American Superconductor Corporation
(
AMSC
) has received a follow-on order from Inox Wind Limited ("IWL") for
50 Wind Turbine electrical control systems ("ECS"). The control
systems will be used by IWL for its 2 megawatt (MW) wind
turbines.
Electrical control systems are a set of integrated and
high-performance power electronics systems that include the wind
turbine power converter cabinet, internal power supply and various
other controls. Jointly, these systems facilitate to control power
flows, regulation of voltage, monitor system performance, and
control the pitch of wind turbine blades and maximize
efficiency.
These systems are being used in Inox's 2-MW doubly-fed induction
turbines. The company has been receiving orders from IWL, part of
India's Inox Group of Companies, for the past two years. In January
2011, the company had received a $9 million follow-on order for the
supply of wind turbine ECS from IWL. In August 2010, Inox had
placed an initial order for 17 of American Superconductor's wind
turbine ECS to be utilized in 2-MW doubly-fed induction wind
turbines. These turbines are being manufactured by Inox under a
global American Superconductor Windtec license that it received in
May 2009.
American Superconductor Corp. is a power technology company that
offers an array of proprietary technologies and solutions catering
to electric power infrastructure. It focuses on the rapidly growing
power and utility industry, specifically wind power and smart grid
infrastructure technology.
However, the company's growth in the wind energy market depends
largely on the availability and size of government subsidies and
economic incentives. Moreover, the majority of its revenue depends
on a few large customers. Any untoward move from this concentrated
customer base would affect the profitability of the company.
The company presently retains a short-term Zacks #4 Rank (Sell).
We have a long-term Neutral recommendation on the stock. The
company mainly competes with
Satcon Technology Corporation
(
SATC
).
AMER SUPERCON (AMSC): Free Stock Analysis
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