AMSC Reports Fourth Quarter 2012 Financial Results and Provides Business Outlook

AMSC Reports Fourth Quarter 2012 Financial Results and Provides Business
Outlook

Company to Host Conference Call Today at 10 a.m. ET

DEVENS, Mass., June 14, 2013 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global
solutions provider serving wind and power grid industry leaders, today
reported financial results for its fourth quarter and full year fiscal 2012
ended March 31, 2013.

Revenues for the fourth quarter of fiscal 2012 were $20.4 million, compared
with $28.6 million for the same period of fiscal 2011 and $17.4 million for
the third quarter of fiscal 2012. The improvement from the third quarter was
driven by higher revenues in both the Company's Wind and Grid segments.

AMSC's net loss for the fourth quarter of fiscal 2012 narrowed to $19.8
million, or $0.35 per share, from $21.2 million, or $0.42 per share, for the
same period of fiscal 2011. Results for the fourth quarter of fiscal 2012
included a charge of $1.8 million included in selling, general and
administrative expenses related to the class action shareholder lawsuit
against the Company. In addition, fourth quarter fiscal 2012 results include a
$1.4 million non-cash "mark-to-market" gain related to the revaluation of the
derivative liability and warrants associated with the Company's debt
financings. For the third quarter of fiscal 2012, AMSC's net loss was $20.1
million, or $0.38 per share.

The Company's non-GAAP net loss for the fourth quarter of fiscal 2012 was
$11.8 million, or $0.21 per share, compared with a non-GAAP net loss of $15.1
million, or $0.30 per share, for the fourth quarter of fiscal 2011 and $13.5
million, or $0.26 per share, for the third quarter of fiscal 2012. Please
refer to the financial table below for a reconciliation of GAAP to non-GAAP
results.

Revenues for the full year fiscal 2012 improved to $87.4 million from the
$76.5 million in fiscal year 2011. AMSC reported a net loss for full year
fiscal 2012 of $66.1 million, or $1.25 per share, down from a net loss of
$136.8 million, or $2.69 per share in the prior year. The Company's non-GAAP
net loss for full year fiscal 2012 was $52.3 million, or $0.98 per share,
compared with a non-GAAP net loss of $85.5 million, or $1.68 per share, for
fiscal year 2011.

Cash, cash equivalents, and restricted cash at March 31, 2013 totaled $50.2
million, compared with $56.4 million as of December 31, 2012.

"AMSC delivered improved results in fiscal year 2012, growing revenues by 14%
and reducing cash burn by more than 70%," said Daniel P. McGahn, AMSC
President and CEO. "We continue to execute on our plans. We managed expenses
to reduce our net loss by more than 50%. Fiscal 2012 marked a year of
transition for the Company."

Business Outlook

For the first fiscal quarter ending June 30, 2013, AMSC expects that its
revenues will exceed $22 million and that its net loss will be less than $15
million, or $0.26 per share. This forecast excludes any impact from
mark-to-market adjustments related to the derivative liability and warrants.
AMSC expects that its non-GAAP net loss (as defined below) for the first
quarter of fiscal 2013 will be less than $11 million, or $0.19 per share. AMSC
expects to have more than $42 million in cash, cash equivalents and restricted
cash on June 30, 2013.

"We believe that fiscal 2013 will be a year of revenue growth and will
position the Company to meet our objective of positive net cash flow on a
quarterly basis by the end of fiscal 2014," McGahn continued. "We have
established a core business for our D-VAR® product in Australia, Canada, the
United Kingdom and the United States. We have expanded our regional reach to
penetrate emerging markets in South America, Eastern Europe, the Middle East
and Africa. We have met the milestones for the deployment of fault current
limiting cable system with ConEdison in New York and the U.S. Department of
Homeland Security. We continue to develop ship protection systems with the
U.S. Navy to be deployed in the fleet. We see positive momentum in the wind
market, as evidenced by the expected 20% growth in the Chinese wind market in
2013 and the recent $30 million follow-on order from Inox Wind Limited of
India. Fiscal 2012 was filled with challenges but also a great number of
successes. I am very proud of what our partners and our people accomplished in
the past year and look to 2013 and 2014 with optimism."

Conference Call Reminder

In conjunction with this announcement, AMSC management will participate in a
conference call with investors beginning at 10:00 a.m. Eastern Time today to
discuss the company's results and its business outlook. Those who wish to
listen to the live or archived conference call webcast should visit the
"Investors" section of the company's website at http://www.amsc.com/investors.
The live call also can be accessed by dialing 719-457-2083 and using
conference ID 1888573.

About AMSC (Nasdaq:AMSC)

AMSC generates the ideas, technologies and solutions that meet the world's
demand for smarter, cleaner... better energy™. Through its Windtec™
Solutions, AMSC provides wind turbine electronic controls and systems, designs
and engineering services that reduce the cost of wind energy. Through its
Gridtec™ Solutions, AMSC provides the engineering planning services and
advanced grid systems that optimize network reliability, efficiency and
performance. The company's solutions are now powering gigawatts of renewable
energy globally and are enhancing the performance and reliability of power
networks in more than a dozen countries. Founded in 1987, AMSC is
headquartered near Boston, Massachusetts with operations in Asia, Australia,
Europe and North America. For more information, please visit www.amsc.com.

AMSC, Windtec, Gridtec, 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 (the "Exchange
Act"). Any statements in this release about future expectations, plans and
prospects for the Company, including without limitation our expectations
regarding our future financial results and cash balance, our belief that
fiscal 2013 will be a year of revenue growth for the Company, our belief that
we will achieve positive net cash flow on a quarterly basis by the end of
fiscal year 2014, our expectations regarding our ability to penetrate emerging
markets in South America, Eastern Europe, the Middle East and Africa, our
expectations regarding the deployment of fault current limiting cable systems
and ship protection systems, our expectations regarding the growth in the
Chinese wind market in 2013; and other statements containing the words
"believes," "anticipates," "plans," "expects," "will" and similar expressions,
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
represent management's current expectations and are inherently uncertain.

There are a number of important factors that could materially impact the value
of our common stock or cause actual results to differ materially from those
indicated by such forward-looking statements. Such factors include: We have
experienced recurring operating losses and recurring negative cash flows from
operations which raise substantial doubt about our ability to continue as a
going concern. This substantial doubt has resulted in a qualified opinion from
our auditors with an explanatory paragraph regarding our ability to continue
as a going concern. We believe this opinion may have an adverse effect on our
customer and supplier relationships; our success in addressing the wind energy
market is dependent on the manufacturers that license our designs; we may not
realize all of the sales expected from our backlog of orders and contracts;
our business and operations would be adversely impacted in the event of a
failure or security breach of our information technology infrastructure; our
success is dependent upon attracting and retaining qualified personnel and our
inability to do so could significantly damage our business and prospects; we
rely upon third-party suppliers for the components and subassemblies of many
of our Wind and Grid products, making us vulnerable to supply shortages and
price fluctuations, which could harm our business; many of our revenue
opportunities are dependent upon subcontractors and other business
collaborators; if we fail to implement our business strategy successfully, our
financial performance could be harmed; problems with product quality or
product performance may cause us to incur warranty expenses and may damage our
market reputation and prevent us from achieving increased sales and market
share; our contracts with the U. S. government are subject to audit,
modification or termination by the U. S. government and include certain other
provisions in favor of the government; the continued funding of such contracts
remains subject to annual congressional appropriation which, if not approved,
could reduce our revenue and lower or eliminate our profit; 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; many of our customers outside of the United States are, either
directly or indirectly, related to governmental entities, and we could be
adversely affected by violations of the United States Foreign Corrupt
Practices Act and similar worldwide anti-bribery laws outside the United
States; we have limited experience in marketing and selling our superconductor
products and system-level solutions, and our failure to effectively market and
sell our products and solutions could lower our revenue and cash flow; we have
experienced recurring losses from operations and negative operating cash
flows; these factors raise substantial doubt regarding our ability to continue
as a going concern; we have a history of operating losses, and we may incur
additional losses in the future; our operating results may fluctuate
significantly from quarter to quarter and may fall below expectations in any
particular fiscal quarter; we may require additional funding in the future and
may be unable to raise capital when needed; our debt obligations include
certain covenants and other events of default;.should we not comply with the
covenants or incur an event of default, we may be required to repay our debt
obligations in cash, which could have an adverse effect on our liquidity; if
we fail to maintain proper and effective internal controls over financial
reporting, our ability to produce accurate and timely financial statements
could be impaired and may lead investors and other users to lose confidence in
our financial data; we may be required to issue performance bonds or provide
letters of credit, which restricts our ability to access any cash used as
collateral for the bonds or letters of credit; changes in exchange rates could
adversely affect our results from operations; growth of the wind energy market
depends largely on the availability and size of government subsidies and
economic incentives; we depend on sales to customers in China, and global
conditions could negatively affect our operating results or limit our ability
to expand our operations outside of China; changes in China's political,
social, regulatory and economic environment may affect our financial
performance; our products face intense competition, which could limit our
ability to acquire or retain customers; our international operations are
subject to risks that we do not face in the United States, which could have an
adverse effect on our operating results; adverse changes in domestic and
global economic conditions could adversely affect our operating results; we
may be unable to adequately prevent disclosure of trade secrets and other
proprietary information; our patents may not provide meaningful protection for
our technology, which could result in us losing some or all of our market
position; the commercial uses of superconductor products are limited today,
and a widespread commercial market for our products may not develop; there are
a number of technological challenges that must be successfully addressed
before our superconductor products can gain widespread commercial acceptance,
and our inability to address such technological challenges could adversely
affect our ability to acquire customers for our products; we have not
manufactured our Amperium wire in commercial quantities, and a failure to
manufacture our Amperium wire in commercial quantities at acceptable cost and
quality levels would substantially limit our future revenue and profit
potential; third parties have or may acquire patents that cover the materials,
processes and technologies we use or may use in the future to manufacture our
Amperium products, and our success depends on our ability to license such
patents or other proprietary rights; our technology and products could
infringe intellectual property rights of others, which may require costly
litigation and, if we are not successful, could cause us to pay substantial
damages and disrupt our business; we have filed a demand for arbitration and
other lawsuits against our former largest customer, Sinovel, regarding amounts
we contend are overdue. We cannot be certain as to the outcome of these
proceedings; we have been named as a party to purported stockholder class
actions and stockholder derivative complaints, and we may be named in
additional litigation, all of which will require significant management time
and attention, result in significant legal expenses and may result in an
unfavorable outcome, which could have a material adverse effect on our
business, operating results and financial condition; our 7% convertible note
contains warrants and provisions that could limit our ability to repay the
note in shares of common stock and should the note be repaid in stock,
shareholders could experience significant dilution; our common stock has
experienced, and may continue to experience, significant market price and
volume fluctuations, which may prevent our stockholders from selling our
common stock at a profit and could lead to costly litigation against us that
could divert our management's attention; and new regulations related to
conflict-free minerals may force us to incur significant additional expenses.
These and the important factors discussed under the caption "Risk Factors" in
Part 1. Item 1A of our Form 10-K for the fiscal year ended March 31, 2013, and
our other reports filed with the SEC, among others, could cause actual results
to differ materially from those indicated by forward-looking statements made
herein and presented elsewhere by management from time to time. Any such
forward-looking statements represent management's estimates as of the date of
this press release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation to do so,
even if subsequent events cause our views to change. These forward-looking
statements should not be relied upon as representing our views as of any date
subsequent to the date of this press release.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
                                                              
                             Three months ended      Year ended
                              March 31,               March 31,
                             2013        2012        2013        2012
                                                              
Revenues                                                       
Wind                         $8,910    $16,804   $44,231   $44,642
Grid                         11,509      11,823      43,188      31,901
Total Revenues               20,419      28,627      87,419      76,543
                                                              
Cost of revenues             18,094      25,071      71,937      82,882
                                                              
Gross profit (loss)           2,325       3,556       15,482      (6,339)
                                                              
Cost and operating expenses:                                     
Research and development     3,846       5,932       15,325      27,271
Selling, general and         13,348      17,165      49,652      72,118
administrative
Restructuring and            1,076       795         7,922       9,188
impairments
Write-off of advance payment --          --          --          20,551
Amortization of acquisition  82          82          324         972
related intangibles
Total cost and operating     18,352      23,974      73,223      130,100
expenses
                                                              
Operating loss                (16,027)    (20,418)    (57,741)    (136,439)
                                                              
Change in fair value of       1,442       --         7,556       --
derivatives and warrants
Interest (expense) income,    (4,757)     11          (14,948)    243
net
Other (expense) income, net   (10)        (577)       (1,262)     738
                                                              
Loss before income tax        (19,352)   (20,984)    (66,395)    (135,458)
expense
                                                              
Income tax expense (benefit)  420         184         (264)       1,369
                                                              
Net loss                      $(19,772) $(21,168) $(66,131) $(136,827)
                                                              
Net loss per common share                                       
Basic                        $(0.35)   $(0.42)   $(1.25)   $(2.69)
Diluted                      $(0.35)   $(0.42)   $(1.25)   $(2.69)
                                                              
Weighted average number of    
common shares outstanding
Basic                        56,576      51,004      53,070      50,842
Diluted                      56,576      51,004      53,070      50,842


UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                                   
                                                          March 31, March 31,
                                                           2013      2012
ASSETS                                                              
Current assets:                                                     
Cash and cash equivalents                                  $39,243   $46,279
Marketable securities                                      --        5,304
Accounts receivable, net                                   18,864    18,999
Inventory                                                  33,473    29,256
Prepaid expenses and other current assets                 22,469    31,444
Restricted cash                                            6,136     12,086
Deferred tax assets                                        --        203
Total current assets                                       120,185   143,571
                                                                   
Property, plant and equipment, net                         74,626    90,828
Intangibles, net                                           2,749     3,772
Restricted cash                                            4,820     2,540
Deferred tax assets                                        5,354     3,129
Other assets                                               9,020     11,216
Total assets                                               $216,754  $255,056
                                                                   
                                                                   
LIABILITIES AND STOCKHOLDERS' EQUITY                                
                                                                   
Current liabilities:                                                
Accounts payable and accrued expenses                      $30,138   $37,582
Note payable, current portion, net of discount of $458 as  4,158     --
of March 31, 2013
Current portion of convertible note, net of discount of    4,610     --
$4,289 as of March 31, 2013
Derivative liability                                       4,162     --
Adverse purchase commitments                               1,440     25,894
Deferred revenue                                           29,805    19,718
Deferred tax liabilities                                   5,444     3,129
Total current liabilities                                  79,757    86,323
                                                                   
Note payable, net of discount of $95 as of March 31, 2013  3,367     --
Convertible note net of discount of $600 as of March 31,   5,881     --
2013
Deferred revenue                                           1,340     1,558
Deferred tax liabilities                                   --        203
Other liabilities                                          1,291     2,093
Total liabilities                                          91,636    90,177
                                                                   
                                                                   
                                                                   
Stockholders' equity:                                               
Common stock                                               603       520
Additional paid-in capital                                 923,847   896,603
Treasury stock                                             (313)     (271)
Accumulated other comprehensive income                     1,112     2,027
Accumulated deficit                                        (800,131) (734,000)
Total stockholders' equity                                 125,118   164,879
                                                                   
Total liabilities and stockholders' equity                 $216,754  $255,056

                                                                            
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS                              
(In thousands)                                                               
                                                                          
                                                       Year ended March 31, 
                                                       2013      2012       
Cash flows from operating activities:                                      
Net loss                                                $(66,131) $(136,827) 
Adjustments to reconcile net loss to net cash used in                      
operations:
Depreciation and amortization                           13,054    15,455     
Stock-based compensation expense                        8,138     9,864      
Write-off of advanced payment to The Switch             --        20,551     
Restructuring charges, net of payments                  902       2,798      
Patent costs                                            --        4,917      
Impairment of long-lived and intangible assets          4,984     1,715      
Provision for excess and obsolete inventory             2,230     4,357      
Adverse purchase commitment recoveries, net             (7,768)   (1,299)    
Loss on minority interest investments                   2,231     2,407      
Change in fair value of convertible notes and warrants  (7,556)   --       
Non-cash interest expense                               12,426    --       
Other non-cash items                                    2,427     771        
Changes in operating asset and liability accounts:                         
Accounts receivable                                     (751)     (4,820)    
Inventory                                               (6,457)   (7,528)    
Prepaid expenses and other current assets               8,887     1,685      
Accounts payable and accrued expenses                   (21,864)  (64,148)   
Deferred revenue                                        9,977     9,060      
Net cash used in operating activities                   (45,271)  (141,042)  
                                                                          
Cash flows from investing activities:                                      
Net cash provided by investing activities               7,353     63,337     
                                                                          
Cash flows from financing activities:                                      
Net cash provided by financing activities               31,221    57         
                                                                          
Effect of exchange rate changes on cash and cash        (339)     144        
equivalents
                                                                          
Net decrease in cash and cash equivalents               (7,036)   (77,504)   
Cash and cash equivalents at beginning of year          46,279    123,783    
Cash and cash equivalents at end of year                $39,243   46,279     


Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net (Loss) Income
(In thousands, except per share data)
                                                              
                                                    
                             Three months ended      Year ended
                              March 31,               March 31,
                             2013        2012        2013        2012
Net loss                      $(19,772) $(21,168) $(66,131) $(136,827)
Adverse purchase commitment   660         (1,372)     (7,768)     (1,299)
(recoveries) losses, net
Stock-based compensation      2,170       2,167       8,138       9,864
Amortization of
acquisition-related           82          82          324         972
intangibles
Restructuring and impairment  1,076       795         7,922       9,188
charges
Executive severance           --          --          --          2,066
Sinovel litigation            280         89          691         5,846
Loss contingency for          1,800       --          1,800       --
shareholder litigation
Consumption of zero           (721)       (621)       (2,111)     (794)
cost-basis inventory
Patent costs                  --          4,917       --          4,917
Change in fair value of       (1,442)     --          (7,556)     --
derivatives and warrants
Non-cash interest expense     4,022       --          12,426      --
Write-off of advance payment  --          --          --          20,551
Non-GAAP net loss             $(11,845) $(15,111) $(52,265) $(85,516)
                                                              
Non-GAAP loss per share       $(0.21)   $(0.30)   $(0.98)   $(1.68)
Weighted average shares       56,576      51,004      53,070      50,842
outstanding
                                                              

Reconciliation of Forecast GAAP Net Loss to Non-GAAP Net Loss
(In millions, except per share data)
                                               
                                               Three months ending
                                                June 30, 2013
Net loss                                        $(15.0)
Amortization of acquisition-related intangibles 0.1
Stock-based compensation                       2.4
Non-cash interest expense                       2.5
Consumption of zero-cost inventory              (1.0)
Non-GAAP net loss                               $(11.0)
Non-GAAP net loss per share                     $(0.19)
Shares outstanding                              58.0

Note: Non-GAAP net loss is defined by the company as net loss before adverse
purchase commitments (recoveries) losses, net; stock-based compensation;
amortization of acquisition-related intangibles; restructuring and impairment
charges; executive severance; Sinovel litigation costs; loss contingency for
shareholder litigation; consumption of zero cost-basis inventory; non-cash
interest expense; change in fair value of derivatives and warrants and other
unusual charges; net of any tax effects related to these items. The company
believes non-GAAP net loss assists management and investors in comparing the
company's performance across reporting periods on a consistent basis by
excluding these non-cash or non-recurring charges that it does not believe are
indicative of its core operating performance. The company also regards
non-GAAP net loss as a useful measure of operating performance and cash flow
to complement operating loss, net loss and other GAAP financial performance
measures. In addition, the company uses non-GAAP net loss as a factor in
evaluating management's performance when determining incentive compensation
and to evaluate the effectiveness of its business strategies.

Generally, a non-GAAP financial measure is a numerical measure of a company's
performance, financial position or cash flow that either excludes or includes
amounts that are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with GAAP. The
non-GAAP measures included in this release, however, should be considered in
addition to, and not as a substitute for or superior to, operating income,
cash flows, or other measures of financial performance prepared in accordance
with GAAP. A reconciliation of non-GAAP to GAAP net loss is set forth in the
table above.

CONTACT: AMSC Contact:
         Kerry Farrell
         Phone: 978-842-3247
         Email: kerry.farrell@amsc.com

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