SAN DIEGO, July 28, 2011 /PRNewswire/ -- Maxwell Technologies, Inc. (Nasdaq: MXWL) today reported revenue of $38.5 million for its second quarter ended June 30, 2011, up 30 percent over the $29.6 million recorded in the same period in 2010. Ultracapacitor revenue increased by 54 percent, to $24.4 million in Q211, compared with $15.9 million in the same period last year. Sales of high voltage capacitor and microelectronics products totaled $14.0 million in Q211, up two percent from the $13.7 million recorded in Q210.
"Rapidly increasing sales into stop-start idle elimination systems in micro hybrid autos and various backup power applications augmented continuing strong sales for wind turbine blade pitch systems and hybrid and electric transit vehicle drive systems to generate another record quarter for ultracapacitor sales," said David Schramm, Maxwell's president and chief executive officer.
On a U.S. generally accepted accounting principles (GAAP) basis, operating loss for Q211 was $1.6 million compared with an operating loss of $3.3 million in Q210. GAAP net loss for the second quarter 2011 was $1.2 million or $0.04 per share, compared with a GAAP net loss of $2.6 million, or $0.10 per share, in the same period last year. GAAP operating and net loss comparisons are affected by:
On a non-GAAP basis, the company reported operating income of $1.9 million in Q211, compared with operating income of $933,000 in the same period last year, and net income of $1.7 million or $0.06 per diluted share in Q211, compared with net income of $455,000, or $0.02 per diluted share in Q210. A reconciliation of GAAP to non-GAAP financial measures is included as an addendum to this release.
GAAP gross margin was 40 percent in Q211, compared with 40 percent in Q210 and 39 percent in Q111. GAAP operating expenses totaled approximately $17.1 million, or 44 percent of revenue in Q211, compared with $15.2 million, or 51 percent of revenue in Q210. Non-GAAP operating expenses totaled approximately $13.7 million, or 36 percent of revenue, in Q211, compared with $11.1 million, or 37 percent of revenue, in Q210. Cash and cash equivalents totaled $29.8 million as of June 30, 2011, compared with $33.1 million as of March 31, 2011. 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 Quarterly Report on Form 10-Q with the Securities & Exchange Commission.
Outlook: "We expect sequential top line growth of five to seven percent in the third quarter," Schramm said. "For the full year, we continue to expect that year-over-year top line growth will exceed 20 percent, and steadily improving operating performance should enable the company to be profitable on a non-GAAP basis going forward."
Non-GAAP Financial Measures: The Company uses non-GAAP financial measures for internal evaluation and to report the results of its business. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share. These measures are not in accordance with, nor an alternative to, GAAP. These measures are intended to supplement GAAP financial information, and may be computed differently from non-GAAP financial measures used by other companies. The company believes that these measures provide useful information to its management, board of directors and investors about its operating activities and business trends related to its financial condition and results of operations. The company believes that it is useful to provide investors with information to understand how specific line items in the statement of operations are affected by certain non-cash or non-recurring items, such as:
In addition, the company's management and board of directors use these non-GAAP financial measures in developing operating budgets and in reviewing the company's results of operations, as non-cash and non-recurring items have limited impact on current and future operating decisions. Additionally, the company believes that inclusion of non-GAAP financial measures provides consistency and comparability with its past reports of financial results. However, investors should be aware that non-GAAP measures have inherent limitations and should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Please refer to the accompanying tables for a detailed reconciliation of GAAP to non-GAAP gross profit, operating expenses, income (loss) from operations, net income (loss), and diluted net income (loss) per share.
Conference Call: Management will conduct a conference call and simultaneous webcast to discuss reported financial results and the future outlook at 5 p.m. (EDT) today. The call may be accessed by dialing toll-free, (800) 895-1085 from the U.S. and Canada, or (785) 424-1055 for international callers, and entering the conference ID, 7MAXWELL. The live webcast and subsequent archived replay may be accessed at the company's web site via the following link: http://investors.maxwell.com/phoenix.zhtml?c=94560&p=irol-IRHome.
Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our ultracapacitor products provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and telecommunications. Our 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. Such risks, uncertainties and contingencies include, but are not limited to, the following:
Many of these factors are beyond our control, and there can be no assurance that we will not encounter unforeseen risks and costs in the conduct of our business. Forward-looking statements included herein do not purport to be predictions of future events or circumstances and may not be realized. For further information regarding risks and uncertainties associated with our 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 10-KA and quarterly reports on Form 10-Q. Copies of these documents may be obtained by contacting Maxwell Investor
Relations at (858) 503-3434 or at our investor relations website: http://investors.maxwell.com/phoenix.zhtml?c=94560&p=irol-IRHome. All information in this release is as of July 28, 2011. 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 June 30,
Six Months Ended June 30,
Cost of revenue
Selling, general and administrative
Research and development
Amortization of intangibles
Total operating expenses
Loss from operations
Interest expense, net
Amortization of debt discount and prepaid debt costs
Gain on embedded derivatives and warrants
Loss before income taxes
Income tax provision (benefit)
Net loss per common share:
Basic and diluted
Weighted average common shares outstanding:
CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Trade and other accounts receivable, net
Prepaid expenses and other current assets
Total current assets
Property and equipment, net
Intangible assets, net
Other non-current assets
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities
Accrued employee compensation
Short-term borrowings and current portion of long-term debt
Deferred tax liability
Total current liabilities
Deferred tax liability, long-term
Long-term debt, excluding current portion
Other long-term liabilities
Common stock, $0.10 par value per share, 40,000 shares authorized; 27,955 and 27,182 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively
Additional paid-in capital
Accumulated other comprehensive income
Total stockholders' equity
Total liabilities and stockholders' equity
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Three Months Ended
Six Months Ended
June 30, 2011
March 31, 2011
June 30, 2010
Gross Profit Reconciliation:
GAAP gross profit
Stock-based compensation expense included in cost of sales
Amortization of intangible assets included in cost of sales
Non-GAAP gross profit
Total Operating Expenses Reconciliation:
GAAP total operating expenses
Stock-based compensation expense
Amortization of intangible assets
Accrual for settlements with the SEC and DOJ
Accrual for anticipated legal settlement
Non-GAAP total operating expenses
Income (Loss) From Operations Reconciliation:
GAAP loss from operations
Non-GAAP income from operations
Net Income (Loss) Reconciliation:
GAAP net income (loss)
Accrual for anticipated legal settlement, net of tax
Gain on embedded derivative and warrants
Non-GAAP net income (loss)
Diluted Net Income (Loss) per Share Reconciliation:
GAAP diluted net income (loss) per share
Non-GAAP diluted net income (loss) per share
See notes on next page
(A) Stock-based compensation expense consists of non-cash charges for employee stock options, restricted stock awards, restricted stock units and employee stock purchase plan awards.
Results include stock-based compensation expense as follows (in thousands):
Three Months Ended
Total stock-based compensation expense
(B) Amortization of intangible assets associated with acquisitions.
(C) Accrual for settlements with the Securities and Exchange Commission and Department of Justice.
(D) Accrual for anticipated legal settlement of $2.6 million, or $2.0 million net of the related tax impact.
(E) Gain on embedded derivatives and warrants associated with the Company’s convertible debt.
SOURCE Maxwell Technologies, Inc.