SAN DIEGO, July 25, 2001 (PRIMEZONE) -- Maxwell Technologies, Inc. (Nasdaq:MXWL) today reported revenue from continuing operations of $20.5 million for its second quarter ended June 30, 2001. That compares to $27.1 million from continuing operations for the three months ended June 30, 2000. Second quarter loss from continuing operations was $5.3 million, or $0.53 per basic share, before an after-tax gain of $25.4 million, or $2.53 per share, from the sale of the company's Sierra-KD medical electronics business. That compares to a loss of $1.7 million, or $0.17 per share, for the quarter ended June 30, 2000.
Including the Sierra-KD gain and a loss from the company's discontinued operations, net income for the second quarter was $19.6 million, or $1.79 per diluted share. James Baumker, Maxwell's chief financial officer, said that accumulated net operating loss carryforwards will offset almost all of the income taxes that otherwise would have been payable on the Sierra-KD gain, and that, after paying down all outstanding debt, the company had $29 million of cash and investments on its balance sheet as of June 30.
Baumker said that the second quarter operating loss included inventory provisions for slow-moving computing systems products and severance expense resulting from workforce reductions during the quarter. He noted that anticipated revenue was reduced by customer deferrals of some Sierra-KD shipments that had been scheduled prior to the close of the sale of the Sierra-KD unit to Wilson Greatbatch Technologies, Inc. on June 18.
"We have flattened the company's management structure and initiated other expense-reduction measures to bring overhead into better relationship with current sales volumes," Baumker said. "We have also written down computing systems inventories in light of the weak current demand and uncertain near-term outlook for telecommunications infrastructure and other end markets for these products."
Carl Eibl, Maxwell's president and chief executive officer, said that the company expects improving operating performance to reduce losses in the third and fourth quarters.
"The new power and computing products we are introducing and the new sales and marketing teams we put into the field in Q2 are beginning to translate into increased sampling and order activity," Eibl said. "We are focused on building a foundation of design-in wins through the balance of the year to position the company for significant sales growth and profitability in 2002. With our strong cash position and leaner corporate overhead structure we have the resources to continue investing in product development and sales and marketing to achieve those objectives."
Management will conduct a conference call and simultaneous webcast to discuss second quarter results and the outlook for the balance of the year and answer analysts' questions at 11 a.m. (eastern), tomorrow, July 26, 2001. The call may be accessed by dialing (212) 896-6015; the live webcast and subsequent replay may be accessed at the company's web site, www.maxwell.com, by clicking on Investor Relations, then clicking on Audio Presentations.
Maxwell Technologies applies industry-leading capabilities in power and computing to develop and market electronic components and power and computing systems for customers in multiple industries, including transportation, telecommunications, consumer and industrial electronics, medical and aerospace. For more information, please visit www.maxwell.com.
This news release contains forward-looking statements that are subject to risks and uncertainties. These include development and acceptance of products based on new technologies, demand for original equipment manufacturers' products reaching anticipated levels, general economic conditions in the markets served by the Company's products, cost-effective manufacturing of new products, the impact of competitive products and pricing and risks and uncertainties involved in foreign operations. These and other risks are detailed from time-to-time in the Company's SEC reports, including the report on Form 10-K for the fiscal year ended December 31, 2000. Actual results may differ materially from those projected. These forward-looking statements represent the Company's judgment as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements.
Maxwell Technologies, Inc. (MXWL)
Summary of Results
($ in thousands, except per share amounts)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30,
2001 2000 2001 2000
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Consolidated Statement
of Operations
-----------------------
Continuing Operations:
Sales $20,456 $27,085 $ 47,456 $ 53,234
Cost of sales 18,196 19,446 39,047 38,091
------- ------- -------- --------
Gross profit 2,260 7,639 8,409 15,143
Operating expenses:
Selling, general and
administrative expenses 6,969 7,136 13,236 14,455
Research and development
expenses 2,726 1,913 5,925 3,750
Restructuring, acquisition
and other charges -- 1,177 -- 1,675
------- ------- -------- --------
Total operating expenses 9,695 10,226 19,161 19,880
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Operating loss (7,435) (2,587) (10,752) (4,737)
Gain on sale of business 39,119 -- 39,119 --
Interest expense (268) (117) (1,146) (191)
Interest income and other 98 7 145 42
------- ------- -------- --------
Income (loss) before income
taxes and minority interest
31,514 (2,697) 27,366 (4,886)
Income tax provision
(credit) 11,127 (1,007) 9,687 (1,812)
Minority interest in net
income (loss) of
subsidiaries 244 2 196 2
------- ------- -------- --------
Income (loss) from
continuing operations 20,143 (1,692) 17,483 (3,076)
Discontinued operations,
net of taxes (515) (167) 2,719 (274)
------- ------- -------- --------
Net income (loss) $19,628 $(1,859) $ 20,202 $ (3,350)
======= ======= ======== ========
Basic net income (loss)
per share:
Income (loss) from
continuing operations $ 2.00 $ (0.17) $ 1.75 $ (0.31)
Income (loss) from
discontinued operations (0.05) (0.02) 0.27 (0.03)
------- ------- -------- --------
Net income (loss)
per share $ 1.95 $ (0.19) $ 2.02 $ (0.34)
======= ======= ======== ========
Diluted net income (loss)
per share:
Income (loss) from
continuing operations $ 1.84 $ (0.17) $ 1.59 $ (0.32)
Income (loss) from
discontinued operations (0.05) (0.02) 0.25 (0.03)
------- ------- -------- --------
Net income (loss)
per share $ 1.79 $ (0.19) $ 1.84 $ (0.35)
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Weighted average shares of
common stock and common
stock equivalents used in
calculating basic earnings
(loss) per share
(in thousands) 10,046 9,757 9,993 9,742
======= ======= ======== ========
Weighted average shares of
common stock and common
stock equivalents used in
calculating diluted
earnings (loss) per share
(in thousands) 10,747 9,757 10,752 9,742
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Maxwell Technologies, Inc. (MXWL)
Summary of Unaudited Quarterly Results
($ in thousands)
Condensed Consolidated June 30, December 31,
Balance Sheet 2001 2000
---------------------- -------- --------
Assets:
Current assets:
Cash and cash equivalents $ 13,252 $ 2,686
Short-term investments 15,783 --
Accounts receivable, net 17,848 24,652
Inventories 22,211 24,769
Other current assets 1,074 1,133
Deferred income taxes 13,031 13,031
Net assets of discontinued operations -- 13,963
-------- --------
Total current assets 83,199 80,234
Property, plant and equipment, net 21,338 22,567
Goodwill and other non-current assets 9,368 19,308
-------- --------
$113,905 $122,109
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Liabilities and stockholders' equity:
Total current liabilities $ 15,959 $ 47,290
Long-term debt and minority interest 5,489 5,065
Stockholders' equity 92,457 69,754
-------- --------
$113,905 $122,109
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