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Nature Of The Business And Operations
12 Months Ended
Mar. 31, 2012
Nature Of The Business And Operations [Abstract]  
Nature Of The Business And Operations

1. Nature of the Business and Operations

     American Superconductor Corporation ("AMSC" or the "Company") was founded on April 9, 1987. The Company is a leading provider of megawatt-scale solutions that lower the cost of wind power and enhance the performance of the power grid. In the wind power market, the Company enables manufacturers to field wind turbines through its advanced engineering, support services and power electronics products. In the power grid market, the Company enables electric utilities and renewable energy project developers to connect, transmit and distribute power through its transmission planning services and power electronics and superconductor-based products. The Company's wind and power grid products and services provide exceptional reliability, security, efficiency and affordability to its customers.

     At March 31, 2012, the Company had cash, cash equivalents, and marketable securities of $51.6 million. The Company experienced a substantial decline in revenues, incurred a net loss of $136.8 million and used $141.0 million of cash for operations during the fiscal year ended March 31, 2012. As a result, the Company reduced its global workforce by approximately 50% and consolidated certain business operations in three locations to reduce facility costs. As of March 31, 2012, the Company had a global workforce of approximately 400 persons.

     The Company expects that its cost reduction efforts and anticipated revenue growth will result in a substantial reduction in cash used for operations during the year ending March 31, 2013. The Company plans to closely monitor its expenses and if required, expects to further reduce operating costs and capital spending to enhance liquidity. At March 31, 2012, the Company had accrued liabilities related to adverse purchase commitments for inventory totaling $25.9 million. The Company is working with its inventory suppliers to delay cash settlements and to reduce the gross liability associated with its adverse purchase commitments. During the quarter ending June 30, 2012, the Company agreed to provide certain vendors with letters of credit in the amount of approximately $9.0 million which resulted in additional restricted cash of approximately $8.5 million and a reduction of its adverse purchase commitments liability of $7.4 million. See Note 18, "Subsequent Events," for additional information.

     On April 4, 2012, the Company completed a private placement of $25.0 million of 7% senior convertible notes ("Notes"). See Note 18, "Subsequent Events," for further information regarding the Company's private placement of Notes. The Notes contain certain covenants and restrictions, including, among others, that for so long as the Notes are outstanding, the Company will not incur any indebtedness (other than permitted indebtedness under the Notes), permit liens on its properties (other than permitted liens under the Notes), make payments on junior securities or make dividends. The Notes also contain limitations on the transfer of certain assets. Events of default under the Notes include failure to pay principal or interest as due on the Notes, failure to deliver registered shares of common stock upon the holders request for conversion of part or all of the Notes, failure to maintain the Company's common stock eligible for trading on defined markets, cross defaults to other material indebtedness, receipt of uninsured judgments against the Company in excess of defined limits and other administrative covenants, as defined in the Notes and related documentation. Upon an event of default, the holders may require the Company to redeem all or any portion of the outstanding principal amount of the Notes in cash plus a penalty as specified in the agreement. In addition, if the Company fails to maintain an effective registration statement covering common stock to be used in settling obligations under the Notes, the Company will be required to pay a penalty as specified in the agreement.

     On June 5, 2012, the Company entered into a Loan and Security Agreement with Hercules Technology Growth Capital, under which the Company borrowed $10.0 million. See Note 18, "Subsequent Events," for further information regarding the Company's Loan and Security Agreement. The loan contains certain covenants and restrictions including, among others, a requirement to maintain a minimum unrestricted cash balance in the U.S. of at least $10.0 million at the inception of the loan, which will decrease starting November 1, 2012 and monthly thereafter by the amount of principal paid.

     Although the Company believes that it has the ability to maintain compliance with the Notes and loan covenants and restrictions, there can no assurance that the Company will be in compliance.

     The Company believes that its available cash, together with additional reductions in operating costs and capital expenditures that it expects to make if necessary, will be sufficient to fund its operations, capital expenditures and any scheduled cash payments under its debt obligations for twelve months from the balance sheet date. The Company's liquidity is highly dependent on its ability to profitably grow revenues, successfully manage adverse purchase commitments, fund and maintain compliance with the covenants and restrictions on its debt obligations, and raise additional capital, as required. The Company may seek additional financing; however, there can be no assurance that financing will be available on commercially acceptable terms or at all.