DEVENS, Mass., Feb. 06, 2017 (GLOBE NEWSWIRE) -- AMSC (NASDAQ: AMSC ), a global solutions provider serving wind and power grid industry leaders, today reported financial results for its third quarter of fiscal 2016 ended December 31, 2016.
Revenues for the third quarter of fiscal 2016 were $27.1 million, compared with $25.8 million for the same period of fiscal 2015. Revenues in both the Wind and Grid segments increased year-over-year.
AMSC’s net loss for the third quarter of fiscal 2016 decreased to $2.8 million, or $0.20 per share, from $3.0 million, or $0.22 per share, for the same period of fiscal 2015. The Company’s non-GAAP net loss for the third quarter of fiscal 2016 was $2.9 million, or $0.21 per share, which was improved compared with a non-GAAP net loss of $4.9 million, or $0.36 per share, in the same period of fiscal 2015. Please refer to the financial table below for a reconciliation of GAAP to non-GAAP results.
Cash, cash equivalents and restricted cash at December 31, 2016 totaled $26.0 million, compared with $26.6 million at September 30, 2016.
“Revenues were seasonally stronger in our Wind segment in the third quarter, while our Grid revenues continued to achieve year-over-year growth,” said Daniel P. McGahn, President and CEO, AMSC. “In the third quarter, we demonstrated significant improvement in our operating results relative to the first and second quarters of fiscal 2016, with positive operating cash flow in the third quarter. We expect our revenues in the fourth quarter of fiscal 2016 to be strong as well.”
Business Outlook For the fourth quarter ending March 31, 2017, AMSC expects that its revenues will be in the range of $22.0 million to $26.0 million. The Company’s net loss for the fourth quarter of fiscal 2016 is expected to be less than $5.5 million, or $0.39 per share. The Company's non-GAAP net loss (as defined below) is expected to be less than $5.0 million, or $0.36 per share. The Company expects a minimal cash burn of less than $2.0 million in the fourth quarter.
Conference Call Reminder In conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at 10:00 a.m. Eastern Time today to discuss the Company’s financial results and business outlook. Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at http://www.amsc.com/investors . The live call also can be accessed by dialing 888-240-1347 and using conference ID 6209539.
About AMSC (NASDAQ: AMSC ) AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Windtec™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. 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 are enhancing the performance and reliability of power networks in more than a dozen countries. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit www.amsc.com .
AMSC, Windtec, Gridtec, and Smarter, Cleaner … Better Energy are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.
Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this release about our expectations regarding anticipated financial results, strong revenues in the fourth quarter 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. Such forward-looking statements represent management’s current expectations and are inherently uncertain. 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. These important factors include, but are not limited to: A significant portion of our revenues are derived from a single customer, Inox, and shipments to Inox may not occur in the time frame we expect; We have a history of operating losses and negative operating cash flows, which may continue in the future and require us to secure additional financing in the future; Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; Our financial condition may have an adverse effect on our customer and supplier relationships; Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; We rely upon third-party suppliers for the components and subassemblies of many of our Wind and Grid products, making us vulnerable to supply shortages and price fluctuations; We may not realize all of the sales expected from our backlog of orders and contracts; Our success depends upon the commercial use of high temperature superconductor (“HTS”) products, which is currently limited, and a widespread commercial market for our products may not develop; Growth of the wind energy market depends largely on the availability and size of government subsidies and economic incentives; We have operations in and depend on sales in emerging markets, including India and China, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these countries; We face risks related to our intellectual property; We face risks related to our legal proceedings; and the important factors discussed under the caption “Risk Factors” in Part 1. Item 1A of our Form 10-K for the fiscal year ended March 31, 2016, and our other reports filed with the SEC. These important factors, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Revenues | |||||||||||||||
| Wind | $ | 18,248 | $ | 17,229 | $ | 36,822 | $ | 48,976 | |||||||
| Grid | 8,900 | 8,543 | 22,178 | 19,523 | |||||||||||
| Total revenues | 27,148 | 25,772 | 59,000 | 68,499 | |||||||||||
| Cost of revenues | 22,107 | 19,263 | 50,992 | 55,758 | |||||||||||
| Gross profit | 5,041 | 6,509 | 8,008 | 12,741 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 2,985 | 2,759 | 8,804 | 8,924 | |||||||||||
| Selling, general and administrative | 6,077 | 7,023 | 19,640 | 21,331 | |||||||||||
| Impairment loss | — | — | — | 779 | |||||||||||
| Amortization of acquisition related intangibles | 39 | 39 | 118 | 118 | |||||||||||
| Total operating expenses | 9,101 | 9,821 | 28,562 | 31,152 | |||||||||||
| Operating loss | (4,060 | ) | (3,312 | ) | (20,554 | ) | (18,411 | ) | |||||||
| Change in fair value of derivatives and warrants | 101 | (1,092 | ) | 667 | 409 | ||||||||||
| Gain on sale of minority interest | 325 | 2,511 | 325 | 2,511 | |||||||||||
| Interest expense, net | (89 | ) | (238 | ) | (331 | ) | (841 | ) | |||||||
| Other income (expense), net | 873 | (20 | ) | 481 | (1,189 | ) | |||||||||
| Loss before income tax expense | (2,850 | ) | (2,151 | ) | (19,412 | ) | (17,521 | ) | |||||||
| Income tax (benefit) expense | (82 | ) | 806 | 1,036 | 2,256 | ||||||||||
| Net loss | $ | (2,768 | ) | $ | (2,957 | ) | $ | (20,448 | ) | $ | (19,777 | ) | |||
| Net loss per common share | |||||||||||||||
| Basic | $ | (0.20 | ) | $ | (0.22 | ) | $ | (1.49 | ) | $ | (1.52 | ) | |||
| Diluted | $ | (0.20 | ) | $ | (0.22 | ) | $ | (1.49 | ) | $ | (1.52 | ) | |||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 13,792 | 13,539 | 13,746 | 13,052 | |||||||||||
| Diluted | 13,792 | 13,539 | 13,746 | 13,052 | |||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEET | |||||||
| (In thousands, except per share data) | |||||||
| December 31, 2016 | March 31, 2016 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 25,063 | $ | 39,330 | |||
| Accounts receivable, net | 15,863 | 19,264 | |||||
| Inventory | 19,442 | 18,512 | |||||
| Prepaid expenses and other current assets | 3,097 | 5,778 | |||||
| Restricted cash | 795 | 457 | |||||
| Total current assets | 64,260 | 83,341 | |||||
| Property, plant and equipment, net | 45,114 | 49,778 | |||||
| Intangibles, net | 436 | 854 | |||||
| Restricted cash | 140 | 934 | |||||
| Deferred tax assets | 115 | 96 | |||||
| Other assets | 176 | 315 | |||||
| Total assets | $ | 110,241 | $ | 135,318 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 18,354 | $ | 23,156 | |||
| Note payable, current portion, net of discount of $47 as of December 31, 2016 and $42 as of March 31, 2016 | 1,453 | 2,624 | |||||
| Derivative liabilities | 2,560 | 3,227 | |||||
| Deferred revenue | 15,997 | 12,000 | |||||
| Total current liabilities | 38,364 | 41,007 | |||||
| Note payable, net of discount of $133 as of March 31, 2016 | — | 1,367 | |||||
| Deferred revenue | 7,974 | 9,269 | |||||
| Deferred tax liabilities | 63 | 63 | |||||
| Other liabilities | 47 | 63 | |||||
| Total liabilities | 46,448 | 51,769 | |||||
| Stockholders' equity: | |||||||
| Common stock | 143 | 141 | |||||
| Additional paid-in capital | 1,014,365 | 1,011,813 | |||||
| Treasury stock | (1,371 | ) | (881 | ) | |||
| Accumulated other comprehensive (loss) income | (712 | ) | 660 | ||||
| Accumulated deficit | (948,632 | ) | (928,184 | ) | |||
| Total stockholders' equity | 63,793 | 83,549 | |||||
| Total liabilities and stockholders' equity | $ | 110,241 | $ | 135,318 | |||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (In thousands) | |||||||
| Nine months ended December 31, | |||||||
| 2016 | 2015 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (20,448 | ) | $ | (19,777 | ) | |
| Adjustments to reconcile net loss to net cash used in operations: | |||||||
| Depreciation and amortization | 5,606 | 6,050 | |||||
| Stock-based compensation expense | 2,266 | 2,542 | |||||
| Impairment loss | — | 746 | |||||
| Provision for excess and obsolete inventory | 1,074 | 1,835 | |||||
| Write-off prepaid taxes | — | 289 | |||||
| Gain from sale of minority interest investments | (325 | ) | (2,155 | ) | |||
| Change in fair value of derivatives and warrants | (667 | ) | (409 | ) | |||
| Non-cash interest expense | 127 | 290 | |||||
| Other non-cash items | (937 | ) | 694 | ||||
| Changes in operating asset and liability accounts: | |||||||
| Accounts receivable | 3,213 | (7,156 | ) | ||||
| Inventory | (2,294 | ) | 3,288 | ||||
| Prepaid expenses and other current assets | 2,283 | 5,800 | |||||
| Accounts payable and accrued expenses | (4,031 | ) | (34 | ) | |||
| Deferred revenue | 3,598 | 198 | |||||
| Net cash used in operating activities | (10,535 | ) | (7,799 | ) | |||
| Cash flows from investing activities: | |||||||
| Net cash provided by investing activities | 357 | 4,856 | |||||
| Cash flows from financing activities: | |||||||
| Net cash (used in)/provided by financing activities | (3,657 | ) | 19,202 | ||||
| Effect of exchange rate changes on cash and cash equivalents | (432 | ) | (312 | ) | |||
| Net (decrease)/increase in cash and cash equivalents | (14,267 | ) | 15,947 | ||||
| Cash and cash equivalents at beginning of year | 39,330 | 20,490 | |||||
| Cash and cash equivalents at end of year | $ | 25,063 | $ | 36,437 | |||
| RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Net loss | $ | (2,768 | ) | $ | (2,957 | ) | $ | (20,448 | ) | $ | (19,777 | ) | |||
| Gain on sale of interest in minority investments, net of tax effect | (325 | ) | (2,354 | ) | (325 | ) | (2,354 | ) | |||||||
| Stock-based compensation | 613 | 708 | 2,266 | 2,542 | |||||||||||
| Amortization of acquisition-related intangibles | 39 | 39 | 118 | 118 | |||||||||||
| Impairment loss | — | — | — | 779 | |||||||||||
| Consumption of zero cost-basis inventory | (478 | ) | (1,543 | ) | (1,118 | ) | (3,612 | ) | |||||||
| Change in fair value of derivatives and warrants | (101 | ) | 1,092 | (667 | ) | (409 | ) | ||||||||
| Non-cash interest expense | 30 | 83 | 127 | 290 | |||||||||||
| Tax effect of adjustments | 77 | — | 179 | — | |||||||||||
| Non-GAAP net loss | $ | (2,913 | ) | $ | (4,932 | ) | $ | (19,868 | ) | $ | (22,423 | ) | |||
| Non-GAAP net loss per share | $ | (0.21 | ) | $ | (0.36 | ) | $ | (1.45 | ) | $ | (1.72 | ) | |||
| Weighted average shares outstanding - basic and diluted | 13,792 | 13,539 | 13,746 | 13,052 | |||||||||||
| Reconciliation of Forecast GAAP Net Loss to Non-GAAP Net Loss | |||
| (In millions, except per share data) | |||
| Three months ending | |||
| March 31, 2017 | |||
| Net loss | $ | (5.5 | ) |
| Stock-based compensation | 0.6 | ||
| Consumption of zero-cost inventory | (0.1 | ) | |
| Non-GAAP net loss | $ | (5.0 | ) |
| Non-GAAP net loss per share | $ | (0.36 | ) |
| Shares outstanding | 14.0 | ||
Note: Non-GAAP net loss is defined by the Company as net loss before stock-based compensation; amortization of acquisition-related intangibles; consumption of zero cost-basis inventory; non-cash interest expense; change in fair value of derivatives and warrants; and other unusual charges, net of any tax effects related to these items. The Company believes non-GAAP net loss assists management and investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding these non-cash, non-recurring or other charges that it does not believe are indicative of its core operating performance. The Company also regards non-GAAP net loss as a useful measure of operating performance to complement operating loss, net loss and other GAAP financial performance measures. In addition, the Company uses non-GAAP net loss 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 loss is set forth in the table above.
AMSC Contact: Brion D. Tanous AMSC Investor Relations Phone: 424-634-8592 Email: Brion.Tanous@amsc.com
