 484 | 484 |
Total current assets | 151,973 | 319,805 |
Property, plant and equipment, net | 94,073 | 96,494 |
Intangibles, net | 8,662 | 7,054 |
Restricted cash | 2,540 | -- |
Deferred tax assets | 5,840 | 5,840 |
Other assets | 12,275 | 12,016 |
Total assets | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable and accrued expenses | ||
Adverse purchase commitments | 28,763 | 38,763 |
Deferred revenue | 15,246 | 10,304 |
Deferred tax liabilities | 5,840 | 5,840 |
Total current liabilities | 88,924 | 145,180 |
Deferred revenue | 1,921 | 2,181 |
Deferred tax liabilities | 484 | 484 |
Other | 969 | 509 |
Total liabilities | 92,298 | 148,354 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock | 515 | 507 |
Additional paid-in capital | 894,129 | 885,704 |
Treasury stock | (271) | -- |
Accumulated other comprehensive income | 1,525 | 3,817 |
Accumulated deficit | (712,833) | (597,173) |
Total stockholders' equity | 183,065 | 292,855 |
Total liabilities and stockholders' equity |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(In thousands) | ||||
Nine months ended |
||||
2011 | 2010 | |||
Cash flows from operating activities: | ||||
Net loss | ||||
Adjustments to reconcile net loss to net cash used in operations: | ||||
Depreciation and amortization | 10,875 | 7,990 | ||
Stock-based compensation expense | 7,697 | 10,311 | ||
Provision for excess and obsolete inventory | 2,150 | 2,667 | ||
Adverse purchase commitment losses (recoveries), net | 73 | -- | ||
Allowance for doubtful accounts | -- | 25 | ||
Write-off of advance payment | 20,551 | -- | ||
Write-off of prepaid value added taxes | -- | 550 | ||
Restructuring charges, net of payments | 2,721 | -- | ||
Impairment of long-lived assets | 2,829 | -- | ||
Deferred income taxes | -- | (3,902) | ||
Other non-cash items | 2,227 | 2,025 | ||
Changes in operating asset and liability accounts: | ||||
Accounts receivable | (1,262) | 40,431 | ||
Inventory | (10,419) | (42,934) | ||
Prepaid expenses and other current assets | 3,244 | (16,973) | ||
Accounts payable and accrued expenses | (63,554) | 4,945 | ||
Deferred revenue | 5,254 | (20,027) | ||
Net cash used in operating activities | (133,274) | (16,042) | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (9,332) | (30,690) | ||
Purchase of marketable securities | -- | (71,763) | ||
Proceeds from sales and maturities of marketable securities | 110,667 | 47,462 | ||
Change in restricted cash | (6,036) | 250 | ||
Purchase of intangible assets | (3,893) | (2,001) | ||
Purchase of minority investments | (1,800) | (8,000) | ||
Advance payment for previously planned acquisition | (20,551) | -- | ||
Change in other assets | (734) | (30) | ||
Net cash provided by (used in) investing activities | 68,321 | (64,772) | ||
Cash flows from financing activities: | ||||
Proceeds from public equity offering, net | -- | 155,240 | ||
Payments in lieu of issuance of common stock for payroll taxes | (271) | -- | ||
Proceeds from exercise of employee stock options and ESPP | 150 | 7,350 | ||
Net cash (used in) provided by financing activities | (121) | 162,590 | ||
Effect of exchange rate changes on cash and cash equivalents | (104) | (351) | ||
Net (decrease) increase in cash and cash equivalents | (65,178) | 81,427 | ||
Cash and cash equivalents at beginning of period | 123,783 | 87,594 | ||
Cash and cash equivalents at end of period | ||||
Supplemental schedule of cash flow information: | ||||
Cash paid for income taxes, net of refunds | 13,482 | 13,660 | ||
Non-cash contingent consideration in connection with acquisitions | -- | 10,004 | ||
Non-cash issuance of common stock | 586 | 637 |
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net (Loss) Income | ||||||||
(In thousands, except per share data) | ||||||||
Three months ended |
Nine months ended |
|||||||
2011 | 2010 | 2011 | 2010 | |||||
Net loss | $ (26,271) | $ (18,158) | $ (115,660) | $ (1,150) | ||||
Write-off of advance payment | -- | -- | 20,551 | -- | ||||
Stock-based compensation | 2,118 | 2,249 | 7,697 | 10,073 | ||||
Executive severance | -- | -- | 2,066 | -- | ||||
Restructuring and impairment charges | 4,092 | -- | 8,393 | -- | ||||
Sinovel litigation | 2,423 | -- | 5,757 | -- | ||||
Provision for excess and obsolete inventory | -- | 2,087 | -- | 2,667 | ||||
Adverse purchase commitment (recoveries) losses, net | (94) | -- | 73 | -- | ||||
Value-added tax write-off | -- | 118 | -- | 550 | ||||
Margin on zero cost-basis inventory | (46) | -- | (173) | -- | ||||
Amortization of acquisition-related intangibles | 287 | 392 | 891 | 1,154 | ||||
Tax effects | -- | (88) | -- | (255) | ||||
Non-GAAP net (loss) income | $ (17,491) | $ (13,400) | $ (70,405) | $ 13,039 | ||||
Non-GAAP (loss) earnings per share | $ (0.34) | $ (0.28) | $ (1.39) | $ 0.28 | ||||
Weighted average shares outstanding * | 50,933 | 48,068 | 50,789 | 46,017 | ||||
* Diluted shares are used for periods where net income is generated. |
Reconciliation of Forecast GAAP Net Loss to Non-GAAP Net Loss | |
(In millions, except per share data) | |
Three months ending |
|
Net loss | |
Amortization of acquisition-related intangibles | 0.3 |
Stock-based compensation | 2.7 |
Sinovel litigation expenses | 1.0 |
Tax effects | 0.0 |
Non-GAAP net loss | |
Non-GAAP net loss per share | |
Shares outstanding | 51.1 |
Note: Non-GAAP net income (loss) is defined by the company as net income (loss) before amortization of acquisition-related intangibles, restructuring and impairments, stock-based compensation, severance and other unusual charges, and any tax effects related to these items. The company believes non-GAAP net income (loss) assists management and investors in comparing the company's performance across reporting periods on a consistent basis by excluding these non-cash or non-recurring charges that it does not believe are indicative of its core operating performance. The company also regards non-GAAP net income (loss) as a useful measure of operating performance and cash flow to complement operating income, net income (loss) and other GAAP financial performance measures. In addition, the company uses non-GAAP net (loss) income as a factor in evaluating management's performance when determining incentive compensation and to evaluate the effectiveness of its business strategies.
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. The non-GAAP measures included in this release, however, should be considered in addition to, and not as a substitute for or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of non-GAAP to GAAP net income is set forth in the table above.
CONTACT: AMSC Contact:Source: AMSCJason Fredette Phone: 978-842-3177 Email: jason.fredette@amsc.com
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