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No. of Recommendations: 2
Mark,
You stated:
"September 2000 3 months – (4,717,504 - 3,528,064)/4,717,504 = 25.2%
      September 2000 6 months – (8,641,842 - 7,146,636)/ 8,641,842 = 17.3%

      Well those numbers are not exactly staggering, but at least in this small sample they seem to
      be improving (note: I do not consider one quarter improvement anything to be exited about).
      Lets compare those numbers to the same number from the year before."

I think that by looking at the net you are grossly understating the growth significance. The following tabulation is of AMSC's P/L over the past 7 quarters:
American Superconductor (AMSC)							
Gross Margin Analysis					All figures in US$ 000 or %		
Fiscal Yr	2001			2000			
	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenues							
Products	 4,601.6 	 3,999.0 	 3,198.5 	 3,561.3 	 490.1 	 458.3 	 111.1 
Contracts	 1,005.2 	 694.6 	 700.4 	 1,716.6 	 4,533.2 	 2,052.4 	 2,136.5 
TTL REV	 5,606.8 	 4,693.6 	 3,898.9 	 5,277.9 	 5,023.3 	 2,510.7 	 2,247.6 
Other income	 3,575.1 	 3,535.7 	 3,525.1 	 997.7 	 238.5 	 330.3 	 361.9 
TTL INCOME	 9,181.9 	 8,229.3 	 7,424.0 	 6,275.6 	 5,261.8 	 2,841.0 	 2,609.5 
							
Costs&Expenses							
COGS	 3,106.9 	 3,528.1 	 3,618.5 	 4,796.0 	 5,083.3 	 2,541.9 	 2,273.0 
R&D	 6,105.1 	 6,030.8 	 5,303.3 	 4,206.7 	 2,263.9 	 3,449.4 	 3,286.1 
S&A	 3,673.8 	 3,715.4 	 2,954.8 	 2,204.1 	 797.9 	 1,639.2 	 2,044.4 
TTL	 12,885.8 	 13,274.3 	 11,876.6 	 11,206.8 	 8,145.1 	 7,630.5 	 7,603.5 
							
P/(L)	 (4,129.8)	 (5,045.0)	 (4,452.6)	 (4,931.2)	 (2,883.3)	 (4,789.5)	 (4,994.0)

Sequential Prod Rev GR%	15%	25%	-10%	627%	7%	313%	
Sequential TTL Rev GR%	19%	20%	-26%	5%	100%	12%	
Sequential TTL Income GR%	12%	11%	18%	19%	85%	9%	
Apparent Product Margins	32.5%	11.8%	-13.1%	-34.7%	-937.2%	-454.6%	-1945.9%
R&D as % of TTL INC	66%	73%	71%	67%	43%	121%	126%

You will notice that once you isolate the effects of R&D and contract revenues, product sales growth and margin improvements are far more significant that is first aparent.

Naturally, product sales are still infinitisimal, in terms of what they could be, once AMSC's product lines take hold. The picture looks scaringly good.

Best Regards
Wafa
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