AMSC Extends New Energy Power Systems Product Offerings with the Acquisition of Neeltran, Inc.
May 06 2021 - 3:20PM
AMSC (Nasdaq: AMSC), a leading system provider of
megawatt-scale power resiliency solutions
that orchestrate the rhythm and harmony of power on the
grid™ and protect and expand the capability of our Navy’s fleet,
today announced that it has acquired Neeltran, Inc. (Neeltran), a
private Connecticut-based company that supplies rectifiers and
transformers to industrial customers. At closing, AMSC paid $4.5
million in cash and issued 301,556 restricted shares of AMSC common
stock having a value of approximately $4.3 million. Additionally,
AMSC paid $7.6 million directly to Neeltran lenders at closing to
extinguish outstanding Neeltran debt.
The acquisition of Neeltran directly aligns with AMSC’s
strategic priority to achieve sustainable profitability independent
of its wind business, broaden its product offerings and expand both
total available market share and content-per-sale for the
industrial sector. In calendar 2020, Neeltran had generated
approximately $16 million in revenue, and AMSC expects this
acquisition will generate operating cash flow and be accretive to
earnings per share within 12 months from closing. By leveraging
Neeltran’s leadership position in the industrial rectifier and
transformer market , AMSC expects to expand its grid business
offerings and deliver greater value to existing and new customers,
business partners and stockholders.
“Neeltran builds upon our recent push into the industrial sector
with our acquisition of NEPSI. We expect that Neeltran’s
long-standing relationship with NEPSI will allow us to expand our
offering of proprietary power electronics products into the
industrial market,” said Daniel P. McGahn, Chairman, President and
CEO of AMSC. “Further, Neeltran’s participation in the mining and
chemical industry enhances our position in supporting the
industries that supply the material inputs to satisfy the
increasing demand for electric vehicles and the overall
electrification of transportation.”
About Neeltran, Inc.Neeltran is an industry
leader with almost 50 years of industry experience producing
rectifiers and transformers. One of the few companies in the world
that designs and manufactures its own rectifier-transformers and
rectifiers in the same facility. This unique capability allows for
combined Full Current and Full Voltage factory testing of the
transformer and rectifier in their actual configuration prior to
shipment. Neeltran offers multiple solutions for power conversion
needs.
About AMSC (Nasdaq: AMSC)AMSC generates the
ideas, technologies and solutions that meet the world’s demand for
smarter, cleaner … better energy™. Through its Gridtec™ Solutions,
AMSC provides the engineering planning services and advanced grid
systems that optimize network reliability, efficiency and
performance. Through its Marinetec™ Solutions, AMSC provides
ship protection systems and is developing propulsion and
power management solutions designed to help fleets increase system
efficiencies, enhance power quality and boost operational
safety. Through its Windtec™ Solutions, AMSC provides wind
turbine electronic controls and systems, designs and engineering
services that reduce the cost of wind energy. The Company’s
solutions are enhancing the performance and reliability of power
networks, increasing the operational safety of navy fleets, and
powering gigawatts of renewable energy globally. Founded in 1987,
AMSC is headquartered near Boston, Massachusetts with operations in
Asia, Australia, Europe and North America. For more information,
please visit www.amsc.com.
©2021 AMSC. AMSC, American
Superconductor, Amperium, Gridtec, Marinetec, Windtec,
Orchestrate the Rhythm and Harmony of Power on the Grid 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.
Forward-Looking StatementsThis press release
contains “forward-looking statements” within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Such statements include, but are not limited to,
statements about the expected effects and benefits
of our acquisition of Neeltran; our anticipation that the
Neeltran acquisition will generate positive operating cash
flow and be accretive to our earnings per share within 12 months
after closing; the Neeltran business beginning to rebound in
2021; our ability satisfy the increasing demand for electric
vehicles and the overall electrification of transportation; and
other statements containing the words “believes,” “anticipates,”
“plans,” “expects,” “will” and similar expressions. 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. These important
factors include, but are not limited to: Risks related to the
financial performance of Neeltran and its affiliated entities; The
Neeltran business may not be integrated successfully; We may
not realize the expected benefits of our acquisition of
Neeltran; We have a history of operating losses, which may
continue in the future. Our operating results may fluctuate
significantly from quarter to quarter and may fall below
expectations in any particular fiscal quarter; We have a
history of negative operating cash flows, and we may require
additional financing in the future, which may not be available to
us; 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 of operations; We
have identified a material weakness in our internal control over
financial reporting. If we fail to maintain proper and effective
internal control 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 not realize all of the sales expected from our backlog
of orders and contracts; 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; Our
financial condition may have an adverse effect on our customer and
supplier relationships; The novel coronavirus (COVID-19) pandemic
could adversely impact our business, financial condition and
results of operations; We may experience difficulties
re-establishing our HTS wire production capability in our Ayer,
Massachusetts facility; Our success is dependent upon attracting
and retaining qualified personnel and our inability to do so could
significantly damage our business and prospects; Historically,
a significant portion of our revenues have been derived from a
single customer and if this customer’s business is negatively
affected, it could adversely impact our business; Our success in
addressing the wind energy market is dependent on the manufacturers
that license our designs; Our business and operations would be
adversely impacted in the event of a failure or security breach of
our information technology infrastructure; Failure
to comply with evolving data privacy and data protection laws
and regulations or to otherwise protect personal data, may
adversely impact our business and financial results; We rely upon
third-party suppliers for the components
and subassemblies of many of
our Grid and Wind 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; Many of our customers outside of
the United States may be 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 had limited success marketing and selling our
superconductor products and system-level solutions, and
our failure to more broadly market and sell our products and
solutions could lower our revenue and cash flow; 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; Our success depends upon the
commercial adoption of the REG system, which is currently
limited, and a widespread commercial market for our products may
not develop; Adverse changes in domestic and global economic
conditions could adversely affect our operating results; We have
operations in, and depend on sales in, emerging markets,
including India, and global conditions could negatively affect our
operating results or limit our ability to expand our operations
outside of these markets. Changes in India’s political,
social, regulatory and economic environment may affect our
financial performance; Our products face 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; Growth of the wind energy market depends largely on the
availability and size of government subsidies, economic incentives
and legislative programs designed to support the growth of wind
energy; Lower prices for other fuel sources may reduce the demand
for wind energy development, which could have a material adverse
effect on our ability to grow our Wind business; Unfavorable
results of legal proceedings could have a material adverse effect
on our business, operating results and financial condition; 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; We face risks related to
our intellectual property; We face risks related to
our technologies; We face risks related to our legal
proceedings; We face risks related to our common stock; 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, 2020, as updated in our Form 10-Q for the
period ended December 31, 2020, and our other reports filed with
the SEC. These important factors, 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.
AMSC ContactsInvestor Relations Contact:LHA
Investor RelationsCarolyn Capaccio(212) 838-3777amscIR@lhai.com
Public Relations Contact:RooneyPartnersJeffrey
Freedman646-432-0191jfreedman@rooneyco.com
AMSC Communications Manager:Nicol GolezPhone:
978-399-8344Nicol.Golez@amsc.com
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