American Superconductor Corp (AMSC.O), which makes electrical systems for wind farms and wind turbines, posted an adjusted quarterly profit that beat estimates, helped by large wind power and power grid orders, sending its shares up 4 percent before market.
AMSC generated net income of $4.9 million, or $0.11 per diluted share, for the fourth quarter of fiscal 2009. This compares with $1.3 million, or $0.03 per diluted share, for the fourth quarter of fiscal 2008. The company generated non-GAAP net income of $8.4 million, or $0.18 per diluted share, for the fourth quarter of fiscal 2009. This compares with non-GAAP net income of $4.1 million, or $0.09 per diluted share, for the fourth quarter of fiscal 2008. Please refer to the financial tables included below for a reconciliation of GAAP to non-GAAP results and guidance.
The wind energy technology company, whose prime customer is China’s Sinovel Wind Power, now sees fiscal 2010 adjusted earnings of $1.15 a share to $1.20 a share, on revenue of $415 million to $425 million.
Revenues for full year fiscal 2009 were $316.0 million, an increase of 73 percent from $182.8 million for full year fiscal 2008. Gross margin for full year fiscal 2009 was 36.4 percent, which compares with a 28.4 percent gross margin for full year fiscal 2008.
The company’s net income for full year fiscal 2009 was $16.2 million, or $0.36 per diluted share. This compares with a net loss for full year fiscal 2008 of $(16.6) million, or $(0.39) per share. On a non-GAAP basis, AMSC reported net income of $31.7 million, or $0.70 per diluted share, for full year fiscal 2009. This compares with a non-GAAP net loss of $(3.1) million, or $(0.07) per share, for full year fiscal 2008.
Cash, cash equivalents, marketable securities and restricted cash at March 31, 2010 were $155.1 million. This compares with $112.8 million as of December 31, 2009 and $117.2 million as of March 31, 2009.
The company reported backlog as of March 31, 2010 of approximately $588 million compared with approximately $546 million as of December 31, 2009 and $558 million as of March 31, 2009. Of the $588 million in backlog as of March 31, 2010, more than $380 million is expected to be recognizable as revenue in fiscal year 2010.
"AMSC capped fiscal year 2009 in particularly strong fashion," said Greg Yurek, AMSC’s founder and chief executive officer. "We set new records for revenues and gross margin in the fourth fiscal quarter, generated better-than-expected net income and closed a steady stream of large wind power and power grid orders.
"Entering fiscal 2010, we have approximately 90 percent of our forecasted revenues in backlog, which gives us a high degree of confidence we will grow revenues by more than 30 percent year over year. We also expect further increases in productivity in fiscal 2010. Coupled with our strong forecasted revenue growth, we expect these productivity gains will drive at least a 70 percent increase in non-GAAP earnings year-over-year. We expect that this growth in non-GAAP earnings will translate into net positive cash flow for the year even as we continue to invest aggressively for continued growth in future years," Yurek concluded.
Financial Forecast
"For full year fiscal 2010, we expect revenues to increase to a range of $415 million to $425 million," said David Henry, AMSC’s senior vice president and chief financial officer. "We expect that our GAAP net income will more than double to a range of $37.5 million to $40 million, or $0.80 to $0.85 per diluted share. On a non-GAAP basis, we expect our net income will increase to a range of $54 million to $56.5 million, or $1.15 to $1.20 per diluted share. Finally, we expect to once again be net cash flow positive for full year fiscal 2010."
AMSC offers an array of proprietary technologies and solutions spanning the electric power infrastructure – from generation to delivery to end use. The company is a leader in renewable energy providing proven, megawatt-scale wind turbines designs and electrical control systems.
The company also offers a host of Smart Grid technologies for power grid operators that enhance the reliability, efficiency and capacity of the grid, and seamlessly integrate renewable energy sources into the power infrastructure. These include superconductor power cable systems, grid-level surge protectors and power electronics-based voltage stabilization systems. AMSC’s technologies are protected by a broad and deep intellectual property portfolio consisting of hundreds of patents and licenses worldwide.
