Inox deal boosts battling AMSC

AMSC chief executive Dan McGahn

AMSC chief executive Dan McGahn

US wind technology group AMSC claimed it is positioning itself to resume growth in 2015 despite tough going on revenues for the year ahead, as it announced a $40m order from India.

AMSC claimed the $40m follow-on deal from India’s Inox Wind, which was unveiled today, is the first fruit of a strategy it will implement in 2014 in order to “drive towards our vision of sustained revenue growth in 2015 and beyond”.

The Inox deal for wind turbine electrical control systems is the sixth and largest placed with AMSC by the 2MW licensee.

It expects to begin shipments in the second quarter of the current financial year, completing deliveries in 2015.

The Massachusetts-based company – which is involved in a protracted and complex legal battle with former biggest customer Sinovel – saw year-on-year revenues fall by $4.1m to $16.3m in the final quarter of its 2013 fiscal year, ending 31 March.

The Q4 net loss grew to $22.7m from a year-earlier $19.8m, though that included restructuring costs and a non-cash charge totalling some $7.3m.

Full-year 2013 revenues were $84.1m, down from 2012's $87.4m. Wind revenue grew by 26% last year, but was offset by falling grid sales.

Looking forward, AMSC said it expects revenues in the current first quarter to come in at $11m-$13m, with a dip in Wind segment revenues due to “temporary manufacturing issues” at an unidentified customer.

It expects to make a Q1 net loss of less than $16m.

For the full financial year, AMSC said it “expects revenues to be down slightly compared to fiscal 2013”.

CEO Daniel McGahn said: "In fiscal year 2013, we were able to reduce our operating expenses as well as decrease our cash burn.

“These efforts, combined with our financing activities, resulted in a year-over-year decrease of under $1m in our cash balance, including restricted cash. We believe our current liquidity position provides us the flexibility to focus on positioning the company for future growth."

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