AMSC generated net income of $9.2 million, or $0.20 per diluted share, for the first quarter of fiscal 2010. This compares with net income of $1.8 million, or $0.04 per diluted share, for the first quarter of fiscal 2009. Non-GAAP net income was $13.0 million, or $0.28 per diluted share, for the first quarter of 2010. This compares with non-GAAP net income of $5.5 million, or $0.12 per diluted share, for the first quarter of 2009. Please refer to the financial table included below for a reconciliation of GAAP to non-GAAP results.
Cash, cash equivalents, marketable securities and restricted cash at June 30, 2010 were $120.7 million. This compares with $155.1 million as of March 31, 2010. The decrease was due primarily to some customer payments shifting from June to July 2010, an increase in capital expenditures in line with the company’s plan and changes in the dollar value of cash held in foreign currencies.
The company reported backlog as of June 30, 2010 of approximately $952 million compared with approximately $588 million as of March 31, 2010. This increase is related primarily to a multi-year order worth approximately US$445 million the company received in May 2010 from Sinovel Wind Group Co., Ltd.
“American Superconductor has achieved six consecutive quarters of rapid, profitable growth, and we are now well positioned to exceed our original forecasts for revenues and earnings for full fiscal 2010,” said Greg Yurek, AMSC’s founder and chief executive officer. “We achieved a record level of backlog in our first quarter, which gives us very good visibility to continued profitable growth over the next several years. The bulk of our sales during this period are expected to continue to be to Asian wind turbine manufacturers who are building out capacity to meet increased domestic demand and who are also preparing to export wind turbines to Western markets. We also expect our sales to customers in Western countries to start ramping significantly during that time.”
Yurek added, “In our AMSC Superconductors business unit, we made good progress during the first fiscal quarter in migrating to our 100-millimeter superconductor wire manufacturing process. We ramped our capital expenditures for superconductor manufacturing, as planned, and have now begun to install and qualify the additional equipment that will be needed to meet expected wire demand for Korean and Chinese superconductor power grid projects, the Tres Amigas SuperStation in the U.S., and SeaTitan™ superconductor wind turbines for offshore wind farms in the years ahead.”
Financial Forecast
“We are increasing our revenue forecast for full year fiscal 2010 from a range of $415 million to $425 million to a range of $420 million to $430 million,” said David Henry, AMSC’s senior vice president and chief financial officer. “We also are increasing our net income forecast for the full fiscal year from a range of $37.5 million to $40.0 million, or $0.80 to $0.85 per diluted share, to a range of $39.5 million to $42.0 million, or $0.85 to $0.90 per diluted share. Our non-GAAP net income guidance is similarly increased from a range of $54.0 million to $56.5 million, or $1.15 to $1.20 per diluted share, to a range of $56.0 million to $58.5 million, or $1.20 to $1.25 per diluted 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 913-312-0950 and using conference ID 3274268. A telephonic playback of the call will be available from 1:00 p.m. ET on July 29 through 1:00 p.m. ET on August 5. Please call 719-457-0820 and refer to conference ID 3274268 to access the playback.
American Superconductor (NASDAQ: 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 wind 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 like wind power 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.
