Date: Sep 10, 2013 Author: press release Source: Company Data (
click here to go to the source)
DEVENS, Mass., Sept. 10, 2013 (GLOBE NEWSWIRE)
--
AMSC (Nasdaq:AMSC), a global solutions provider serving wind and
power grid industry leaders, today announced that Consolidated Power Projects (CONCO), South Africa's largest high voltage
construction company, has selected AMSC's D
-
VAR
®
STATCOM solution to connect South Africa's largest wind farm to the
electricity grid. This is AMSC's first D
-
VAR STATCOM sale to South Africa. The system will be commissioned in the first half of
2014.
"We selected AMSC as the grid interconnection solution provider because of its proven ability to meet even the most stringent of
grid codes and keep wind farms online thereby increasing output and revenues," said Rein Dijkstra, Business Unit Manager;
Renewable Energy, CONCO.
To ensure high quality power and a stable electricity grid, South Africa has carefully reviewed the lessons learned by other
countries and regions that have added substantial amounts of renewable energy to their grids and have designed strict grid
codes that must be met in order for renewable power plants to connect to the grid. AMSC's D
-
VAR solution offers complete VAR
compensation and voltage control, enabling wind and solar energy generation systems to meet the most stringent requirements
while augmenting overall performance of the wind farm.
Located at the wind or solar plant substation, AMSC's STATCOM products provide a renewable energy integration solution that
allows power plants to stay online and helps prevent the nuisance tripping of solar inverters and wind turbine
generators. Customers utilize AMSC's D
-
VAR solutions to provide dynamic voltage control, power factor correction and post
-
contingency reactive compensation to stabilize the power grid and prevent undesirable events such as voltage collapse.
"The D
-
VAR system cost effectively provides the dynamic reactive VAR compensation that is essential to connect renewable
power plants to the grid effectively, making it an ideal solution for the emerging South African renewables market," said Daniel P.
McGahn, President and CEO, AMSC. "CONCO has built a reputation as Africa's leading developer of quality, turnkey high
voltage solutions and we are looking forward to working with them and helping to deliver a clean energy to South Africa."
D
-
VAR dynamic reactive compensation systems are classified as Static Compensators, or "STATCOMs," a member of the
FACTS (Flexible AC
-
Transmission System) family of power electronic solutions for alternating current (AC) power grids. AMSC's
D
-
VAR solutions are able to detect and instantaneously compensate for voltage disturbances by dynamically injecting leading or
lagging reactive power into the power grid. AMSC has received orders for over 100 STATCOM power grid solutions worldwide.
The company's D
-
VAR STATCOM customers include more than 20 power grid operators worldwide.
About AMSC
(Nasdaq:AMSC)
AMSC generates the ideas, technologies and solutions that meet the world's demand for smarter, cleaner ... better energy.
Through its Windtec™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering
services that reduce the cost of wind energy. Through its Gridtec™ Solutions, AMSC provides the engineering planning services
and advanced grid systems that optimize network reliability, efficiency and performance. The company's solutions are now
powering gigawatts of renewable energy globally and enhancing the performance and reliability of power networks in more than
a dozen countries. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia,
Europe and North America. For more information, please visit
http://www.amsc.com
.
AMSC, Windtec, Gridtec, D
-
VAR, and Smarter, Cleaner ... Better Energy are trademarks or registered trademarks of American
Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective
holders.
This press release contains forward
-
looking statements within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"). Any statements in this release about future expectations, plans and prospects for the
Company, including without limitation our expectation that the system will be commissioned in the first half of 2014
,
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. Such forward
-
looking statements
represent management's current expectations and are inherently uncertain.
There are a number of important factors that could materially impact the value of our common stock or cause actual results to
differ materially from those indicated by such forward
-
looking statements. Such factors include: We have experienced recurring
operating losses and recurring negative cash flows from operations which raise substantial doubt about our ability to continue as
a going concern. This substantial doubt has resulted in a qualified opinion from our auditors with an explanatory paragraph
regarding our ability to continue as a going concern. We believe this opinion may have an adverse effect on our customer and
supplier relationships; our success in addressing the wind energy market is dependent on the manufacturers that license our
designs; we may not realize all of the sales expected from our backlog of orders and contracts; our business and operations
would be adversely impacted in the event of a failure or security breach of our information technology infrastructure; our
success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our
business and prospects; we rely upon third
-
party suppliers for the components and subassemblies of many of our Wind and
Grid products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; many of our
revenue opportunities are dependent upon subcontractors and other business collaborators; if we fail to implement our business
strategy successfully, our financial performance could be harmed; problems with product quality or product performance may
cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales
and market share; our contracts with the U. S. government are subject to audit, modification or termination by the U.S.
government and include certain other provisions in favor of the government; the continued funding of such contracts remains
subject to annual congressional appropriation which, if not approved, could reduce our revenue and lower or eliminate our profit;
we may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which
we may never realize the anticipated benefits; many of our customers outside of the United States are, either directly or
indirectly, related to governmental entities, and we could be adversely affected by violations of the United States Foreign
Corrupt Practices Act and similar worldwide anti
-
bribery laws outside the United States; we have limited experience in marketing
and selling our superconductor products and system
-
level solutions, and our failure to effectively market and sell our products
and solutions could lower our revenue and cash flow; we have experienced recurring losses from operations and negative
operating cash flow; these factors raise substantial doubt regarding our ability to continue as a going concern; we have a history
of operating losses, and we may incur additional losses in the future; our operating results may fluctuate significantly from
quarter to quarter and may fall below expectations in any particular fiscal quarter; we may require additional funding in the future
and may be unable to raise capital when needed; our debt obligations include certain covenants and other events of default;.
Should we not comply with the covenants or incur an event of default, we may be required to repay our debt obligations in cash,
which could have an adverse effect on our liquidity; if we fail to maintain proper and effective internal controls over financial
reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other
users to lose confidence in our financial data; we may be required to issue performance bonds or provide letters of credit, which
restricts our ability to access any cash used as collateral for the bonds or letters of credit; changes in exchange rates could
adversely affect our results from operations; growth of the wind energy market depends largely on the availability and size of
government subsidies and economic incentives; we depend on sales to customers in China, and global conditions could
negatively affect our operating results or limit our ability to expand our operations outside of China; changes in China's political,
social, regulatory and economic environment may affect our financial performance; our products face intense competition, which
could limit our ability to acquire or retain customers; our international operations are subject to risks that we do not face in the
United States, which could have an adverse effect on our operating results; adverse changes in domestic and global economic
conditions could adversely affect our operating results; we may be unable to adequately prevent disclosure of trade secrets and
other proprietary information; our patents may not provide meaningful protection for our technology, which could result in us
losing some or all of our market position; the commercial uses of superconductor products are limited today, and a widespread
commercial market for our products may not develop; there are a number of technological challenges that must be successfully
addressed before our superconductor products can gain widespread commercial acceptance, and our inability to address such
technological challenges could adversely affect our ability to acquire customers for our products; we have not manufactured our
Amperium wire in commercial quantities, and a failure to manufacture our Amperium wire in commercial quantities at acceptable
cost and quality levels would substantially limit our future revenue and profit potential; third parties have or may acquire patents
that cover the materials, processes and technologies we use or may use in the future to manufacture our Amperium products,
and our success depends on our ability to license such patents or other proprietary rights; our technology and products could
infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to
pay substantial damages and disrupt our business; we have filed a demand for arbitration and other lawsuits against our former
largest customer, Sinovel, regarding amounts we contend are overdue. We cannot be certain as to the outcome of these
proceedings; we have been named as a party to purported stockholder class actions and stockholder derivative complaints, and
we may be named in additional litigation, all of which will require significant management time and attention, result in significant
legal expenses and may result in an unfavorable outcome, which could have a material adverse effect on our business,
operating results and financial condition; our 7% convertible note contains warrants and provisions that could limit our ability to
repay the note in shares of common stock and should the note be repaid in stock, shareholders could experience significant
dilution; our common stock has experienced, and may continue to experience, significant market price and volume fluctuations,
which may prevent our stockholders from selling our common stock at a profit and could lead to costly litigation against us that
could divert our management's attention; and new regulations related to conflict
-
free minerals may force us to incur significant
additional expenses. These and the important factors discussed under the caption "Risk Factors" in Part 1. Item 1A of our Form
10
-
K for the fiscal year ended March 31, 2013, and our other reports filed with the SEC, among others, could cause actual
results to differ materially from those indicated by forward
-
looking statements made herein and presented elsewhere by
management from time to time. Any such forward
-
looking statements represent management's estimates as of the date of this
press release. While we may elect to update such forward
-
looking statements at some point in the future, we disclaim any
obligation to do so, even if subsequent events cause our views to change. These forward
-
looking statements should not be
relied upon as representing our views as of any date subsequent to the date of this press release.
CONTACT: AMSC Contact:
Kerry Farrell
Phone: 978
-
842
-
3247
Email: kerry.farrell@amsc.c
