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American Superconductor Corp. (AMSC) filed Quarterly Report for the period ended 2011-09-30.
American Superconductor Corp. has a market cap of $207.1 million; its shares were traded at around $4.07 with and P/S ratio of 0.7.
This is the annual revenues and earnings per share of AMSC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AMSC.
Highlight of Business Operations:
Our Wind business unit accounted for 65% and 59% of total revenues for the three and six months ended September 30, 2011, respectively, compared to 91% and 88% for the three and six months ended September 30, 2010. Revenues in the Wind business unit decreased 85% and 90% to $13.5 million and $17.7 million in the three and six months ended September 30, 2011, respectively, from $89.3 million and $172.3 million in the three and six months ended September 30, 2010, respectively. The decrease in Wind business unit revenues was primarily due to the disruption in our relationship with Sinovel, as described above.Our Grid business unit accounted for 35% and 41% of total revenues for the three and six months ended September 30, 2011, respectively, compared to 9% and 12% for the three and six months ended September 30, 2010. Revenues in the Grid business unit decreased 16% and 47% to $7.4 million and $12.1 million in the three and six months ended September 30, 2011, respectively, from $8.8 million and $23.0 million in the three and six months ended September 30, 2010, respectively.
Cost of revenues decreased by 63% and 67% to $21.9 million and $38.9 million for the three and six months ended September 30, 2011, compared to $59.4 million and $117.6 million for the three and six months ended September 30, 2010. Gross margin was (5.5%) and (30.3%) for the three and six months ended September 30, 2011, respectively, compared to 39.4% and 39.8% for the three and six months ended September 30, 2010, respectively. The decrease in gross margin and cost of revenues in the three and six months ended September 30, 2011 as compared to the same period in fiscal 2010 was a result of lower sales due to the disruption in our relationship with Sinovel and unabsorbed fixed overhead due to idle capacity. This is expected to improve in the future quarters as the wind market in China recovers.
R&D expenses (exclusive of amounts classified as cost of revenues and amounts offset by cost-sharing funding) decreased by 7% to $7.3 million from $7.9 million for the three months ended September 30, 2011 and increased 1% to $15.4 million from $15.2 million for the six months ended September 30, 2011. Lower R&D expenditures for the three months ended September 30, 2011 was primarily due to the impact of our cost reduction activities. Higher R&D expenditures for the six months ended September 30, 2011 was primarily due to increased spending in the first quarter to support new product development in our Wind segment, partially offset by savings from cost reduction activities in the second quarter of fiscal 2011. The increase in R&D expenditures reclassified to costs of revenue was a result of increased efforts under license and development contracts for wind turbine designs compared to the prior year. Aggregated R&D expenses, which include amounts classified as cost of revenues and amounts offset by cost-sharing funding, increased 1% and 7% to $10.6 million and $22.8 million, or 51% and 76% of revenues for the three and six months ended September 30, 2011, respectively, compared to $10.5 million and $21.3 million, or 11% of revenues, for each of the three and six months ended September 30, 2010, respectively. Growth in R&D expenses is expected to moderate going forward as a result of the restructuring actions undertaken in fiscal 2011.
SG&A expenses increased by 1% and 22% to $17.6 million and $39.6 million, or 84% and 132% of revenues, for the three and six months ended September 30, 2011, respectively, from $17.3 million and $32.5 million, or 18% and 17% of revenues, for each of the three and six months ended September 30, 2010, respectively. The increases in SG&A expenses were due primarily to increases in legal fees associated with ongoing litigation as discussed in Part II, Item 1, “Legal Proceedings,” of this Quarterly Report on Form 10-Q. During the three and six months ended September 30, 2011, we incurred $3.3 million in legal fees related to Sinovel litigation. Higher legal expenses are expected for the next several quarters as we expect to continue pursuing litigation against Sinovel.
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