American Superconductor Corporation to Reduce Global Workforce by Approximately 25%; Announces Termination of Executives, Effective December 31, 2012; Revises Earnings Guidance for the Three Months Ending December 31, 2012
November 28, 2012 at 12:46 pm EST
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American Superconductor Corporation announced the company's plan to reduce its global workforce by approximately 25%, as part of its cost-cutting strategy. The global workforce of the company has been reduced to approximately 340 employees. These reductions are expected to represent a total reduction of the company's annualized expenses of approximately $10 million. In addition, the company will be consolidating certain office locations. These workforce reductions and office consolidations are being made to lower operating costs and enhance liquidity in response to challenging conditions in the wind power market. The workforce reduction takes effect immediately. The company expects to incur restructuring charges of approximately $3-$4 million over the next two quarters relating to the workforce reduction and office consolidations. Of this total, the company expects to pay approximately $2 million in cash severance costs in the fiscal quarter ending December 31, 2012.
The company also reported that on November 27, 2012, as part of the company's workforce reduction, Timothy D. Poor, Executive Vice President, Windtec Solutions, of the company, was terminated without cause, effective as of December 31, 2012. On November 27, 2012, as part of the company's workforce reduction, Susan J. DiCecco, Senior Vice President, Corporate Administration, of the company, was terminated without cause, effective as of December 31, 2012.
The company also revised earnings guidance for the three months ending December 31, 2012. For the period, the company expects net loss of $24 million or $0.46 per share, amortization of acquisition-related intangibles of $0.3 million, non-cash interest expense of $2.2 million, non-GAAP net loss of $16 million and non-GAAP net loss per share of $0.31. This compares to the previous guidance of $19 million or $0.36 per share. Revenues are currently projected to be around $20 million, down from $26 million announced previously.
American Superconductor Corporation (AMSC) is a system provider of megawatt-scale power resiliency solutions. Its segments include Grid and Wind. Its power system products operate across six markets, including the transmission grid, distribution grid, urban grid infrastructure, marine protection systems, solar power, and wind power. Through the Company's Gridtec Solutions, the Grid business segment enables electric utilities and renewable energy project developers to connect, transmit, and distribute power. It also sells ship protection products to the United States Navy through its Grid business segment. Through its Windtec Solutions, Wind business segment enables manufacturers to field wind turbines. It provides power electronics and control systems. It provides a range of power electronics and software-based control systems that are highly integrated and designed for optimized performance, efficiency, and grid compatibility. It sells degaussing systems to the United States Navy.
American Superconductor Corporation to Reduce Global Workforce by Approximately 25%; Announces Termination of Executives, Effective December 31, 2012; Revises Earnings Guidance for the Three Months Ending December 31, 2012