SAN DIEGO, Calif., Feb. 28, 2002 (PRIMEZONE) -- Maxwell Technologies, Inc. (Nasdaq:MXWL) today reported revenue from continuing operations of $15.4 million for its fourth quarter ended December 31, 2001 (Q401). That compares with revenue from continuing operations of $15.0 million for the previous quarter ended September 30, 2001 (Q301), and $23.4 million for the fourth quarter ended December 31, 2000 (Q400), excluding $4.0 million of revenue from the company's medical electronics business, which was sold in June 2001.
The fourth quarter 2001 operating loss was $5.6 million, or $0.55 per share. That compares with an operating loss of $7.6 million, or $0.74 per share for the previous quarter ended September 30, 2001, and an operating loss of $0.9 million, or $0.09 per share, for the three months ended December 31, 2000. Net loss for the fourth quarter ended December 31, 2001, was $22.7 million, or $2.23 per share, including a non-cash charge of $14 million, or $1.38 per share, to fully reserve all of the company's deferred tax assets. That compares with net income of $8,000, or $0.00 per share, for the fourth quarter ended December 31, 2000.
James Baumker, Maxwell's chief financial officer, said that the company has adopted a more conservative accounting approach in establishing a reserve against its deferred tax assets and retains a total of $19 million of deferred tax assets, consisting of net operating loss carry forwards and other tax credits, which will be available to offset future taxable income up to approximately $50 million.
Baumker said that Q401 revenue, which increased two percent over Q301, reflected a decline in power and computing systems sales, which was offset by an increase in sales of electronic components. He noted that improved margins resulting from a more favorable product mix and reduced operating expenses contributed to a 25 percent sequential reduction in the quarterly operating loss.
Revenue from continuing operations for the fiscal year ended December 31, 2001 (FY01), was $77.9 million, compared with $102.3 million for the year ended December 31, 2000 (FY00). Excluding sales of the company's Sierra medical electronics business, which was sold in June 2001, FY01 revenue from continuing operations was $68.7 million, compared with $88.7 million from continuing operations for FY00. The operating loss for fiscal year 2001 was $23.9 million, or $2.38 per share, compared with $21.3 million, or $2.18 per share, for the year ended December 31, 2000. Net loss for FY01 was $12.9 million, or $1.29 per share, including proceeds from the sale of the Sierra unit and Maxwell's government contracting business, the charge to reserve deferred tax assets and the loss from discontinued operations. That compares with a net loss of $16.3 million, or $1.66 per share, including restructuring and other charges of $9.2 million, for FY00.
"The general economic climate continues to affect sales, so we have been very aggressive in reducing expenses and improving efficiency," Baumker said. "The company entered 2002 with $25 million in cash and short-term investments, and we believe that, with continuing improvement in operating performance, we have sufficient resources to see us through the current slowdown in the economy."
Carl Eibl, Maxwell's president and chief executive officer, said that increasing design-in activity by Maxwell's customers and a series of new power and computing product launches that began at the end of 2001 and will continue through 2002, are laying a foundation for product-driven growth and profitability.
"We have already seen a strong upturn in sales of radiation-shielded microelectronics for the satellite and military markets, and we expect bookings for ultracapacitors and power and computing systems to begin picking up over the next two quarters," Eibl said.
The company will conduct a conference call and simultaneous Webcast to discuss 2001 financial results and the outlook for 2002, and answer analysts' questions at 11 a.m. (eastern) tomorrow, March 1, 2002. The call may be accessed by dialing toll-free, (888) 584-2147; the 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 commercialize electronic components and power and computing systems for customers in multiple industries, including transportation, telecommunications, consumer and industrial electronics, medical and aerospace.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Dec. 31,
2001 (note) 2000
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 13,673 $ 2,686
Short-term investments 11,886 --
Accounts receivable, net 13,984 24,652
Inventories 16,605 24,769
Prepaid expenses and other current assets 1,031 1,133
Deferred income taxes -- 13,031
Net assets of discontinued operations -- 13,963
--------- ---------
Total current assets 57,179 80,234
Property, plant and equipment, net 21,741 22,567
Goodwill and other non-current assets 6,784 19,308
--------- ---------
$ 85,704 $ 122,109
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 11,976 $ 21,711
Accrued employee compensation 1,586 2,825
Short-term borrowings 483 22,754
Net liabilities of discontinued operations 1,642 --
--------- ---------
Total current liabilities 15,687 47,290
Long-term debt 5,700 --
Minority interest 4,586 5,065
Stockholders' equity:
Common stock 1,017 988
Additional paid-in capital 84,283 81,204
Notes receivable from
executives for stock purchases (897) (900)
Deferred compensation -- (15)
Accumulated deficit (23,859) (10,942)
Accumulated other comprehensive loss (813) (581)
--------- ---------
59,731 69,754
--------- ---------
$ 85,704 $ 122,109
========= =========
Note: the Balance sheets have been derived from the audited
financial statements as of that date
MAXWELL TECHNOLOGIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Years Ended
December 31, December 31,
2001 2000 2001 2000
--------- --------- --------- ---------
Sales $ 15,383 $ 27,442 $ 77,856 $ 102,347
Cost of sales 13,163 20,750 66,616 79,472
--------- --------- --------- ---------
Gross profit 2,220 6,692 11,240 22,875
Operating Expenses:
Selling, general
and administrative 5,207 4,995 23,661 26,260
Research and development 2,648 2,633 11,519 8,713
Restructuring, acquisition
and other charges -- -- -- 9,220
--------- --------- --------- ---------
7,855 7,628 35,180 44,193
--------- --------- --------- ---------
Operating loss (5,635) (936) (23,940) (21,318)
Gain on sale of business 23 -- 39,142 --
Interest expense (16) (870) (1,232) (1,430)
Interest income
and other, net 157 77 634 9
Write-down of investment (500) -- (500) --
--------- --------- --------- ---------
Income (loss) before
income taxes and
minority interest (5,971) (1,729) 14,104 (22,739)
Provision (credit)
for income taxes 13,411 (666) 23,035 (6,267)
Minority interest in
net loss of subsidiaries (624) (179) (710) (181)
--------- --------- --------- ---------
Loss from continuing
operations (18,758) (884) (8,221) (16,291)
Discontinued operations,
net of taxes (3,917) 892 (4,696) (26)
--------- --------- --------- ---------
Net income (loss) $ (22,675) $ 8 $ (12,917) $ (16,317)
========= ========= ========= =========
Basic net income
(loss) per share:
Income (loss) from
continuing operations $ (1.84) $ (0.09) $ (0.82) $ (1.66)
Income (loss) from
discontinued operations (0.39) 0.09 (0.47) --
--------- --------- --------- ---------
Net income (loss) $ (2.23) $ -- $ (1.29) $ (1.66)
========= ========= ========= =========
Diluted net income
(loss) per share:
Income (loss) from
continuing operations $ (1.84) $ (0.09) $ (0.82) $ (1.66)
Income (loss) from
discontinued operations (0.39) 0.09 (0.47) --
--------- --------- --------- ---------
Net income (loss) $ (2.23) $ -- $ (1.29) $ (1.66)
========= ========= ========= =========
Shares used in computing:
Basic net income
(loss) per share 10,167 9,870 10,040 9,801
========= ========= ========= =========
Diluted net income
(loss) per share 10,167 9,870 10,040 9,801
========= ========= ========= =========