AMSC Delays 10-K Filing On Sinovel, According To Wedbush

According to Wedbush Securities, American Superconductor AMSC has delayed its filing of a 10-K for review of revenue on Sinovel's refused shipments. In the report, Wedbush writes, "American Superconductor filed a 10-K NT indicating the company will not be able to file by the May 31, 2011, deadline. We believe this delay was widely expected as AMSC has yet to announce a date for its 4Q10 (Mar 2011) earnings call. The company has requested an extension to its deadline of up to 15 days. We understand an extended accounting review of shipments refused by Sinovel and the probable reversal of related 2010 revenue is the primary cause of the delay. On April 5, 2011, American Superconductor announced that Sinovel refused 4Q10 shipments of 1.5 MW and 3.0 MW wind turbine core components and spare parts, causing the company to negatively adjust 4Q10 (Mar 2011) guidance to revenue/EPS of <$42m and an EPS loss, from guidance issued March 14, 2011, at the low end of the range of $117m-$127m and $0.31-$0.35. At the April 5, 2011, announcement, the company stated $56m of prior FY10 shipments to Sinovel could be impacted by revenue recognition issues, as related payables exceed 180 days outstanding, and management estimated full year 2010 (ended Mar 2011) revenue of “less than $355 million”. Management now expects F2010 revenues to be materially less due to revenue recognition reversals." Wedbush maintains its Neutral rating on American Superconductor, which closed yesterday at $60.28.