American Superconductor Corporation (AMSC) CEO, Daniel McGahn Discusses The Long Term Prospects For His Company

Wall Street Transcript

67 WALL STREET, New York - August 28, 2012 - The Wall Street Transcript has just published its Utilities, Alternative Energy and Water Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Outlook for Biofuels and Biochemicals - Asia Pacific Demand for Solar Energy - Grid Parity Timelines for Alternative Energy - Water Infrastructure Development - Irrigation and Metering Technology - Water Industry Consolidation

Companies include: American Superconductor Corporation (AMSC) and many others.

In the following excerpt from the Utilities, Alternative Energy and Water Services Report, the CEO of AMSC discusses the outlook for his company for investors.

TWST: Would you begin with a brief introduction to AMSC, including some highlights from the company's history and an overview of your business segments?

Mr. McGahn: AMSC focuses on providing smarter, cleaner and better energy solutions. When the company was founded about 25 years ago, we went by the name American Superconductor, and we had operations only in the United States and our sole focus was on superconductor technology. Today, we go by AMSC, which reflects our global operations and our broad scope of wind and grid solutions.

On the Windtec Solutions part of our business, we provide wind turbine electrical controls, wind turbine designs and engineering services, with a significant focus on reducing the cost of wind energy for our wind turbine OEM partners. Our Gridtec Solutions include engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance from the point of power generation through the transmission and distribution infrastructure. From both our wind side and our grid side, it's truly an end-to-end approach from where the power gets generated to when it gets routed through the electricity grid.

TWST: You just released your first-quarter results. Would you give us some highlights from the quarter?

Mr. McGahn: It was an exciting call and an exciting time for the company. We met or exceeded all of our financial targets in the first fiscal quarter, which was the June-ending quarter. We were able to triple our revenues year-over-year, and we cut our net loss significantly. We boosted our cash balance through the quarter through a set of recent financings. Highlights from the wind side of the business include some key activities in China. In recent months, we have been able to obtain low-voltage ride through, or LVRT certifications, for two of our key partners in China. This is important because one of the challenges in the Chinese market today is that there is a need for specific technology that makes turbines LVRT compliant, meaning that they are able to remain connected to the grid despite low voltage events. AMSC has been delivering LVRT solutions to other markets for many, many years.

Also on the wind side, in Korea and in India, we see the market proceeding upwards. Hyundai Heavy Industries, who is one of our partners in Korea, and Inox, one of our partners in India, are ramping up their production of their wind turbines, which translates into revenues for us because we continue to sell them the electrical control systems for those wind turbines.

On the grid side of our business, we really have demonstrated a leadership position for our products. We announced the 100th contract for our D-VAR STATCOM product, and we've sold more than any other company, even large brands like ABB and other big companies out there that we compete with. And really that's a testament to our engineering team, our sales team, our service team and really to the product itself. We found what, we believe, is a novel technology that fits a very specific need in the market. It helps facilitate greater grid connection for renewable energy projects, and it also helps utilities to better utilize the existing grid.

Lastly on the grid side, we believe we are the largest producer of superconductor wire, and we have recently made a very large wire shipment to LS Cable in Korea for another construction project using superconductor cable. So across the business, we are seeing growth, and we are seeing good news throughout the geographies that we serve.

TWST: You quadrupled your wind revenues in the first quarter. What factors contributed to that growth and what is the outlook for the wind segment at this point?

For more from this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers, and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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