American Superconductor Corp. said Thursday that it has cut its workforce by about 30 percent, or 150 jobs, and its yearly expenses by about $30 million, citing expectations that it will post a "significant loss" for the fiscal quarter that just ended.
The news sent American Semiconductor shares down 30 cents, or 5 percent, to $5.69 in early trading, after dropping as low as $5.55 shortly after the opening bell. Over the past 52 weeks, the company's shares have traded between $5.53 and $38.88.
American Superconductor, which makes technology for wind turbines and power utilities, said it has had business and contract issues with its largest customer, Sinovel Wind Group Co., and as a result expects to post the loss, along with less than $10 million in revenue, for the quarter ended June 30.
The cuts, made since March 31, are designed to better align the company's costs with its revenue expectations, American Superconductor said.
As part of its cost-cutting program, American Superconductor said it eliminated 150 jobs across the company. After that is done the company will employ about 600 people around the world. In connection, the company expects restructuring charges of $3 million to $4 million for severance and related expenses in the quarter ending Sept. 30.
American Semiconductor also said that it will submit it plan to regain compliance with Nasdaq stock market listing rules to officials there by Tuesday.
The company said it's still working on its restated financial statements for the fiscal quarters ended Sept. 30, 2010, and Dec. 31, 2010, and its financial statements for the fiscal year ended March 31, and the fiscal quarter ended June 30, 2011.