Maxwell Technologies, Inc. reported revenue of $41.6 million for its third quarter ended September 30, 2014, down 10 percent from the $46.1 million recorded in the second quarter ended June 30, 2014, and down 19 percent from the $51.2 million recorded in the third quarter of 2013. Third quarter ultracapacitor revenue decreased by 15 percent sequentially to $28.8 million , compared with $33.9 million in the second quarter ended June 30, 2014, and was down 22 percent compared with the $37.0 million recorded in the third quarter of 2013. Sales of high voltage capacitor and microelectronics products totaled $12.8 million in Q314, up 5 percent sequentially from the $12.2 million recorded in the second quarter and down 10 percent from the $14.2 million recorded in Q313.
"Third quarter revenue was in line with our expectations," said Dr. Franz Fink, Maxwell's president and CEO. "Ultracapacitor sales into the wind energy, automotive and electric rail markets were solid, as were sales of our high voltage capacitor products, but ultracapacitor sales into the hybrid bus market in China were down sequentially, compared with Q2."
On a U.S. generally accepted accounting principles (GAAP) basis, operating loss for the third quarter 2014 was $2.3 million, compared with an operating loss of $567,000 in Q214 and operating income of $6.2 million in Q313. GAAP net loss for Q314 was $3.3 million, or $0.11 per share, compared with a net loss of $1.2 million, or $0.04 per share in Q214 and net income of $6.0 million, or $0.21 per diluted share, in Q313.
On a non-GAAP basis, the Company reported operating loss of $1.3 million in Q314 compared with operating income of $599,000 in Q214 and operating income of $6.9 million in Q313. Non-GAAP net loss for Q314 was $2.3 million, or $0.08 cents per share, compared with net loss of $15,000, or zero cents per share in Q214 and net income of $6.7 million, or $0.23 per diluted share, in Q313. A reconciliation of GAAP to non-GAAP financial measures is included as an addendum to this release.
GAAP gross margin was 37 percent in Q314, compared with 36 percent in Q214 and 41 percent in Q313. GAAP operating expenses totaled approximately $17.7 million, or 43 percent of revenue, in Q314, compared with $17.2 million, or 37 percent of revenue, in Q214, and $14.9 million, or 29 percent of revenue, in Q313. Non-GAAP operating expenses totaled approximately $16.9 million, or 41 percent of revenue, in Q314 compared with $16.2 million, or 35 percent of revenue, in Q214 and $14.4 million, or 28 percent of revenue, in Q313. Cash and cash equivalents totaled $30.8 million as of September 30, 2014, compared with $30.7 million as of June 30, 2014.
Based on customer forecasts and order flow indicating increasing ultracapacitor sales into the hybrid bus market in China, along with strong sales into the wind energy market and continuing solid sales for other ultracapacitor applications and high voltage and microelectronic products, the company projects that total revenue for the fourth quarter is likely to increase by as much as 20 to 25% compared with that reported in the third quarter.
