American Superconductor Revises Down Revenue Figures
Because of "deficiencies in its internal control over financial reporting," Devens-based American Superconductor has revised down its revenue figures for the past two quarters.
The company originally said that it earned $114 million in revenue during the quarter that ended Dec. 31, 2010. On Monday, the company revised that figure down to $43 million. The company also reported, at the time, that it made a $16 million profit that quarter. No updated profit figures were released Monday.
For the quarter that ended Sept. 30, 2010, the company originally reported $101 million in revenues, which has been revised down to $98 million.
The company said for the full fiscal year (which ended March 31) it expects to report $307 million in revenues.
The company's audit committee said that quarterly results from its two most recent quarters could "no longer be relied on" and admitted that revenues were incorrectly recorded. The company said it recognized revenues based on customer receipt of shipments, but not based on receipt of payments. It also said there were deficiencies in accurately measuring the creditworthiness of the some Chinese customers.
"The company is in the process of designing and implementing controls to remediate these deficiencies, which have not been remediated as of the fiscal year ended March 31, 2011," the company said in a statement.
In April, the company announced that a Chinese customer refused to accept shipments of wind turbines parts that it ordered, which it admitted would impact financial results.
In May, a month after the news first broke of the Chinese orders falling through, the company's founder, Greg Yurek, retired. Weeks later the company announced that it had cut 10 percent of its staff since March 2010 and in June the company announced that it extended its negotiations to buy the Finnish company The Switch Engineering Oy.
The Nasdaq Stock Exchange issued a warning in late June to American Superconductor for not filing its annual report. American Superconductor said that it will file the report as soon as is practical.
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