SAN DIEGO, Oct. 23, 2014 /PRNewswire/ -- Maxwell
Technologies, Inc. (Nasdaq: MXWL) today reported revenue of
$41.6 million for its third quarter
ended September 30, 2014, down 10 percent from the
$46.1 million recorded in the second
quarter ended June 30, 2014, and down 19 percent from the
$51.2 million recorded in the third
quarter of 2013.
Third quarter ultracapacitor revenue decreased by 15 percent
sequentially to $28.8 million,
compared with $33.9 million in the
second quarter ended June 30, 2014, and was down 22 percent
compared with the $37.0 million
recorded in the third quarter of 2013. Sales of high voltage
capacitor and microelectronics products totaled $12.8 million in Q314, up 5 percent sequentially
from the $12.2 million recorded in
the second quarter and down 10 percent from the $14.2 million recorded in Q313.
"Third quarter revenue was in line with our expectations," said
Dr. Franz Fink, Maxwell's president
and CEO. "Ultracapacitor sales into the wind energy, automotive and
electric rail markets were solid, as were sales of our high voltage
capacitor products, but ultracapacitor sales into the hybrid bus
market in China were down
sequentially, compared with Q2."
On a U.S. generally accepted accounting principles (GAAP) basis,
operating loss for the third quarter 2014 was $2.3 million, compared with an operating loss of
$567,000 in Q214 and operating income
of $6.2 million in Q313. GAAP net
loss for Q314 was $3.3 million, or
$0.11 per share, compared with a net
loss of $1.2 million, or $0.04 per share in Q214 and net income of
$6.0 million, or $0.21 per diluted share, in Q313.
On a non-GAAP basis, the Company reported operating loss of
$1.3 million in Q314 compared with
operating income of $599,000 in Q214
and operating income of $6.9 million
in Q313. Non-GAAP net loss for Q314 was $2.3
million, or $0.08 cents per
share, compared with net loss of $15,000, or zero cents per share in Q214 and net
income of $6.7 million, or
$0.23 per diluted share, in Q313. A
reconciliation of GAAP to non-GAAP financial measures is included
as an addendum to this release.
GAAP gross margin was 37 percent in Q314, compared with 36
percent in Q214 and 41 percent in Q313. GAAP operating expenses
totaled approximately $17.7 million,
or 43 percent of revenue, in Q314, compared with $17.2 million, or 37 percent of revenue, in Q214,
and $14.9 million, or 29 percent of
revenue, in Q313. Non-GAAP operating expenses totaled
approximately $16.9 million, or 41
percent of revenue, in Q314 compared with $16.2 million, or 35 percent of revenue, in Q214
and $14.4 million, or 28 percent of
revenue, in Q313. Cash and cash equivalents totaled $30.8 million as of September 30, 2014,
compared with $30.7 million as of
June 30, 2014. 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: Based on customer forecasts and order flow
indicating increasing ultracapacitor sales into the hybrid bus
market in China, along with strong
sales into the wind energy market and continuing solid sales for
other ultracapacitor applications and our high voltage and
microelectronic products, total revenue for the fourth quarter is
likely to increase by as much as 20 to 25% compared with that
reported in the third quarter.
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
net income (loss) per diluted 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
stock-based compensation expense.
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 provide 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 from operations, net income, and net income per
share.
Management will conduct a conference call and simultaneous
webcast to discuss third quarter of 2014 financial results and the
future outlook at 5 p.m. (EDT) today.
The call may be accessed by dialing toll-free, (866) 952-1906 from
the U.S. and Canada, or (785)
424-1825 for international callers, and entering the conference ID,
MAXWELL. The live web cast 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-calendar.
Maxwell is a global leader in the development and manufacture 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, renewable energy and information
technology. Our CONDIS® 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-hardened microelectronic products for satellites and
spacecraft include single board computers and components
incorporating our proprietary RADPAK® packaging and shielding
technology that enables them to perform reliably in space. For more
information, visit 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. Such risks, uncertainties and contingencies include,
but are not limited to, the following:
- the accuracy of customer demand forecasts and our reliance on
them for planning and resource allocation;
- our ability to remain competitive and stimulate customer demand
through successful introduction of new products, and to educate our
prospective customers on the products we offer;
- dependence upon the sale of products to a small number of
customers and vertical markets, some of which are heavily dependent
on government funding or government subsidies which may or may not
continue in the future;
- dependence upon the sale of products into Asia and Europe, where macroeconomic factors outside
our control may adversely affect our sales;
- risks related to our international operations including, but
not limited to, our ability to adequately comply with the changing
rules and regulations in countries where our business is conducted,
our ability to oversee and control our foreign subsidiaries and
their operations, our ability to effectively manage foreign
currency exchange rate fluctuations arising from our international
operations, and our ability to continue to comply with the U.S.
Foreign Corrupt Practices Act as well as the anti-bribery laws of
foreign jurisdictions;
- successful acquisition, development and retention of key
personnel;
- our ability to effectively manage our reliance upon certain
suppliers of key component parts, specialty equipment and
logistical services;
- our ability to match production volume to actual customer
demand;
- our ability to manage product quality problems;
- our ability to protect our intellectual property rights and to
defend claims against us;
- our ability to effectively identify, enter into, manage and
benefit from strategic alliances;
- occurrence of a catastrophic event at any of our
facilities;
- occurrence of a technology systems failure, network disruption,
or breach in data security;
- our ability to obtain sufficient capital to meet our operating
or other needs; and,
- our ability to manage and minimize the impact of unfavorable
legal proceedings.
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 these documents
may be obtained by contacting Maxwell's investor relations
department at (858) 503-3434, or at our investor relations website:
investors.maxwell.com. All information in this release is as of
October 23, 2014. The Company undertakes no duty to update any
forward-looking statement to reflect actual results or changes in
the Company's expectations.
Media & Investor Contact: Michael Sund +1 (858) 503-3233;
msund@maxwell.com
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MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
|
|
September 30,
2014
|
|
June 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
41,593
|
|
$ 46,074
|
|
$
51,197
|
|
$
133,668
|
|
$
154,555
|
Cost of
revenue
|
26,123
|
|
29,474
|
|
30,084
|
|
83,728
|
|
93,636
|
Gross
profit
|
15,470
|
|
16,600
|
|
21,113
|
|
49,940
|
|
60,919
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
10,823
|
|
10,944
|
|
9,455
|
|
32,706
|
|
32,945
|
|
Research and
development
|
6,923
|
|
6,223
|
|
5,450
|
|
19,317
|
|
16,851
|
|
|
Total operating
expenses
|
17,746
|
|
17,167
|
|
14,905
|
|
52,023
|
|
49,796
|
Income (loss) from
operations
|
(2,276)
|
|
(567)
|
|
6,208
|
|
(2,083)
|
|
11,123
|
Interest expense,
net
|
49
|
|
28
|
|
36
|
|
116
|
|
121
|
Amortization of debt
discount and prepaid debt costs
|
5
|
|
5
|
|
16
|
|
15
|
|
46
|
Income (loss) before
income taxes
|
(2,330)
|
|
(600)
|
|
6,156
|
|
(2,214)
|
|
10,956
|
Income tax
provision
|
962
|
|
581
|
|
129
|
|
1,940
|
|
1,802
|
|
|
Net income
(loss)
|
$
(3,292)
|
|
$ (1,181)
|
|
$
6,027
|
|
$
(4,154)
|
|
$
9,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.11)
|
|
$ (0.04)
|
|
$
0.21
|
|
$
(0.14)
|
|
$
0.32
|
|
Diluted
|
$
(0.11)
|
|
$ (0.04)
|
|
$
0.21
|
|
$
(0.14)
|
|
$
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
29,284
|
|
29,206
|
|
28,884
|
|
29,146
|
|
28,857
|
|
Diluted
|
29,284
|
|
29,206
|
|
28,940
|
|
29,146
|
|
28,883
|
MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
September 30,
2014
|
|
December 31,
2013
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
30,798
|
|
$
30,647
|
|
Trade and other
accounts receivable, net
|
30,636
|
|
29,869
|
|
Inventories
|
52,009
|
|
44,736
|
|
Prepaid expenses and
other current assets
|
2,779
|
|
2,314
|
|
Total current
assets
|
116,222
|
|
107,566
|
Property and
equipment, net
|
41,018
|
|
44,941
|
Goodwill
|
24,462
|
|
25,978
|
Pension
asset
|
10,576
|
|
10,568
|
Other non-current
assets
|
878
|
|
1,034
|
|
Total
assets
|
$
193,156
|
|
$
190,087
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
30,696
|
|
$
25,616
|
|
Accrued employee
compensation
|
10,270
|
|
8,788
|
|
Deferred revenue and
customer deposits
|
2,826
|
|
1,043
|
|
Short-term borrowings
and current portion of long-term debt
|
9,280
|
|
7,914
|
|
Deferred tax
liability
|
813
|
|
890
|
|
Total current
liabilities
|
53,885
|
|
44,251
|
Deferred tax
liability, long-term
|
2,008
|
|
2,125
|
Long-term debt,
excluding current portion
|
44
|
|
100
|
Other long-term
liabilities
|
3,201
|
|
3,401
|
|
Total
liabilities
|
59,138
|
|
49,877
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $0.10
par value per share, 40,000 shares authorized; 29,838 and 29,563
shares issued and outstanding at September 30, 2014 and
December 31, 2013, respectively
|
2,983
|
|
2,953
|
|
Additional paid-in
capital
|
276,261
|
|
271,928
|
|
Accumulated
deficit
|
(155,948)
|
|
(151,794)
|
|
Accumulated other
comprehensive income
|
10,722
|
|
17,123
|
|
Total
stockholders' equity
|
134,018
|
|
140,210
|
|
Total
liabilities and stockholders' equity
|
$
193,156
|
|
$
190,087
|
MAXWELL
TECHNOLOGIES, INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September 30,
2014
|
|
June 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Gross Profit
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
15,470
|
|
$ 16,600
|
|
$
21,113
|
|
$
49,940
|
|
$
60,919
|
|
Stock-based
compensation expense included in cost of sales
|
A
|
145
|
|
190
|
|
228
|
|
587
|
|
762
|
Non-GAAP gross
profit
|
|
$
15,615
|
|
$ 16,790
|
|
$
21,341
|
|
$
50,527
|
|
$
61,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP total operating
expenses
|
|
$
17,746
|
|
$ 17,167
|
|
$
14,905
|
|
$
52,023
|
|
$
49,796
|
|
Stock-based
compensation expense
|
A
|
(866)
|
|
(976)
|
|
(491)
|
|
(2,347)
|
|
(1,860)
|
Non-GAAP total
operating expenses
|
|
$
16,880
|
|
$ 16,191
|
|
$
14,414
|
|
$
49,676
|
|
$
47,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
From Operations Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from operations
|
|
$
(2,276)
|
|
$ (567)
|
|
$
6,208
|
|
$
(2,083)
|
|
$
11,123
|
|
Stock-based
compensation expense
|
A
|
1,011
|
|
1,166
|
|
719
|
|
2,934
|
|
2,622
|
Non-GAAP income
(loss) from operations
|
|
$
(1,265)
|
|
$ 599
|
|
$
6,927
|
|
$
851
|
|
$
13,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss) Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
(3,292)
|
|
$ (1,181)
|
|
$
6,027
|
|
$
(4,154)
|
|
$
9,154
|
|
Stock-based
compensation expense
|
A
|
1,011
|
|
1,166
|
|
719
|
|
2,934
|
|
2,622
|
Non-GAAP net income
(loss)
|
|
$
(2,281)
|
|
$ (15)
|
|
$
6,746
|
|
$
(1,220)
|
|
$
11,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss) per Diluted Share Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share
|
|
$
(0.11)
|
|
$ (0.04)
|
|
$
0.21
|
|
$
(0.14)
|
|
$
0.32
|
|
Stock-based
compensation expense
|
A
|
0.03
|
|
0.04
|
|
0.02
|
|
0.10
|
|
0.09
|
Non-GAAP net income
(loss) per diluted share
|
|
$
(0.08)
|
|
$
-
|
|
$
0.23
|
|
$
(0.04)
|
|
$
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes on next
page
|
|
|
|
|
|
|
|
|
|
MAXWELL
TECHNOLOGIES, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
Nine Months
Ended
|
|
|
|
September 30,
2014
|
|
June 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
145
|
|
$
190
|
|
$
228
|
|
$
587
|
|
$
762
|
|
|
Selling, general and
administrative
|
716
|
|
733
|
|
332
|
|
1,705
|
|
1,337
|
|
|
Research and
development
|
150
|
|
243
|
|
159
|
|
642
|
|
523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stock-based
compensation expense
|
$
1,011
|
|
$
1,166
|
|
$
719
|
|
$
2,934
|
|
$
2,622
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/maxwell-technologies-reports-third-quarter-financial-results-812169037.html
|
SOURCE Maxwell Technologies, Inc.