"This series of new orders for wind turbine core electrical components further validates our AMSC Windtec business model," said AMSC founder and Chief Executive Officer Greg Yurek. "AMSC Windtec helps to quickly establish new wind turbine manufacturers by providing wind turbine designs and helping with local sourcing of core wind turbine components. Once our customers go into production of wind turbines, we then sell them the sophisticated core electrical components necessary to operate these systems successfully and efficiently. The sale of wind turbine core electrical components has, in fact, become a very large fraction of our business. With the customers we signed in 2007 now beginning to order core electrical components to meet their wind turbine manufacturing needs and new licensees and development partners on the near-term horizon, we expect our wind power business to continue to grow and diversify going forward."
AMSC's wind turbine core electrical components include the company's proprietary PowerModule(TM) power converters and enable reliable, high-performance wind turbine operation by controlling power flows, regulating voltage, monitoring system performance and controlling the pitch of wind turbine blades to maximize efficiency.
Yurek added that approximately 65 percent of AMSC's revenues in fiscal 2007, which ends March 31, 2008, are expected to be from the global wind industry. "This fiscal year, roughly 70 percent of our sales are international, with the lion's share of these sales coming from the wind industry," he said. "With the wind industry expected to continue to grow at double-digit rates for many years to come, we expect sales to this market will remain a large fraction of AMSC's revenue makeup - even as we continue to ramp up sales of our other products to the power grid market worldwide."
Dongfang Steam Turbine Works ("DTC"), the third largest wind turbine manufacturer in China according to the China Wind Energy Association, has placed its first order for complete electrical systems for four 2.5 megawatt (MW) wind turbines it plans to manufacture and test in early 2009. AMSC Windtec is developing a portfolio of 2.5 megawatt (MW) wind turbines under a contract it received from DTC in March 2007.
With 7,000 employees, DTC is one of the top 100 machinery builders in China and a key equipment provider in Sichuan Province of China. DTC entered the wind power market in 2004 with the production of 1.5 MW systems utilizing a wind turbine design provided by a third party. The company plans to commence series production of the AMSC Windtec designed 2.5 MW wind turbines by the end of 2009.
AAER, Inc. (TSXV:AAE), Canada's first wind turbine manufacturer, has placed an order for core electrical components for an additional 20 of the 1.5 MW wind turbines it is currently scaling up to manufacture under a license from a third party. This order follows close on the heels of an initial order from AAER for 10 sets of full electric systems in January 2008 for the 1.5 MW wind turbines. In October 2007, AMSC announced that AAER had also licensed AMSC Windtec's proprietary 2.0 MW SuperGEAR(TM) wind turbine design, which AAER plans to start manufacturing in 2009.
AMSC also announced today that it has received an order for 20 additional sets of wind turbine core electrical components from CSR Zhuzhou Electric Locomotive Research Institute Co., Ltd. (CSR-ZELRI), which is located in Zhuzhou City in the Hunan province of China. Including this latest order, CSR-ZELRI has ordered more than 50 sets of core electrical components from AMSC to date. CSR-ZELRI will use these core electrical components in the manufacture of a 1.65 MW wind turbine design it licensed from AMSC Windtec in January 2007. CSR-ZELRI expects to begin shipping wind turbines to customers in mid 2008 and expects to manufacture more than 100 turbines in 2009.
About AAER Inc.
AAER is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 Megawatt or more wind turbines principally for the North American market. Its strategy is to progressively build its product's components to provide a high level of reliability and a competitive pricing to its customers. AAER uses proven European technologies to ensure the performance of its turbines in various wind conditions and complex terrains. Its stock is listed on the TSX Venture Exchange (AAE). Additional information is available on the Company's Website at www.aaer.ca.
About American Superconductor (NASDAQ: AMSC)
AMSC is a leading energy technologies company offering an array of solutions based on two proprietary technologies: programmable power electronic converters and high temperature superconductor (HTS) wires. The company's products, services and system-level solutions enable cleaner, more efficient and more reliable generation, delivery and use of electric power. AMSC is a leader in alternative energy, offering grid interconnection solutions as well as licensed wind energy designs and electrical systems. As the world's principal supplier of HTS wire, the company is enabling a new generation of compact, high-power electrical products, including power cables, grid-level surge protectors, Secure Super Grids(TM) technology, motors, generators, and advanced transportation and defense systems. AMSC also provides utility and industrial customers worldwide with voltage regulation systems that dramatically enhance power grid capacity, reliability and security, as well as industrial productivity. The company's technologies are protected by a broad and deep intellectual property portfolio consisting of hundreds of patents and licenses worldwide. More information is available at www.amsc.com.
American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, SuperVAR, D-VAR, DVC, PQ-IVR, PowerModule, PQ-SVC, Secure Super Grids, Windtec and SuperGEAR are trademarks or registered trademarks of American Superconductor Corporation or its subsidiaries.
Any statements in this release about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: uncertainties regarding the company's ability to obtain anticipated funding from corporate and government contracts, to successfully develop, manufacture and market commercial products, and to secure anticipated orders; the risk that a robust market may not develop for the company's products; the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the company will infringe intellectual property rights of others; and the competition encountered by the company. Reference is made to these and other factors discussed in the "Risk Factors" section of the company's most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the company's views as of the date of this release. While the company anticipates that subsequent events and developments may cause the company's views to change, the company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the company's views as of any date subsequent to the date this press release is issued.
SOURCE: American Superconductor Corporation
American Superconductor Corporation (NASDAQ: AMSC) Jason Fredette, 978-842-3177 Director of Investor & Media Relations jfredette@amsc.com
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