AMSC Ups Q4 Guidance

PHOTO/MATT VOLPINI

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Devens-based AMSC slightly increased its financial expectations for its fourth quarter, which ended March 31.

The firm, which serves the wind and power grid industry, said it expects revenue to fall between $19 million and $20 million, up from initial expectations of at least $18 million.

Guidance for the company's cash, equivalents and restricted cash was raised to between $49 million and $50 million, up from more than $48 million.

President and CEO Daniel P. McGahn said AMSC, formerly American Superconductor, is working to reduce expenses and cash usage, and increase revenue.

"We are working closely with our Windtec Solutions partners to help them to achieve their growth objectives, which in turn, we believe will grow our business," he said.

Windtec provides wind turbine electronic controls and systems, and services.

McGahn went on to say the company expects to increase its geographic footprint and market share with its D-VAR STATCOM product, which helps power plants stay online and prevents the tripping of solar inverters and wind turbine generators.

"For our (high temperature superconductor) product line, we see interest from utilities and potential rotating machine partners around the world," he said. "As a result, we currently believe that we will achieve net positive cash flows on a quarterly basis by the end of fiscal year 2014."

For that to happen, annual revenue would need to be between $180 million and $190 million.

The company has been working on a turnaround after losing its largest customer in 2011 – Sinovel Wind Group – which it has sued in Chinese court over alleged contract violations and intellectual property theft. That caused AMSC to lose more than $37 million on $9 million in revenue, down from revenue of more than $97 million a year prior.

The company lost $20.1 million on $17.4 million in revenue during its third quarter of 2012 and cut 25 percent of its workforce in November, citing challenges in the wind power market.

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