in News Departments > New & Noteworthy
print the content item

As a result of what the company calls "challenging conditions in the wind power market," AMSC says it has reduced its workforce by approximately 25% to about 340 employees worldwide, as well as consolidated office space.

The company says the layoffs include reductions in all of its major geographic locations and functions.

"While the long-term prospects for renewable energy remain bright, conditions in the sector today are challenging," says AMSC President and CEO Daniel P. McGahn. "Financing and cashflow 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," he adds.

AMSC says the layoffs 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, the company anticipates that it will incur restructuring charges of approximately $3 million to $4 million over the next two quarters relating to the workforce reduction and office consolidations. Of this total, AMSC expects to pay approximately $2 million in cash severance costs in the fiscal quarter ending Dec. 31.

AMSC notes that it has revised its financial forecast for the third fiscal quarter ending Dec. 31 as a result of anticipated wind turbine electrical control system shipment delays to some of its Windtec Solutions partners. AMSC now expects that its revenues will exceed $20 million for the quarter and that its net loss for the third quarter will be less than $24 million, or $0.46 per share.

The company says it expects that its non-generally accepted accounting principles net loss for the third quarter of fiscal 2012 will be less than $16 million, or $0.31 per share.



Trachte Inc._id1770
Latest Top Stories

Recapping The Wind Industry's Third-Quarter Deals

Mercom Capital Group recaps investment and merger and acquisition activity during July, August and September.


Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.


Could Initial Offshore Wind Projects Crash New England's REC Market?

Some are concerned that the first offshore wind projects could negatively impact pricing of renewable energy credits (RECs) in New England.


Catching Up With The DOE's Down-Select Offshore Winners

The three recipients of key U.S. Department of Energy (DOE) funding provide updates on their offshore wind demonstration projects.

Renewable NRG_id1934
Canwea_id1984
Hybrid Energy Innovations 2015