The Arbitration Tribunal for the International Court of Arbitration in Paris ruled that AMSC's Austrian subsidiary, AMSC Austria, breached a license agreement with Ghodawat. The court awarded Ghodawat about $11 million in damages and costs, including interest.
Massachusetts-based AMSC expects to record a charge of about $10.5 million in the fiscal second quarter as a result of the ruling. The company adjusted its GAAP net loss estimate for the quarter to less than $26 million, or 33 cents a share.
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TheStreet Ratings team rates AMERICAN SUPERCONDUCTOR CP as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN SUPERCONDUCTOR CP (AMSC) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: