American Superconductor Corporation (AMSC) saw its loss narrow to $7.32 million, or $0.53 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $7.70 million, or $0.57 a share. On the other hand, adjusted net loss for the quarter narrowed to $8.24 million, or $0.60 a share from a loss of $8.74 million or $0.64 a share, a year ago.
Revenue during the quarter went down marginally by 2.62 percent to $18.51 million from $19 million in the previous year period. Gross margin for the quarter contracted 449 basis points over the previous year period to 11.36 percent. Operating margin for the quarter stood at negative 38.63 percent as compared to a negative 36 percent for the previous year period.
Operating loss for the quarter was $7.15 million, compared with an operating loss of $6.84 million in the previous year period.
"Revenues in our Wind segment returned to a more normal run-rate in the second quarter, while our Grid revenues continued to achieve year-over-year growth," said Daniel P. McGahn, president and chief executive officer, AMSC. "While the first half of the fiscal year was challenging, we expect a stronger second half of the fiscal year, with growing revenues and minimal cash burn."
For the third-quarter 2016, American Superconductor Corporation rojects revenue to be in the range of $23 million to $25 million. It forecasts net income to be $8 million. The projects adjusted net income to be $8 million. The company projects diluted earnings per share to be $0.57. On an adjusted basis, the company expects diluted earnings per share to be $0.57.
Operating cash flow remains negative
American Superconductor Corporation has spent $10.91 million cash to meet operating activities during the first half as against cash outgo of $7.77 million in the last year period.
The company has spent $0.37 million cash to meet investing activities during the first six months as against cash outgo of $0.23 million in the last year period.
The company has spent $2.49 million cash to carry out financing activities during the first six months as against cash inflow of $20.20 million in the last year period.
Cash and cash equivalents stood at $25.26 million as on Sep. 30, 2016, down 22.44 percent or $7.31 million from $32.57 million on Sep. 30, 2015.
Working capital declines
American Superconductor Corporation has witnessed a decline in the working capital over the last year. It stood at $26.47 million as at Sep. 30, 2016, down 13.24 percent or $4.04 million from $30.51 million on Sep. 30, 2015. Current ratio was at 1.65 as on Sep. 30, 2016, down from 1.75 on Sep. 30, 2015.
Days sales outstanding went up to 51 days for the quarter compared with 47 days for the same period last year.
Days inventory outstanding has decreased to 74 days for the quarter compared with 96 days for the previous year period.
Debt comes down significantly
American Superconductor Corporation has recorded a decline in total debt over the last one year. It stood at $2.09 million as on Sep. 30, 2016, down 64.23 percent or $3.75 million from $5.84 million on Sep. 30, 2015. Total debt was 1.80 percent of total assets as on Sep. 30, 2016, compared with 4.35 percent on Sep. 30, 2015. Debt to equity ratio was at 0.03 as on Sep. 30, 2016, down from 0.07 as on Sep. 30, 2015.
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