Investopedia: American Superconductor Flickering

The bad news just keeps coming for alternative energy company American Superconductor (Nasdaq:AMSC). Although the company thought it had made a major step forward when it diversified into wind turbine components, that plan has run off the rails recently. It remains to be seen whether the company can repair its relationship with a major customer and/or find a new and more stable business plan to grow the company. 


The Latest Setbacks
American Superconductor reported a double-whammy related to ongoing issues with its biggest customer Sinovel. The company announced that not only will revenue be "materially less" than $355 million for the quarter (which itself was a big step down from prior hopes), but the company would need an extension to file its 10-K due to the probable need to reverse already recognized revenue.

Sinovel is the second-largest wind turbine maker in the world (and the largest in China) and has been a huge customer for AMSC's turbine components business, making up close to three-quarters of sales. Unfortunately, the company decided a few months ago to stop accepting any deliveries of components for 1.5MW and 3MW turbines and hasn't fully paid for prior accepted shipments. (For related reading, see What Does It Mean To Be Green?)



The full article can be read at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/American-Superconductor-Flickering-AMSC-GE-SI-ZOLT-VWDRY-GCTAY0603.aspx.