Maxwell Technologies, Inc. reported revenue of $35.3 million for its first quarter ended March 31, 2011, up 32 percent over the $26.6 million recorded in the same period in 2010.
BOOSTCAP® ultracapacitor revenue increased by 55 percent, to $21.4 million in Q111, compared with $13.8 million for the same period last year. Sales of high voltage capacitor and microelectronics products totaled $13.9 million in Q111, up 8 percent from the $12.8 million recorded in Q110.
"Energy storage solutions for wind turbine blade pitch systems and hybrid and electric transit vehicle drive systems continued to be primary drivers of ultracapacitor sales growth, along with increasing contributions from automotive stop-start idle elimination systems and various backup power applications," said David Schramm, Maxwell’s President and Chief Executive Officer. "This strong top line growth and ongoing cost reduction and efficiency improvements also enabled the company to continue improving operating results."
On a U.S. generally accepted accounting principles (GAAP) basis, operating loss for Q111 was $73,000, compared with an operating loss of $1.6 million in Q110. GAAP net income for the first quarter 2011 was $196,000, or $0.01 per diluted share, compared with GAAP net income of $1.2 million, or $0.05 per diluted share, in the same period last year. The GAAP net income comparison is affected by a non-cash gain of $1.1 million, or $0.04 per diluted share, in Q111 vs. a non-cash gain of $3.2 million, or $0.12 per diluted share, in Q110, based on the quarterly valuation of conversion features and warrants associated with convertible debentures issued in 2005. As previously disclosed, the warrants were exercised in December 2010, and the company retired the convertible debentures in February 2011. Therefore, the company will not record non-cash gains or losses related to the conversion features and warrants going forward.
On a non-GAAP basis, the company reported operating income of $978,000 in Q111, compared with an operating loss of $849,000 in the same period last year, and net income of $161,000, or $0.01 per diluted share in Q111, compared with a net loss of $1.2 million, or $0.05 per share in Q110. A reconciliation of GAAP to non-GAAP financial measures is included as an addendum to this release.
GAAP gross margin was 39 percent in Q111, compared with 38 percent in Q110 and 37 percent in Q410. GAAP operating expenses totaled approximately $14.0 million, or 39 percent of revenue in Q111, compared with $11.8 million, or 44 percent of revenue in Q110. Non-GAAP operating expenses totaled approximately $13.1 million, or 37 percent of revenue, in Q111, compared with $11.3 million, or 42 percent of revenue, in Q110. Cash and cash equivalents totaled $33.1 million as of March 31, 2011, compared with $47.8 million of cash, cash equivalents and restricted cash as of December 31, 2010.
On January 31, 2011 the company reached settlements with the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) with respect to charges asserted by the SEC and DOJ relating to the anti-bribery, books and records, internal controls, and disclosure provisions of the Foreign Corrupt Practices Act (FCPA) and other securities law violations. The company settled civil charges with the SEC, agreeing to an injunction against further violations of the FCPA. Under the terms of the settlement with the SEC, the company will pay a total of $6.35 million in profit disgorgement and prejudgment interest in two installments, of which $3.175 million was paid in February, and the remaining $3.175 million is payable in the first quarter of 2012. Under the terms of the settlement with the DOJ, the company will pay a total of $8.0 million in penalties in three installments, of which $3.5 million was paid in February, and $2.25 million installments are payable in the first quarters of 2012 and 2013. As part of the settlement, the company entered into a three-year deferred prosecution agreement (DPA) with the DOJ. If the company remains in compliance with the terms of the DPA, at the conclusion of the term, the charges against the company will be dismissed with prejudice. Further, under the terms of the agreements, the company will periodically report to the SEC and DOJ on its internal compliance program concerning anti-bribery. The amounts to be paid in connection with these settlements had been fully accrued by the company as of September 30, 2010.
