* Q2 adj EPS $0.19 vs est $0.13
* Revenue up 85 pct
* Raises full-year outlook
* Shares up 23 pct
(Adds details, CEO and analyst comments, updates share
By Bhaswati Mukhopadhyay
BANGALORE, Oct 29 American Superconductor Corp
(AMSC.O), which makes electrical systems for wind farms and
turbines, posted better-than-expected quarterly results,
powered by a booming Chinese wind industry, a key growth driver
for the company.
Shares of the energy technology company jumped 23 percent
to $35.47 on heavy volumes in afternoon trade on Nasdaq.
The company also raised its full-year outlook, saying its
key customer -- China's Sinovel Wind -- has asked it to
accelerate shipments in the second half of the fiscal year.
Sinovel Wind accounts for about 75 percent of American
Superconductor's total revenue. The company has a total of 13
customers in the wind industry, of which five are in China.
American Superconductor, though concerned about customer
concentration, said, "we definitely want to be part of Sinovel
as it aims to be the world's No. 1 player in the wind industry
within five years."
Analyst Theodore Rudd O'Neill of Kaufman Bros said Sinovel
is setting up operations in the UK and the U.S., American
Superconductor will benefit from its partnership with Sinovel
when the stimulus money flows into the U.S. wind turbine
However, the Chinese wind industry will remain the key
driver of American Superconductor's growth.
"The approach also is to bring in additional customers and
as they start to grow, that will dilute Sinovel as a percentage
of our revenue," Chief Executive Greg Yurek told Reuters.
For the full year, the company forecast earnings of 59
cents to 64 cents a share, excluding items, up from its prior
forecast of 41 cents to 47 cents a share.
American Superconductor, which also offers smart grid
infrastructure technologies, forecast full-year revenue of $300
million to $310 million, up from its previous view of $260
million to $270 million.
"We expect to increase revenue quarter-over-quarter through
the remainder of fiscal 2009," Chief Financial Officer David
Henry said in a statement.
Analyst Vijay Singh of Janco Partners said, "the most
important thing is the company needs to build the backlog
because if the backlog starts to shrink and there is only one
customer, then customer concentration becomes even more
American Superconductor is also part of the Tres Amigas
renewable energy market hub, which will enable buying and
selling of electricity between the three U.S. power grids.
The power trading hub is right now in the early stages of
development and there are many hurdles to overcome.
"When construction begins in 2012 and we start supplying
key components to the Tres Amigas superstation, we would hope
to see revenue coming at that stage," the CEO said.
Analysts, however, expect the project to take long to bear
Q2 TOPS STREET
For the second quarter ended Sept. 30, the company reported
net income of $4.3 million, or 10 cents a share, compared with
a net loss of $4.1 million, or 10 cents a share, a year ago.
Excluding items, it earned 19 cents a share.
Revenue rose 85 percent to $74.7 million.
Analysts on average were expecting earnings of 13 cents a
share on revenue of $69.0 million, according to Thomson Reuters
In addition to the $100 million electrical component
contract with Sinovel, second-quarter bookings included
electrical system orders from several other wind turbine
customers and power grid sales in Australia, China, the United
Kingdom and the United States, the CEO said.
(Reporting by Bhaswati Mukhopadhyay; Editing by Vinu Pilakkott
and Pradeep Kurup)