American Superconductor (NASDAQ:AMSC) cut its fourth-quarter and full-year 2010 guidance, sending shares spiraling nearly 50% on Wednesday.
The maker of wind-turbine equipment said one of its major clients, Chinese turbine-maker Sinovel Wind Group, refused to accept a significant shipment of parts it had been contracted to deliver.
AMSC said it believes Sinovel will resume accepting shipments once it reduces its current inventory. The company "continues to have active discussions with Sinovel to determine when Sinovel will accept further shipments and when it will pay for past shipments."
As a result of the rejection of the shipment, the Massachusetts-based company expects its fourth-quarter revenue to hit $42 million, generating a net loss in profits. The company also expects its full-year revenue to sink to $335 million, after previously issuing guidance from $430 million to $440 million.