AMSC, a global solutions provider serving wind and grid leaders, today announced that it has reduced its workforce by approximately 25% and is consolidating office space to lower operating costs and enhance liquidity in response to challenging conditions in the wind power market.
Reductions have been made across all of AMSC’s major geographic locations and functions. The company, headquartered in Devens, Mass., now has a global workforce of approximately 340 employees.
“While the long-term prospects for renewable energy remain bright, conditions in the sector today are challenging,” said AMSC President and CEO Daniel P. McGahn. “Financing and cash flow among wind farm developers and wind turbine manufacturers have been constrained, which has impacted growth plans for some of our Windtec Solutions partners. Given this environment, we made the difficult but prudent decision to reduce our workforce in order to weather the industry downturn and minimize our cash usage.”
AMSC, also known as American Superconductor, expects that the action will reduce its annualized expenditures by approximately $10 million and will lower its annualized operating expenses, which include non-cash compensation costs, to less than $58 million once the savings are fully realized in the fiscal quarter ending June 30, 2013.
In total, AMSC anticipates that it will incur restructuring charges of approximately $3 to $4 million over the next two quarters relating to the workforce reduction and office consolidations.
The company has revised its financial forecast for the third fiscal quarter ending December 31, 2012 as a result of anticipated wind turbine electrical control system shipment delays to certain of its Windtec Solutions partners. AMSC now expects that its revenues will exceed $20 million for the quarter. AMSC now expects that its net loss for the third quarter will be less than $24million, or $0.46 per share.Tagged with tED