American Superconductor Reports Fiscal 2000 Third Quarter Results; Company Indicates Lower SMES Orders for Fiscal 2000.Business/Technology Editors WESTBOROUGH, Mass.--(BUSINESS WIRE)--Jan. 24, 2000 American Superconductor American Superconductor is a technology company based in Westborough, Massachusetts specializing in the design and manufacture of superconducting wires and power converters. It is listed on Nasdaq under the symbol AMSC. Corporation (Nasdaq:AMSC AMSC Army Management Staff College AMSC American Mobile Satellite Corporation AMSC American Miniature Schnauzer Club AMSC Area Maritime Security Committee AMSC Acquisition Method Suffix Code AMSC Advanced Missile Signature Center ) today reported that revenues for the third quarter of fiscal 2000 ended December 31, 1999 were $5.03 million compared with $2.58 million recorded in the same period last year. Third-quarter revenues for fiscal 2000 include $3.0 million resulting from a new research and development agreement with Pirelli Cables and Systems, which was effective October 1, 1999. The net loss for the quarter was $2.88 million, or $0.19 per share, compared with a net loss of $3.76 million or $0.24 per share for the year-ago period. Total research and development expense adjusted to include research and development expenses related to externally funded development contracts increased $1.28 million or 29 percent to $5.73 million compared with $4.45 million in the same period last year. For the nine-month period ended December 31, 1999, revenues were $9.84 million compared with revenues of $7.77 million for the same period last year. The net loss for the first nine months was $12.67 million, or $0.82 per share, compared with a net loss of $11.46 million, or $0.76 per share, for the year-ago period. Total research and development expense for the first nine months, adjusted to include research and development expenses related to externally funded development contracts, increased $2.88 million or 22 percent to $16.20 million compared with $13.32 million in the same period last year. The reported losses reflect planned investments primarily in research and development to commercialize superconductors for advanced electric power applications. Cash and investments at the end of the quarter were approximately $14 million, a decrease of $7 million during the three months ending December 31, 1999. Cash use during the quarter included $2 million of inventory investment primarily in the SMES SMES Superconducting Magnetic Energy Storage SMES Strategic Missile Evaluation Squadron SMES Saint Margaret's Episcopal School (San Juan Capistrano, California) SMES St. Marys Elementary School product line reflecting a planned increase in manufacturing activity to meet near-term customer shipment commitments. American Superconductor also indicated today that it has adjusted its internal estimates regarding the number of orders for superconducting magnetic energy storage Superconducting Magnetic Energy Storage (SMES) systems store energy in the magnetic field created by the flow of direct current in a superconducting coil which has been cryogenically cooled to a temperature below its superconducting critical temperature. (SMES) units it expects to have in hand by March 31, the end of the company's fiscal year. The company has accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. new orders for 10 SMES units since April 1999, including a new order for two units for chip manufacturer ST Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. , which the company announced separately today. Although there can be no assurance that the company will receive any additional SMES orders in this fiscal year, based on discussions with potential customers orders for up to four additional SMES units could be received by March 31, 2000. American Superconductor had earlier targeted securing orders for 30 SMES units by the end of its fiscal year. &uot;Our SMES sales and order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. are less than expected this fiscal year primarily, we believe, because the customer evaluation process has taken longer than we assumed for this developing product line,&uot; commented Greg Yurek, American Superconductor's chief executive. &uot;We have found that the sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. requires more in-depth analysis of customers' needs and more functional areas of approval than we anticipated. Nevertheless, we have continued to strengthen our market development effort, which has been expanding our list of strong prospects, and our team is increasingly effective in advancing discussions with qualified customers. The new orders we have received for 10 SMES units, coupled with the 10 SMES units already operating in the field, provides what we believe to be a solid base for further market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" .&uot; Yurek added: &uot;Based on the orders we have in hand, the traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. we are starting to achieve with respect to SMES sales, and the increasing recognition in the market place regarding the need for reliable, high quality power to run equipment supporting the semiconductor manufacturing industry and the Internet and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. economies, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future for this product line. We have recently applied for six additional SMES-based patents, and we are continuing to increase our investment in this technology and in our SMES manufacturing capacity.&uot; American Superconductor American Superconductor Corporation, headquartered in Westborough, Mass., was founded in 1987 and is a world leader in developing and manufacturing products utilizing superconducting su·per·con·duct·ing adj. Having, exhibiting, or capable of superconductivity: "a revolutionary superconducting magnetic propulsion system" Colin Nickerson. materials for electric power applications. The company's products, and products sold by electrical equipment A piece of electrical equipment is a machine, powered by electricity and usually consists of an enclosure, a variety of electrical components and often a power switch. Examples of Electrical Equipment
Certain statements in this release, including statements containing the words &uot;believes,&uot; &uot;anticipates,&uot; &uot;plans,&uot; &uot;expects,&uot; &uot;will&uot; and similar expressions, constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such factors include the uncertainties that : the company will be able to obtain the anticipated funding from corporate and government contracts; the company will be able to successfully develop and manufacture commercial products; a robust market will develop for the company's products; and the company will secure anticipated orders. Additionally such factors include: the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the company will infringe in·fringe v. in·fringed, in·fring·ing, in·fring·es v.tr. 1. To transgress or exceed the limits of; violate: infringe a contract; infringe a patent. 2. intellectual property rights of others; the competition encountered by the company, including several large Japanese companies This is a list of companies from Japan. Note that 株式会社 can be (and frequently is) read both kabushiki kaisha and kabushiki gaisha (with or without a hyphen). See that article for more details. ; the amount and timing of the company's future cash requirements and the availability of satisfactory financing sources. Reference is made to these and other factors discussed in the &uot;Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operation&uot; section of the company's periodic reports filed with the Securities and Exchange Commission.
American Superconductor Corporation
(Nasdaq:AMSC)
Results Report for Third Quarter Fiscal 2000
Statement of Operation Data
Three months ended Nine months ended
December 31 December 31
1999 1998 1999 1998
Revenues $ 5,031,814 $ 2,583,824 $ 9,835,229 $ 7,773,761
Net loss $ 2,883,324 $ 3,755,916 $12,666,740 $11,458,840
Net loss per share $ 0.19 $ 0.24 $ 0.82 $ 0.76
(Basic &Diluted)
Weighted average
shares outstanding 15,554,214 15,367,619 15,464,834 15,052,153
Other Data
Adjusted R&
Expenses(1) $ 5,729,530 $ 4,449,010 $16,204,254 $13,323,148
Selected Balance Sheet Data December 31, 1999 March 31, 1999
Cash, Cash Equivalents and $14,344,370 $31,571,971
Long Term Investments
Total Assets $40,564,086 $48,130,303
Stockholders Equity $33,590,355 $43,958,355
(1) Consists of company-funded research and development expenses plus
(i) research and development expenses related to externally funded
development contracts included in costs of revenue and (ii) research
and development expenses offset by cost-sharing funding under
government contracts. The Company believes that adjusted research and
development expenses provides useful information as to the Company's
aggregate research and development spending.
Note: In the third quarter of fiscal 2000, in addition to reported
revenues, the Company recorded $347,434 in cost-sharing funding
compared with $473,458 in the prior-year period. For the nine-month
period ended December 31, 1999, funding from cost-sharing agreements
was $1,445,797 compared to $1,292,636 for the same period a year ago.
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