American Superconductor expects higher net loss
Westboro-based American Superconductor Corp. (AMSC) revised its forecasted operating results for Q3 and the full fiscal year 2007, due to several factors including delayed government funding and later-than-expected ship dates of orders.
In Q3, revenues are expected to be approximately $9 million, with a net loss of $9 million to $11 million. The company looks to improve its financial results in the fourth quarter of 2007, thanks to additional revenues being recognized on existing programs.
The company adjusted its predicted net loss for fiscal year 2007 from a range of $23 to $27 million to a range of $29 million to $32 million. The company added that its ending cash balance as of March 31, 2007 may be lower than the $38 million it previously forecast due to possible deferred cash collections from the U.S. Navy and the Dept. of Energy (DOE) in Q1 of fiscal 2008.
Several factors were cited in the increases in losses, including that AMSC has not yet received planned incremental funding and received only partial payments from the DOE for costs stemming from its program to install a high temperature superconductor power transmission cable in the grid of the Long Island Power Authority, as well as revenue for its SuperVAR system not being recognized until Q1 2008, due to a later-than-planned shipment date.
Payments from the DOE for the Long Island project have been delayed and reduced on a monthly basis because the U.S. Congress did not pass the Energy and Water appropriations bill prior to its recess on Dec. 8, 2006. That funding is now being handled under a "Continuing Resolution" until at least February 15, 2007.
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