despite the great numbers, AMSC is down 7% and my belief that the valuation P/e of AMSC was just too high. The quarter and guidance for AMSC was excellent but the relying on one single customer (SINOVEL) makes AMSC future a cloudy outlook going forward. Long term investors are probably taking profits and new investors are leery of taking a ride on a forward p/e of 40 ((which I agree is just too high)). As anyone who reads this blog knows, I sold AMSC way too early because of the high P/e and I continue to say that APWR is a much better VALUE for long term appreciation going forward. AMSC will continue its growth later in 2010 as the transmission side revenues start taking wins from other countries besides the USA in upgrading their transmission line side.

“We expect to end our fiscal year with continued top-line growth and strong profits,” said David Henry, AMSC’s senior vice president and chief financial officer. “As a result of our third quarter results, we are increasing our full-year guidance for both revenues and net income. For the full year fiscal 2009, we now expect revenues will be in a range of $312 million to $315 million, up from our previous forecasted range of $300 million to $310 million. We are increasing our gross margin forecast to approximately 36 percent from a range of 34 percent to 35 percent. Our GAAP net income forecast for fiscal 2009 also has been increased from a range of $11.0 million to $13.0 million, or $0.24 to $0.29 per diluted share, to a range of $14.0 million to $15.0 million, or $0.31 to $0.33 per diluted share. AMSC’s non-GAAP net income forecast has increased from a range of $27.0 million to $29.0 million, or $0.59 to $0.64 per diluted share, to a range of $29.5 million to $30.5 million, or $0.65 to $0.67 per diluted share. Finally, we continue to expect that AMSC will be net cash flow positive for fiscal year 2009.”

“As we detailed at our Analysts’ Day in November 2009, we expect AMSC’s growth to continue in fiscal 2010,” Henry continued. “We expect our revenue to exceed $400 million and our non-GAAP net income to exceed $54 million, or $1.15 per diluted share for full year fiscal 2010.”