American Superconductor, (AMSC) Q1 2011 Earnings Call, Sep 23, 2011 September 23, 2011 9:00 am ET Executives David A. Henry - Chief Financial Officer, Principal Accounting Officer, Senior Vice President, Secretary and Treasurer Daniel Patrick McGahn - Chief Executive Officer, President and Director Jason Fredette - Managing Director of Corporate Communications Analysts Timothy M. Arcuri - Citigroup Inc, Research Division Theodore R. O'Neil - Wunderlich Securities Inc., Research Division David Giesecke - Wedbush Securities Inc., Research Division Pavel Molchanov - Raymond James & Associates, Inc., Research Division Paul Clegg - Mizuho Securities USA Inc., Research Division JinMing Liu - Ardour Capital Investments, LLC, Research Division Carter W. Driscoll - Capstone Investments, Research Division Elaine Kwei - Jefferies & Company, Inc., Research Division James Ricchiuti - Needham & Company, LLC, Research Division Christopher M. Kovacs - Robert W. Baird & Co. Incorporated, Research Division Presentation Operator
I'd also would like to note that all of our press releases and SEC filings can be accessed on the Investors Page of our website at amsc.com.And now, I'm going to turn the call over to CEO, Daniel McGahn. Dan? Daniel Patrick McGahn Thank you, Jason, and good morning, everyone. I'm happy to be speaking with you again and to be able to do it so soon. We're very pleased to be able to put the financials that we issued this morning behind us and focus our full attention on our future. On the call today, we'll be providing some perspective on our financial results, we'll talk in greater detail about the actions we have taken to rightsize the business and get back to growth and profitability. We will discuss our strategy to build a stronger, sustainable AMSC. We will share some positive news about recent contracts and other accomplishments, and we'll also provide our near-term financial outlook. Since we just recently focused an entire conference call on the cases we have brought against Sinovel, we won't be spending a lot of time on this topic today. But I would like to mention one significant update. This morning, the former employee that was arrested in Austria pled guilty to charges that included economic espionage and fraudulent misuse of data. We think it's important to point out that the individual not only admitted to stealing our intellectual property but he also admitted to collusion with Sinovel, and admitted that he was paid by Sinovel for this information. Since his arrest, this individual has been quite cooperative and he has provided us with important information that we have brought to the attention of Chinese courts and law enforcement. In addition to the amount that he had been paid at the time of his arrest, this individual had employment contracts in place with Sinovel and with related parties totaling well over $1 million. These contracts were among the substantial evidence we have compiled. Obviously, we believe this admission of theft and collusion with Sinovel demonstrates the strength of our case.
I would also like to clarify an additional point. While we are not detailing publicly the amount that we are seeking from Sinovel in our commercial and civil suits, it is safe to say that this amount is significant. To date, Sinovel currently owes us $250 million for past shipments and shipments that they're contractually bound to accept to date. On top of this, there are future shipments covered under our existing contracts, vendor liabilities that we will discuss in a few moments and of course, damages for our stolen intellectual property.So let's move on to our other updates today starting with our restatements and results. I'd like to start by publicly acknowledging the contributions of our financial organization, which has been working around-the-clock in recent months to get current with our SEC filings. We're all happy to have completed this work and get back into compliance with SEC regulations. And in doing so, we believe we'll be also back in compliance with NASDAQ Listing standards. It's been a difficult time for us all. We're very happy to look forward to our bright future. Read the rest of this transcript for free on seekingalpha.com