AMSC Improves Second Quarter Business Outlook
AMSC has updated its financial guidance for the second fiscal quarter ending September 30, 2024, following the acquisition of NWL. The company now expects revenues between $50 million and $55 million, up from the previous guidance of $38 million to $42 million. AMSC also anticipates positive cash generation of $1.0 to $4.0 million, an improvement from the previous forecast.
The acquisition of NWL is expected to strengthen AMSC's revenue quality, earnings, and industrial market penetration. It also has the potential to expand AMSC's military footprint within the US Navy and Department of Defense. The combined companies aim to provide a broader range of industrial product offerings to an expanded customer base.
AMSC ha aggiornato le sue previsioni finanziarie per il secondo trimestre fiscale che si chiude il 30 settembre 2024, a seguito dell'acquisizione di NWL. L'azienda ora si aspetta entrate comprese tra 50 e 55 milioni di dollari, in aumento rispetto alle previsioni precedenti di 38 milioni a 42 milioni di dollari. AMSC prevede inoltre una generazione di cassa positiva tra 1,0 e 4,0 milioni di dollari, un miglioramento rispetto alle stime precedenti.
L'acquisizione di NWL dovrebbe rafforzare la qualità delle entrate, gli utili e la penetrazione nel mercato industriale di AMSC. Ha anche il potenziale di ampliare la presenza militare di AMSC all'interno della Marina degli Stati Uniti e del Dipartimento della Difesa. Le aziende unite mirano a fornire un'offerta più ampia di prodotti industriali a una clientela ampliata.
AMSC ha actualizado su guía financiera para el segundo trimestre fiscal que finaliza el 30 de septiembre de 2024, tras la adquisición de NWL. La compañía ahora espera ingresos entre 50 millones y 55 millones de dólares, un aumento desde la guía previa de 38 millones a 42 millones. AMSC también anticipa una generación de efectivo positiva de 1.0 a 4.0 millones de dólares, una mejora con respecto a las proyecciones anteriores.
Se espera que la adquisición de NWL fortalezca la calidad de los ingresos, las ganancias y la penetración en el mercado industrial de AMSC. También tiene el potencial de expandir la huella militar de AMSC dentro de la Marina de los EE. UU. y el Departamento de Defensa. Las empresas combinadas tienen como objetivo ofrecer una gama más amplia de productos industriales a una base de clientes ampliada.
AMSC는 NWL 인수에 따라 2024년 9월 30일 종료되는 두 번째 회계 분기에 대한 재무 지침을 업데이트했습니다. 회사는 이제 수익이 5천만 달러에서 5천5백만 달러 사이일 것으로 예상하며, 이는 이전 가이드라인의 3천8백만 달러에서 4천2백만 달러에서 증가한 것입니다. AMSC는 또한 1.0백만 달러에서 4.0백만 달러 사이의 긍정적인 현금 생성을 예상하고 있으며, 이는 이전 예측에서 개선된 것입니다.
NWL의 인수는 AMSC의 수익 품질, 수익 및 산업 시장 침투를 강화할 것으로 기대됩니다. 또한 미국 해군과 국방부 내에서 AMSC의 군사적 입지를 확장할 수 있는 잠재력이 있습니다. 결합된 회사는 확장된 고객 기반에 다양한 산업 제품을 제공하는 것을 목표로 합니다.
AMSC a mis à jour ses prévisions financières pour le deuxième trimestre fiscal se terminant le 30 septembre 2024, suite à l'acquisition de NWL. L'entreprise s'attend désormais à des revenus compris entre 50 millions et 55 millions de dollars, contre une prévision précédente de 38 millions à 42 millions de dollars. AMSC prévoit également un flux de trésorerie positif de 1,0 à 4,0 millions de dollars, une amélioration par rapport à la prévision précédente.
L'acquisition de NWL devrait renforcer la qualité des revenus, les bénéfices et la pénétration sur le marché industriel d'AMSC. Elle a également le potentiel d'élargir la présence militaire d'AMSC au sein de la marine américaine et du département de la défense. Les entreprises combinées visent à fournir une gamme plus large d'offres de produits industriels à un base de clients élargie.
AMSC hat seine finanzielle Guidance aktualisiert für das zweite Geschäftsjahr, das am 30. September 2024 endet, nach der Übernahme von NWL. Das Unternehmen rechnet nun mit Einnahmen zwischen 50 Millionen und 55 Millionen Dollar, ein Anstieg von der vorherigen Schätzung von 38 Millionen bis 42 Millionen Dollar. AMSC erwartet auch eine positive Cash-Generierung von 1,0 bis 4,0 Millionen Dollar, eine Verbesserung gegenüber der vorherigen Prognose.
Die Übernahme von NWL soll die Qualität der Einnahmen, die Gewinne und die Marktdurchdringung in der Industrie von AMSC stärken. Sie hat auch das Potenzial, AMSCS militärische Präsenz innerhalb der US Navy und des Verteidigungsministeriums zu erweitern. Die kombinierten Unternehmen zielen darauf ab, ein breiteres Angebot an Industrieprodukten einer erweiterten Kundenbasis anzubieten.
- Increased revenue guidance from $38-42 million to $50-55 million for Q2 2024
- Improved cash generation forecast from breakeven-$2.0 million to $1.0-$4.0 million
- Acquisition of NWL expected to strengthen revenue quality and earnings
- Potential expansion of military footprint within US Navy and Department of Defense
- Broadened industrial product offerings to an expanded customer base
- None.
Insights
The revised guidance from AMSC represents a significant upward revision in expected revenues, with the new range of
AMSC's acquisition of NWL is a strategic move that could significantly enhance its market position. By expanding into power supplies for critical military systems and motor drives for energy applications, AMSC is diversifying its revenue streams and reducing risk. The potential to multiply their military footprint within the US Navy and Department of Defense represents a substantial growth opportunity, given the size and stability of defense budgets. Moreover, the mention of success with allied navies suggests potential for international expansion. This broadened industrial product offering could lead to cross-selling opportunities and increased market share, potentially driving long-term revenue growth and shareholder value.
The integration of NWL's technology with AMSC's existing portfolio could create significant synergies in the power resiliency and naval systems sectors. AMSC's expertise in megawatt-scale power resiliency solutions combined with NWL's capabilities in critical power supplies could lead to more comprehensive and advanced offerings. This could potentially accelerate innovation in grid stability and naval power systems. The expanded product range may also allow AMSC to address a wider array of energy challenges, from industrial applications to military-grade solutions. However, successful integration of technologies and teams will be important to realizing these potential benefits and maintaining technological leadership in the market.
AYER, Mass., Sept. 10, 2024 (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 and resiliency of our Navy’s fleet, today announced updated financial guidance for its second fiscal quarter ending September 30, 2024 to reflect the recently announced acquisition of NWL.
AMSC now expects revenues, inclusive of its NWL acquisition, to be in the range of
As a result of higher expected revenues, AMSC anticipates positive cash generation to be between
“We are very pleased with the acquisition of NWL. We expect that it will strengthen the quality of our revenues and earnings and further expand our industrial market penetration,” said Daniel P. McGahn, Chairman, President and CEO of AMSC. “As we also expand our military business, we believe NWL has the potential to multiply our military footprint within the US Navy and the Department of Defense. Given our recent work and success with allied navies, the two companies together are expected to provide a powerful combination. We believe that this acquisition positions us to better serve our now broadened industrial product offerings to an expanded group of customers.”
NWL provides power supplies for critical military systems and motor drives for a variety of energy applications. By leveraging NWL’s leadership position in the industrial and military markets, the Company expects to expand its business offerings and deliver greater value to existing and new customers, business partners and shareholders.
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.
AMSC, American Superconductor, D-VAR, D-VAR VVO, Gridtec, Marinetec, Windtec, Neeltran, NEPSI, NWL, Smarter, Cleaner … Better Energy, and Orchestrate the Rhythm and Harmony of Power on the Grid are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.
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 regarding expected benefits of the NWL acquisition; our expectation regarding future financial results; our expected cash generation during the quarter ending September 30, 2024; 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. These important factors include, but are not limited to: 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 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; Changes in exchange rates could adversely affect our results of operations; 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; 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; Changes in U.S. government defense spending could negatively impact our financial position, results of operations, liquidity and overall business; Pandemics, epidemics or other public health crises may 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; Uncertainty surrounding our prospects and financial condition may have an adverse effect on our customer and supplier relationship; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; A significant portion of our Wind segment revenues are derived from a single customer. If this customer’s business is negatively affected, it could adversely impact our business; Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; Our business and operations would be adversely impacted in the event of a failure or security breach of our or any critical third parties' information technology infrastructure and networks; 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; 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; Many of our customers outside of the United States may be 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 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; We or third parties on whom we depend may be adversely affected by natural disasters, including events resulting from climate change, and our business continuity and disaster recovery plans may not adequately protect us or our value chain from such events; Adverse changes in domestic and global economic conditions could adversely affect our operating results; 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; Our products face competition, which could limit our ability to acquire or retain customers; We have operations in, and depend on sales in, emerging markets, including India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these markets. Changes in India’s political, social, regulatory and economic environment may affect our financial performance; Our success depends upon the commercial adoption of the REG system, which is currently limited, and a widespread commercial market for our products may not develop; Industry consolidation could result in more powerful competitors and fewer customers; Increasing focus and scrutiny on environmental sustainability and social initiatives could increase our costs, and inaction could harm our reputation and adversely impact our financial results; Growth of the wind energy market depends largely on the availability and size of government subsidies, economic incentives and legislative programs designed to support the growth of wind energy: Lower prices for other energy sources may reduce the demand for wind energy development, which could have a material adverse effect on our ability to grow our Wind business; We may be unable to adequately prevent disclosure of trade secrets and other proprietary information; Our patents may not provide meaningful or long-term 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; 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 common stock has experienced, and may continue to experience, 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; Unfavorable results of legal proceedings could have a material adverse effect on our business, operating results and financial condition; and the other 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, 2024, 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
(212) 838-3777
amscIR@lhai.com
Public Relations Contact:
RooneyPartners
Joe Luongo
(914) 906-5903
jluongo@rooneypartners.com
AMSC Director of Communications:
Nicol Golez
978-399-8344
Nicol.Golez@amsc.com
FAQ
What is AMSC's updated revenue guidance for Q2 2024 after acquiring NWL?
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