Message Font: Serif | Sans-Serif
 
No. of Recommendations: 10
The following are brief notes I made from the conference call. I don't think there is much new here.

Finances
- $3.3M 2d Qtr Revenues ($2.2M HTS wire; $1.1M SMES/Power electronics
- Down $1.5M YOY due to lower SMES sales
- Operating costs $13.7M, up 4% YOY
- $10.5M loss ($.45 per share after $1.4M interest income)
- $106M cash balance (Down $26M due to investment in Devens plant)
- No PQSMES orders for revenue remainder of this year
- Utility industry starting to invest in power grid
- DSMES orders expected this FY in $8-$10M range
- Will reach lower end of revenue range guided to at beginning of year
- Strong cash position, zero debt, "clean" balance sheet
- Cash expected to decline to $90M by 31Mar02, and $50M by 31Mar03
- Plenty of cash to reach FY04 break even point
HTS Wire
- GE wants AMSC to move faster on wire scale-up plans in order to increase large utility electrical generators production
- Expect volume production of HTS wire in 2d half CY02
Power Electronics
- Wind turbine market for power modules will create $200K-$1M in revenues this year
- Power modules order for Japan Beta Site has potential for 200-250 units follow-on order
Electric Motors/Generators
- Shift in focus and resources from industrial applicaitons to ship propulsion
- 100% of cruise ships being built today use electric motors to drive propellers
- Market $400M today, $2-4B in 10 years
- Next follow-on Navy contract expected by end of this FY
- Expect first HTS motor in sea trials by end of CY03, first commercial sales in CY04
- On track to achieve goal of having "letter of intent" for jointly owned business with key motor manufactuers by end of this FY
Q&A
- Expect cash burn of $10M yet this year, $25M next year on Devens plant
- On pricing of DSMES, margins will continue to improve
- On transmission spending, National Grid Strategy will be on Bush's desk by end of Nov. It will generate spending of $56B this decade.
- Opportunities in Europe and Japan for AMSC being pursued
- Receivables $10.5M, but coming down
- On order of achieving profitability: SMES; Power Electronics; Wire; Electric Motors & Generators

Would appreciate comments/analysis.

Tim
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.