AMSC today announced that it has
reduced its workforce by approximately 25 percent and is consolidating office
space to lower operating costs and enhance liquidity in response to
challenging conditions in the wind power market. Reductions have been made
across all of AMSC's major geographic locations and functions. The company now
has a global workforce of approximately 340 employees.
AMSC expects that today's action will reduce its annualized expenditures by
approximately $10 million and will lower its annualized operating expenses,
which include non-cash compensation costs, to less than $58 million once the
savings are fully realized in the fiscal quarter ending June 30, 2013. In
total, AMSC anticipates that it will incur restructuring charges of
approximately $3 to $4 million over the next two quarters relating to the
workforce reduction and office consolidations. Of this total, the company
expects to pay approximately $2 million in cash severance costs in the fiscal
quarter ending December 31, 2012.
The company has revised its financial forecast for the third fiscal quarter
ending December 31, 2012 as a result of anticipated wind turbine electrical
control system shipment delays to certain of its Windtec Solutions partners.
AMSC now expects that its revenues will exceed $20 million for the
quarter. AMSC now expects that its net loss for the third quarter will be less
than $24 million, or $0.46 per share. This guidance includes the
aforementioned restructuring charges but assumes no impact from mark-to-market
adjustments related to the derivative liability and warrants. AMSC expects
that its non-GAAP (as defined below) net loss for the third quarter of fiscal
2012 will be less than $16 million, or $0.31 per share. Please refer to the
financial table below for a reconciliation of GAAP to non-GAAP guidance.
As previously announced, AMSC expects to reduce its balance of restricted cash
in the third fiscal quarter by paying or settling the majority of its
remaining liabilities for adverse purchase commitments, which amounted to
approximately $12 million as of September 30, 2012. Factoring in these
expected payments and settlements as well as cash-related severance costs,
AMSC now expects to have more than $48 million in cash, cash equivalents,
marketable securities and restricted cash on December 31, 2012.
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