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Maxwell Technologies Reports Second Quarter Financial ResultsSAN DIEGO, July 30, 2015 /PRNewswire/ -- Maxwell Technologies, Inc. (Nasdaq: MXWL) today reported revenue of $37.8 million for its second quarter ended June 30, 2015, an increase of 9 percent from the $34.7 million recorded in the first quarter of 2015, but down 18 percent from the $46.1 million recorded in the second quarter of 2014. Second quarter ultracapacitor revenue increased by 7 percent to $23.4 million, compared with $21.9 million recorded in the first quarter of 2015, but was down 31 percent compared with the $33.9 million recorded in the second quarter of 2014. Sales of high voltage capacitor and microelectronics products totaled $14.3 million in Q215, up 13 percent compared with the $12.7 million recorded in the first quarter of 2015 and up 18 percent from the $12.2 million recorded in Q214. On a U.S. generally accepted accounting principles (GAAP) basis, the operating loss for the second quarter 2015 was $6.3 million, compared with an operating loss of $8.6 million in Q115 and an operating loss of $335,000 in Q214. GAAP net loss for Q215 was $9.4 million, or $0.31 per share, compared with a net loss of $9.3 million, or $0.32 per share, in Q115 and a net loss of $1.2 million, or $0.04 per share, in Q214. On a non-GAAP basis, the company reported an operating loss of $2.2 million in Q215 compared with an operating loss of $7.7 million in Q115 and operating income of $833,000 in Q214. Non-GAAP net loss for Q215 was $3.2 million, or $0.11 cents per share, compared with a net loss of $8.5 million, or $0.29 cents per share, in Q115 and a net loss of $13,000, or $0.00 per share, in Q214. A reconciliation of GAAP to non-GAAP financial measures is included as an addendum to this release. GAAP gross margin was 32 percent in Q215, compared with 30 percent in Q115 and 36 percent in Q214. GAAP operating expenses totaled $18.4 million, or 49 percent of revenue, in Q215, compared with $18.9 million, or 54 percent of revenue, in Q115, and $16.9 million, or 37 percent of revenue, in Q214. Non-GAAP operating expenses totaled $14.6 million, or 39 percent of revenue, in Q215 compared with $18.2 million, or 53 percent of revenue, in Q115 and $16.0 million, or 35 percent of revenue, in Q214. Cash and cash equivalents totaled $25.0 million as of June 30, 2015, compared with $23.1 million as of March 31, 2015. Complete financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations will be available with the filing of the Company's Quarterly Report on Form 10-Q with the Securities & Exchange Commission. Management has initiated a restructuring plan to consolidate U.S. manufacturing operations and to reduce headcount and operating expenses in order to align the company's cost structure with the current business forecast, and improve operational efficiency. The plan also includes the potential divestiture of the microelectronics product line. In connection with the restructuring plan, the company expects to incur total restructuring and related charges, including accelerated equipment depreciation expense, of approximately $4.2 million, of which $2.5 million was recorded in Q215. Upon completion of the plan, which is anticipated to be by the end of the first quarter of 2016, total cash expenditures related to restructuring activities are expected to be approximately $2.2 million. "Second quarter revenue and gross margin were in line with our guidance and operating expenses improved substantially," said Dr. Franz Fink, Maxwell's president and CEO. "Operating expenses came in ahead of plan in the second quarter, already beating our quarterly target of $15 million on a non-GAAP basis originally targeted for Q4 of this year. The restructuring actions we are taking should allow us to achieve our goal of significantly accelerating our path to profitability." Non-GAAP Financial Measures: The Company uses non-GAAP financial measures for internal evaluation and to report the results of its business. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss), and non-GAAP net income (loss) per diluted share. These measures are not in accordance with, nor an alternative to, GAAP. These measures are intended to supplement GAAP financial information, and may be computed differently from non-GAAP financial measures used by other companies. 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, 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. 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. Please refer to the accompanying tables for a detailed reconciliation of GAAP to non-GAAP gross profit, operating expenses, income from operations, net income, and net income per share. Management will conduct a conference call and simultaneous webcast to discuss second quarter of 2015 financial results and the future outlook at 5 p.m. (EDT) today. The call may be accessed by dialing toll-free, (888) 632-3383 from the U.S. and Canada, or (785) 424-1676 for international callers, and entering the conference ID, MAXWELL. The live web cast and subsequent archived replay may be accessed at the Company's web site via the following link: http://investors.maxwell.com/phoenix.zhtml?c=94560&p=irol-calendar. 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. 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:
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 July 30, 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: Michael Sund, +1 858.503.3233; [email protected]
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