Maxwell Technologies Reports Second Quarter Financial Results

August 02, 2010 by Jeff Shepard

Maxwell Technologies, Inc. reported revenue of $29.6 million for its second quarter ended June 30, 2010, up 19% over the $24.8 million recorded in the same period in 2009. BOOSTCAP® ultracapacitor revenue increased by 48%, to $15.9 million in Q210, compared with $10.7 million for the same period last year. Sales of high voltage capacitor and microelectronics products totaled $13.7 million in Q210, down 2% from the $14.0 million recorded in Q209.

"Initial production-level ultracapacitor shipments for Maxwell’s first automotive design-in are augmenting continuing strong demand for energy storage and power delivery systems for hybrid transit buses, wind turbines, backup power and other applications," said David Schramm, Maxwell’s President and Chief Executive Officer. "Steadily increasing volume and continuing efficiency improvements enabled the company to generate cash from operations in Q2 for the fourth time in the past five quarters."

On a U.S. generally accepted accounting principles (GAAP) basis, operating loss for the second quarter 2010 was $3.3 million, compared with an operating loss of $0.9 million in the same period last year. GAAP net loss for Q210 was $2.6 million or $0.10 per share, compared with a net loss of $5.3 million, or $0.22 per share, in Q209.

Operating loss and net loss comparisons are affected by: a $3.4 million operating expense accrual in Q210 to increase the reserve for proposed settlement of alleged U.S. Foreign Corrupt Practices Act (FCPA) violations; a non-cash gain of $1.2 million, or $0.05 per share, in Q210 vs. a non-cash loss of $3.8 million, or $0.16 per share, in Q209, based on the quarterly valuation of conversion features and warrants associated with convertible debentures issued in 2005.

On a non-GAAP basis, the company reported an operating profit of $933,000 in Q210 compared with $99,000 in the same period last year, and net income of $455,000, or $0.02 per diluted share in Q210, compared with a net loss of $531,000, or $0.02 per diluted share in Q209.

GAAP gross margin was 40% in Q210, compared with 36% in Q209 and 38% in Q110. GAAP operating expenses, including the additional $3.4 million FCPA settlement accrual, totaled approximately $15.2 million, or 51% of revenue in Q210, compared with $9.8 million, or 40% of revenue in Q209. Non-GAAP operating expenses totaled approximately $11.1 million, or 37% of revenue in Q210, compared with $9.0 million, or 36% of revenue in Q209. Cash, cash equivalents and restricted cash totaled $36.2 million as of June 30, 2010, compared with $38.1 million as of March 31, 2010.