American Superconductor Rises as Earnings Beat Expectations
American Superconductor Corp. (AMSC), a maker of wind-turbine and power-grid electronics, gained the most in more than six months after its quarterly loss narrowed and it beat analysts’ expectations.
American Superconductor increased 21 percent to $4.30 at the close in New York, the most since Jan. 18.
The company, based in Devens, Massachusetts, reported a net loss of $10.3 million for its fiscal first-quarter ending June 30, or 20 cents a share, compared with a loss of $37.7 million, or 74 cents, a year earlier, according to a statement today. Excluding legal fees and other one-time expenses, the company lost 20 cents a share, 3 cents less than the average of six estimates compile by Bloomberg.
Sales increased to $28.7 million from $9.1 million because of “strong growth in the company’s wind and grid” sectors. The company is seeking to overcome the loss of Sinovel Wind Group Co., which contributed about 70 percent of its revenue in fiscal 2010 and stopped accepting shipments in March 2011.
“With key contributions coming from China, Korea and India in our wind segment and Australia and Romania in our grid segment, our revenue streams remained diverse and well balanced,” Chief Executive Officer Dan McGahn said in the statement.
American Semiconductor is seeking more than $1.2 billion in damages from Sinovel, China’s biggest turbine maker, for allegedly violating contracts and stealing its technology. China’s highest court agreed to hear the case in May.
The legal dispute has spread to Brazil, where Sinovel is facing a suit by the wind developer Desenvix Energias Renovaveis SA, which is seeking to examine 23 of its turbines to determine whether they’re using stolen technology. This “certainly adds momentum for our side,” McGahn said today on a conference call. “Our legal team has been and will continue to be intensely focused on each of these cases.”
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