AYER, Mass., June 06, 2018 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global solutions provider serving wind and power grid industry leaders, today reported financial results for its fourth quarter and full year fiscal 2017 ended March 31, 2018.

"Fiscal 2017 marked the year we commercialized AMSC's high-temperature superconductor technology as represented by the U.S. Navy's Ship Protection System order for the USS Fort Lauderdale. Our grid business grew by more than 20% in fiscal 2017 - our third year in a row of growth in our grid segment. We expect revenue growth again in our grid business and are anticipating improved conditions in India's wind power industry in fiscal 2018," said Daniel P. McGahn, President and Chief Executive Officer of AMSC. "We expect fiscal 2018 to be a year of revenue growth for AMSC."

Revenues for the fourth quarter of fiscal 2017 were $13.5 million, compared with $16.2 million for the same period of fiscal 2016. The year-over-year decrease was due to lower Wind segment revenues, primarily driven by fewer shipments of electrical control systems to Inox, partially offset by higher Grid segment revenues versus year ago results.

AMSC’s net loss for the fourth quarter of fiscal 2017 was $6.0 million, or $0.30 per share, versus $6.9 million, or $0.50 per share, for the same period of fiscal 2016. The Company’s non-GAAP net loss (as defined below) for the fourth quarter of fiscal 2017 was $5.0 million, or $0.25 per share, which decreased compared with a non-GAAP net loss of $7.1 million or $0.51 per share, in the same period of fiscal 2016. Please refer to the financial table below for a reconciliation of GAAP to non-GAAP results.

Revenues for the full fiscal year 2017 were $48.4 million as compared to $75.2 million in fiscal year 2016. AMSC reported a net loss for fiscal 2017 of $32.8 million, or $1.73 per share, compared to a net loss of $27.4 million, or $1.98 per share in fiscal 2016. The Company's non-GAAP net loss for full year fiscal 2017 was $32.2 million or $1.70 per share, compared with a non-GAAP net loss of $27.0 million, or $1.95 per share, for fiscal 2016.

Cash, cash equivalents and restricted cash at March 31, 2018 totaled $34.2 million, compared with $22.3 million at December 31, 2017. Operating cash burn in the fourth quarter of fiscal 2017 was $4.6 million.

Business OutlookFor the first quarter ending June 30, 2018, AMSC currently expects that its revenues will be in the range of $11 million to $13 million. The Company’s net loss for the first quarter of fiscal 2018 is expected to be less than $7.0 million, or $0.34 per share. The Company's non-GAAP net loss is expected to be less than $6.1 million, or $0.30 per share. The Company expects an operating cash burn of $6 million to $8 million in the first quarter of fiscal 2018.

Conference Call ReminderIn conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at 10:00 a.m. Eastern Time tomorrow, June 7, 2018, to discuss market trends, and the Company's recent accomplishments, financial results and business outlook. Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at http://www.amsc.com/investors. The live call also can be accessed by dialing 877-260-1479 and using conference ID 6971737. A replay of the call may be accessed 3 hours following the call by dialing: 888-203-1112 and using conference ID 6971737.

About AMSC (Nasdaq:AMSC)AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Windtec™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. The Company’s solutions are now powering gigawatts of renewable energy globally and are enhancing the performance and reliability of power networks in more than a dozen countries. 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, Windtec, Gridtec, and Smarter, Cleaner … Better Energy 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 about our expectation that our grid business will grow revenue again in fiscal 2018, our expectation of improved conditions in India's wind power industry in fiscal 2018, our expectation that fiscal 2018 will be a year of revenue growth, our expected financial results for the quarter ending June 30, 2018, our expected operating cash burn during the quarter ending June 30, 2018 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: A significant portion of our revenues are derived from a single customer, Inox, and we cannot predict if and when Inox’s demand dislocation will be resolved, and to the extent resolved, how successful Inox will be under India’s new central and state auction regime; 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; Our financial condition may have an adverse effect on our customer and supplier relationships; Lower prices for other fuel sources may reduce the demand for wind energy development, which could have a material adverse effect on our ability to grow our Wind business. Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; We rely upon third-party suppliers for the components and sub-assemblies of many of our Wind and Grid products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; Failure to successfully execute the move of our former Devens, Massachusetts manufacturing facility or achieve expected savings following the move could adversely impact our financial performance; We may not realize all of the sales expected from our backlog of orders and contracts; Our success depends upon the commercial use of high temperature superconductor products, which is currently limited, and a widespread commercial market for our products may not develop; 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; 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; We face risks related to our intellectual property; We face risks related to our legal proceedings; 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, 2018, 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.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended Twelve months ended March 31, March 31, 2018 2017 2018 2017 ---------- ---------- ----------- ----------- Revenues Wind $ 3,828 $ 10,447 $ 14,294 $ 47,269 Grid 9,670 5,748 34,109 27,926 -------- - -------- - --------- - --------- - Revenues 13,498 16,195 48,403 75,195 Cost of revenues 10,504 13,360 44,608 64,352 -------- - -------- - --------- - --------- - Gross profit 2,994 2,835 3,795 10,843 Operating expenses: Research and development 2,904 3,736 11,594 12,540 Selling, general and administrative 5,614 6,048 22,577 25,688 Amortization of acquisition related intangibles 85 — 183 157 Loss on contingent consideration — — 71 — Restructuring and impairment 199 39 1,527 — -------- - -------- - --------- - --------- - Total operating expenses 8,802 9,823 35,952 38,385 Operating loss (5,808 ) (6,988 ) (32,157 ) (27,542 ) Change in fair value of derivatives and warrants (762 ) 636 706 1,304 Gain on sale of minority interests 216 — 1,167 325 Interest income (expense), net 53 (52 ) 147 (383 ) Other (expense) income, net (351 ) (415 ) (2,800 ) 65 -------- - -------- - --------- - --------- - Loss before income tax expense (6,652 ) (6,819 ) (32,937 ) (26,231 ) Income tax expense (657 ) 106 (161 ) 1,142 Net loss $ (5,995 ) $ (6,925 ) $ (32,776 ) $ (27,373 ) - ------ - - ------ - - ------- - - ------- - Net loss per common share Basic $ (0.30 ) $ (0.50 ) $ (1.73 ) $ (1.98 ) - ------ - - ------ - - ------- - - ------- - Diluted $ (0.30 ) $ (0.50 ) $ (1.73 ) $ (1.98 ) - ------ - - ------ - - ------- - - ------- - Weighted average number of common shares outstanding Basic 20,044 13,981 18,967 13,804 -------- - -------- - --------- - --------- - Diluted 20,044 13,981 18,967 13,804 -------- - -------- - --------- - --------- -

CONSOLIDATED BALANCE SHEET (In thousands, except per share data) March 31, March 31, 2018 2017 ---------- ----------- ASSETS Current assets: Cash and cash equivalents $ 34,084 $ 26,784 Accounts receivable, net 7,365 7,956 Inventory 19,780 17,462 Note receivable, current portion 3,000 — Prepaid expenses and other current assets 2,947 2,703 Restricted cash — 795 -------- - --------- - Total current assets 67,176 55,700 Property, plant and equipment, net 12,513 43,438 Intangibles, net 3,230 301 Note receivable, long term portion, net of discount of $337K, and net of deferred gain 2,559 — of $105K as of March 31, 2018 Goodwill 1,719 — Restricted cash 165 165 Deferred tax assets 542 407 Other assets 271 233 Total assets $ 88,175 $ 100,244 - ------ - - ------- - LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses 12,625 14,490 Note payable, current portion, net of discount of $19 as of March 31, 2017 — 1,481 Derivative liabilities 1,217 1,923 Deferred revenue, current portion 13,483 14,323 -------- - --------- - Total current liabilities 27,325 32,217 Deferred revenue, long term portion 8,454 7,631 Deferred tax liabilities 110 125 Other liabilities 57 45 -------- - --------- - Total liabilities 35,946 40,018 -------- - --------- - Stockholders' equity: Common stock, $0.01 par value, 75,000,000 shares authorized; 21,138,689 and 14,713,839 211 147 shares issued at March 31, 2018 and 2017, respectively Additional paid-in capital 1,041,113 1,017,510 Treasury stock, at cost, 165,094 and 97,529 shares at March 31, 2018 and 2017, (1,645 ) (1,371 ) respectively Accumulated other comprehensive (loss) income 883 (503 ) Accumulated deficit (988,333 ) (955,557 ) Total stockholders' equity 52,229 60,226 -------- - --------- - Total liabilities and stockholders' equity $ 88,175 $ 100,244 - ------ - - ------- -

CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Twelve months ended March 31, 2018 2017 ----------- ----------- Cash flows from operating activities: Net loss $ (32,776 ) $ (27,373 ) Adjustments to reconcile net loss to net cash used in operations: Depreciation and amortization 11,459 7,519 Stock-based compensation expense 2,692 2,892 Impairment of minority interest investments — — Provision for excess and obsolete inventory 434 1,615 (Recovery)/Write-off prepaid taxes (82 ) — Gain on sale from minority interest investments (1,167 ) (325 ) Loss from minority interest investments — — Change in fair value of warrants and contingent consideration (635 ) (1,304 ) Non-cash interest expense 19 156 Other non-cash items 793 (940 ) Changes in operating asset and liability accounts: Accounts receivable 1,145 11,143 Inventory (2,423 ) (815 ) Prepaid expenses and other current assets 558 2,729 Accounts payable and accrued expenses (2,956 ) (7,938 ) Deferred revenue (1,888 ) 1,426 Net cash used in operating activities (24,827 ) (11,215 ) --------- - --------- - Cash flows from investing activities: Net cash provided by investing activities 16,397 192 --------- - --------- - Cash flows from financing activities: Net cash provided by (used in) financing activities 15,278 (1,130 ) ----------- ----------- Effect of exchange rate changes on cash and cash equivalents 452 (393 ) --------- - --------- - Net (decrease)/increase in cash and cash equivalents 7,300 (12,546 ) Cash and cash equivalents at beginning of year 26,784 39,330 --------- - --------- - Cash and cash equivalents at end of year $ 34,084 $ 26,784 - ------- - - ------- -

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) (In thousands, except per share data) Three Months Ended Twelve months ended March 31, March 31, 2018 2017 2018 2017 ---------- ---------- ----------- ----------- Net loss $ (5,995 ) $ (6,925 ) $ (32,776 ) $ (27,373 ) Gain on sale of interest in minority investments (216 ) — (1,167 ) (325 ) Stock-based compensation 578 626 2,692 2,892 Amortization of acquisition-related intangibles 85 39 183 157 Consumption of zero cost-basis inventory (220 ) (254 ) (734 ) (1,373 ) Change in fair value of derivatives and warrants 762 (636 ) (635 ) (1,304 ) Non-cash interest expense — $ 28 19 156 Tax effect of adjustments 35 41 177 220 -------- - -------- - --------- - --------- - Non-GAAP net loss $ (4,971 ) $ (7,081 ) $ (32,241 ) $ (26,950 ) - ------ - - ------ - - ------- - - ------- - Non-GAAP net loss per share $ (0.25 ) $ (0.51 ) $ (1.70 ) $ (1.95 ) - ------ - - ------ - - ------- - - ------- - Weighted average shares outstanding - basic and diluted 20,044 13,981 18,967 13,804

Reconciliation of Forecast GAAP Net Loss to Non-GAAP Net Loss (In thousands, except per share data) Three months ending June 30, 2018 ----------- Net loss $ (7,000 ) Stock-based compensation 900 Amortization of acquisition-related intangibles 100 Consumption of zero-cost inventory (100 ) Tax effect of adjustments — Non-GAAP net loss $ (6,100 ) - ------- - Non-GAAP net loss per share $ (0.30 ) - ------- - Shares outstanding 20,100

Note: Non-GAAP net loss is defined by the Company as net loss before gain on sale of interest in minority investments; stock-based compensation; amortization of acquisition-related intangibles; consumption of zero cost-basis inventory; non-cash interest expense; change in fair value of derivatives and warrants; and other unusual charges, net of any tax effects related to these items. The Company believes non-GAAP net loss assists management and investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding these non-cash, non-recurring or other charges that it does not believe are indicative of its core operating performance. The Company is not able to provide the change in fair value of warrants and contingent consideration on a forward-looking basis without unreasonable efforts because the calculation for that change is primarily driven by the closing price and volatility of the Company's stock at the end of each fiscal quarter, which cannot be reasonably estimated at this time. The Company also regards non-GAAP net loss as a useful measure of operating performance to complement operating loss, net loss and other GAAP financial performance measures. In addition, the Company uses non-GAAP net loss as a factor to evaluate the effectiveness of its business strategies.

Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measures included in this release, however, should be considered in addition to, and not as a substitute for or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of non-GAAP to GAAP net loss is set forth in the table above.

AMSC Contact:Brion D. TanousAMSC Investor RelationsPhone: 424-634-8592Email: Brion.Tanous@amsc.com