Published:
Maxwell Technologies Reports 4th Quarter and Fiscal Year '07 Financial Results
SAN DIEGO, Feb. 26 /PRNewswire-FirstCall/ -- Maxwell Technologies, Inc.
(Nasdaq: MXWL) today reported a net loss of $1.1 million or $0.04 per share,
on revenue of $17.0 million for its fourth quarter ended December 31, 2007,
compared with net income of $633,000, or $0.03 per share, on revenue of
$15.1 million for the same period in 2006. The year-to-year net loss/net
income comparison is affected by a negative swing of approximately
$2.7 million, or $0.14 per share, in the change in fair value of conversion
features of convertible debentures issued in 2005.
Higher sales across all of the company's product lines drove a 19 percent
quarter-to-quarter increase in total revenue, from $14.2 million in the third
quarter ended September 30, 2007, to $17.0 million in Q407. BOOSTCAP(R)
ultracapacitor revenue increased by 7 percent, quarter-to-quarter, from
$5.0 million in Q307 to $5.3 million in Q407.
"Heavy transportation, wind energy, telecommunications and other
industrial applications generated the majority of our ultracapacitor sales in
2007," said David Schramm, Maxwell's president and chief executive officer.
"We expect ongoing production ramps for those applications and sales growth
for our high voltage and microelectronics products to drive year-over-year
revenue growth and margin improvement in 2008, and contribute to a
significantly stronger performance in the current first quarter, compared with
the seasonal weakness we have experienced in the past couple of years. As we
announced last month, we expect the first meaningful revenue contribution from
high-volume automotive applications now in development to begin in the second
half of 2009."
Other significant recent developments include:
-- Continental AG's selection of BOOSTCAP ultracapacitors as the energy
storage element of a "boardnet" electrical system stabilization module
that Continental is designing for a major automaker for series
production in the 2010 model year.
-- Announcement of an energy storage product development and outsource
ultracapacitor manufacturing alliance with Tianjin Lishen Battery
Joint-Stock Co., Ltd., China's largest producer of lithium ion
batteries.
-- Certification of Maxwell's San Diego ultracapacitor production facility
to the rigorous, auto industry-specific, International Organization
for Standardization (ISO) TS 16949 standard, confirming the company's
competence as a supplier to the large and strategically important
automotive industry.
"Ultracapacitor-based energy storage and power delivery solutions are
demonstrating life-of-the-application reliability and contributing to
substantial energy efficiency improvements in a wide range of devices and
systems that generate or consume electrical energy," Schramm said. "Ongoing
product design and material science advancements and the offshore assembly
operation we brought on line in 2007 are contributing to reduced manufacturing
cost, which is enabling us to improve margins and compete more aggressively
with other energy storage alternatives. We have also curtailed
engineering-intensive, low-volume custom design activity and are streamlining
the BOOSTCAP product line to concentrate on fewer, higher-volume, standard
products to further improve efficiency and inventory management."
Gross margin increased, quarter-to-quarter, from 24 percent in Q307 to
29 percent in Q407, reflecting more favorable revenue mix and continuing
progress in reducing ultracapacitor manufacturing costs. Cash, restricted
cash and investments in marketable securities totaled $30.2 million as of
December 31, 2007, compared with $17.7 million as of September 30, 2007,
augmented by the sale of approximately 1.5 million shares of common stock in
October 2007, which produced net proceeds of approximately $15.3 million after
expenses and fees. Complete financial statements will be available with the
filing of the company's Annual Report on Form 10-K with the Securities &
Exchange Commission within the next several days.
Management will conduct a conference call and simultaneous webcast to
discuss fourth quarter and fiscal year 2007 financial results and the outlook
for 2008 at 5 p.m. (EST) today. The call may be accessed by dialing
toll-free, (800) 895-0231 from the U.S. andCanada, or (785) 424-1054 for
international callers. The webcast may be accessed via the following link:
http://www.maxwell.com/investors/investor-calendar.asp and subsequent replay
may be accessed at the company's web site via the following link:
http://www.maxwell.com/investors/index.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. For more information, please visit our website:
http://www.maxwell.com.
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;
-- development and acceptance of products based on new technologies;
-- demand for original equipment manufacturers' products reaching
anticipated levels;
-- general economic conditions in the markets served by the company's
products;
-- 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 26, 2008. 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,
2007 2006 2007 2006
Revenues:
Products $16,965 $14,802 $56,808 $52,438
License fees - 338 553 1,447
Total revenues 16,965 15,140 57,361 53,885
Cost of sales 12,065 11,454 43,010 41,586
Gross profit 4,900 3,686 14,351 12,299
Operating expenses (income):
Selling, general and
administrative 4,686 3,940 18,887 16,379
Research and development 2,715 3,045 11,263 10,062
Amortization of intangibles 76 19 224 76
Loss (gain) on disposal of
equipment 11 (14) 63 (80)
Total operating expenses 7,488 6,990 30,437 26,437
Loss from operations (2,588) (3,304) (16,086) (14,138)
Interest expense, net (140) (204) (1,064) (431)
Amortization of debt discount and
prepaid debt costs (855) (904) (3,567) (3,616)
Gain on embedded derivatives and
warrants 2,335 5,030 4,528 1,980
Other income, net 99 213 521 113
Income (loss) from continuing
operations before income taxes (1,149) 831 (15,668) (16,092)
Income tax provision (benefit) (43) 31 65 208
Income (loss) from continuing
operations (1,106) 800 (15,733) (16,300)
Discontinued operations:
Loss from discontinued operations - (167) - (195)
Net income (loss) $(1,106) $633 $(15,733) $(16,495)
Net income (loss) per common share -
basic and diluted:
Income (loss) from continuing
operations $(0.04) $0.04 $(0.86) $(0.97)
Loss from discontinued operations - (0.01) - (0.01)
Net income (loss) per common
share $(0.04) $0.03 $(0.86) $(0.98)
Shares used in computing net income
(loss) per common share - basic
and diluted 19,801 16,981 18,285 16,876
MAXWELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
December 31, December 31,
2007 2006
ASSETS
Current assets:
Cash and cash equivalents $14,579 $8,159
Investments in marketable securities 7,635 3,228
Trade and other accounts receivable, net 13,933 9,749
Inventories, net 14,717 14,894
Prepaid expenses and other current assets 1,657 1,596
Total current assets 52,521 37,626
Property and equipment, net 14,636 13,621
Intangible assets, net 3,154 1,395
Goodwill 21,183 19,786
Prepaid pension asset 8,369 10,371
Restricted cash 8,000 8,000
Other non-current assets 417 870
$108,280 $91,669
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $9,516 $9,383
Accrued warranty 768 795
Accrued employee compensation 2,885 2,543
Short-term borrowings and current
portion of long-term debt 16,472 5,688
Deferred tax liability - current portion 378 392
Net liabilities of discontinued operations - 63
Total current liabilities 30,019 18,864
Deferred tax liability, long-term 1,493 2,545
Convertible debentures and long-term
debt, excluding current portion 13,544 22,527
Stock warrants 577 1,850
Other long-term liabilities 535 -
Commitments and contingencies
Stockholders' equity:
Common stock, $0.10 par value per
share, 40,000 shares authorized;
20,417 and 17,261 shares issued
and outstanding at December 31,
2007 and 2006, respectively 2,042 1,726
Additional paid-in capital 172,842 141,294
Accumulated deficit (120,037) (104,361)
Accumulated other comprehensive income 7,265 7,224
Total stockholders' equity 62,112 45,883
$108,280 $91,669
SOURCE Maxwell Technologies, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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