Wind and grid sector solutions provider American Superconductor Corp. (AMSC), Wednesday slashed its workforce by 25 percent in order to cut costs amid weakness in the wind power market.
The company has cut its outlook for the third quarter, as a result of anticipated wind turbine electrical control system shipment delays to certain of its Windtec Solutions partners.
AMSC said the job cuts span all of its major geographic locations and functions, leaving the company with about 340 employees. The company expects the action to reduce its annualized expenditures by about $10 million and will lower its annualized operating expenses to less than $58 million once the savings are fully realized in the fiscal quarter ending June 30, 2013.
AMSC anticipates it will incur restructuring charges of about $3 million to $4 million over the next two quarters relating to the restructuring effort. Of this total, the company expects to pay about $2 million in cash severance costs in the third quarter ending December 31, 2012.
AMSC now expects third-quarter net loss of about $24 million or $0.46 per share and adjusted loss to be lower than $16 million or $0.31 per share. Revenues are estimated to be about $20 million.
Earlier, the company had estimated a net loss of $19 million or $0.36 per share, adjusted loss of less than $14 million or $0.26 per share, and revenues of $26 million.
Analysts on consensus currently estimate a loss of $0.24 per share on revenues of $26.50 million for the third quarter.
Shares of AMSC are trading at $2.69, down 2.71%, on the Nasdaq.
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