SAN DIEGO, Nov. 1, 2001 (PRIMEZONE) -- Maxwell Technologies, Inc. (Nasdaq:MXWL) today reported revenue from continuing operations of $15.0 million for its third quarter ended September 30, 2001. That compares to $21.7 million from continuing operations for the three months ended September 30, 2000. Third quarter net loss from continuing operations was $6.9 million, or $0.68 per share, including approximately $0.9 million of prototype costs associated with developing and launching a new line of test equipment. That compares to a net loss from continuing operations of $12.3 million, or $1.25 per share, including after-tax restructuring and other charges of $5.6 million, for the three months ended September 30, 2000.
James Baumker, Maxwell's chief financial officer, said that the 2000-to-2001 quarterly revenue comparison is distorted by the June 2001 sale of the company's medical electronics business, which generated sales of approximately $2.7 million in Q3 2000.
"Although the current slowdown in the economy is affecting product sales and operating performance, Maxwell has a strong balance sheet, with approximately $28 million of cash and short-term investments and no long-term debt as of September 30," Baumker said. "Those resources allow us to continue investing judiciously in product development and sales and marketing to position the company to ramp sales as key markets for our power and computing products begin to recover."
Carl Eibl, Maxwell's president and chief executive officer, said that revenue from small cell ultracapacitors and microelectronic components, along with continuing strong demand and mix improvement for power quality products, are expected to contribute to sequential reductions in operating losses over the next two quarters and, together with large cell ultracapacitors and applied computing systems, set the stage for operating profits later in 2002.
"The new products we're launching and the investments we've made in commercial talent and enhanced production processes and facilities are beginning to translate into design-in wins and improving booking trends," Eibl said. "While that is encouraging, manufacturing activity in telecommunications and some other key markets remains depressed, so we expect to incur losses, though diminishing, for at least another couple of quarters."
Management will conduct a conference call and simultaneous webcast to discuss third quarter results and the outlook for the balance of the year and answer analysts' questions at 11 a.m. (eastern), tomorrow, November 2, 2001. The call may be accessed by dialing (212) 676-5188; 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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2001 2000 2001 2000
------ ------ ------ ------
Sales $ 15,017 $ 21,671 $ 62,473 $ 74,905
Cost of sales 14,406 20,631 53,453 58,722
-------- -------- -------- --------
Gross profit 611 1,040 9,020 16,183
Operating expenses:
Selling, general
and administrative 5,218 6,810 18,454 21,265
Research and
development 2,946 2,330 8,871 6,080
Restructuring,
acquisition and
other charges -- 7,545 -- 9,220
-------- -------- -------- --------
8,164 16,685 27,325 36,565
-------- -------- -------- --------
Operating loss (7,553) (15,645) (18,305) (20,382)
Gain on sale
of business -- -- 39,119 --
Interest expense (70) (369) (1,216) (560)
Interest income
and other, net 332 (110) 477 (68)
-------- -------- -------- --------
Income (loss) before
income taxes and
minority interest (7,291) (16,124) 20,075 (21,010)
Provision (credit)
for income taxes (63) (3,789) 9,624 (5,601)
Minority interest
in net loss of
subsidiaries (282) (4) (86) (2)
-------- -------- -------- --------
Income (loss) from
continuing
operations (6,946) (12,331) 10,537 (15,407)
Discontinued
operations,
net of taxes (3,498) (644) (779) (918)
-------- -------- -------- --------
Net income (loss) $(10,444) $(12,975) $ 9,758 $(16,325)
======== ======== ======== ========
Basic net income
(loss) per share:
Income (loss) from
continuing
operations $ (0.68) $ (1.25) $ 1.05 $ (1.58)
Loss from
discontinued
operations (0.35) (0.07) (0.08) (0.09)
-------- -------- -------- --------
Net income (loss) $ (1.03) $ (1.32) $ 0.97 $ (1.67)
======== ======== ======== ========
Diluted net income
(loss) per share:
Income (loss) from
continuing
operations $ (0.68) $ (1.25) $ 0.98 $ (1.58)
Loss from
discontinued
operations (0.35) (0.07) (0.07) (0.10)
-------- -------- -------- --------
Net income (loss) $ (1.03) $ (1.32) $ 0.91 $ (1.68)
======== ======== ======== ========
Shares used in
computing:
Basic net income
(loss) per share 10,160 9,848 10,048 9,778
======== ======== ======== ========
Diluted net income
(loss) per share 10,160 9,848 10,735 9,778
======== ======== ======== ========
MAXWELL TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2001 2000
------------ -----------
Assets (Unaudited) (Note)
Current assets:
Cash and cash equivalents $ 8,422 $ 2,686
Short-term investments 19,551 --
Accounts receivable, net 13,218 24,652
Inventories 19,634 24,769
Prepaid expenses and
other current assets 945 1,133
Deferred income taxes 13,031 13,031
Net assets of discontinued
operations -- 13,963
--------- ---------
Total current assets 74,801 80,234
Property, plant and equipment, net 21,549 22,567
Goodwill and other non-current assets 9,092 19,308
--------- ---------
$ 105,442 $ 122,109
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $ 10,293 $ 21,711
Accrued employee compensation 2,438 2,825
Short-term borrowings 2,668 22,754
Net liabilities of discontinued
operations 1,992 --
--------- ---------
Total current liabilities 17,391 47,290
Minority interest 5,242 5,065
Commitments and contingencies
Stockholders' equity:
Common stock 1,016 988
Additional paid-in capital 84,257 81,204
Notes receivable from executives
for stock purchases (800) (900)
Deferred compensation -- (15)
Accumulated deficit (1,184) (10,942)
Accumulated other
comprehensive loss (480) (581)
--------- ---------
82,809 69,754
$ 105,442 $ 122,109
========= =========
Note: The Balance Sheet as of December 31, 2000 has been derived
from the audited financial statements as of that date.