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AMSC Reports First Quarter 2013 Financial Results and Provides Business Outlook



AMSC Reports First Quarter 2013 Financial Results and Provides Business
Outlook

Grows Revenue 13% and Narrows Net Loss 47% Sequentially

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

DEVENS, Mass., Aug. 7, 2013 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global
solutions provider serving wind and power grid industry leaders, today
reported financial results for its first quarter ended June 30, 2013.

Revenues for the first quarter of fiscal 2013 were $23.1 million, compared
with $28.7 million for the same period of fiscal 2012 and $20.4 million for
the fourth quarter of fiscal 2012. The 13% improvement from the fourth quarter
of fiscal 2012 was driven by higher revenues from the Company's Wind segment.

AMSC's net loss for the first quarter of fiscal 2013 was $10.5 million, or
$0.18 per share, compared with $10.3 million, or $0.20 per share, for the same
period of fiscal 2012 and $19.8 million, or $0.35 per share, for the fourth
quarter of fiscal 2012.

The Company's non-GAAP net loss for the first quarter of fiscal 2013 was $8.1
million, or $0.14 per share, compared with a non-GAAP net loss of $11.0
million, or $0.21 per share, for the first quarter of fiscal 2012 and $11.8
million, or $0.21 per share, for the fourth quarter of fiscal 2012. Please
refer to the financial table below for a reconciliation of GAAP to non-GAAP
results.

Cash, cash equivalents, and restricted cash at June 30, 2013 totaled $39.5
million, compared with $50.2 million as of March 31, 2013.

For the second fiscal quarter ending September 30, 2013, AMSC expects that its
revenues will exceed $23 million and that its net loss will be less than $17
million, or $0.28 per share. This forecast excludes any impact from
mark-to-market adjustments related to the Company's derivative liability and
warrants. AMSC expects that its non-GAAP net loss for its second quarter of
fiscal 2013 will be less than $12 million, or $0.20 per share. The Company's
net loss and non-GAAP net loss are expected to be impacted by a less favorable
mix of revenues in the second quarter compared with the first quarter of
fiscal 2013. AMSC expects to have more than $30 million in cash, cash
equivalents and restricted cash on September 30, 2013.

"AMSC continued to execute to plan for the first fiscal quarter, growing
revenues by 13% and reducing net loss by 47% on a sequential basis from the
fourth quarter of fiscal 2012," said Daniel P. McGahn, AMSC President and CEO.
"In fiscal 2013, we remain focused on effectively managing our cash position,
while driving profitable revenue growth. We are reaffirming our guidance that
we expect annual revenue growth of at least 25% in fiscal 2013 over fiscal
2012. We have a solid presence in several established markets and continue to
seek opportunities to enter emerging markets where we see significant
opportunity."

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. To listen to the live
or archived conference call webcast please visit the "Investors" section of
the Company's website at http://www.amsc.com/investors. The live call also can
be accessed by dialing 785-830-7991 and using conference ID 6217879.

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, annual revenue
growth, and our ability to penetrate emerging markets,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 flow;
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 June 30, 
                                                  2013           2012
Revenues:                                                         
Wind                                              $14,701        $16,511
Grid                                              8,385          12,205
Total revenues                                    23,086         28,716
                                                                  
Cost of revenues                                  17,987         16,926
                                                                  
Gross profit                                      5,099          11,790
                                                                  
Operating expenses:                                               
Research and development                          3,027          3,910
Selling, general and administrative               10,827         13,799
Restructuring and impairments                     13             128
Amortization of acquisition related intangibles   82             81
Total operating expenses                          13,949         17,918
                                                                  
Operating loss                                    (8,850)        (6,128)
                                                                  
Change in fair value of derivatives and warrants  469            (2,388)
Interest expense, net                             (2,111)        (2,718)
Other income, net                                 69             123
                                                                  
Loss before income tax expense                    (10,423)       (11,111)
Income tax (benefit) expense                      90             (836)
                                                                  
Net loss                                          ($10,513)      ($10,275)
                                                                  
Net loss per common share                                         
Basic                                             ($0.18)        ($0.20)
Diluted                                           ($0.18)        ($0.20)
                                                                  
Weighted average number of common shares                          
outstanding
Basic                                             58,300         51,191
Diluted                                           58,300         51,191

                                                                      
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                                      
                                                           June 30,  March 31,
                                                           2013      2013
ASSETS                                                                
Current assets:                                                       
Cash and cash equivalents                                  $32,608   $39,243
Accounts receivable, net                                   11,088    18,864
Inventory                                                  30,752    33,473
Prepaid expenses and other current assets                  23,868    22,469
Restricted cash                                            824       6,136
Total current assets                                       99,140    120,185
                                                                      
Property, plant and equipment, net                         71,931    74,626
Intangibles, net                                           2,536     2,749
Restricted cash                                            6,098     4,820
Deferred tax assets                                        5,421     5,354
Other assets                                               9,067     9,020
Total assets                                               $194,193  $216,754
                                                                      
                                                                      
LIABILITIES AND STOCKHOLDERS' EQUITY                                  
                                                                      
Current liabilities:                                                  
Accounts payable and accrued expenses                      $25,481   $30,138
Note payable, current portion, net of discount of $363 as  4,252     4,158
of June 30, 2013 and $458 as of March 31, 2013
Current portion of convertible note, net of discount of    7,426     4,610
$3,259 as of June 30, 2013 and $4,289 as of March 31, 2013
Derivative liability                                       3,693     4,162
Adverse purchase commitments                               1,179     1,440
Deferred revenue                                           20,031    29,805
Deferred tax liabilities                                   5,452     5,444
Total current liabilities                                  67,514    79,757
                                                                      
Note Payable, net of current portion and discount of $39   2,268     3,367
as of June 30, 2013 and $95 as of March 31, 2013
Convertible note net of current portion and discount of    3,532     5,881
$172 as of June 30, 2013 and $600 as of March 31, 2013
Deferred revenue                                           1,234     1,340
Other liabilities                                          1,165     1,291
Total liabilities                                          75,713    91,636
                                                                      
Stockholders' equity:                                                 
Common stock                                               610       603
Additional paid-in capital                                 927,807   923,847
Treasury stock                                             (370)     (313)
Accumulated other comprehensive income                     1,077     1,112
Accumulated deficit                                        (810,644) (800,131)
Total stockholders' equity                                 118,480   125,118
                                                                      
Total liabilities and stockholders' equity                 $194,193  $216,754

                                                                  
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                                                  
                                                   Three Months ended June 30,
                                                   2013          2012
Cash flows from operating activities:                             
Net loss                                           ($10,513)     ($10,275)
Adjustments to reconcile net (loss) income to net                 
cash (used in) provided by operations:
Depreciation and amortization                      2,655         3,344
Stock-based compensation expense                   2,135         1,994
Restructuring charges, net of payments             (27)          (39)
Provision for excess and obsolete inventory        160           250
Adverse purchase commitment recoveries, net         --           (7,301)
Loss on minority interest investments              248           812
Change in fair value of derivatives and warrants   (469)         2,388
Non-cash interest expense                          1,672         2,282
Other non-cash items                               686           200
Changes in operating asset and liability accounts:                
Accounts receivable                                8,111         4,132
Inventory                                          2,861         136
Prepaid expenses and other current assets          (1,151)       848
Accounts payable and accrued expenses              (5,464)       (6,449)
Deferred revenue                                   (10,211)      (3,913)
Net cash used in operating activities              (9,307)       (11,591)
                                                                  
Cash flows from investing activities:                             
Net cash provided by (used in) investing           3,774         (6,846)
activities
                                                                  
Cash flows from financing activities:                             
Net cash (used in) provided by financing           (1,211)       32,925
activities
                                                                  
Effect of exchange rate changes on cash and cash   109           (280)
equivalents 
                                                                  
Net (decrease) increase in cash and cash           (6,635)       14,208
equivalents
Cash and cash equivalents at beginning of period   39,243        46,279
Cash and cash equivalents at end of period         $32,608       $60,487

                                                                      
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
(In thousands, except per share data)
                                                                      
                                                           Three months ended
                                                           June 30,
                                                           2013      2012
Net loss                                                   ($10,513) ($10,275)
Adverse purchase commitment recoveries, net                 --       (7,301)
Stock-based compensation                                   2,135     1,994
Amortization of acquisition-related intangibles            82        81
Restructuring and impairment charges                       13        128
Sinovel litigation                                         107       120
Consumption of zero cost-basis inventory                   (1,174)   (387)
Gain/(loss) in change of fair value of derivatives and     (469)     2,388
warrants
Non-cash interest expense                                  1,672     2,282
Non-GAAP net (loss) income                                 ($8,147)  ($10,970)
                                                                      
Non-GAAP loss per share                                    ($0.14)   ($0.21)
Weighted average shares outstanding                        58,300    51,191

                                                 
RECONCILIATION OF FORECAST GAAP NET LOSS TO NON-GAAP NET LOSS
(In millions, except per share data)
                                                 
                                                Three months ending
                                                Sept. 30, 2013
Net loss                                        ($17.0)
Amortization of acquisition-related intangibles 0.1
Stock-based compensation                        2.4
Non-cash interest expense                       3.6
Consumption of zero-cost inventory              (1.1)
Non-GAAP net loss                               ($12.0)
Non-GAAP net loss per share                     ($0.20)
Shares outstanding                              60.3

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; Sinovel litigation costs; 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 other 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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