American Superconductor nears profit with booming wind business
A booming global wind power business centered in American Superconductor Corp.'s Middleton-based Power Systems unit has more than doubled revenues and made American Superconductor profitable on an operating basis, the company reported Thursday.
The results and the firm's 2008 forecast handily beat analysts' expectations and sent the stock soaring more than 20 percent Thursday morning.
The Devens, Mass.-based company reported that for its fiscal 2007 fourth quarter ended March 31 it posted a net loss of $1.8 million, or 4 cents per share, on revenues of $38.4 million, compared to a year-ago net loss of $11.4 million, or 33 cents per share, on revenues of $19.1 million.
Analysts polled by Thomson Financial expected a loss of 11 cents per share on sales of $34.8 million.
Earnings before interest, taxes, other income and expense, depreciation, amortization and stock-based compensation (EBITDAS) was a positive $0.4 million for the fiscal 2007 fourth quarter, compared to an EBITDAS loss of $8.7 million a year ago.
The firm's gross margin for the quarter was 33.2 percent, up from 5.7 percent a year ago.
For all of fiscal 2007, American Superconductor posted a net loss of $25.4 million, or 65 cents per share, on revenues of $112.4 million, compared to a fiscal 2006 net loss of $34.7 million, or $1.04 per share, on revenues of $52.2 million.
The firm's gross margin for fiscal 2007 was 28.5 percent, up from negative 0.6 percent in fiscal 2006.
The company's EBITDAS loss for full year fiscal 2007 was $9.1 million, which compares with an EBITDAS loss of $28.1 million for the prior fiscal year.
Fourth quarter revenues for the Power Systems unit grew to $34.3 million from $13.7 million a year ago, while fiscal 2007 revenues grew to $96.8 million from $30.8 million.
American Superconductor said its business backlog as of March 31 totaled $199 million, up from $168 million as of Dec. 31 and $76.8 million as of March 31, 2007.
"The fourth quarter was a resounding financial success for AMSC," Founder and CEO Greg Yurek said in a statement. "We generated record revenues and gross margins based on the strength of our commercial sales into the wind power and electric utility markets. In addition, AMSC achieved positive EBITDAS for the fourth quarter. This capped off a strong year of growth and operational enhancements at AMSC, including the integration of two acquisitions, the consolidation of our Massachusetts operations and the formation of AMSC China. We are confident that fiscal 2008 will be an even greater success for AMSC."
The company projects that in fiscal 2008 revenues will range from $165 million to $175 million, with a net loss of $9 million to $12 million, or 21 to 28 cents per share, and positive EBITDAS in the range of $3 million to $7 million.
Analysts polled by Thomson Financial expect a loss of 36 cents per share on sales of $153.3 million.
"AMSC entered the first quarter of fiscal 2008 with significant momentum and visibility, providing us with confidence that our strong growth rate will continue through this fiscal year," David Henry, senior vice president and chief financial officer, said in a statement.
File photo
Wind power is a booming business, and American Superconductor is reaping the benefits.
