American Superconductor Offers Outlook - Analyst Blog
26 Septiembre 2011 - 10:15AM
Zacks
Global power technologies company, American
Superconductor Corporation (AMSC) has reported losses for
fiscal year 2010 ended March 31, 2011, and the first quarter of
fiscal year 2011 ended June 30, 2011. The company's fiscal 2010
results include previously announced restatements of results for
the second and third quarters of fiscal 2010.
The company has filed its Annual Report on Form 10-K for the
year ended March 31, 2011 and its Quarterly Report on Form 10-Q for
the quarter ended June 30, 2011 with the Securities and Exchange
Commission and, as a result, the company expects to regain
compliance with NASDAQ Listing Rules.
In the first quarter of fiscal year 2011 ended June 30, 2011;
American Superconductor reported an adjusted loss of 68 cents per
share versus the Zacks Consensus Estimate of a loss of 10 cents per
share. Earnings in the reported quarter also came below the
year-ago adjusted earnings of 28 cents per share.
American Superconductor for the fiscal year 2010 ended March 31,
2011 reported an adjusted loss of 27 cents per share compared with
adjusted earnings of 70 cents for fiscal 2009.
Operational Statistics
American Superconductor clocked total revenues of $9.1 million
in the first quarter of fiscal year 2011 versus $97.2 million in
the year-ago quarter. This is also lower compared to the Zacks
Consensus Estimate of $39 million. The decline is due primarily to
a lack of revenue from Sinovel Wind Group Co. Ltd, China. Overall
American Superconductor reported a net loss for the quarter of
$37.7 million. This compares with a net income of $9.2 million for
the first quarter of fiscal 2010.
Revenues for fiscal year ending March 31, 2011 dropped to $286.6
million from $316 million for fiscal year ending March 31, 2010.
Net loss during the fiscal was $186.3 million versus earnings of
$16.2 million in fiscal year ending March 31, 2010. This was due to
restatement of results for the second and the third quarters,
leading to $158.5 million in aggregate one-time asset write-downs,
impairments and accrued charges.
Financial Update
Cash, cash equivalents, marketable securities and restricted
cash at June 30, 2011 were $130.9 million versus $123.8 million as
of March 31, 2011 and $87.6 million as of March 31, 2010. Cash used
in operating activities during the first three months of fiscal
2011 was $57.8 million versus $18.5 million in the year-ago
period.
Guidance
American Superconductor for the quarter ending September 30,
2011, expects its revenues to exceed $18 million. The company also
expects that its net loss for the aforementioned quarter to be less
than $38 million. Overall the company expects to end the quarter
with more than $100 million in cash, cash equivalents, marketable
securities and restricted cash.
Our Take
American Superconductor offers an array of proprietary
technologies and solutions spanning the electric power
infrastructure -- from generation to delivery to end-use. American
Superconductor is a lead player in megawatt-scale wind turbine
designs and electrical control systems.
American Superconductor 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.
American Superconductor’s performance was impacted by business
and contractual issues with its largest customer in China --
Sinovel. Earlier, American Superconductor’s revenue growth largely
depended on its customer Sinovel, China's largest and the world's
third largest wind turbine manufacturer. However, since April 2011,
Sinovel bogged down by high inventory levels refused to accept
further shipments from the company. Sinovel also was unable to pay
for past shipments worth $56 million.
American Superconductor is currently suing Sinovel for payments
for past shipments, and compensation for infringement of
intellectual property rights. American Superconductor alleges that
Sinovel illegally obtained and used its proprietary technology to
upgrade its 1.5 megawatt wind turbines to meet proposed Chinese
grid codes.
Consequently, we advise investors not to take any new position
over the Neutral-rated American Superconductor stock. In the
near-term the Zacks #3 Rank (Hold) for the stock suggests a
wait-and-watch stance. However, American Superconductor’s Zacks #2
Rank (Buy) peers, like Rogers Corporation (ROG)
and Advanced Battery Technologies Inc. (ABAT) look
attractive.
ADV BATTRY TECH (ABAT): Free Stock Analysis Report
AMER SUPERCON (AMSC): Free Stock Analysis Report
ROGERS CORP (ROG): Free Stock Analysis Report
Zacks Investment Research
American Battery Technol... (NASDAQ:ABAT)
Gráfica de Acción Histórica
De Sep 2024 a Oct 2024
American Battery Technol... (NASDAQ:ABAT)
Gráfica de Acción Histórica
De Oct 2023 a Oct 2024