American Superconductor Corporation (NASDAQ:AMSC) announced the acquisition of Northeast Power Systems, Inc. The company raised its Q2 sales guidance and also issued strong sales forecast for the third quarter.
The Ayer, Mass.-based AMSC, which prides itself on being “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,” announced the purchase Tuesday.
Northeast Power Systems (NEPSI) is a private company based in upstate New York that supplies medium voltage metal-enclosed capacitor banks, harmonic filters, fast switching reactive power solutions and surge protection products, and has paid $26 million in cash and additionally the sellers have received 873,657 restricted shares of AMSC common stock.
CEO Daniel McGahn added, “The addition of NEPSI to AMSC’s Grid solutions is expected to accelerate our ability to achieve our goal of profitability and expand our offering of proprietary power electronics products in the industrial sector.”
For the second quarter of fiscal 2020, AMSC expects its revenues will be in the range of $20.5 million—$21.5 million, compared to its previous second quarter revenue guidance of $17 million—$21 million. AMSC’s net loss and non-GAAP net loss for the second quarter of fiscal 2020 are both expected to be lower than its previous guidance provided on August 5.
For the third quarter ending December 31, 2020, AMSC currently expects that its revenues will be in the range of $22 million—$25 million. The Company expects to generate positive operating cash flow in the third quarter.
AMSC gained 20 cents, or 1.4%, to $15.05.