AMSC has announced that it has reduced its workforce by approximately 25 per cent and is consolidating office space to lower operating costs and enhance liquidity in response to challenging conditions in the wind power market.
Reductions have been made across all of AMSC's major geographic locations and functions. The company now has a global workforce of approximately 340 employees. AMSC expects that this action will reduce its annualized expenditures by approximately US$ 10 million and will lower its annualized operating expenses, which include non-cash compensation costs, to less than US$ 58 million once the savings are fully realized in the fiscal quarter ending June 30, 2013. In total, AMSC anticipates that it will incur restructuring charges of approximately US$ 3 to US$ 4 million over the next two quarters relating to the workforce reduction and office consolidations. The company has revised its financial forecast for the third fiscal quarter ending December 31, 2012 as a result of anticipated wind turbine electrical control system shipment delays to certain of its Windtec Solutions partners. AMSC now expects that its revenues will exceed US$ 20 million for the quarter. AMSC now expects that its net loss for the third quarter will be less than US$ 24 million.
Reductions have been made across all of AMSC's major geographic locations and functions. The company now has a global workforce of approximately 340 employees. AMSC expects that this action will reduce its annualized expenditures by approximately US$ 10 million and will lower its annualized operating expenses, which include non-cash compensation costs, to less than US$ 58 million once the savings are fully realized in the fiscal quarter ending June 30, 2013. In total, AMSC anticipates that it will incur restructuring charges of approximately US$ 3 to US$ 4 million over the next two quarters relating to the workforce reduction and office consolidations. The company has revised its financial forecast for the third fiscal quarter ending December 31, 2012 as a result of anticipated wind turbine electrical control system shipment delays to certain of its Windtec Solutions partners. AMSC now expects that its revenues will exceed US$ 20 million for the quarter. AMSC now expects that its net loss for the third quarter will be less than US$ 24 million.
