AMSC secures $8.5M Navy contract
AMSC has secured a U.S. Navy contract as the alternative energy company continues to diversify its client base.
The Devens-based company, formerly known as American Superconductor, will supply high temperature superconductor-based ship protection systems to the Navy in a contract worth up to $8.5 million. The system uses superconductors to disrupt electromagnetic detection of Navy ships, which can interfere with undersea mines' ability to detect and damage the ship.
“We’ve worked with the U.S. Navy for a number of years on the deployment of these systems, and we are pleased to have a contract vehicle in place that will allow the U.S. Navy to purchase ship protection system equipment,” Daniel McGahn, AMSC’s president and CEO, said in a release.
Analysts had been looking for the company to secure additional orders and customers amid continued losses – $22.7 million in the last year. AMSC has been rebuilding its customer base since it became embroiled in a legal battle in 2010 with its largest customer, Sinovel Wind Group of China, over alleged theft of trade secrets.
In April, AMSC stock climbed by over 35 percent the day it announced the potential Navy contract. However, two days later the stock fell 45 percent after it was announced that a Chinese court had dismissed AMSC's software copyright infringement case. AMSC’s stock rose by less than 1 percent Tuesday morning after the announcement of the Navy deal.
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