SAN DIEGO, Feb. 5, 2015 /PRNewswire/ -- Maxwell
Technologies, Inc. (Nasdaq: MXWL) today reported revenue of
$52.9 million for its fourth quarter
ended December 31, 2014, up 36 percent from the $39.0 million recorded in the same period in
2013. Revenue for the fiscal year ended December 31, 2014
totaled $186.6 million, down 4
percent from the $193.5 million
recorded in fiscal 2013.
Ultracapacitor revenue increased by 56 percent to $40.9 million in Q414 compared with $26.3 million in the same period last year and
totaled $135.6 million for the full
year, relatively flat compared with the $136.3 million recorded in 2013. Sales of
high-voltage capacitor and microelectronics products totaled
$12.0 million in Q414, down 6 percent
from the $12.7 million recorded in
Q413; full year sales for those products totaled $50.9 million, down 11 percent from the
$57.3 million recorded in 2013.
On a U.S. generally accepted accounting principles (GAAP) basis,
operating income for the fourth quarter 2014 was $346,000 compared with an operating loss of
$2.6 million in Q413. GAAP operating
loss for the full year was $1.7
million compared with operating income of $8.6 million in 2013. GAAP net loss for Q414 was
$2.1 million, or $0.07 per share, compared with a net loss of
$2.8 million, or $0.10 per share, in Q413. GAAP net loss for the
full year was $6.3 million, or
$0.21 per share, compared with net
income of $6.3 million, or
$0.22 per diluted share, in
2013. During the quarter ended December 31, 2014, the
Company recorded a withholding tax charge of $1.6 million associated with a portion of the
unremitted earnings of a foreign subsidiary that may be repatriated
to the U.S.
On a non-GAAP basis, the Company reported operating income of
$1.4 million in Q414 compared with an
operating loss of $1.2 million in
Q413. Non-GAAP operating income for the full year was $2.2 million compared with $12.5 million in 2013. Non-GAAP net income for
Q414 was $506,000, or $0.02 per diluted share, compared with a net loss
of $1.5 million, or $0.05 per share in Q413. Non-GAAP net loss for
the full year was $715,000, or
$0.02 per share, compared with
non-GAAP net income of $10.3 million,
or $0.36 per diluted share, in 2013.
A reconciliation of GAAP to non-GAAP financial measures is included
as an addendum to this release.
GAAP gross margin was 35 percent in Q414 compared with 37
percent in Q413 and 37 percent in Q314. For the full year,
gross margin was 37 percent in 2014 compared with 39 percent in
2013. GAAP operating expenses totaled approximately $18.2 million, or 34 percent of revenue, in Q414
compared with $16.9 million, or 43
percent of revenue, in Q413. Non-GAAP operating expenses
totaled approximately $17.3 million,
or 33 percent of revenue, in Q414 compared with $15.9 million, or 41 percent of revenue, in Q413.
Cash and cash equivalents totaled $24.7
million as of December 31, 2014 compared with
$30.8 million as of
September 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 Annual Report on Form 10-K with the Securities &
Exchange Commission.
Outlook: "Considering the impact of the Chinese New Year holiday shutdown, historic
seasonality, increasing price pressure in the Chinese bus market
and the uncertainty of the impact of a higher Swiss franc
exchange rate, we expect revenue to be lower sequentially by as
much as 35 percent in the current first quarter compared with
that recorded in the fourth quarter," said Dr. Franz Fink, Maxwell's president and CEO.
"Based on the range of initial demand forecasts from our customers,
we anticipate sequential revenue growth in succeeding quarters
that should produce total revenue of $160 million to $180 million for the full year. Looking
further into the future, we are very encouraged with the progress
we are making in diversifying the ultracapacitor revenue base with
our Engine Start Module for trucks, further penetration of the
automotive market and initial installations in the wayside rail and
grid firming markets."
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
from operations, non-GAAP net income, and non-GAAP net income 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 and the tax impact of the potential repatriation of foreign
earnings.
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 2014 financial results and the future outlook at
5 p.m. (EST) today. The call may be
accessed by dialing toll-free, (877) 876-9177 from the U.S. and
Canada, or (785) 424-1666 for
international callers, and entering the conference ID, MAXWELL. 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-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;
- 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 the impact of
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;
- Our ability to remain competitive and stimulate customer demand
through successful introduction of new products at competitive
prices, and to educate our prospective customers on the products we
offer;
- 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 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 match production volume to actual customer
demand;
- 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
February 5, 2015. 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.
MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
52,918
|
|
$
38,979
|
|
$
186,586
|
|
$
193,534
|
Cost of
revenue
|
34,418
|
|
24,605
|
|
118,146
|
|
118,241
|
Gross
profit
|
18,500
|
|
14,374
|
|
68,440
|
|
75,293
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
11,151
|
|
11,250
|
|
43,857
|
|
44,195
|
|
Research and
development
|
7,003
|
|
5,691
|
|
26,320
|
|
22,542
|
|
|
Total operating
expenses
|
18,154
|
|
16,941
|
|
70,177
|
|
66,737
|
Income (loss) from
operations
|
346
|
|
(2,567)
|
|
(1,737)
|
|
8,556
|
Interest (income)
expense, net
|
53
|
|
(117)
|
|
169
|
|
4
|
Amortization of debt
discount and prepaid debt costs
|
5
|
|
14
|
|
20
|
|
60
|
Income (loss) before
income taxes
|
288
|
|
(2,464)
|
|
(1,926)
|
|
8,492
|
Income tax
provision
|
2,406
|
|
350
|
|
4,346
|
|
2,152
|
|
|
Net income
(loss)
|
$
(2,118)
|
|
$
(2,814)
|
|
$
(6,272)
|
|
$
6,340
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.07)
|
|
$
(0.10)
|
|
$
(0.21)
|
|
$
0.22
|
|
Diluted
|
$
(0.07)
|
|
$
(0.10)
|
|
$
(0.21)
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
29,301
|
|
28,917
|
|
29,216
|
|
28,869
|
|
Diluted
|
29,301
|
|
28,917
|
|
29,216
|
|
28,903
|
MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
24,732
|
|
$
30,647
|
|
Trade and other
accounts receivable, net
|
43,698
|
|
29,869
|
|
Inventories,
net
|
44,856
|
|
44,736
|
|
Prepaid expenses and
other current assets
|
2,426
|
|
2,314
|
|
Total current
assets
|
115,712
|
|
107,566
|
Property and
equipment, net
|
39,223
|
|
44,941
|
Goodwill
|
23,599
|
|
25,978
|
Pension
asset
|
7,362
|
|
10,568
|
Other non-current
assets
|
704
|
|
1,034
|
|
Total
assets
|
$
186,600
|
|
$
190,087
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
27,011
|
|
$
25,616
|
|
Accrued employee
compensation
|
9,348
|
|
8,788
|
|
Deferred
revenue
|
703
|
|
1,043
|
|
Short-term borrowings
and current portion of long-term debt
|
15,549
|
|
7,914
|
|
Deferred tax
liability
|
1,111
|
|
890
|
|
Total current
liabilities
|
53,722
|
|
44,251
|
Deferred tax
liability, long-term
|
3,304
|
|
2,125
|
Long-term debt,
excluding current portion
|
20
|
|
100
|
Other long-term
liabilities
|
2,601
|
|
3,401
|
|
Total
liabilities
|
59,647
|
|
49,877
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $0.10
par value per share, 40,000 shares authorized; 29,846 and 29,563
shares issued and outstanding at December 31, 2014 and 2013,
respectively
|
2,982
|
|
2,953
|
Additional paid-in
capital
|
277,314
|
|
271,928
|
Accumulated
deficit
|
(158,066)
|
|
(151,794)
|
Accumulated other
comprehensive income
|
4,723
|
|
17,123
|
|
Total
stockholders' equity
|
126,953
|
|
140,210
|
|
Total
liabilities and stockholders' equity
|
$
186,600
|
|
$
190,087
|
MAXWELL
TECHNOLOGIES, INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
Gross Profit
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
18,500
|
|
$
15,470
|
|
$
14,374
|
|
$
68,440
|
|
$
75,293
|
|
Stock-based
compensation expense included in cost of sales
|
A
|
153
|
|
145
|
|
316
|
|
740
|
|
1,079
|
Non-GAAP gross
profit
|
|
$
18,653
|
|
$
15,615
|
|
$
14,690
|
|
$
69,180
|
|
$
76,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP total operating
expenses
|
|
$
18,154
|
|
$
17,746
|
|
$
16,941
|
|
$
70,177
|
|
$
66,737
|
|
Stock-based
compensation expense
|
A
|
(881)
|
|
(866)
|
|
(1,042)
|
|
(3,227)
|
|
(2,901)
|
Non-GAAP total
operating expenses
|
|
$
17,273
|
|
$
16,880
|
|
$
15,899
|
|
$
66,950
|
|
$
63,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
From Operations Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from operations
|
|
$
346
|
|
$
(2,276)
|
|
$
(2,567)
|
|
$
(1,737)
|
|
$
8,556
|
|
Stock-based
compensation expense
|
A
|
1,034
|
|
1,011
|
|
1,358
|
|
3,967
|
|
3,980
|
Non-GAAP income
(loss) from operations
|
|
$
1,380
|
|
$
(1,265)
|
|
$
(1,209)
|
|
$
2,230
|
|
$
12,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss) Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
(2,118)
|
|
$
(3,292)
|
|
$
(2,814)
|
|
$
(6,272)
|
|
$
6,340
|
|
Stock-based
compensation expense
|
A
|
1,034
|
|
1,011
|
|
1,358
|
|
3,967
|
|
3,980
|
|
Tax impact of
potential cash repatriation
|
B
|
1,590
|
|
-
|
|
-
|
|
1,590
|
|
-
|
Non-GAAP net income
(loss)
|
|
$
506
|
|
$
(2,281)
|
|
$
(1,456)
|
|
$
(715)
|
|
$
10,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss) per Diluted Share Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) per diluted per share
|
|
$
(0.07)
|
|
$
(0.11)
|
|
$
(0.10)
|
|
$
(0.21)
|
|
$
0.22
|
|
Stock-based
compensation expense
|
A
|
0.04
|
|
0.03
|
|
0.05
|
|
0.14
|
|
0.14
|
|
Tax impact of
potential cash repatriation
|
B
|
0.05
|
|
-
|
|
-
|
|
0.05
|
|
-
|
Non-GAAP net income
(loss) per diluted share
|
|
$
0.02
|
|
$
(0.08)
|
|
$
(0.05)
|
|
$
(0.02)
|
|
$
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Twelve Months
Ended
|
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
153
|
|
$
145
|
|
$
316
|
|
$
740
|
|
$
1,079
|
|
|
Selling, general and
administrative
|
658
|
|
716
|
|
804
|
|
2,362
|
|
2,140
|
|
|
Research and
development
|
223
|
|
150
|
|
238
|
|
865
|
|
761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stock-based
compensation expense
|
$
1,034
|
|
$
1,011
|
|
$
1,358
|
|
$
3,967
|
|
$
3,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
During the quarter
ended December 31, 2014, the Company recorded a tax charge of $1.6
million associated with a portion of the unremitted earnings of a
foreign subsidiary that may be repatriated to the U.S.
|
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SOURCE Maxwell Technologies, Inc.