13. Business Segment Information

The Company reports its financial results in two reportable business segments: AMSC Power Systems and AMSC Superconductors.

AMSC Power Systems produces a broad range of products to increase electrical grid capacity and reliability, supplies electrical systems used in wind turbines, provides power electronic products that interconnect wind farms and solar power plants to the power grid, licenses proprietary wind turbine designs to manufacturers of such systems, provides consulting services to the wind industry, and offers products that enhance power quality for industrial operations.

AMSC Superconductors manufactures high temperature superconductor (HTS) wire and coils; designs and develops superconductor products, such as power cables, fault current limiters and motors; and manages large-scale superconductor projects.

As described in Note 2, "Restatement," the Company's unaudited condensed consolidated financial statements included in the Original Form 10-Q for the quarterly period ending December 31, 2010 have been restated. Accordingly, the Company has restated operating results for its business segments for the three and nine months ended December 31, 2010. The operating results for the two business segments are as follows (in thousands):


		Three months ended December 31,						Nine months ended December 31,
		2010 (Restated)			2009			2010 (Restated)			2009
Revenues:
AMSC Power Systems	$	29,491		$	77,026		$	219,503		$	219,513
AMSC Superconductors		2,079			3,633			7,350			8,818
Total	$	31,570		$	80,659		$	226,853		$	228,331

		Three months ended December 31,						Nine months ended December 31,
		2010 (Restated)			2009			2010 (Restated)			2009
Operating (loss) income:
AMSC Power Systems	$	(14,296	)	$	19,941		$	35,164		$	55,202
AMSC Superconductors		(6,387	)		(5,941	)		(18,831	)		(17,085	)
Unallocated corporate expenses		(2,277	)		(3,560	)		(10,135	)		(10,956	)
Total	$	(22,960	)	$	10,440		$	6,198		$	27,161

The accounting policies of the business segments are the same as those for the consolidated Company. Certain corporate expenses which the Company does not believe are specifically attributable or allocable to either of the two business segments have been excluded from the segment operating income. Unallocated corporate expenses include stock-based compensation expense of $2.2 million and $3.5 million for the three months ended December 31, 2010 and 2009, respectively, and $10.1 million and $10.4 million for the nine months ended December 31, 2010 and 2009, respectively. Unallocated corporate expenses for the nine months ended December 31, 2009 included $0.5 million of restructuring charges related primarily to the closure of the Company's facility in Westborough, Massachusetts.

Historically, a substantial portion of the Company's revenues was derived from one customer: Sinovel Wind Group Co., Ltd, a manufacturer of wind turbines based in China. For the three and nine months ended December 31, 2010, revenue to Sinovel represented 0% and 66% of total revenues compared to 76% and 69% for the three and nine months ended December 31, 2009, respectively.

In conjunction with the application of cash basis accounting for Sinovel in the three months ended December 31, 2010, cash received from Sinovel during the quarter was first applied to accounts receivable and prepaid value added taxes as of September 30, 2010 and resulted in no revenue being recognized from Sinovel in the three months ended December 31, 2010.


Total assets for the two business segments are as follows (in thousands):

		December 31, 2010 (Restated)		March 31, 2010
AMSC Power Systems	$	225,215	$	179,873
AMSC Superconductors		55,677		32,978
Corporate assets		292,204		187,333
Total	$	573,096	$	400,184