NORTHVILLE, Mich., Aug. 4 /PRNewswire-FirstCall/ -- Amerigon
Incorporated (Nasdaq: ARGN), a leader in developing and marketing
products based on advanced thermoelectric (TE) technologies, today
announced record revenues and operating income for the second
quarter and six months ended June 30,
2010. This year's second quarter marks the Company's
fourth consecutive quarter of record revenues.
Product revenues for this year's second quarter increased to
$28.8 million, up 169 percent from
$10.7 million in last year's second
quarter, and up 19 percent sequentially from $24.2 million in the 2010 first quarter.
The increase in revenues primarily resulted from a much
improved automotive marketplace which resulted in higher vehicle
production levels on existing vehicles offering the Company's
Climate Control Seat® (CCS®) systems. New model
introductions, especially in the Asian markets, and the addition of
a rear seat option on several vehicles also contributed to higher
revenues. CCS systems include both TE-based heated and cooled
systems and heated and ventilated seat systems.
Amerigon President and Chief Executive Officer Daniel R. Coker said, "The slow, steady recovery
of the global automotive market that began a year ago remains in
effect. Improved vehicle production levels along with
continued adoption of our seat systems in new vehicle lines by
automotive manufacturers, and by consumers purchasing vehicles with
our technology have led to the significant year-over-year and
sequential improvements in revenues. With four consecutive
quarters of record revenues, we believe we are gaining momentum and
expect additional vehicle line introductions in the coming months
to contribute to further increases in revenue. We are also
looking forward to introducing other advanced products such as the
heated and cooled bed and heated and cooled cup holder later this
year."
In North America, one of the
Company's most important markets, the Seasonally Adjusted Annual
Rate (SAAR) for vehicles sales was 11.3 million, up 18 percent,
from 9.6 million during the second quarter of 2009. Vehicle
production levels, which had been reduced below the SAAR rate
during the second quarter of 2009 to reduce OEM inventory levels,
were more in line with the current selling pace during the second
quarter of 2010. Production of light vehicles in North America increased by 73 percent to 3.1
million during this year's second quarter from 1.8 million during
the prior year period.
Gross margin as a percentage of revenue for the 2010 second
quarter was 30 percent compared with 24 percent in the second
quarter of 2009 and 27 percent in this year's first quarter.
The year-over-year and sequential increase was primarily
attributable to a favorable shift in the mix of products sold,
lower raw material costs and higher coverage of fixed cost at the
higher volume levels. Net income attributable to Amerigon
Incorporated for this year's second quarter was $2.3 million, or $0.11 per basic and $0.10 per diluted share, compared with net loss
attributable to Amerigon Incorporated in the prior year second
quarter of $869,000, or $0.04 loss per basic and diluted share.
For the first six months of 2010, product revenues increased to
$53.0 million, up 154 percent from
$20.9 million in the prior year
period. Gross margin as a percentage of revenue for this
year's first six months was 29 percent compared with 24 percent in
the first six months of 2009. Net income attributable to
Amerigon Incorporated for this year's first six months was
$4.0 million, or $0.18 per share, compared with a net loss
attributable to Amerigon Incorporated in the prior year period of
$1.8 million, or $0.08 loss per share.
Coker added that the Company continues to work towards expanding
its TE technology beyond automotive seating into the next major
market arenas. The Company's objective is for its unique
technology to occupy an important place in the value chain of a new
class of solid state energy conversion systems that replace
existing electromechanical devices in the various potential large
market sectors, including other automotive applications, stationary
temperature management, aerospace and defense, individual comfort,
waste heat harvesting and primary power generation.
The Company's balance sheet as of June
30, 2010, strengthened with cash, cash equivalents and
short-term investments totaling $30.0
million, total assets of $70.4
million, no bank debt and shareholders' equity of
$52.6 million.
CCS systems are currently offered as an optional or standard
feature on 49 automobile models produced by Ford, General Motors,
Toyota, Nissan, Honda, Hyundai, KIA and Jaguar/Land Rover.
New vehicles equipped with CCS systems and launched since the
second quarter of 2009 included the Ford Taurus, Ford F-250, Nissan
370Z Roadster, Nissan Patrol, Infiniti QX56, Infiniti G
Convertible, KIA Mohave, KIA Borrego, KIA Sportage, Hyundai Tucson
and two other programs that the Company has not yet announced.
Two existing programs, the Jaguar XJ and Land Rover Range
Rover, began offering CCS in the rear seating position for the
first time during the 2009 third quarter.
Unit shipments of CCS systems for the 2010 second quarter and
first six months were 407,000 and 756,000, respectively, compared
with 154,000 and 297,000 units for the year-earlier periods.
As of June 30, 2010, the
Company had shipped nearly 6.1 million CCS units to customers since
2000.
The 2010 second quarter and six-month results include a
year-over-year increase in net research and development expenses of
$1.3 million for both periods,
primarily due to the advanced TE materials program at ZT Plus.
The Company is also developing new products, such as a heated
and cooled bed, a heated and cooled cup holder and a cold storage
box, and improving the current CCS system. The costs
associated with these projects increased during this year's second
quarter as several of the projects near the commercial launch phase
of development. The bed and cup holder are expected to be
launched in the fall of 2010.
Selling, general and administrative expenses for this year's
second quarter and first six months increased $325,000 and $636,000, respectively, due primarily to an
increase in the number of sales and marketing employees. The
Company increased its marketing resources in order to support
increased activities in South
Korea, Europe and
China. In addition, the
increase for the six-month period included higher stock option
expense.
Guidance
The Company expects product revenues in the 2010 third quarter
to be up slightly compared with the 2010 second quarter,
representing a more than 50 percent increase from the 2009 third
quarter product revenue of $18.4
million. Although the automotive market appears to be
stabilizing, there continues to be significant market risk which
makes it difficult for Amerigon to provide meaningful full-year
2010 guidance.
Conference Call
As previously announced, Amerigon is conducting a conference
call today to be broadcast live over the Internet at 11:30 AM Eastern Time to review these financial
results. The dial-in number for the call is 1-877-941-8418.
The live webcast and archived replay of the call can be
accessed in the Events page of the Investor section of Amerigon's
website at www.amerigon.com.
About Amerigon
Amerigon (NASDAQ-GS: ARGN) develops products based on its
advanced, proprietary, efficient thermoelectric (TE) technologies
for a wide range of global markets and heating and cooling
applications. The Company's current principal product is its
proprietary Climate Control Seat® (CCS®) system, a solid-state,
TE-based system that permits drivers and passengers of vehicles to
individually and actively control the heating and cooling of their
respective seats to ensure maximum year-round comfort. CCS, which
is the only system of its type on the market today, uses no CFCs or
other environmentally sensitive coolants. Amerigon maintains sales
and technical support centers in Southern
California, Southeast
Michigan, Japan,
Germany, England and Korea. For more information,
visit the Company's website at www.amerigon.com.
Certain matters discussed in this release are forward-looking
statements that involve risks and uncertainties, and actual results
may be different. Important factors that could cause the
Company's actual results to differ materially from its expectations
in this release are risks that sales may not significantly
increase, additional financing, if necessary, may not be available,
new competitors may arise and adverse conditions in the automotive
industry may negatively affect its results. The liquidity and
trading price of its common stock may be negatively affected by
these and other factors. Please also refer to Amerigon's
Securities and Exchange Commission filings and reports, including,
but not limited to, its Form 10-Q for the period ended June 30, 2010, and its Form 10-K for the year
ended December 31, 2009.
Contact:
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Allen & Caron Inc
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Jill Bertotti
(investors)
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jill@allencaron.com
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Len Hall (media)
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len@allencaron.com
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(949) 474-4300
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TABLES FOLLOW
AMERIGON
INCORPORATED
CONSOLIDATED CONDENSED
STATEMENTS OF OPERATIONS
(In thousands, except per share
data)
(Unaudited)
|
|
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|
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Three Months
Ended
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Six Months Ended
|
|
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June 30,
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June 30,
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|
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2010
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2009
|
2010
|
2009
|
|
Product revenues
|
$ 28,812
|
$ 10,715
|
$ 53,000
|
$ 20,885
|
|
Cost of sales
|
20,108
|
8,184
|
37,653
|
15,936
|
|
Gross margin
|
8,704
|
2,531
|
15,347
|
4,949
|
|
Operating expenses:
|
|
|
|
|
|
Research and
development
|
3,390
|
1,919
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6,369
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4,338
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Research and development
reimbursements
|
(528)
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(345)
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(1,703)
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(1,018)
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Net research and development
expenses
|
2,862
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1,574
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4,666
|
3,320
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Selling, general and
administrative
|
2,491
|
2,166
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4,951
|
4,315
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Total operating
expenses
|
5,353
|
3,740
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9,617
|
7,635
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Operating income
(loss)
|
3,351
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(1,209)
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5,730
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(2,686)
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Interest income
|
3
|
4
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–
|
26
|
|
Loss from equity
investment
|
–
|
–
|
(22)
|
–
|
|
Other income
|
7
|
45
|
72
|
97
|
|
Earnings (loss) before income
tax
|
3,361
|
(1,160)
|
5,780
|
(2,563)
|
|
Income tax expense
(benefit)
|
1,244
|
(291)
|
2,120
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(758)
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|
Net income (loss)
|
2,117
|
(869)
|
3,660
|
(1,805)
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Plus: Loss attributable to
non-controlling interest
|
190
|
–
|
297
|
–
|
|
Net income (loss) attributable
to Amerigon, Inc.
|
$
2,307
|
$
(869)
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$
3,957
|
$
(1,805)
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share
|
$
0.11
|
$
(0.04)
|
$
0.18
|
$
(0.08)
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|
Diluted earnings (loss) per
share
|
$
0.10
|
$
(0.04)
|
$
0.18
|
$
(0.08)
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|
|
|
|
|
|
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Weighted average number of
shares – basic
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21,621
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21,420
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21,577
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21,327
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Weighted average number of
shares – diluted
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22,381
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21,420
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22,363
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21,327
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|
|
|
|
|
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AMERIGON
INCORPORATED
CONSOLIDATED CONDENSED BALANCE
SHEETS
(In thousands, except share
data)
|
|
|
|
|
|
|
|
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June 30,
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December 31,
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ASSETS
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2010
|
2009
|
|
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(unaudited)
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|
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Current Assets:
|
|
|
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Cash & cash
equivalents
|
$ 20,449
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$ 21,677
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Short-term
investments
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9,589
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6,704
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|
Accounts
receivable, less allowance of $735 and $292,
respectively
|
20,915
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15,073
|
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Inventory
|
2,907
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2,541
|
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Deferred income tax
assets
|
2,762
|
927
|
|
Prepaid expenses
and other assets
|
1,181
|
780
|
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Total current assets
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57,803
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47,702
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Equity Investment
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–
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22
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Property and equipment,
net
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4,419
|
3,271
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|
Patent costs, net of accumulated
amortization of $640 and $490, respectively
|
4,319
|
3,727
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Deferred income tax
assets
|
3,273
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7,133
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Other non-current
assets
|
541
|
527
|
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Total assets
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$
70,355
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$
62,382
|
|
|
|
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LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
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|
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Current Liabilities:
|
|
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Accounts
payable
|
$ 12,872
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$ 10,222
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Accrued
liabilities
|
4,224
|
3,738
|
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Deferred
manufacturing agreement – current portion
|
150
|
200
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Total current liabilities
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17,246
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14,160
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Pension Benefit
Obligation
|
502
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377
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Deferred manufacturing agreement
– long-term portion
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–
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50
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Total liabilities
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17,748
|
14,587
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Shareholders' equity:
|
|
|
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Common
Stock:
|
|
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No
par value; 30,000,000 shares authorized, 21,635,807 and
21,486,309
issued and outstanding at June 30, 2010 and December 31,
2009, respectively
|
62,537
|
61,971
|
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Paid-in
capital
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24,545
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23,986
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Accumulated other
comprehensive income
|
86
|
59
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Accumulated
deficit
|
(33,825)
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(37,782)
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Total Amerigon, Inc.
shareholders' equity
|
53,343
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48,234
|
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Non-controlling
interest
|
(736)
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(439)
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Total
shareholders' equity
|
52,607
|
47,795
|
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Total
liabilities and shareholders' equity
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$
70,355
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$
62,382
|
|
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AMERIGON
INCORPORATED
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
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|
|
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Six Months Ended
|
|
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June 30,
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2010
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2009
|
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Operating Activities:
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Net income (loss)
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$ 3,660
|
$ (1,805)
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Adjustments to reconcile net
income (loss) to cash
provided by operating activities:
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Depreciation and
amortization
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675
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704
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Deferred tax provision
(benefit)
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2,024
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(777)
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Stock option
compensation
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641
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607
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Defined benefit plan
expense
|
124
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95
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Loss from equity
investment
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22
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–
|
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Changes in operating assets and
liabilities:
|
|
|
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Accounts
receivable
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(6,338)
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1,485
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Inventory
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(366)
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(836)
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Prepaid expenses and other
assets
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52
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(94)
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Accounts
payable
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2,650
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1,508
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Accrued
liabilities
|
432
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37
|
|
Net cash provided by (used in)
operating activities
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3,576
|
924
|
|
|
|
|
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Investing Activities:
|
|
|
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Purchases of short-term
investments
|
(7,127)
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–
|
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Maturities of short-term
investments
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4,242
|
–
|
|
Purchase of ZT Plus assets, net
of cash acquired
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(1,500)
|
–
|
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Purchase of property and
equipment
|
(498)
|
(369)
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|
Patent costs
|
(415)
|
(459)
|
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Net cash used in investing
activities
|
(5,298)
|
(828)
|
|
|
|
|
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Financing Activities:
|
|
|
|
Proceeds
from the exercise of Common Stock options
|
467
|
796
|
|
Net cash provided by financing
activities
|
467
|
796
|
|
Foreign currency
effect
|
27
|
(28)
|
|
Net decrease in cash and cash
equivalents
|
(1,228)
|
864
|
|
Cash and cash equivalents at
beginning of period
|
21,677
|
25,303
|
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Cash and cash equivalents at end
of period
|
$
20,449
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$
26,167
|
|
|
|
|
|
Supplemental disclosure of cash
flow information:
|
|
|
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Cash paid for taxes
|
$
305
|
$
298
|
|
Supplemental disclosure of
non-cash transactions:
|
|
|
|
Issuance of Common Stock under
the 2006 Equity Incentive Plan
|
$
17
|
$
299
|
|
|
|
|
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SOURCE Amerigon Incorporated
Copyright g. 4 PR Newswire