AMSC Gains Revenue, Trims Losses

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By Rick Saia

Devens-based AMSC, continuing to struggle two years after losing its largest customer, pared its quarterly and annual losses while posting a 14-percent gain in revenue for its 2013 fiscal year, which ended March 31.

AMSC, formerly American Superconductor, ended its fiscal year with $87.4 million in revenue, up from $76.5 million in 2012. For its fourth quarter, however, revenue fell from $28.6 million to $20.4 million, a drop of nearly 29 percent.

The company, which lost $136.4 million in fiscal 2012, cut into that substantially in 2013, reporting a $57.7 million loss for the year.

"We continue to execute on our plans," AMSC President and CEO Daniel P. McGahn said. "We managed expenses to reduce our net loss by more than 50 percent."

While revenue for its wind-energy products was flat for its fiscal year, AMSC reported a hefty 35-percent gain in revenue for its grid services business.

AMSC lost $16 million during the quarter, about $4.4 million less than its 2012 fourth-quarter loss. It said it expects to lose another $15 million in its current quarter, which ends June 30.

McGahn believes the company will grow its revenue in its current fiscal year, which will position the company to be cash flow-positive by next March. He said expanding into such emerging markets as South America, Eastern Europe, the Middle East and Africa will help.

McGahn said he also sees "positive momentum" in the wind market with an expected growth of 20 percent in China and a recent $30-million order from a customer in India.

Image credit: freedigitalphotos.net

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