American Superconductor Corp. (AMSC) has issued an update regarding its anticipated financial results for its fourth quarter and fiscal year 2010, which ended March 31, 2011.
AMSC currently expects its full fiscal year 2010 revenues to be less than $355 million. This compares with the company's prior forecast for fiscal year 2010 revenues of $430 million to $440 million.
On March 31, Sinovel Wind Group Co. Ltd. refused to accept contracted shipments of 1.5 MW and 3 MW wind turbine core electrical components and spare parts that AMSC was prepared to deliver. AMSC believes that Sinovel intends to reduce its level of inventory before accepting further shipments.
These delayed shipments are the primary cause for lower-than-anticipated financial results for AMSC's fourth quarter and full fiscal year 2010, according to the company. AMSC currently expects total revenues for its fourth quarter will be less than $42 million and that it will generate a net loss for the fourth quarter.
AMSC continues to have active discussions with Sinovel to determine when Sinovel will accept further shipments and when it will pay for past shipments. In the meantime, AMSC has taken certain actions to reduce expenses, and the company is in the process of implementing plans to better align spending with near-term revenues.
SOURCE: American Superconductor Corp.