AMSC Awarded Contract for Ship Protection System on LPD 31

Rhea-AI Summary

AMSC (NASDAQ: AMSC) has entered into a delivery contract with Huntington Ingalls Industries for a high temperature superconducting (HTS)-based ship protection system, set to be integrated into the LPD 31, a San Antonio-class amphibious transport dock ship. This advanced system will enhance mine protection for the U.S. Navy, cutting the degaussing system's weight by 90% and halving energy consumption compared to traditional systems. The contract supports the ongoing development of next-generation warships intended for diverse military operations through the 21st century.

Positive

• Secured a contract with Huntington Ingalls Industries, enhancing AMSC's order backlog.
• The new ship protection system provides significant improvements: 90% weight reduction and 50% lower energy consumption.
• Supports U.S. Navy's initiatives for advanced mine protection, potentially increasing demand for AMSC's technology.

Negative

• None.

AYER, Mass., July 14, 2020 (GLOBE NEWSWIRE) -- AMSC (NASDAQ: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™, and protect and expand the capability of our Navy’s fleet, today announced it has entered into a delivery contract with Huntington Ingalls Industries through its Ingalls Shipbuilding division (Ingalls) for a high temperature conductor (HTS)-based ship protection system to be deployed on the San Antonio-class of amphibious transport dock ship, LPD 31. 

Under the terms of the contact, AMSC has agreed to deliver the degaussing system to Ingalls’ shipbuilding facility in Pascagoula, Mississippi for integration into LPD 31. LPD 31 represents the second vessel of the next generation amphibious warship ‘Flight II’ variant of the San Antonio-class.

AMSC’s ship protection system will provide the U.S. Navy with world-class mine protection while reducing the weight of the degaussing system by 90% and reducing energy consumption by approximately half that of legacy degaussing systems.  The system is designed to reduce the magnetic signature of a ship, which can interfere with undersea mines’ ability to detect and damage the ship. The San Antonio-class of ships can carry up to 800 troops and has the capability of transporting and debarking landing craft air cushion or conventional landing crafts, augmented by helicopters or vertical take-off and landing aircraft such as the MV-22. These ships are expected to support amphibious assault, special operations or expeditionary warfare missions through the first half of the 21^st century.

About AMSC (NASDAQ: AMSC)
AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. Through its Marinetec™ Solutions, AMSC provides ship protection systems and is developing propulsion and power management solutions designed to help fleets increase system efficiencies, enhance power quality and boost operational safety. Through its Windtec™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. The Company’s solutions are enhancing the performance and reliability of power networks, increasing the operational safety of navy fleets, and powering gigawatts of renewable energy globally. 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.

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”). Such statements include, but are not limited to, statements about the expected scope of the ship protection system; functionality, performance and capabilities of our ship protection system; the expectation that San Antonio-class of ships will support amphibious assault, special operations or expeditionary warfare missions through the first half of the 21st century; and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions. 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. These important factors include, but are not limited to: We have a history of operating losses and negative operating cash flows, which may continue in the future and require us to secure additional financing 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 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 of operations; If we fail to maintain proper and effective internal control 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 not realize all of the sales expected from our backlog of orders and contracts; 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; The novel coronavirus (COVID-19) pandemic could adversely impact our business, financial condition and results of operations; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm our business;
Our financial condition may have an adverse effect on our customer and supplier relationships; We may experience difficulties re-establishing our HTS wire production capability in our Ayer, Massachusetts facility; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; Our business and operations would be adversely impacted in the event of a failure or security breach of our information technology infrastructure; Failure to comply with evolving data privacy and data protection laws and regulations or to otherwise protect personal data, may adversely impact our business and financial results; 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; We have had limited success marketing and selling our superconductor products and system-level solutions, and our failure to more broadly market and sell our products and solutions could lower our revenue and cash flow; Adverse changes in domestic and global economic conditions could adversely affect our operating results; We face risks related to our intellectual property; We face risks related to our technologies; We face risks related to our legal proceedings; We face risks related to our common stock; 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, 2020, and our other reports filed with the SEC. These important factors, 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.

AMSC Contacts
Investor Relations Contact:
LHA Investor Relations
Carolyn Capaccio, CFA
(212) 838-3777
amscIR@lhai.com

Public Relations Contact:
RooneyPartners LLC
Bob Cavosi
646-638-9891
rcavosi@rooneyco.com   

AMSC Communications Manager:
Nicol Golez
Phone: 978-399-8344
Email: Nicol.Golez@amsc.com

FAQ

What is the recent contract AMSC signed related to?

AMSC signed a delivery contract with Huntington Ingalls Industries for a HTS-based ship protection system for the LPD 31.

What are the benefits of AMSC's new ship protection system?

The system offers a 90% reduction in weight and a 50% decrease in energy consumption compared to legacy systems.

Which ship is the AMSC system being integrated into?

The AMSC system will be integrated into the LPD 31, part of the San Antonio-class amphibious transport dock ships.

How does the AMSC system impact the U.S. Navy's operations?

It enhances mine protection capabilities, supporting various military operations through the first half of the 21st century.

What is the significance of AMSC's contract for investors?

The contract enhances AMSC’s order backlog and could lead to increased demand for their ship protection technologies.