SAN DIEGO, Feb. 28, 2017 /PRNewswire/ -- Maxwell
Technologies, Inc. (NASDAQ: MXWL) today reported operational and
financial results for the three months ended December 31, 2016. Total revenues for the fourth
quarter of 2016 were $26.4 million,
compared with $25.5 million for the
third quarter of 2016 and $49.8
million for the prior year quarter. Net loss for the fourth
quarter of 2016 was $12.2 million,
compared with a net loss of $6.9
million for the third quarter of 2016 and a net loss of
$2.2 million for the prior year
quarter. The Company reported $(3.9)
million of adjusted earnings before interest, taxes,
depreciation and amortization (Adjusted EBITDA) for the fourth
quarter of 2016, compared with $(2.3)
million for the third quarter of 2016 and $3.9 million for the prior year quarter. Non-GAAP
net loss for the fourth quarter of 2016 was $7.5 million, compared with a non-GAAP net loss
of $5.6 million for the third quarter
of 2016 and non-GAAP net income of $0.6
million for the prior year quarter.
"Q4 revenue came in at the high end of guidance with gross
margins at lower than historical levels due to low utilization of
our factory and one time charges. To counteract near-term
challenges, we have implemented new, conservative planning and
business models which discount China bus revenue and we have been working
diligently on three key measures addressing business
diversification, scale, and cost structure," said Dr. Franz
Fink, Maxwell's President and Chief Executive Officer. "Today we
announced a world-wide organizational restructuring and our
intention to acquire substantially all of the assets and business
of Nesscap Energy. The restructuring, combined with the Nesscap
acquisition, accelerates business diversification, creates
economies of scale and drives revenue growth and gross margin
expansion in the near term, and as a result, allows us to approach
break even adjusted EBITDA by the 4th quarter of this year. As a
third key measure, we announced on January
31st that we will localize the manufacturing of
ultracapacitor based modules in China with our strategic partner CRRC-SRI.
This represents a critical milestone with respect to resuming our
China bus business and, based on
our new business model, provides potential future revenue upside
opportunities."
Strategic Business & Operational Highlights
- As announced today, Maxwell will purchase the operating
entities of Nesscap Energy, Inc. ("Nesscap"), a developer and
manufacturer of ultracapacitor products for use in transportation,
renewable energy, industrial and consumer markets, for an aggregate
purchase price of $23.175 million,
payable in common shares that are subject to a 10% collar
adjustment at close. Maxwell expects to capitalize on synergies
between the two companies that will accelerate revenue and earnings
growth, increase the pace of innovation, and create an expanded and
strengthened product portfolio. With a strengthened sales channel,
increased R&D capabilities and improved manufacturing and
efficiencies, Maxwell will be able to deliver more products faster
into target markets thereby benefiting customers. From a financial
perspective, the transaction is expected to be immediately
accretive to non-GAAP earnings per share following close, which is
anticipated to occur in Q2 of 2017, and Maxwell expects the Nesscap
business to deliver positive Adjusted EBITDA in 2017.
- Launched a global restructuring plan which includes a
reduction-in-force, significant cost containment actions, as well
as a manufacturing and supply chain consolidation to further
optimize cost structure and position the Company to better
withstand near term headwinds. Maxwell expects to achieve
approximately $6 million in
annualized savings through these initiatives that, coupled with the
acquisition of Nesscap's business, will accelerate the expected
time to profitability.
- Expanded Maxwell's partnership with CRRC Qingdao Sifang Rolling
Stock Research Institute Co. Ltd. ("CRRC-SRI") by entering into a
definitive agreement in January 2017
to localize manufacturing of ultracapacitor-based modules for use
in the China bus market. The
production of bus modules extends Maxwell's strategic partnership
with CRRC-SRI and will enable Maxwell to compete more effectively
in the China bus market moving
forward.
Financial Results
and Operating Metrics (1)
|
(Unaudited; in
thousands, except for per share amounts)
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
December 31,
2016
|
|
September
30, 2016
|
|
December
31, 2015
|
|
December
31, 2016
|
|
December
31, 2015
|
Total
revenue
|
|
$
|
26,400
|
|
|
$
|
25,506
|
|
|
$
|
49,830
|
|
|
$
|
121,244
|
|
|
$
|
167,372
|
|
Ultracapacitor
revenue
|
|
$
|
12,730
|
|
|
$
|
14,017
|
|
|
$
|
37,331
|
|
|
$
|
71,491
|
|
|
$
|
114,525
|
|
High-Voltage
revenue
|
|
$
|
13,670
|
|
|
$
|
11,489
|
|
|
$
|
8,900
|
|
|
$
|
45,177
|
|
|
$
|
41,718
|
|
Microelectronics
revenue
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,599
|
|
|
$
|
4,576
|
|
|
$
|
11,129
|
|
Gross
margin
|
|
21.6
|
%
|
|
29.9
|
%
|
|
28.6
|
%
|
|
27.2
|
%
|
|
30.4
|
%
|
Non-GAAP gross
margin
|
|
22.4
|
%
|
|
30.5
|
%
|
|
29.1
|
%
|
|
28.0
|
%
|
|
31.1
|
%
|
Operating
loss
|
|
$
|
(9,895)
|
|
|
$
|
(5,939)
|
|
|
$
|
(1,523)
|
|
|
$
|
(25,886)
|
|
|
$
|
(17,005)
|
|
Non-GAAP operating
income (loss)
|
|
$
|
(6,381)
|
|
|
$
|
(4,730)
|
|
|
$
|
1,232
|
|
|
$
|
(17,952)
|
|
|
$
|
(7,626)
|
|
Net loss
|
|
$
|
(12,169)
|
|
|
$
|
(6,855)
|
|
|
$
|
(2,167)
|
|
|
$
|
(23,705)
|
|
|
$
|
(22,333)
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.38)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.74)
|
|
|
$
|
(0.73)
|
|
Adjusted
EBITDA
|
|
$
|
(3,926)
|
|
|
$
|
(2,280)
|
|
|
$
|
3,872
|
|
|
$
|
(8,206)
|
|
|
$
|
3,491
|
|
Non-GAAP net income
(loss)
|
|
$
|
(7,451)
|
|
|
$
|
(5,646)
|
|
|
$
|
588
|
|
|
$
|
(21,464)
|
|
|
$
|
(10,869)
|
|
Non-GAAP net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.23)
|
|
|
$
|
(0.18)
|
|
|
$
|
0.02
|
|
|
$
|
(0.67)
|
|
|
$
|
(0.35)
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
(374)
|
|
|
$
|
(6,995)
|
|
|
$
|
850
|
|
|
$
|
(14,357)
|
|
|
$
|
9,380
|
|
Cash purchases of
property and equipment
|
|
$
|
1,267
|
|
|
$
|
1,060
|
|
|
$
|
1,364
|
|
|
$
|
5,956
|
|
|
$
|
4,143
|
|
Cash, cash
equivalents and restricted cash
|
|
$
|
25,359
|
|
|
$
|
27,902
|
|
|
$
|
24,782
|
|
|
$
|
25,359
|
|
|
$
|
24,782
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Gross Margin
- Total revenue for the fourth quarter of 2016 was $26.4 million, compared with $25.5 million for the third quarter of 2016,
primarily due to an increase in high voltage revenue.
- Ultracapacitor revenue for the fourth quarter of 2016 was
$12.7 million, compared with
$14.0 million for the third quarter
of 2016, driven primarily by a seasonal decline in wind turbine
deployments in China, partially
offset by higher auto and bus revenue.
- High-voltage revenue was $13.7
million for the fourth quarter of 2016, compared with
$11.5 million for the third quarter
of 2016, driven by higher demand.
- The microelectronics product line was sold in the second
quarter of 2016 and therefore has no revenue in the third or fourth
quarter of 2016.
- Gross margin for the fourth quarter of 2016 was 21.6% compared
with 29.9% in the third quarter of 2016; the decrease was driven by
product mix, low factory utilization and higher costs associated
with new products.
- Non-GAAP gross margin for the fourth quarter of 2016 was 22.4%
compared with 30.5% in the third quarter of 2016.
Net Income (Loss), Adjusted EBITDA & Operating
Expense
- Net loss for the fourth quarter of 2016 was $12.2 million, or $(0.38) per share, compared with a net loss of
$6.9 million, or $(0.21) per share, for the third quarter of 2016.
The quarter over quarter increase was a result of lower gross
margin in the fourth quarter.
- Non-GAAP net loss for the fourth quarter of 2016 was
$7.5 million compared with a non-GAAP
net loss of $5.6 million for the
third quarter of 2016.
- Adjusted EBITDA for the fourth quarter of 2016 was $(3.9) million, compared with $(2.3) million for the third quarter of 2016. The
quarter-over-quarter decrease was primarily driven by a decrease in
gross margin in the fourth quarter.
- Operating expense for the fourth quarter of 2016 was
$15.6 million, compared with
$13.6 million for the third quarter
of 2016. The quarter-over-quarter increase was a result of expenses
related to the acquisition of the operating subsidiaries of Nesscap
Energy, Inc., which was announced today, and an asset impairment
charge related to machinery that was no longer expected to be
utilized.
- Non-GAAP operating expense for the fourth quarter of 2016 was
$12.3 million compared with
$12.5 million for the third quarter
of 2016 and excludes stock-based compensation, a fixed asset
impairment charge, acquisition related expenses and legal expenses
associated with SEC and FCPA matters.
Capital Expenditures
- Capital expenditures during the fourth quarter of 2016 were
$1.3 million, compared with
$1.1 million for the third quarter of
2016. Capital expenditures in the fourth quarter were primarily
related to capital investments to support new technology and
research and development activities.
Business Outlook
- Total revenue for the first quarter of 2017 is expected to be
in the range of $25 million to $27
million.
- Gross margin for the first quarter of 2017 is expected to be in
the range of 19% to 23%.
- Non-GAAP gross margin for the first quarter of 2017 is expected
to be in the range of 20% to 24%.
- GAAP operating expense for the first quarter of 2017 is
expected to be in the range of $15.3 million
to $15.7 million.
- Non-GAAP operating expense for the first quarter of 2017 is
expected to be in the range of $12.4 million
to $12.8 million.
The Company has reconciled expected GAAP and non-GAAP gross
margin, operating expenses, adjusted EBITDA, net loss and net loss
per share at the midpoint of expectations. However, the Company is
not able to estimate additional potentially excluded and
reconciling amounts due to the substantial uncertainties involved.
The effect of these excluded items may be significant.
The reconciliation of GAAP and non-GAAP first quarter outlook is
as follows (in millions, except for percentages and per share
data):
|
Projected at
Midpoint
of Guidance
|
|
Projected at
Midpoint
of Guidance
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2017
|
|
|
|
March 31,
2017
|
|
Gross Margin
Reconciliation:
|
|
|
|
Total Operating
Expenses Reconciliation:
|
|
|
|
GAAP gross
margin
|
|
21.2
|
%
|
|
GAAP total operating
expenses
|
|
$
|
15.6
|
|
|
Stock-based
compensation expense
|
|
0.8
|
%
|
|
Stock-based
compensation expense
|
|
1.8
|
|
|
Non-GAAP gross
margin
|
|
22.0
|
%
|
|
Restructuring
expense
|
|
0.9
|
|
|
|
|
|
|
Acquisition
costs
|
|
0.2
|
|
|
Net Loss
Reconciliation:
|
|
|
|
Legal cost for SEC
and FCPA matters
|
|
0.1
|
|
|
GAAP net
loss
|
|
$
|
(10.8)
|
|
|
Non-GAAP total
operating expenses
|
|
$
|
12.6
|
|
|
Stock-based
compensation expense
|
|
2.0
|
|
|
|
|
|
|
Restructuring
expense
|
|
0.9
|
|
|
Adjusted EBITDA
Reconciliation:
|
|
|
|
Acquisition
costs
|
|
0.2
|
|
|
GAAP net
loss
|
|
$
|
(10.8)
|
|
|
Legal cost for SEC
and FCPA matters
|
|
0.1
|
|
|
Interest, taxes,
depreciation
|
|
3.3
|
|
|
Non-GAAP net
loss
|
|
$
|
(7.6)
|
|
|
EBITDA
|
|
(7.5)
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
2.0
|
|
|
Net Loss per
Share Reconciliation:
|
|
|
|
Restructuring
expense
|
|
0.9
|
|
|
GAAP net loss per
basic share
|
|
$
|
(0.34)
|
|
|
Acquisition
costs
|
|
0.2
|
|
|
Expenses excluded
from GAAP
|
|
0.10
|
|
|
Legal cost for SEC
and FCPA matters
|
|
0.1
|
|
|
Non-GAAP net loss per
diluted share
|
|
$
|
(0.24)
|
|
|
Adjusted
EBITDA
|
|
$
|
(4.3)
|
|
|
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) 201-0168
from the U.S. or (647) 788-4901 for international callers, and
entering the conference ID, 64197701.
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. 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 uses the following non-GAAP financial measures in
this release, in its earnings conference call and in its on-going
evaluation of the business: (a) non-GAAP gross profit; (b) non-GAAP
operating expense; (c) non-GAAP income (loss) from operations; (d)
EBITDA; (e) adjusted EBITDA; (f) non-GAAP net income (loss); (g)
non-GAAP net income (loss) per diluted share and (h) non-GAAP gross
margin.
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.
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
items, non-recurring items and items unrelated to ongoing operating
results 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. 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.
The Company's statements of operations included in this news
release are affected by the following non-cash items, non-recurring
items or items unrelated to its ongoing operating results:
- Stock-based compensation expense consists of non-cash charges
for employee stock options, restricted stock awards, restricted
stock units, employee stock purchase plan awards and bonuses
expected to be settled with the Company's fully vested common
stock.
- Gain on sale of product line consists of the gain recorded in
connection with the sale of the Company's microelectronics product
line.
- Release of tax liability consists of a foreign tax liability
that was released without payment due to the lapse of a statute of
limitation.
- Tax impact of potential cash repatriation consists of non-cash
charges associated with a portion of the unremitted earnings of a
foreign subsidiary that may be repatriated to the U.S.
- Restructuring and related costs represent restructuring and
exit costs incurred in connection with the Company's restructuring
plan, disposition transaction costs consisting of legal fees and
other expenses incurred in connection with the sale of the
microelectronics product line and executive transition costs
representing recruiting and other expenses incurred in relation to
the resignation and hiring of certain executive officers.
- Accelerated depreciation charges represent the adjustment of
the remaining useful life for certain manufacturing equipment in
connection with the Company's restructuring plan.
- Impairment of assets represents impairment of the net book
value of machinery no longer forecasted to be used for its
remaining useful life.
- CFO transition costs consist of severance charges related to
the departure of the Company's former CFO.
- VAT refund represents a refund of value-added-tax related to
operations in China.
- Acquisition related expenses represent costs incurred in
connection with the Company's acquisition of the operating
subsidiaries of Nesscap Energy, Inc.
- Shareholder proxy advisement fees represent external advisor
expenses incurred in connection with preparing for the Company's
2016 shareholder proxy and annual meeting.
- 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 the fiscal years 2011 and 2012, as well as for ongoing legal
matters related to previous Foreign Corrupt Practices Act (FCPA)
violations.
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:
- 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 subsidy programs which could be
reduced, modified or discontinued in the future;
- Uncertainties related to the global geopolitical landscape and
the recent elections in the United
States;
- Risks related to acquisitions and potential for unsuccessful
integration of acquisitions;
- 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;
- Our ability to obtain sufficient capital to meet our operating
or other needs;
- Downward pressures on product pricing from increased
competition and shifts in sales mix with respect to low margin and
high margin business;
- Our ability to manage and minimize the impact of unfavorable
legal proceedings;
- Risk that activist stockholders attempt to effect changes to
our company which could adversely affect our corporate
governance;
- 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;
- Dependence upon the sale of products into Asia and Europe, where macroeconomic factors outside
our control may adversely affect our sales;
- 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;
- 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; and
- Our ability to match production volume to actual customer
demand.
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) 503-3359, or at our investor relations website:
investors.maxwell.com. All information in this release is as of
February 28, 2017. The Company undertakes no duty to update
any forward-looking statement to reflect actual results or changes
in the Company's expectations.
Investor Contact: Soohwan
Kim, CFA, The Blueshirt Group, +1 (858) 503-3359,
ir@maxwell.com
Media Contact: Sylvie
Tse, Metis Communications, +1 (617) 236-0500,
maxwell@metiscomm.com
MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
December
31, 2016
|
|
September
30, 2016
|
|
December
31, 2015
|
|
December
31, 2016
|
|
December
31, 2015
|
Revenue
|
|
$
|
26,400
|
|
|
$
|
25,506
|
|
|
$
|
49,830
|
|
|
$
|
121,244
|
|
|
$
|
167,372
|
|
Cost of
revenue
|
|
20,692
|
|
|
17,878
|
|
|
35,580
|
|
|
88,274
|
|
|
116,410
|
|
Gross
profit
|
|
5,708
|
|
|
7,628
|
|
|
14,250
|
|
|
32,970
|
|
|
50,962
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
9,586
|
|
|
8,374
|
|
|
10,589
|
|
|
36,281
|
|
|
40,758
|
|
Research and
development
|
|
4,783
|
|
|
5,038
|
|
|
5,068
|
|
|
20,889
|
|
|
24,697
|
|
Restructuring and
exit costs
|
|
—
|
|
|
—
|
|
|
116
|
|
|
297
|
|
|
2,512
|
|
Impairment of
assets
|
|
1,234
|
|
|
155
|
|
|
—
|
|
|
1,389
|
|
|
—
|
|
Total operating
expenses
|
|
15,603
|
|
|
13,567
|
|
|
15,773
|
|
|
58,856
|
|
|
67,967
|
|
Loss from
operations
|
|
(9,895)
|
|
|
(5,939)
|
|
|
(1,523)
|
|
|
(25,886)
|
|
|
(17,005)
|
|
Gain on sale of
product line
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
Interest expense,
net
|
|
69
|
|
|
48
|
|
|
83
|
|
|
248
|
|
|
284
|
|
Other (income)
expense
|
|
3
|
|
|
(5)
|
|
|
—
|
|
|
(133)
|
|
|
—
|
|
Foreign currency
exchange (gain) loss, net
|
|
(36)
|
|
|
49
|
|
|
125
|
|
|
216
|
|
|
441
|
|
Loss before income
taxes
|
|
(9,931)
|
|
|
(6,031)
|
|
|
(1,731)
|
|
|
(19,560)
|
|
|
(17,730)
|
|
Income tax
provision
|
|
2,238
|
|
|
824
|
|
|
436
|
|
|
4,145
|
|
|
4,603
|
|
Net loss
|
|
$
|
(12,169)
|
|
|
$
|
(6,855)
|
|
|
$
|
(2,167)
|
|
|
$
|
(23,705)
|
|
|
$
|
(22,333)
|
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.38)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.74)
|
|
|
$
|
(0.73)
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
31,995
|
|
|
31,989
|
|
|
31,534
|
|
|
31,870
|
|
|
30,716
|
|
MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
December
31, 2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
25,359
|
|
|
$
|
24,382
|
|
Restricted
cash
|
|
—
|
|
|
400
|
|
Trade and other
accounts receivable, net
|
|
20,441
|
|
|
43,172
|
|
Inventories,
net
|
|
32,248
|
|
|
39,055
|
|
Prepaid expenses and
other current assets
|
|
4,407
|
|
|
2,593
|
|
Total current
assets
|
|
82,455
|
|
|
109,602
|
|
Property and
equipment, net
|
|
26,120
|
|
|
32,324
|
|
Goodwill
|
|
22,799
|
|
|
23,635
|
|
Pension
asset
|
|
8,887
|
|
|
5,849
|
|
Other non-current
assets
|
|
613
|
|
|
603
|
|
Total
assets
|
|
$
|
140,874
|
|
|
$
|
172,013
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
19,181
|
|
|
$
|
33,985
|
|
Accrued employee
compensation
|
|
6,152
|
|
|
6,672
|
|
Deferred revenue and
customer deposits
|
|
3,967
|
|
|
3,066
|
|
Short-term borrowings
and current portion of long-term debt
|
|
40
|
|
|
42
|
|
Total current
liabilities
|
|
29,340
|
|
|
43,765
|
|
Deferred tax
liability, long-term
|
|
8,580
|
|
|
6,076
|
|
Long-term debt,
excluding current portion
|
|
43
|
|
|
49
|
|
Other long-term
liabilities
|
|
2,089
|
|
|
2,947
|
|
Total
liabilities
|
|
40,052
|
|
|
52,837
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $0.10
par value per share, 80,000 and 40,000 shares authorized at
December 31, 2016 and December 31, 2015, respectively; 32,135
and 31,782 shares issued and outstanding at December 31, 2016 and
December 31, 2015, respectively
|
|
3,210
|
|
|
3,176
|
|
Additional paid-in
capital
|
|
296,316
|
|
|
291,505
|
|
Accumulated
deficit
|
|
(204,104)
|
|
|
(180,399)
|
|
Accumulated other
comprehensive income
|
|
5,400
|
|
|
4,894
|
|
Total stockholders'
equity
|
|
100,822
|
|
|
119,176
|
|
Total liabilities and
stockholders' equity
|
|
$
|
140,874
|
|
|
$
|
172,013
|
|
MAXWELL
TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
|
(in thousands, except
per share data) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
December
31, 2016
|
|
September
30, 2016
|
|
December
31, 2015
|
|
December
31, 2016
|
|
December
31, 2015
|
Gross Profit
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
|
5,708
|
|
|
$
|
7,628
|
|
|
$
|
14,250
|
|
|
$
|
32,970
|
|
|
$
|
50,962
|
|
Stock-based
compensation expense
|
|
211
|
|
|
146
|
|
|
105
|
|
|
854
|
|
|
644
|
|
Accelerated
depreciation
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|
434
|
|
Non-GAAP gross
profit
|
|
$
|
5,919
|
|
|
$
|
7,774
|
|
|
$
|
14,480
|
|
|
$
|
33,949
|
|
|
$
|
52,040
|
|
Total Operating
Expenses Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP total operating
expenses
|
|
$
|
15,603
|
|
|
$
|
13,567
|
|
|
$
|
15,773
|
|
|
$
|
58,856
|
|
|
$
|
67,967
|
|
Stock-based
compensation expense
|
|
(1,394)
|
|
|
(951)
|
|
|
(935)
|
|
|
(4,510)
|
|
|
(3,302)
|
|
Restructuring and
related costs
|
|
—
|
|
|
—
|
|
|
(116)
|
|
|
(853)
|
|
|
(2,512)
|
|
Impairment of
assets
|
|
(1,234)
|
|
|
—
|
|
|
—
|
|
|
(1,234)
|
|
|
—
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(284)
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
474
|
|
Release of tax
liability(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,278
|
|
|
—
|
|
Acquisition related
expense
|
|
(675)
|
|
|
—
|
|
|
—
|
|
|
(675)
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
(250)
|
|
|
(314)
|
|
|
(250)
|
|
Legal costs for SEC
and FCPA matters
|
|
—
|
|
|
(112)
|
|
|
(1,224)
|
|
|
(647)
|
|
|
(2,427)
|
|
Non-GAAP operating
expenses
|
|
$
|
12,300
|
|
|
$
|
12,504
|
|
|
$
|
13,248
|
|
|
$
|
51,901
|
|
|
$
|
59,666
|
|
Income (Loss)
From Operations Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
$
|
(9,895)
|
|
|
$
|
(5,939)
|
|
|
$
|
(1,523)
|
|
|
$
|
(25,886)
|
|
|
$
|
(17,005)
|
|
Stock-based
compensation expense
|
|
1,605
|
|
|
1,097
|
|
|
1,040
|
|
|
5,364
|
|
|
3,946
|
|
Restructuring and
related costs
|
|
—
|
|
|
—
|
|
|
116
|
|
|
853
|
|
|
2,512
|
|
Accelerated
depreciation
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|
434
|
|
Impairment of
assets
|
|
1,234
|
|
|
—
|
|
|
—
|
|
|
1,234
|
|
|
—
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(474)
|
|
Release of tax
liability(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,278)
|
|
|
—
|
|
Acquisition related
expense
|
|
675
|
|
|
—
|
|
|
—
|
|
|
675
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
250
|
|
|
314
|
|
|
250
|
|
Legal costs for SEC
and FCPA matters
|
|
—
|
|
|
112
|
|
|
1,224
|
|
|
647
|
|
|
2,427
|
|
Non-GAAP net income
(loss) from operations
|
|
$
|
(6,381)
|
|
|
$
|
(4,730)
|
|
|
$
|
1,232
|
|
|
$
|
(17,952)
|
|
|
$
|
(7,626)
|
|
Adjusted EBITDA
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
|
(12,169)
|
|
|
$
|
(6,855)
|
|
|
$
|
(2,167)
|
|
|
$
|
(23,705)
|
|
|
$
|
(22,333)
|
|
Interest expense,
net
|
|
69
|
|
|
48
|
|
|
83
|
|
|
248
|
|
|
284
|
|
Income tax
provision
|
|
2,238
|
|
|
824
|
|
|
436
|
|
|
4,145
|
|
|
4,603
|
|
Depreciation
|
|
2,455
|
|
|
2,450
|
|
|
2,752
|
|
|
9,871
|
|
|
11,385
|
|
Amortization of
intangible assets
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
166
|
|
EBITDA
|
|
(7,407)
|
|
|
(3,533)
|
|
|
1,117
|
|
|
(9,441)
|
|
|
(5,895)
|
|
Foreign currency
exchange loss, net
|
|
(36)
|
|
|
49
|
|
|
125
|
|
|
216
|
|
|
441
|
|
Other
income
|
|
3
|
|
|
(5)
|
|
|
—
|
|
|
(133)
|
|
|
—
|
|
Stock-based
compensation expense
|
|
1,605
|
|
|
1,097
|
|
|
1,040
|
|
|
5,364
|
|
|
3,946
|
|
Gain on sale of
product line
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
Restructuring and
related costs
|
|
—
|
|
|
—
|
|
|
116
|
|
|
853
|
|
|
2,512
|
|
Impairment of
assets
|
|
1,234
|
|
|
—
|
|
|
—
|
|
|
1,234
|
|
|
—
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(474)
|
|
Acquisition related
expense
|
|
675
|
|
|
—
|
|
|
—
|
|
|
675
|
|
|
—
|
|
Release of tax
liability(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,278)
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
250
|
|
|
314
|
|
|
250
|
|
Legal costs for SEC
and FCPA matters
|
|
—
|
|
|
112
|
|
|
1,224
|
|
|
647
|
|
|
2,427
|
|
Adjusted
EBITDA
|
|
$
|
(3,926)
|
|
|
$
|
(2,280)
|
|
|
$
|
3,872
|
|
|
$
|
(8,206)
|
|
|
$
|
3,491
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
December
31, 2016
|
|
September
30, 2016
|
|
December
31, 2015
|
|
December
31, 2016
|
|
December
31, 2015
|
Net Income
(Loss) Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
|
(12,169)
|
|
|
$
|
(6,855)
|
|
|
$
|
(2,167)
|
|
|
$
|
(23,705)
|
|
|
$
|
(22,333)
|
|
Stock-based
compensation expense
|
|
1,605
|
|
|
1,097
|
|
|
1,040
|
|
|
5,364
|
|
|
3,946
|
|
Gain on sale of
product line
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
Tax impact of
potential cash repatriation
|
|
1,204
|
|
|
—
|
|
|
—
|
|
|
1,204
|
|
|
2,085
|
|
Restructuring and
related costs
|
|
—
|
|
|
—
|
|
|
116
|
|
|
853
|
|
|
2,512
|
|
Accelerated
depreciation
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|
434
|
|
Impairment of
assets
|
|
1,234
|
|
|
—
|
|
|
—
|
|
|
1,234
|
|
|
—
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(474)
|
|
Release of tax
liability(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,518)
|
|
|
—
|
|
Acquisition related
expense
|
|
675
|
|
|
—
|
|
|
—
|
|
|
675
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
250
|
|
|
314
|
|
|
250
|
|
Legal costs for SEC
and FCPA matters
|
|
—
|
|
|
112
|
|
|
1,224
|
|
|
647
|
|
|
2,427
|
|
Non-GAAP net income
(loss)
|
|
$
|
(7,451)
|
|
|
$
|
(5,646)
|
|
|
$
|
588
|
|
|
$
|
(21,464)
|
|
|
$
|
(10,869)
|
|
Net Income
(Loss) per Diluted Share Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
|
(0.38)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.74)
|
|
|
$
|
(0.73)
|
|
Stock-based
compensation expense
|
|
0.05
|
|
|
0.03
|
|
|
0.04
|
|
|
0.17
|
|
|
0.13
|
|
Gain on sale of
product line
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.21)
|
|
|
—
|
|
Tax impact of
potential cash repatriation
|
|
0.04
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
0.07
|
|
Restructuring and
related costs
|
|
—
|
|
|
—
|
|
|
*
|
|
0.03
|
|
|
0.08
|
|
Accelerated
depreciation
|
|
—
|
|
|
—
|
|
|
*
|
|
*
|
|
0.01
|
|
Impairment of
assets
|
|
0.04
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Acquisition related
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Release of tax
liability(1)
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
Legal costs for SEC
and FCPA matters
|
|
—
|
|
|
*
|
|
0.04
|
|
|
0.02
|
|
|
0.08
|
|
Non-GAAP net income
(loss)
|
|
$
|
(0.23)
|
|
|
$
|
(0.18)
|
|
|
$
|
0.02
|
|
|
$
|
(0.67)
|
|
|
$
|
(0.35)
|
|
Weighted
Average Diluted Common Shares Outstanding used
for:
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
31,995
|
|
31,989
|
|
31,534
|
|
31,870
|
|
30,716
|
Non-GAAP net income
(loss)
|
|
31,995
|
|
31,989
|
|
31,680
|
|
31,870
|
|
30,716
|
|
|
*
|
Net income (loss)
effect of this reconciling item was less than $0.01 per
share.
|
(1)
|
Release of tax
liability is partially related to operating expense and partially
related to income tax expense.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/maxwell-reports-fourth-quarter-2016-results-and-executes-key-strategic-actions-300415213.html
SOURCE Maxwell Technologies, Inc.