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Subject:  Re: AMSC could be a turn-around play Date:  2/11/2013  5:40 PM
Author:  DrtThrwingMonkey Number:  13495 of 25357

Gross profit went from -$1 million to +$1 million, which is some consolation, but then lower down the earnings sheet there's still $4 mn in R&D (down from $6 mn last year) and $11 mn in SGA (down from $15 mn last year), for a net loss of $20 mn. For one quarter! So they have a long way to go before they can break even, when you consider their total revenues from the quarter were only $17 mn. In other words, they have $17 mn in revenues, and $37 mn in expenses.

With $42 mn cash on the balance sheet, they'd better turn this tanker around pretty quickly, because it looks to me like they run out of cash in about 6 months, 12 months max. Is there some more revenue on the horizon, at least? Because if the company hits its 25% growth target for 2013, that extra $4-5 million per quarter is not going to be enough, even if they can do it with no additional expenses.

Regards DTM
(closed my short at $11, feeling stupid about it)
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