American Superconductor Awarded $10 Million Contract Amendment by United States Navy Office of Naval Research10 January 2006
WESTBOROUGH, Mass., Jan. 9 -- American Superconductor Corporation (Nasdaq: AMSC), a leading electricity solutions company, today announced that it has finalized a contract amendment with the United States Navy's Office of Naval Research (ONR). Under the terms of the amendment, the ONR has approved a $10 million increase to AMSC's contract to design and build a 36.5 megawatt (MW) high temperature superconductor (HTS) propulsion motor for electric warships. The amendment adds $10 million to AMSC's backlog, most of which is expected to be recognized as revenue in the Company's fiscal year ending March 31, 2006. AMSC also expects an additional contract modification to be completed by ONR within the next few months, which will increase AMSC's backlog by an additional $7 million to $10 million. AMSC expects to deliver the 36.5MW motor to the Navy test facility in Philadelphia in September 2006.
As prime contractor, AMSC leads the design, manufacture and initial testing of the prototype 36.5MW HTS electric ship propulsion motor. The motor, which is sized for the Navy's future DD(X) ships, benefits from the successes achieved by AMSC in a recently completed ONR 5-MW HTS motor development and test program. AMSC and Northrop Grumman have already successfully completed the first two phases of the three-phase development process for the 36.5MW motor including successful preliminary design and detailed design reviews.
HTS motors are ultra-compact, measuring as little as one-third the weight and one-half the size of copper-based motors of the same power and torque rating, which means Navy ships could carry more fuel and munitions and could have more room for crew's quarters and weapons systems, and commercial ship owners and operators could carry more passengers and cargo. In addition, HTS motors operate with higher fuel efficiency and are expected to have lower maintenance costs than their conventional copper counterparts. The substantial advantages offered by HTS ship propulsion motors are expected to be provided at a production cost equivalent to conventional motors of the same power and torque rating.
Key AMSC team members include Northrop Grumman Marine Systems and Northrop Grumman Ship Systems. Northrop Grumman Marine Systems is responsible for the development of system requirements and specifications, design and manufacture of the motor drive and certain mechanical components and system integration and test. Northrop Grumman Ship Systems, a prime contractor for Naval shipbuilding programs, is developing a family of electric surface warships and assists in overall ship system integration and is providing the ancillary hardware. For more information, please see http://www.irconnect.com/noc/pages/news_releases.mhtml?d=26820.
The team assembled by AMSC also includes Electric Machinery Company, BMT Syntek Technologies, Inc., and the Center for Advanced Power Systems at Florida State University.
For additional information about AMSC's marine propulsion HTS motors, please see http://www.amsuper.com/products/motorsGenerators/shipPropulsion.cfm.
About the Office of Naval Research
The Office of Naval Research (ONR) sponsors science and technology in support of the U.S. Navy and Marine Corps. Founded in 1946, ONR today funds work at more than 450 universities, laboratories, and other organizations. From oceanography, advanced materials, sensors, and robotics to biomedical science and technology; from electronics, surveillance, and neurotechnology to manufacturing technology and information science; from advanced combat systems to other technologies for ships, submarines, aircraft, and ground vehicles- work ONR sponsored has produced the laser, the Global Positioning System, 50 Nobel prizes, and thousands of other discoveries and products used every day around the world.
About Northrop Grumman
Northrop Grumman Corporation is a $25 billion global defense company, headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With approximately 120,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.
About American Superconductor Corporation (Nasdaq: AMSC)
AMSC is the world's principal vendor of high temperature superconductor (HTS) wire and large rotating superconductor machinery, and it is a world- leading supplier of dynamic reactive power grid stabilization products. AMSC's HTS wire and power electronic converters are at the core of a broad range of new electricity transmission and distribution, transportation, medical and industrial processing applications, including dynamic reactive power grid stabilization solutions, large ship propulsion motors and generators, smart, controllable, superconductor power cables and advanced defense systems.
The company's products are supported by hundreds of patents and licenses covering technologies fundamental to Revolutionizing the Way the World Uses Electricity(TM). More information is available at http://www.amsuper.com.
American Superconductor and design, AMSC, POWERED BY AMSC, and Revolutionizing the Way the World Uses Electricity are trademarks of American Superconductor Corporation. All other trademarks are the property of their respective owners.
Any statements in this release about future expectations, plans and prospects for the Company, including statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: uncertainties regarding the Company's ability to obtain anticipated funding from corporate and government contracts, to successfully develop, manufacture and market commercial products, and to secure anticipated orders; the risk that a robust market may not develop for the Company's products; the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the Company will infringe intellectual property rights of others; the competition encountered by the Company, including several large Japanese companies. Reference is made to these and other factors discussed in the "Management's Discussion and Analysis of Financial Condition and Results of Operation" section of the Company's most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this release. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date this press release is issued.
Contact Information
Media
Wanda Whitson 508-621-4454
American Superconductor wwhitson@amsuper.com
Investors
Kevin Bisson 508-621-4220
American Superconductor investor@amsuper.com
Source: prnewswire
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