DEVENS, Mass., April 04, 2017 (GLOBE NEWSWIRE) -- AMSC (NASDAQ: AMSC), a global solutions provider serving wind and grid leaders, today announced plans to reduce operating costs and align the organization for anticipated Grid segment growth. AMSC intends to focus on optimizing the manufacturing capacity requirements of the company, as well as aligning our headcount to effectively support our targeted revenue growth.
AMSC is currently exploring options for moving its manufacturing and administrative operations at Devens, MA to a nearby, smaller-scale building. A smaller-scale facility and its associated reduction in operating costs is anticipated to boost manufacturing efficiency, optimize the business for near-term revenues, and help further align with our vision for growth.
“Our company was founded 30 years ago with the purpose of manufacturing superconductor wire. Over the past several years, we’ve worked to diversify our product portfolio and transition the company to become the systems provider we are today,” said AMSC President and Chief Executive Officer Daniel P. McGahn. “We’ve evolved from manufacturing 1G superconductor wire to delivering full systems with our 2G wire process. We are delivering sustainable systems for the U.S. Navy fleet, grid infrastructure and wind turbine generators. As a result, our 16-year-old manufacturing facility is no longer suitable or sized for our current or near-term business needs.”
AMSC expects to reduce its annualized expenses by approximately $4 to $5 million once the savings are fully realized, which is expected to occur by the end of fiscal year 2017. AMSC anticipates that it will incur cash-related restructuring charges of approximately $1.5 to $2 million for severance-related costs in the fiscal quarter ending June 30, 2017.
In conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at 10:00 am Eastern Time on April 5, 2017. Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the company’s website at http://www.amsc.com/investors. The live call can also be accessed by dialing 800-419-9895 and using conference ID 3155363.
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 are 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 www.amsc.com.
