AMSC Losses Narrow, But Asian Policies Hinder Growth
PHOTO/MATT VOLPINI
Executives at AMSC in Devens believe in the long-term prospects for wind energy. But they say things are tough right now.
Devens-based wind and power grid company AMSC reduced its loss in its most recent financial quarter, but said political instability in Asia could prevent the company from reaching its full-year revenue target.
Excluding items, AMSC’s net loss from July to September – its second quarter – narrowed from 31 cents per share in 2012 to 18 cents per share, the company reported Thursday. That performance was in line with financial analysts’ expectations.
Revenue for the quarter was $24.2 million, beating both analysts’ projections of $24.1 million and AMSC’s 2012 performance of $20.9 million. The year-over-year improvement was due to higher revenue from the company’s wind and grid segments, AMSC said.
“We continue to be focused on achieving our targets of positive net cash flows on a quarterly basis by the end of fiscal year 2014,” said President and CEO Daniel P. McGahn.
Obstacles preventing AMSC from reaching its 2013 revenue projections include grid infrastructure challenges in China, delayed wind regulatory rules in India and election-related grid project delays, the company said. AMSC insists, though, that the challenges are short-term and that growth opportunities remain for the long-run.
AMSC’s annual revenue plunged from $315.9 million in its 2010 fiscal year to $87.4 million in fiscal 2013 (which ended March 31). The company cut a quarter of its workforce in late 2012, leaving just 340 employees worldwide.
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