Tailwinds in Semiconductor and Renewables Markets Drive Demand
AYER, Mass., July 26, 2022 (GLOBE NEWSWIRE) — AMSC® (NASDAQ: AMSC), a leading system provider of megawatt-scale energy resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand fleet capacity of our Navy, today announced $40 million in new energy supply system orders. This includes controls for reactive compensation, closed capacitor banks, harmonic filters, voltage regulators, rectifiers and transformers. More than half of the revenue from these orders is expected to be recognized in fiscal 2022.
“Flying winds in our key markets are driving bookings of our new power system solutions faster,” said Daniel P. McGahn, AMSC President and CEO. “The semiconductor industry is expected to continue to increase capital expenditure in the years to come. The shift to decarbonization and energy independence in many countries is also expected to result in widespread adoption of renewable energy systems across the globe. We believe that this dynamic has the capacity to sustain demand for our products in the medium and long term. »
AMSC’s New Power Systems Solutions Include D-VAR® and D-VAR VVO® offers as well as NEPSIMT and NeeltranMT businesses. Customers use AMSC’s solutions to provide voltage control, power factor correction and reactive compensation to stabilize the power grid and prevent unwanted events such as voltage collapse. The systems are designed to instantly detect and compensate for voltage disturbances. With Neeltran, AMSC offers power conversion products. These products include transformers and rectifiers. Additionally, the systems help utilities manage their power quality issues and expand grid capacity for distributed generation of renewable energy.
About AMSC (NASDAQ: AMSC)
AMSC generates ideas, technologies and solutions that meet the global demand for smarter, cleaner…better energy. Through its Gridtec™ solutions, AMSC provides engineering planning services and advanced grid systems that optimize grid reliability, efficiency and performance. Through its Marinetec™ solutions, AMSC provides ship protection systems and develops propulsion and power management solutions designed to help fleets increase system efficiency, improve power quality and enhance operational security. Thanks to its Windtec® Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. The company’s solutions improve the performance and reliability of power grids, increase the operational safety of navy fleets and power gigawatts of renewable energy around the world. Founded in 1987, AMSC is headquartered near Boston, Massachusetts, with operations in Asia, Australia, Europe and North America. For more information, visit www.amsc.com.
©2022 CSIA. AMSC, American Superconductor, NEPSI, Neeltran, D-VAR, D-VAR VVO, Amperium, Gridtec, Marinetec, Windtec, Orchestrate the Rhythm and Harmony of Power on the Grid and Smarter, Cleaner…Better Energy are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements about our expectations regarding the intended uses of newly ordered power supply systems; the expected timing of revenue recognition for systems ordered; market drivers and dynamics for our new energy power systems products; our expectation that the semiconductor industry will continue to increase capital spending in future years; our belief that market momentum has the ability to support demand over the medium to long term; the functionality and performance of our products, systems and solutions; and other statements containing the words “believes”, “anticipates”, “plans”, “expects”, “will” and similar expressions. These forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially affect the value of our common stock or cause actual results to differ materially from those indicated by these forward-looking statements. These important factors include, but are not limited to: We have a history of operating losses, which may continue in the future. Our results of operations may fluctuate significantly from quarter to quarter and may be lower than expected in any given fiscal quarter; We have a history of negative operating cash flow and may require additional financing in the future which may not be available to us; We may be required to issue performance bonds or provide letters of credit, which limit our ability to access cash used as collateral for bonds or letters of credit; Changes in exchange rates could adversely affect our results of operations; We may not achieve all of the expected sales from our order and contract backlog; The COVID-19 pandemic could have an adverse impact on our business, financial condition and results of operations; We rely on third-party suppliers for components and subassemblies for many of our Grid and Wind products, which makes us vulnerable to supply shortages and price fluctuations, which could adversely affect our business; Uncertainty about our prospects and financial condition may adversely affect our relationships with our customers and suppliers; Our success depends on attracting and retaining qualified personnel and our failure to do so could materially harm our business and prospects; Our business and operations would be adversely affected in the event of a failure or breach of security of our information technology infrastructure and networks or critical third parties; Many of our revenue opportunities depend on contractors and other business associates; Product quality or performance issues may cause us to incur warranty costs and may damage our reputation in the marketplace and prevent us from increasing our sales and market share; We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits; Adverse changes in domestic and global economic conditions could adversely affect our results of operations; Our products face competition, which could limit our ability to acquire or retain customers; We may not be able to adequately prevent the disclosure of trade secrets and other proprietary information; Our patents may not provide meaningful protection for our technology, which could cause us to lose some or all of our market position; Our technology and products could infringe the intellectual property rights of others, which could require costly litigation and, if we are unsuccessful, could require us to pay substantial damages and disrupt our business; We face risks related to our legal proceedings; We face risks related to our common stock; and other material factors discussed under “Risk Factors” in Part 1. Item 1A of our Form 10-K for the year ended March 31, 2022, and our other reports filed with the SEC. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made herein and presented elsewhere by management from time to time. These forward-looking statements represent management’s estimates as of the date of this press release. Although we may choose to update these forward-looking statements at some time in the future, we disclaim any obligation to do so, even if subsequent events change our views. These forward-looking statements should not be taken to represent our views as of any date subsequent to the date of this press release.
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