Asian policies cause AMSC angst
US wind power technology group AMSC narrowed its loss in its most recent financial quarter – but said “governmental factors” in Asia and Australia could hinder its full-year revenue target.
AMSC’s net loss for the July to September period – its financial second quarter – was $14.6m, compared to a deficit of $15.9m in the same three months of 2012.
Quarterly revenues grew $3.3m to $24.2m, with both the Wind and Grid divisions managing an increase.
Daniel McGahn, AMSC’s CEO, said: "We grew revenues by 16% year over year, improved gross margins nearly threefold and reduced our non-GAAP net loss by more than 30%.
“We continue to be focused on achieving our target of positive net cash flows on a quarterly basis by the end of fiscal year 2014."
However, McGahn added: “We believe there are risks to achieving our full year revenue target, as a result of governmental factors impacting the renewable industries in Australia, China, and India.
“Wind projects in Australia are being impacted by political uncertainty from the recent election, causing delays for projects in our Grid segment. The recovery of the Chinese wind market is being slowed by the continued grid infrastructure challenges.
“In India, the regulatory framework intended to stimulate the wind industry was put in place six months after the beginning of the Indian fiscal year, which created uncertainty," said McGahn.
He added: "We see these challenges as short-term and we continue to believe that the long-term growth opportunities remain for both our wind and grid businesses in established and emerging markets."
For the third quarter ending December, AMSC guided that its "revenues will exceed $18m and that its net loss will be less than $17m".
AMSC may later update financial analysts on any developments in its lengthy legal battle with Sinovel, the Chinese wind turbine group, over allegations of intellectual property theft.
The US group has embarked on a recovery plan to try to overcome the damage caused by the 2011 rift with Sinovel, formerly its biggest customer.