- Published: 20 February 2009
- Written by Editor
Maxwell Technologies Posts Higher 4th Quarter Sales and Gross Margin
Maxwell Technologies, Inc. (Nasdaq: MXWL) today reported revenue of $23.5 million for its fourth quarter ended December 31, 2008, up 39 percent over the $17.0 million recorded in the same period in 2007. Operating loss for the fourth quarter 2008 was $1.3 million, compared with $2.6 million in the same period last year. Net income for Q408 was $1.4 million, or $0.07 per diluted share, compared with a net loss of $1.1 million, or $0.04 per diluted share, in Q407. The net income/loss comparison is affected by a non-cash gain of $3.2 million, or $0.15 per share, in Q408, versus a non-cash gain of $2.3 million, or $0.12 per share, in Q407, reflecting a quarterly "mark-to-market" valuation of conversion features and warrants associated with convertible debentures issued in 2005.
Q408 BOOSTCAP(R) ultracapacitor revenue increased by 69 percent to $9.0 million, compared with $5.3 million for the same period last year. High voltage capacitor and microelectronics products also generated strong sales growth, combining for Q408 revenue of $14.5 million, up 25 percent from the $11.7 million recorded in Q407.
"Worldwide demand for greener, more efficient and reliable energy storage solutions continues to drive ultracapacitor sales growth," said David Schramm, Maxwell's president and chief executive officer. "Wind turbine blade pitch mechanisms and braking energy recuperation systems for low-emission hybrid transit buses and energy-efficient electric rail vehicles accounted for the majority of our 2008 ultracapacitor sales, and higher volumes helped us to improve operating results.
"It is difficult to predict how global economic conditions might affect our business in the coming months, but so far many key markets for our products, such as utility infrastructure, renewable energy, public transportation and space programs have been relatively stable, and some appear likely to benefit from government stimulus programs," Schramm added. "Q109 revenue is on pace to come in well above last year's first quarter, so we are off to a good start, and we believe that our ongoing efficiency and cost-reduction programs will enable us to continue to improve operating performance."
Other significant recent developments include:
-- An order from Vanner Inc., a manufacturer of electrical power conversion
products, for multi-cell BOOSTCAP ultracapacitor modules for a retrofit
diesel engine starter system that Vanner is installing in Chicago
transit buses.
-- An order from a contractor for the Korean federal government for
BOOSTCAP ultracapacitor modules to outfit a high-efficiency braking
energy recuperation system designed to reduce grid power consumption and
improve network stability in Korea's subway system.
Q408 gross margin was 41 percent, compared with 29 percent in Q407, and 30 percent in Q308. Q408 gross margin was positively impacted by several nonrecurring items including a $500,000 forfeited deposit for the purchase of some manufacturing equipment and $500,000 of reimbursed R&D expenses. Operating expenses totaled approximately $10.8 million, or 46 percent of revenue in Q408, compared with $7.5 million, or 44 percent of revenue in Q407, and $10.1 million, or 46 percent of revenue in Q308. Cash and restricted cash totaled $20.6 million as of December 31, 2008, compared with $21.6 million as of September 30, 2008. The company raised approximately $1.9 million, net of fees, through the sale of 390,400 shares of common stock at an average price of $4.96, under its Equity Distribution Program. Complete financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations will be available with the filing of the company's Annual Report on Form 10-K with the Securities & Exchange Commission.
Management will conduct a conference call and simultaneous webcast to discuss fourth quarter financial results and the outlook for 2009 at 5 p.m. (EST) today. The call may be accessed by dialing toll-free, (800) 862-9098 from the U.S. and Canada, or (785) 424-1051 for international callers. The live webcast may be accessed via the following link: http://www.maxwell.com/investors/investor-calendar.asp. Subsequent replay may be accessed at the company's Presentation Archive via the following link: http://www.maxwell.com/investors/presentations.asp
Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our BOOSTCAP(R) ultracapacitor cells and multi-cell modules provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and telecommunications. Our CONDIS(R) high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation-mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications.
Forward-Looking Statements - Statements in this news release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:
-- the company's history of losses and uncertainty about its ability
to achieve or maintain profitability, or to obtain sufficient capital to
finance its operations;
-- recent disruption of global financial markets and reduced availability
of credit;
-- general economic conditions in the markets served by the company's
products;
-- development and acceptance of products based on new technologies;
-- demand for original equipment manufacturers' products reaching
anticipated levels;
-- cost-effective manufacturing and the success of outsourced product
assembly;
-- the impact of competitive products and pricing;
-- risks and uncertainties involved in foreign operations, including the
impact of currency fluctuations;
-- product liability or warranty claims in excess of reserves.
For further information regarding risks and uncertainties associated with Maxwell's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Maxwell's investor relations department at (858) 503-3434 or at our investor relations website: http://www.maxwell.com/investors/sec-filing.asp. All information in this release is as of February 19, 2009. The company undertakes no duty to update any forward-looking statement to reflect actual results or changes in the company's expectations.
MAXWELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Years Ended
December 31, December 31,
---------------- -------------
2008 2007 2008 2007
---- ---- ---- ----
Revenues:
Sales $22,988 $15,788 $80,217 $54,876
License fee and
service revenue 511 1,177 1,980 2,485
--- ----- ----- -----
Total revenues 23,499 16,965 82,197 57,361
Cost of sales 13,915 12,065 55,342 43,010
------ ------ ------ ------
Gross profit 9,584 4,900 26,855 14,351
Operating expenses:
Selling, general
and administrative 6,699 4,686 23,886 18,887
Research and
development 4,051 2,715 14,847 11,263
Amortization of
intangibles 94 76 364 224
Loss on sale of
equipment - 11 - 63
Total operating
expenses 10,844 7,488 39,097 30,437
------ ----- ------ ------
Loss from operations (1,260) (2,588) (12,242) (16,086)
Interest expense, net (82) (140) (481) (1,064)
Amortization of debt
discount and
prepaid
debt costs (466) (855) (2,388) (3,567)
Gain on embedded
derivatives and
warrants 3,188 2,335 1,217 4,528
Other income
(expense), net (685) 99 (1,140) 521
---- -- ------ ---
Income (loss) before
income taxes 695 (1,149) (15,034) (15,668)
Income tax provision
(benefit) (738) (43) (226) 65
---- --- --- --
Net income (loss) $1,433 $(1,106) $(14,808) $(15,733)
==== ======= ======== ========
Net income (loss)
per common share:
Basic net income
(loss) per share $0.08 $(0.04) $(0.71) $(0.86)
===== ====== ====== ======
Diluted net income
(loss) per share $0.07 $(0.04) $(0.71) $(0.86)
===== ====== ====== ======
Weighted average
shares:
Basic 21,581 19,801 20,819 18,285
====== ====== ====== ======
Diluted 22,174 19,801 20,819 18,285
====== ====== ====== ======
MAXWELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
December 31, December 31,
2008 2007
---- ----
ASSETS
Current assets:
Cash and cash equivalents $12,576 $14,579
Restricted cash 8,000 -
Investments in marketable securities - 7,635
Trade and other accounts
receivable, net 14,107 13,933
Inventories, net 18,502 14,717
Prepaid expenses and other current
assets 1,645 1,657
----- -----
Total current assets 54,830 52,521
Property and equipment, net 17,355 14,636
Intangible assets, net 3,755 3,154
Goodwill 22,408 21,183
Prepaid pension asset 2,592 8,369
Restricted cash - 8,000
Other non-current assets 1,373 417
--- ---
Total assets $102,313 $108,280
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $12,592 $9,516
Accrued warranty 905 768
Accrued employee compensation 4,353 2,885
Short-term borrowings and current
portion of long-term debt 18,888 16,472
Deferred tax liability 456 378
--- ---
Total current liabilities 37,194 30,019
Deferred tax liability, long-term - 1,493
Convertible debenture and long-term
debt, excluding current portion 582 13,544
Stock warrants 318 577
Other long-term liabilities 972 535
--- ---
Total liabilities 39,066 46,168
------ ------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.10 par
value per share, 40,000
shares authorized;
22,521 and 20,417 shares
issued and outstanding
at December 31, 2008 and
2007, respectively 2,253 2,042
Additional paid-in capital 192,228 172,899
Accumulated deficit (134,902) (120,094)
Accumulated other comprehensive
income 3,668 7,265
----- -----
Total stockholders' equity 63,247 62,112
------ ------
Total liabilities and stockholders'
equity $102,313 $108,280
======== ========
SOURCE Maxwell Technologies, Inc.
