February 7, 2019

AMSC profits $17.3M in Q3 after $25M legal settlement

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AMSC is headquartered in Ayer.

Energy systems manufacturer AMSC reported a decline in third-quarter revenues but is eyeing future profitability after receiving the last $25 million from a legal settlement.

The company, based in Ayer, reported $14.1 million in revenues for the quarter, down from $14.9 million last year.

The company said it made a profit of nearly $17.3 million, but that figure was aided largely by the $25-million legal payment from Chinese firm Sinovel.

The payment makes the company's nine-month report seem better than it actually is.

The company received almost $54 million from Sinovel this year, and AMSC is reporting a $35.1 million profit.

Last year, AMSC lost $4.2 million in the third quarter and $26.8 million through the first nine months.

The quarter's revenues took a hit thanks in large part to a big reduction in the company's grid revenues, from $12.3 million to just $6.8 million.

Wind revenues, however, increased to $7.3 million from $2.6 millon.

For the year, revenues are up to $41.6 million from $34.9 million.

The company ends the quarter with more than $80 million in cash, a big jump from the $34 million at the end of March 2018.

In a statement, Chairman, President and CEO Daniel McGahn said the company's strong balance sheet and nearly $1 million in operating cash flow generated during the quarter puts AMSC on a path toward predictable revenues and long-term growth.

"We expect to complete our goals for this fiscal year and further diversify and grow our revenue," McGahn said.

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