SAN DIEGO, Oct. 29, 2015
/PRNewswire/ -- Maxwell Technologies, Inc. (NASDAQ: MXWL) today
reported operational and financial results for the three and nine
months ended September 30, 2015.
Total revenues for the third quarter of 2015 were $45.1 million, an increase of 19.3% from the
second quarter of 2015 and an increase of 8.4% from the prior year
quarter. Ultracapacitor revenue increased to $31.8 million, an increase of 35.6% from the
second quarter of 2015 and an increase of 10.4% from the prior year
quarter. The Company reported $3.8
million of adjusted earnings before interest, taxes,
depreciation and amortization (Adjusted EBITDA) for the third
quarter of 2015, compared with $711,000 in the second quarter of 2015 and
$1.6 million for the prior year
quarter. Net loss for the third quarter of 2015 was $1.4 million, compared with $9.4 million in the second quarter of 2015 and
$3.3 million in the prior year
quarter.
"During the third quarter, we made meaningful progress
transitioning our business to higher growth opportunities and
executing on our restructuring plan, which is already yielding
positive results," said Dr. Franz
Fink, Maxwell's president and chief executive officer. "We
achieved better than expected revenue, primarily driven by upside
demand in the China hybrid bus
market. We expect this strength to continue into the fourth
quarter. While we expect the new China hybrid bus policy to put pressure on our
top-line revenue early in 2016, we believe there is a long-term
baseline business for ultracapacitors in that market."
"As our business evolves and diversifies, our continued focus on
costs and operational efficiencies should position us for
sustainable profitability over the long term. Maxwell's opportunity
is large and growing, with our current served available market of
nearly $600 million expected to grow
to more than $1.4 billion by 2020 and
further beyond that. Our five-year plan for revenue growth will
build upon a solid revenue base today to more mid- and long-term
opportunities as we diversify further in auto, rail and grid energy
storage. Looking ahead, we are excited about the significant
prospects for our company, and we are confident that we are taking
the right steps to grow our business and enhance shareholder
returns," concluded Fink.
Financial Results
and Operating Metrics (1)
|
(Unaudited; in
millions, except for per share amounts)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2015
|
|
June
30,
2015
|
|
September 30,
2014
|
|
September 30,
2015
|
|
September 30,
2014
|
Total
revenue
|
|
$
|
45,076
|
|
|
$
|
37,796
|
|
|
$
|
41,593
|
|
|
$
|
117,542
|
|
|
$
|
133,668
|
|
Ultracapacitor
revenue
|
|
$
|
31,801
|
|
|
$
|
23,449
|
|
|
$
|
28,809
|
|
|
$
|
77,194
|
|
|
$
|
94,719
|
|
High-Voltage
revenue
|
|
$
|
10,275
|
|
|
$
|
11,892
|
|
|
$
|
10,428
|
|
|
$
|
32,818
|
|
|
$
|
30,514
|
|
Microelectronics
revenue
|
|
$
|
3,000
|
|
|
$
|
2,455
|
|
|
$
|
2,356
|
|
|
$
|
7,530
|
|
|
$
|
8,435
|
|
Non-GAAP gross
margin
|
|
32.3
|
%
|
|
33.0
|
%
|
|
37.6
|
%
|
|
32.0
|
%
|
|
37.8
|
%
|
Operating
loss
|
|
$
|
(651)
|
|
|
$
|
(6,259)
|
|
|
$
|
(2,282)
|
|
|
$
|
(15,482)
|
|
|
$
|
(1,569)
|
|
Non-GAAP operating
income (loss)
|
|
$
|
1,032
|
|
|
$
|
(2,158)
|
|
|
$
|
(1,271)
|
|
|
$
|
(8,858)
|
|
|
$
|
1,365
|
|
Adjusted
EBITDA
|
|
$
|
3,765
|
|
|
$
|
711
|
|
|
$
|
1,605
|
|
|
$
|
(381)
|
|
|
$
|
9,785
|
|
Net loss
|
|
$
|
(1,449)
|
|
|
$
|
(9,376)
|
|
|
$
|
(3,292)
|
|
|
$
|
(20,166)
|
|
|
$
|
(4,154)
|
|
Non-GAAP net income
(loss)
|
|
$
|
234
|
|
|
$
|
(3,190)
|
|
|
$
|
(2,281)
|
|
|
$
|
(11,457)
|
|
|
$
|
(1,220)
|
|
Non-GAAP net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.01
|
|
|
$
|
(0.11)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.04)
|
|
Net cash provided by
operating activities
|
|
$
|
7,406
|
|
|
$
|
1,901
|
|
|
$
|
6,878
|
|
|
$
|
8,530
|
|
|
$
|
6,251
|
|
Cash purchases of
property and equipment
|
|
$
|
562
|
|
|
$
|
942
|
|
|
$
|
2,319
|
|
|
$
|
2,779
|
|
|
$
|
5,195
|
|
Cash, cash
equivalents and restricted cash
|
|
$
|
25,213
|
|
|
$
|
25,031
|
|
|
$
|
30,798
|
|
|
$
|
25,213
|
|
|
$
|
30,798
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
For a reconciliation of non-GAAP financial measures, please
refer to the section entitled "Reconciliation of GAAP to Non-GAAP
Financial Measures" included at the end of this
release
|
Discussion of Financial and Operational Results for the
Quarter
Revenue and Non-GAAP Gross Margin
- Total revenue for the third quarter of 2015 was $45.1 million, compared with $37.8 million in the second quarter of 2015,
primarily due to increases in ultracapacitor and microelectronics
revenue.
- Ultracapacitor revenue for the third quarter of 2015 was
$31.8 million, compared with
$23.4 million in the second quarter
of 2015, primarily driven by increased demand in the China hybrid bus market.
- High-voltage revenue was $10.3
million for the third quarter of 2015, compared with
$11.9 million in the second quarter
of 2015.
- Microelectronic revenue for the third quarter of 2015 was
$3.0 million, compared with
$2.5 million in the second quarter of
2015.
- Non-GAAP gross margin in the third quarter of 2015 was 32.3%, a
slight decrease when compared with the second quarter of 2015,
reflecting increased demand in the ultracapacitor business.
Adjusted EBITDA & Operating Expense
- Adjusted EBITDA for the third quarter of 2015 was $3.8 million, compared with $711,000 in the second quarter of 2015. The
quarter-over-quarter increase was primarily driven by higher
revenues due to increased demand for our ultracapacitor products
and a reduction in our operating expenses as a result of our
restructuring and cost reduction efforts.
- Operating expense in the third quarter of 2015 was $14.9 million, compared with $18.4 million in the second quarter of 2015,
primarily driven by lower restructuring related charges and cost
reduction efforts.
- Non-GAAP operating expense for the third quarter of 2015 was
$13.5 million and excludes
adjustments for stock-based compensation, restructuring related and
various other non-standard charges.
- Third quarter 2015 operating loss was $651,000, compared with an operating loss of
$6.3 million in the second quarter of
2015. The quarter-over-quarter reduction in operating loss was
primarily driven by lower restructuring related charges, increased
demand for our ultracapacitor products and reduction in our
operating expenses as a result of our restructuring and cost
reduction efforts.
- Non-GAAP operating income for the third quarter of 2015 was
$1.0 million.
- Net loss for the third quarter of 2015 was $1.4 million, or $(0.05) per share, compared with a net loss of
$9.4 million, or $(0.31) per share, in the second quarter of
2015.
- Non-GAAP net income for the third quarter of 2015 was
$234,000.
Capital Expenditures
- Capital expenditures during the third quarter of 2015 were
$562,000, compared with $942,000 in the second quarter of 2015.
Business Outlook
- Total revenue for the fourth quarter of 2015 is expected to be
between $46 million and $50 million,
a 6 percent increase at the midpoint of guidance.
- Non-GAAP gross margin for the fourth quarter of 2015 is
expected to be between 31% and 33%.
- Non-GAAP operating expense for the fourth quarter of 2015 is
expected to be approximately $13.5
million.
Other Business & Operational Highlights
- Secured $25 million revolving
credit facility with East West
Bank.
- Selected as the exclusive capacitive energy storage supplier by
China's largest rail company,
China Railway Rolling Stock Corporation.
- Announced the availability of Maxwell's Engine Start Module
(ESM) as a factory-installed option on select new Peterbilt
trucks.
- Announced that Continental Automotive System's Maxwell-powered
voltage stabilization system (VSS) will be a standard feature on
2016 Cadillac ATS and CTS sedans and ATS coupes (excludes the
ATS-V, CTS-V and CT6 models). Production rollout began in
July.
Webcast Information
As previously announced, Maxwell management will host a live
webcast at approximately 5:00 p.m.
EDT / 2:00 p.m. PDT today to
discuss these results. Other forward-looking and material
information may also be discussed during this call.
The call may be accessed by dialing toll-free, (877) 876-9174
from the U.S. and Canada, or (785)
424-1669 for international callers, and entering the conference ID,
MAXWELL.
More information about this event including a live webcast and
other supporting materials may be accessed by visiting
http://investors.maxwell.com.
A replay of the conference call will be available for a limited
time by visiting http://investors.maxwell.com.
About Maxwell
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.
Notes Regarding Non-GAAP Financial Measures
The Company uses non-GAAP financial measures for internal
evaluation and to report the results of its business. Information
presented in this press release and in the attached financial
tables includes financial information prepared in accordance with
generally accepted accounting principles in the U.S., or GAAP, as
well as non-GAAP financial measures. Generally, a non-GAAP
financial measure, within the meaning of Item 10 of Regulation S-K
promulgated by the Securities and Exchange Commission (SEC), is a
numerical measure of a company's financial performance or cash
flows that (a) excludes amounts, or is subject to adjustments that
have the effect of excluding amounts, which are included in the
most directly comparable measure calculated and presented in
accordance with GAAP in the condensed consolidated balance sheets,
condensed consolidated statements of comprehensive income or
condensed consolidated statements of cash flows; or (b) includes
amounts, or is subject to adjustments that have the effect of
including amounts, which are excluded from the most directly
comparable measure so calculated and presented. 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, significant non-standard tax charges, significant
non-standard legal expenses, and restructuring-related costs.
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. Non-GAAP
financial measures should be considered in addition to, but not as
a substitute for, the information prepared in accordance with GAAP.
These measures are intended to supplement GAAP financial
information, and may be computed differently from non-GAAP
financial measures used by other companies. 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.
Reconciliations of non-GAAP financial measures used in this
release to the most directly comparable GAAP financial measures can
be found in the section entitled "Reconciliation of GAAP to
Non-GAAP Financial Measures" included toward the end of this
release.
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 and are subject to the Safe
Harbor provisions created by the Private Securities Litigation
Reform Act of 1995. Such risks, uncertainties and contingencies
include, but are not limited to, the following:
- 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;
- Downward pressures on product pricing from increased
competition and potential shift in sales mix with respect to low
margin and high margin business;
- 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;
- Risk that our restructuring efforts may not be successful and
that we may not be able to realize the anticipated cost savings and
other benefits;
- 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 29, 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: Amy Wakeham, +1 858.503.3359;
awakeham@maxwell.com
MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September 30,
2015
|
|
June
30,
2015
|
|
September 30,
2014
|
|
|
September 30,
2015
|
|
September 30,
2014
|
Revenue
|
|
$
|
45,076
|
|
|
$
|
37,796
|
|
|
$
|
41,593
|
|
|
|
$
|
117,542
|
|
|
$
|
133,668
|
|
Cost of
revenue
|
|
30,820
|
|
|
25,643
|
|
|
26,113
|
|
|
|
80,830
|
|
|
83,728
|
|
Gross
profit
|
|
14,256
|
|
|
12,153
|
|
|
15,480
|
|
|
|
36,712
|
|
|
49,940
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
9,070
|
|
|
10,142
|
|
|
10,839
|
|
|
|
30,169
|
|
|
32,192
|
|
Research and
development
|
|
5,781
|
|
|
5,930
|
|
|
6,923
|
|
|
|
19,629
|
|
|
19,317
|
|
Restructuring and
exit costs
|
|
56
|
|
|
2,340
|
|
|
—
|
|
|
|
2,396
|
|
|
—
|
|
Total operating
expenses
|
|
14,907
|
|
|
18,412
|
|
|
17,762
|
|
|
|
52,194
|
|
|
51,509
|
|
Loss from operations
before income taxes
|
|
(651)
|
|
|
(6,259)
|
|
|
(2,282)
|
|
|
|
(15,482)
|
|
|
(1,569)
|
|
Interest expense,
net
|
|
25
|
|
|
75
|
|
|
49
|
|
|
|
189
|
|
|
116
|
|
Amortization of
prepaid debt costs
|
|
5
|
|
|
2
|
|
|
5
|
|
|
|
12
|
|
|
15
|
|
Foreign currency
exchange gains and losses, net
|
|
(97)
|
|
|
85
|
|
|
(6)
|
|
|
|
316
|
|
|
514
|
|
Loss before income
taxes
|
|
(584)
|
|
|
(6,421)
|
|
|
(2,330)
|
|
|
|
(15,999)
|
|
|
(2,214)
|
|
Income tax
provision
|
|
865
|
|
|
2,955
|
|
|
962
|
|
|
|
4,167
|
|
|
1,940
|
|
Net loss
|
|
$
|
(1,449)
|
|
|
$
|
(9,376)
|
|
|
$
|
(3,292)
|
|
|
|
$
|
(20,166)
|
|
|
$
|
(4,154)
|
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.05)
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.11)
|
|
|
|
$
|
(0.66)
|
|
|
$
|
(0.14)
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
31,529
|
|
|
30,323
|
|
|
29,284
|
|
|
|
30,440
|
|
|
29,146
|
|
MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
September 30,
2015
|
|
December
31,
2014
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
24,813
|
|
|
$
|
24,732
|
|
Restricted
cash
|
|
400
|
|
|
—
|
|
Trade and other
accounts receivable, net
|
|
36,297
|
|
|
43,698
|
|
Inventories
|
|
40,841
|
|
|
44,856
|
|
Prepaid expenses and
other current assets
|
|
3,378
|
|
|
2,426
|
|
Total current
assets
|
|
105,729
|
|
|
115,712
|
|
Property and
equipment, net
|
|
33,355
|
|
|
39,223
|
|
Goodwill
|
|
24,049
|
|
|
23,599
|
|
Pension
asset
|
|
8,191
|
|
|
7,362
|
|
Other non-current
assets
|
|
533
|
|
|
704
|
|
Total
assets
|
|
$
|
171,857
|
|
|
$
|
186,600
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
29,616
|
|
|
$
|
27,011
|
|
Accrued employee
compensation
|
|
8,129
|
|
|
9,348
|
|
Deferred revenue and
customer deposits
|
|
1,206
|
|
|
703
|
|
Short-term borrowings
and current portion of long-term debt
|
|
47
|
|
|
15,549
|
|
Deferred tax
liability
|
|
1,203
|
|
|
1,111
|
|
Total current
liabilities
|
|
40,201
|
|
|
53,722
|
|
Deferred tax
liability, long-term
|
|
5,453
|
|
|
3,304
|
|
Long-term debt,
excluding current portion
|
|
59
|
|
|
20
|
|
Other long-term
liabilities
|
|
3,125
|
|
|
2,601
|
|
Total
liabilities
|
|
48,838
|
|
|
59,647
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $0.10
par value per share, 40,000 shares authorized; 31,792 and 29,846
shares issued and outstanding at September 30, 2015 and
December 31, 2014, respectively
|
|
3,176
|
|
|
2,982
|
|
Additional paid-in
capital
|
|
290,465
|
|
|
277,314
|
|
Accumulated
deficit
|
|
(178,232)
|
|
|
(158,066)
|
|
Accumulated other
comprehensive income
|
|
7,610
|
|
|
4,723
|
|
Total
stockholders' equity
|
|
123,019
|
|
|
126,953
|
|
Total
liabilities and stockholders' equity
|
|
$
|
171,857
|
|
|
$
|
186,600
|
|
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,
2015
|
|
June
30,
2015
|
|
September 30,
2014
|
|
September 30,
2015
|
|
September 30,
2014
|
Gross Profit
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
|
14,256
|
|
|
$
|
12,153
|
|
|
$
|
15,480
|
|
|
$
|
36,712
|
|
|
$
|
49,940
|
|
Stock-based
compensation expense
|
A
|
186
|
|
|
147
|
|
|
145
|
|
|
539
|
|
|
587
|
|
Accelerated
depreciation
|
D
|
125
|
|
|
184
|
|
|
—
|
|
|
309
|
|
|
—
|
|
Non-GAAP gross
profit
|
|
$
|
14,567
|
|
|
$
|
12,484
|
|
|
$
|
15,625
|
|
|
$
|
37,560
|
|
|
$
|
50,527
|
|
Total Operating
Expenses Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP total operating
expenses
|
|
$
|
14,907
|
|
|
$
|
18,412
|
|
|
$
|
17,762
|
|
|
$
|
52,194
|
|
|
$
|
51,509
|
|
Stock-based
compensation expense
|
A
|
(869)
|
|
|
(864)
|
|
|
(866)
|
|
|
(2,367)
|
|
|
(2,347)
|
|
Restructuring and
exit costs
|
C
|
(56)
|
|
|
(2,340)
|
|
|
—
|
|
|
(2,396)
|
|
|
—
|
|
CFO
transition
|
E
|
—
|
|
|
(284)
|
|
|
—
|
|
|
(284)
|
|
|
—
|
|
VAT refund
|
F
|
474
|
|
|
—
|
|
|
—
|
|
|
474
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
G
|
(921)
|
|
|
(282)
|
|
|
—
|
|
|
(1,203)
|
|
|
—
|
|
Non-GAAP total
operating expenses
|
|
$
|
13,535
|
|
|
$
|
14,642
|
|
|
$
|
16,896
|
|
|
$
|
46,418
|
|
|
$
|
49,162
|
|
Income (Loss)
From Operations Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
$
|
(651)
|
|
|
$
|
(6,259)
|
|
|
$
|
(2,282)
|
|
|
$
|
(15,482)
|
|
|
$
|
(1,569)
|
|
Stock-based
compensation expense
|
A
|
1,055
|
|
|
1,011
|
|
|
1,011
|
|
|
2,906
|
|
|
2,934
|
|
Restructuring and
exit costs
|
C
|
56
|
|
|
2,340
|
|
|
—
|
|
|
2,396
|
|
|
—
|
|
Accelerated
depreciation
|
D
|
125
|
|
|
184
|
|
|
—
|
|
|
309
|
|
|
—
|
|
CFO
transition
|
E
|
—
|
|
|
284
|
|
|
—
|
|
|
284
|
|
|
—
|
|
VAT refund
|
F
|
(474)
|
|
|
—
|
|
|
—
|
|
|
(474)
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
G
|
921
|
|
|
282
|
|
|
—
|
|
|
1,203
|
|
|
—
|
|
Non-GAAP income
(loss) from operations
|
|
$
|
1,032
|
|
|
$
|
(2,158)
|
|
|
$
|
(1,271)
|
|
|
$
|
(8,858)
|
|
|
$
|
1,365
|
|
Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
|
(1,449)
|
|
|
$
|
(9,376)
|
|
|
$
|
(3,292)
|
|
|
$
|
(20,166)
|
|
|
$
|
(4,154)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
25
|
|
|
75
|
|
|
49
|
|
|
189
|
|
|
116
|
|
Amortization of
prepaid debt costs
|
|
5
|
|
|
2
|
|
|
5
|
|
|
12
|
|
|
15
|
|
Income tax
provision
|
|
865
|
|
|
2,955
|
|
|
962
|
|
|
4,167
|
|
|
1,940
|
|
Depreciation
|
|
2,807
|
|
|
3,002
|
|
|
2,825
|
|
|
8,633
|
|
|
8,267
|
|
Amortization of
intangible assets
|
|
51
|
|
|
51
|
|
|
51
|
|
|
153
|
|
|
153
|
|
EBITDA
|
|
2,304
|
|
|
(3,291)
|
|
|
600
|
|
|
(7,012)
|
|
|
6,337
|
|
Foreign currency
exchange gains and losses, net
|
|
(97)
|
|
|
85
|
|
|
(6)
|
|
|
316
|
|
|
514
|
|
Stock-based
compensation expense
|
A
|
1,055
|
|
|
1,011
|
|
|
1,011
|
|
|
2,906
|
|
|
2,934
|
|
Restructuring and
exit costs
|
C
|
56
|
|
|
2,340
|
|
|
—
|
|
|
2,396
|
|
|
—
|
|
CFO
transition
|
E
|
—
|
|
|
284
|
|
|
—
|
|
|
284
|
|
|
—
|
|
VAT refund
|
F
|
(474)
|
|
|
—
|
|
|
|
|
(474)
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
G
|
921
|
|
|
282
|
|
|
—
|
|
|
1,203
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
3,765
|
|
|
$
|
711
|
|
|
$
|
1,605
|
|
|
$
|
(381)
|
|
|
$
|
9,785
|
|
Net Income
(Loss) Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
|
(1,449)
|
|
|
$
|
(9,376)
|
|
|
$
|
(3,292)
|
|
|
$
|
(20,166)
|
|
|
$
|
(4,154)
|
|
Stock-based
compensation expense
|
A
|
1,055
|
|
|
1,011
|
|
|
1,011
|
|
|
2,906
|
|
|
2,934
|
|
Tax impact of
potential cash repatriation
|
B
|
—
|
|
|
2,085
|
|
|
—
|
|
|
2,085
|
|
|
—
|
|
Restructuring and
exit costs
|
C
|
56
|
|
|
2,340
|
|
|
—
|
|
|
2,396
|
|
|
—
|
|
Accelerated
depreciation
|
D
|
125
|
|
|
184
|
|
|
—
|
|
|
309
|
|
|
—
|
|
CFO
transition
|
E
|
—
|
|
|
284
|
|
|
—
|
|
|
284
|
|
|
—
|
|
VAT refund
|
F
|
(474)
|
|
|
—
|
|
|
|
|
(474)
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
G
|
921
|
|
|
282
|
|
|
—
|
|
|
1,203
|
|
|
—
|
|
Non-GAAP net income
(loss)
|
|
$
|
234
|
|
|
$
|
(3,190)
|
|
|
$
|
(2,281)
|
|
|
$
|
(11,457)
|
|
|
$
|
(1,220)
|
|
Net Income
(Loss) per Basic and Diluted Share
Reconciliation:
|
|
|
|
|
|
|
|
|
GAAP net loss per
share
|
|
$
|
(0.05)
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.11)
|
|
|
$
|
(0.66)
|
|
|
$
|
(0.14)
|
|
Stock-based
compensation expense
|
A
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.10
|
|
|
0.10
|
|
Tax impact of
potential cash repatriation
|
B
|
—
|
|
|
0.07
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
Restructuring and
exit costs
|
C
|
—
|
|
|
0.07
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
Accelerated
depreciation
|
D
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
CFO
transition
|
E
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
VAT refund
|
F
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
G
|
0.03
|
|
|
0.01
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Non-GAAP net income
(loss) per basic and diluted share
|
|
$
|
0.01
|
|
|
$
|
(0.11)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.04)
|
|
See note following
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,
2015
|
|
June
30,
2015
|
|
September 30,
2014
|
|
September 30,
2015
|
|
September 30,
2014
|
|
Cost of
revenue
|
|
$
|
186
|
|
|
$
|
147
|
|
|
$
|
145
|
|
|
$
|
539
|
|
|
$
|
587
|
|
|
Selling, general and
administrative
|
|
708
|
|
|
657
|
|
|
716
|
|
|
1,732
|
|
|
1,705
|
|
|
Research and
development
|
|
161
|
|
|
207
|
|
|
150
|
|
|
635
|
|
|
642
|
|
|
Total stock-based
compensation expense
|
|
$
|
1,055
|
|
|
$
|
1,011
|
|
|
$
|
1,011
|
|
|
$
|
2,906
|
|
|
$
|
2,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
During the quarter
ended June 30, 2015, the Company recorded a tax charge of $2.1
million associated with a portion of the unremitted earnings of a
foreign subsidiary that may be repatriated to the U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
During the quarters
ended September 30, 2015 and June 30, 2015, the Company recorded
restructuring charges of $56,000 and $2.3 million,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
(D)
|
During the quarters
ended September 30, 2015 and June 30, 2015, the Company recorded
accelerated depreciation charges of $125,000 and $184,000,
respectively related to the adjustment of the remaining useful life
for certain manufacturing equipment.
|
|
|
|
|
|
|
|
|
|
|
|
|
(E)
|
During the quarter
ended June 30, 2015, the Company recorded one time severance
charges of $284,000 related to the departure of its former
CFO.
|
|
|
|
|
|
|
|
|
|
|
|
|
(F)
|
During the quarter
ended September 30, 2015, the Company received a refund of $474,000
in previously paid value-added-tax (VAT) related to its operations
in China.
|
|
|
|
|
|
|
|
|
|
|
|
|
(G)
|
Legal costs for the
FCPA and SEC matters represent external legal expenses related to
the U.S. Securities and Exchange Commission's investigation of the
facts and circumstances surrounding the restatement of the
Company's financial statements for fiscal years 2011 and 2012, as
well as for ongoing legal matters related to previous Foreign
Corrupt Practices Act (FCPA) violations.
|
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SOURCE Maxwell Technologies, Inc.