AMSC Reports Fourth Quarter 2013 Financial Results and Provides Business Outlook

AMSC Reports Fourth Quarter 2013 Financial Results and Provides Business

Company to Host Conference Call Today at 10:00 am ET

DEVENS, Mass., June 5, 2014 (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 2013
ended March 31, 2014.

Revenues for the fourth quarter of fiscal 2013 were $16.3 million, compared
with $20.4 million for the same period of fiscal 2012 and $20.6 million for
the third quarter of fiscal 2013. The year over year decrease in revenues in
the fourth fiscal quarter was a result of lower revenues in the Company's Grid
segment, partially offset by higher Wind segment revenues.

AMSC's net loss for the fourth quarter of fiscal 2013 increased to $22.7
million, or $0.33 per share, from $19.8 million, or $0.35 per share, for the
same period of fiscal 2012. For the third quarter of fiscal 2013, AMSC's net
loss was $8.4 million, or $0.14 per share. Net loss in the fourth fiscal
quarter included restructuring and impairment charges of $2.1 million, as well
as a non-cash charge of approximately $5.2 million for a loss on
extinguishment of debt associated with the final conversion of the Company's
then outstanding convertible note.

Excluding the aforementioned charges and other items, the Company's non-GAAP
net loss for the fourth quarter of fiscal 2013 was $9.4 million, or $0.14 per
share, compared with a non-GAAP net loss of $11.8 million, or $0.21 per share,
in the same period of fiscal 2012 and $5.7 million, or $0.09 per share, in the
third quarter of fiscal 2013. Please refer to the financial table below for a
reconciliation of GAAP to non-GAAP results.

Revenues for the full year fiscal 2013 were $84.1 million as compared to $87.4
million in fiscal year 2012. Wind revenue grew by 26% in fiscal 2013 compared
with fiscal 2012, but this growth was offset by lower Grid revenue in fiscal
2013. AMSC reported a net loss for full year fiscal 2013 of $56.3 million, or
$0.90 per share, compared to a net loss of $66.1 million, or $1.25 per share,
for fiscal year 2012. The Company's non-GAAP net loss for full year fiscal
2013 was $34.1 million, or $0.54 per share, compared with a non-GAAP net loss
of $52.3 million, or $0.98 per share, for fiscal year 2012.

Cash, cash equivalents, and restricted cash at March 31, 2014 totaled $49.4
million, compared with $41.7 million as of December 31, 2013. The sequential
increase in cash was driven by both positive cash flows from operations during
the fourth quarter as well as proceeds received from the Company's At-Market
Sales Facility ("ATM"). During the fourth quarter of fiscal 2013, the Company
received net proceeds under the ATM, after deducting sales commissions, of
$4.1 million from the issuance of approximately 2.5 million shares of common
stock at an average sales price of $1.74 per share.

"In fiscal year 2013, we were able to reduce our operating expenses as well as
decrease our cash burn. These efforts, combined with our financing activities,
resulted in a year-over-year decrease of under $1 million in our cash balance,
including restricted cash. We believe our current liquidity position provides
us the flexibility to focus on positioning the Company for future growth,"
said Daniel P. McGahn, President and CEO, AMSC. "In fiscal 2014, we are
focused on putting into place the pieces that will help us drive towards our
vision of sustained revenue growth in 2015 and beyond. We have delivered on a
first piece through the $40 million order that we announced with Inox Wind

Business Outlook

For the first fiscal quarter ending June 30, 2014, AMSC expects that its
revenues will be in the range of $11 million to $13 million. Revenues are
expected to be sequentially lower in the Company's Wind segment due to
temporary manufacturing issues at one of its Wind customers. The Company's net
loss for the first quarter of fiscal 2014 is expected to be less than $16
million, or $0.20 per share. AMSC expects that its non-GAAP net loss (as
defined below) for the first quarter of fiscal 2014 will be less than $13.5
million, or $0.17 per share. For the full fiscal year 2014, the Company
expects revenues to be down slightly compared to fiscal 2013.

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
The live call also can be accessed by dialing 719-325-2432 and using
conference ID 2739570.

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

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

Forward-Looking Statements

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 our beliefs regarding the
flexibility provided by our current liquidity position, our beliefs regarding
our progress in connection with an order with Inox Wind, our focus on
achieving sustained revenue growth in 2015 and beyond, our expectations
regarding our future financial results 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 a history of operating losses, which may continue in
the future. Our operating results may fluctuate significantly from quarter to
quarter and may fall below expectations in any particular fiscal quarter; We
have a history of negative operating cash flows, and we may require additional
financing in the future, which may not be available to us; Our Term Loans
include certain covenants and other events of default. Should we not comply
with these covenants or incur an event of default, we may be required to repay
our obligation in cash, which could have an adverse effect on our liquidity;
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; 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; Our success in
addressing the wind energy market is dependent on the manufacturers that
license our designs; Our success is dependent upon attracting and retaining
qualified personnel and our inability to do so could significantly damage our
business and prospects; We may not realize all of the sales expected from our
backlog of orders and contracts; Our financial condition may have an adverse
effect on our customer and supplier relationships; Failure to successfully
execute the consolidation of our Grid manufacturing operations or achieve
expected savings could adversely impact our financial performance; Our
business and operations would be adversely impacted in the event of a failure
or security breach of our information technology infrastructure; We may not be
able to launch operations at our newly leased manufacturing facility in
Romania, and, if we are able to do so, we may have manufacturing quality
issues, which would negatively affect our revenues and financial position; 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; New regulations related to conflict-free minerals may force us to incur
significant additional expenses; 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; 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 may
acquire additional complementary businesses or technologies, which may require
us to incur substantial costs for which we may never realize the anticipated
benefits; Our success depends upon the commercial use of high temperature
superconductor (HTS) products, which is currently limited, and a widespread
commercial market for our products may not develop; Growth of the wind energy
market depends largely on the availability and size of government subsidies
and economic incentives; We have operations in and depend on sales in emerging
markets, including China and India, and global conditions could negatively
affect our operating results or limit our ability to expand our operations
outside of these countries. Changes in China's or India'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; 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 in various legal proceedings, 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
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.

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, 2014, 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.

(In thousands, except per share data)
                              Three months ended      Years ended
                              March 31,               March 31,
                              2014        2013        2014        2013
Wind                           $12,671   $8,910    $55,608   $44,231
Grid                           3,616       11,509      28,509      43,188
Total Revenues                 16,287      20,419      84,117      87,419
Cost of revenues               16,397      18,094      72,858      71,937
Gross profit (loss)            (110)       2,325       11,259      15,482
Operating expenses:                                             
Research and development       3,112       3,846       12,173      15,325
Selling, general and           9,490       13,348      37,230      49,652
Restructuring and impairments  2,126       1,076       2,998       7,922
Amortization of acquisition    39          82          287         324
related intangibles
Total operating expenses       14,767      18,352      52,688      73,223
Operating loss                 (14,877)    (16,027)    (41,429)    (57,741)
Change in fair value of        (18)        1,442       1,872       7,556
derivatives and warrants
Loss on extinguishment of debt (5,197)     —           (5,197)     —
Interest expense, net          (2,411)     (4,757)     (9,661)     (14,948)
Other expense, net             (83)        (10)        (991)       (1,262)
Loss before income tax expense (22,586)    (19,352)    (55,406)    (66,395)
Income tax (benefit) expense   119         420         852         (264)
Net loss                       $(22,705) $(19,772) $(56,258) $(66,131)
Net loss per common share                                       
Basic                          $(0.33)   $(0.35)   $(0.90)   $(1.25)
Diluted                        $(0.33)   $(0.35)   $(0.90)   $(1.25)
Weighted average number of                                      
common shares outstanding
Basic                          68,853      56,576      62,622      53,070
Diluted                        68,853      56,576      62,622      53,070

(In thousands)
                                                        March 31,  March 31,
                                                        2014       2013
Current assets:                                                    
Cash and cash equivalents                                $43,114  $39,243
Accounts receivable, net                                 7,556      18,864
Inventory                                                20,694     33,473
Prepaid expenses and other current assets                9,004      22,469
Restricted cash                                          2,913      6,136
Total current assets                                     83,281     120,185
Property, plant and equipment, net                       64,574     74,626
Intangibles, net                                         1,995      2,749
Restricted cash                                          3,394      4,820
Deferred tax assets                                      7,724      5,354
Other assets                                             7,541      9,020
Total assets                                             $168,509 $216,754
LIABILITIES AND STOCKHOLDERS' EQUITY                               
Current liabilities:                                               
Accounts payable and accrued expenses                    $21,764  $31,578
Note payable, current portion, net of discount of $555   6,240      4,158
as of March 31, 2014 and $458 as of March 31, 2013
Current portion of convertible note, net of discount of  --         4,610
$4,289 as of March 31, 2013
Derivative liabilities                                   2,601      4,162
Deferred revenue                                         9,456      29,805
Deferred tax liabilities                                 7,761      5,444
Total current liabilities                                47,822     79,757
Note Payable, net of current portion and discount of     6,380      3,367
$287 as of March 31, 2014 and $95 as of March 31, 2013
Convertible note net of current portion and discount of  --         5,881
$600 as of March 31, 2013
Deferred revenue                                         990        1,340
Other liabilities                                        1,058      1,291
Total liabilities                                        56,250     91,636
Stockholders' equity:                                              
Common stock                                             789        603
Additional paid-in capital                               966,390    923,847
Treasury stock                                           (370)      (313)
Accumulated other comprehensive loss                     1,839      1,112
Accumulated deficit                                      (856,389)  (800,131)
Total stockholders' equity                               112,259    125,118
Total liabilities and stockholders' equity               $168,509 $216,754

(In thousands)
                                                      Year ended March 31,
                                                      2014        2013
Cash flows from operating activities:                             
Net loss                                               $(56,258) $(66,131)
Adjustments to reconcile net (loss) income to net cash            
(used in) provided by operations:
Depreciation and amortization                          10,615      13,054
Stock-based compensation expense                       10,696      8,138
Restructuring charges, net of payments                 167         902
Impairment of long-lived and intangible assets         1,265       4,984
Provision for excess and obsolete inventory            316         2,230
Adverse purchase commitment recoveries, net            —          (7,768)
Prepaid VAT reserve                                    1,426       —
Loss on minority interest investments                  1,008       2,231
Change in fair value of derivatives and warrants       (1,872)     (7,556)
Loss on extinguishment of debt                         5,197       —
Non-cash interest expense                              7,713       12,426
Other non-cash items                                   1,813       2,427
Changes in operating asset and liability accounts:                
Accounts receivable                                    11,379      (751)
Inventory                                              13,043      (6,457)
Prepaid expenses and other current assets              12,512      8,887
Accounts payable and accrued expenses                  (10,861)    (21,864)
Deferred revenue                                       (21,426)    9,977
Net cash used in operating activities                  (13,267)    (45,271)
Cash flows from investing activities:                             
Net cash provided byinvesting activities              4,009       7,353
Cash flows from financing activities:                             
Net cash provided by financing activities              12,796      31,221
Effect of exchange rate changes on cash and cash       333         (339)
Net increase (decrease) in cash and cash equivalents   3,871       (7,036)
Cash and cash equivalents at beginning of year         39,243      46,279
Cash and cash equivalents at end of period             $43,114   $39,243

(In thousands, except per share data)
                              Three months ended      Year ended
                              March 31,               March 31,
                              2014        2013        2014        2013
Net loss                       $(22,705) $(19,772) $(56,258) $(66,131)
Adverse purchase commitments   --          660         --          (7,768)
(recoveries), net
Stock-based compensation       3,368       2,170       10,696      8,138
Amortization of
acquisition-related            39          82          287         324
Restructuring and impairment   2,126       1,076       2,998       7,922
Sinovel litigation             23          280         18          691
Loss contingency for           --          1,800       --          1,800
shareholder litigation
Consumption of zero cost-basis (674)       (721)       (4,308)     (2,111)
Prepaid VAT reserve            1,426       --          1,426       --
Change of fair value of        18          (1,442)     (1,872)     (7,556)
derivatives and warrants
Loss on extinguishment of debt 5,197       --          5,197       --
Non-cash interest expense      1,811       4,022       7,713       12,426
Non-GAAP net loss              $(9,371)  $(11,845) $(34,103) $(52,265)
Non-GAAP loss per share        $(0.14)   $(0.21)   $(0.54)   $(0.98)
Weighted average shares        68,853      56,576      62,622      53,070

(In millions, except per share data)
                                       Three months ending
                                       June 30, 2014
Net loss                                $(16.0)
Stock-based compensation               1.9
Restructuring and impairment charges    1.1
Non-cash interest expense               0.2
Consumption of zero-cost inventory      (0.7)
Non-GAAP net loss                       $(13.5)
Non-GAAP net loss per share             $(0.17)
Shares outstanding                      78.9

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; loss contingency for shareholder
litigation;consumption of zero cost-basis inventory; prepaid VAT reserve;
non-cash interest expense; change in fair value of derivatives and warrants;
and loss on extinguishment of debt; 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, non-recurring or other 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 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.

         Kerry Farrell
         Phone: 978-842-3247
         Email: kerry.farrell @

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