AMSC, a Devens company that provides technology and products to wind energy companies and power grid operators, said Wednesday that it has reduced its workforce by 25 percent, a move that will leave it with a global headcount of 340 employees.
A call to the company seeking additional details was not immediately returned.
“While the long-term prospects for renewable energy remain bright, conditions in the sector today are challenging,” AMSC president and chief executive Daniel P. McGahn. “Financing and cash flow among wind farm developers and wind turbine manufacturers have been constrained, which has impacted growth plans for some of our Windtec Solutions partners. Given this environment, we made the difficult but prudent decision to reduce our workforce in order to weather the industry downturn and minimize our cash usage.”
AMSC, which is also known as American Superconductor, is embroiled in a lawsuit with Sinovel Wind Group, a Chinese wind turbine maker that was once AMSC’s largest customer. AMSC alleges that Sinovel stole its intellectual property. Sinovel once accounted for nearly 80 percent of AMSC’s revenues.
In Wednesday’s press release, AMSC added that it expects that today’s action will reduce its annualized expenditures by $10 million and will lower its annualized operating expense. AMSC added that anticipates that it will incur restructuring charges of approximately $3 to $4 million over the next two quarters relating to the workforce reduction. AMSC added that it is consolidating its office space.
AMSC’s release also said: “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 $20 million for the quarter. AMSC now expects that its net loss for the third quarter will be less than $24 million, or $0.46 per share.”