AMSC nets $22.6M in Q2 thanks to $30M settlement payment
Photo | Grant Welker
AMSC's former Devens offices. The company has downsized to a smaller facility in Ayer due to financial difficulties. Quiet Logistics began leading the building in November 2018.
Thanks to the first settlement payment from a Chinese company accused of stealing the company’s intellectual property, Ayer wind-turbine controls manufacturer AMSC reported a 400-percent increase in second-quarter revenue.
The company’s shares on Thursday grew more than 20 percent after it reported a $22.6-million profit in its second quarter.
That mark is compared to a $7.3 million loss in last year’s second quarter, when the company made $11 million in revenue compared to nearly $15 million this time around.
The company finished the quarter with more than double the cash it had at the end of June with $56.3 million. That figure included nearly $30 million of cash proceeds from the first settlement payment from Chinese firm Sinovel for stealing AMSC’s intellectual property.
If not for the settlement, the company would have had a loss for the quarter.
For the third quarter, the company is expecting a net loss of no more than $6 million with revenues between $14 million and $16 million.
Chairman, President and CEO Daniel McGahn in a press release credited the company’s restructuring, as it downsized from its Devens facility to a smaller building in Ayer.
“The new cost footprint of our Massachusetts facility along with the other cost reductions taken over the past 2 years have resulted in a stronger AMSC,” McGahn said.
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