CUI Global, Inc. Announces FY 2012 Financial Results

             CUI Global, Inc. Announces FY 2012 Financial Results

Company reports FY 2012 Revenue of $41,084,589

PR Newswire

TUALATIN, Ore., Feb. 19, 2013

TUALATIN, Ore., Feb. 19, 2013 /PRNewswire/ --CUI Global, Inc. (NASDAQ: CUI),
a platform company dedicated to the acquisition, development, and
commercialization of new, innovative technologies, today announced year-end
financial results for the year ended December 31, 2012. The Company's
revenues for the year ended December 31, 2012 of $41,084,589 represent a 5.5%
increase from the 2011 year ended revenues of $38,938,326. More significantly,
the company reported year-end back orders of $14.15 million (unaudited) for FY
2012, up over 50% from FY 2011 back orders of $9.24 million (unaudited).

(Logo: http://photos.prnewswire.com/prnh/20120320/FL72629LOGO)

In addition, the company reported a year-over-year quarter-to-quarter revenue
increase of better than 35%; $11.9 million in fourth quarter 2012, compared to
$8.8 million in fourth quarter FY 2011. The company reported increased
revenue on a quarter-to-quarter basis as well, up from $10.7 million in third
quarter FY 2012.

For thethird quarter in a row, the company decreased its quarterly Earnings
Per Share (EPS) loss attributable to the year-to-date period from $0.04 per
share in third quarter to a net loss of $0.02 per share in fourth quarter and
a year-end loss of $0.25 per share.

Along with the above financial accomplishments, the company reached several
other significant milestones in FY 2012, including, but not limited to the
following:

  oCompletion of $13.5 million (net to the company) equity raise;
  oSuccessful up-listing to the Nasdaq Capital Market;
  oRetirement/termination of $8.1 million in short and long-term debt;
  oListing on the Wilshire 5000 Total Market Index;
  oListing on the Russell® Microcap Index;
  oInclusion in the MSCI Global Microcap Indices;
  oNegotiation and signing of additional distribution relationship with
    Future Electronics;
  oIndustry recognition of its Novum® Technologies, including:

       oWinner Electronics Product Magazine Product of the Year Award;
       oNamed one of EDN Top 100 Products of 2012;
       oFinalist Design News Golden Mousetrap Award;
       oAppearance at electronica 2012 trade show;

  oCertification of the Vergence® GasPT2 Metering Device by Italian, Polish,
    UK, and Canadian authorities, along with the first substantial purchase
    order from its North American Distributor, EMC; and more.

William Clough, president & chief executive officer, stated, "These financial
results and the other accomplishments we achieved in 2012 continue to
demonstrate the effectiveness of our initiatives, including an enhanced sales
channel, the elimination of significant debt, and the continued introduction
and commercialization of our new products, including products based upon CUI
Global's proprietary technologies."

"As our Vergence® Technology; our Novum® Digital Point-of-Load Technology; and
our Solus® Technology come to market this year, coupled with the significant
reduction in debt we accomplished in 2012, should both combine to put us in a
position to see significant growth in revenue. Our up-listing to the Nasdaq
Capital Market in 2012, which has significantly broadened our shareholder
base, should also enhance our ability to increase shareholder value in 2013,"
Clough concluded.

About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected World . . . . .

CUI Global is a publicly traded platform company dedicated to maximizing
shareholder value through the acquisition and development of innovative
companies and technologies. From its Vergence GasPT2 platform targeting the
energy sector, to its subsidiary CUI Inc.'s industry leading digital power
platform targeting the networking and telecom industries, CUI Global has built
a diversified portfolio of industry leading technologies that touch many
markets. As a publicly traded company, shareholders are able to participate in
the opportunities, revenues, and profits generated by the products,
technologies, and market channels of CUI Global and its subsidiaries. CUI
Global prides itself on operating with the same level of integrity, respect,
and philanthropic dedication that was put in place by CUI Inc.'s founder more
than 20 years ago. It is these values that allow the company to make a
difference in the lives of their customers, their community, their employees,
and their investors. Recently, a move was made to merge and streamline
resources with its subsidiary CUI Inc. in order to create a unified,
international brand that now positions CUI Global for further strategic
expansion.

About CUI, Inc.

CUI Inc is a technology company dedicated to the development and distribution
of electro-mechanical products. Their broad power and component product
portfolios allow customers to address design challenges across a range of
industries and applications. Built on a solid foundation of core operating
principals, CUI seeks to maximize value for customers through their
engineering, manufacturing, and supply chain capabilities. As an industry
leader, CUI continues to invest in the future through new technologies,
talented employees, expanded manufacturing capabilities, and a growing global
reach.

For more information, please visit www.cuiglobal.comand www.cui.com.

Important Cautions Regarding Forward Looking Statements

This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements are subject to
risks and uncertainties that could cause actual results to vary materially
from those projected in the forward-looking statements. The company may
experience significant fluctuations in future operating results due to a
number of economic, competitive, and other factors, including, among other
things, our reliance on third-party manufacturers and suppliers, government
agency budgetary and political constraints, new or increased competition,
changes in market demand, and the performance or reliability of our products.
These factors and others could cause operating results to vary significantly
from those in prior periods, and those projected in forward-looking
statements. Additional information with respect to these and other factors,
which could materially affect the company and its operations, are included in
certain forms the company has filed with the Securities and Exchange
Commission.

CUI Global, Inc.
Consolidated Balance Sheets
For the Years Ended December 31, 2012 and 2011


                                                 December 31,   December 31,
                                                 2012           2011
Assets:
Current Assets:
      Cash and cash equivalents                  $  3,039,840  $   176,775
      Trade accounts receivable, net of
      allowance of $130,000 and $125,000,        4,965,926      3,694,641
      respectively
      Inventories, net of allowance of $250,000  4,843,905      3,563,111
      and $240,000, respectively
      Prepaid expenses and other                 378,885        683,101
      Total current assets                       13,228,556     8,117,628
Property and equipment, net                      1,016,219      910,810
Other assets:
      Investment - equity method                 258,244        198,621
      Other intangible assets, net               8,618,524      8,967,041
      Deposits and other                         11,360         92,216
      Notes receivable, net                      501,422        529,706
      Debt offering costs, net                   42,778         116,111
      Goodwill                                   13,046,358     13,046,358
      Total other assets                         22,478,686     22,950,053
      Total assets                               $ 36,723,461   $ 31,978,491
Liabilities and stockholders' equity:
Current liabilities:
      Accounts payable                           $  2,496,881  $  2,114,029
      Preferred stock dividends payable          -              5,054
      Line of credit                             459,448        1,528,900
      Accrued expenses                           1,142,839      1,197,395
      Accrued compensation                       186,636        126,672
      Unearned revenue                           371,541        70,755
      Notes payable, current portion due         -              4,000,000
      Convertible notes payable, related party,  -              35,000
      current portion due
      Total current liabilities                  4,657,345      9,077,805
      Long term notes payable, related party,    7,303,683      10,303,683
      net of current portion due
      Total long term liabilities                7,303,683      10,303,683
      Total liabilities                          11,961,028     19,381,488
Commitments and contingencies
Stockholders' equity:
      Preferred stock, par value $0.001; 0 and
      10,000,000 shares authorized at December   -              -
      31, 2012 and
       2011, respectively
      Convertible Series A preferred stock, 0
      and 5,000,000 shares authorized, 0 and
      50,543 shares
       issued and outstanding liquidation     -              51
      preference of $0 and $50,543 at December
      31, 2012 and
       December 31, 2011, respectively
      Convertible Series B preferred stock, 0
      and 30,000 shares authorized, and no
      shares                                     -              -
       outstanding at December 31, 2012 and
      December 31, 2011, respectively
      Convertible Series C preferred stock, 0
      and 10,000 shares authorized, and no
      shares                                     -              -
       outstanding at December 31, 2012 and
      December 31, 2011, respectively
      Common stock, par value $0.001;
      325,000,000 and 325,000,000 shares
      authorized and                             10,883         7,315
       10,883,280 and 7,134,856 shares issued
      and outstanding at December 31, 2012
       and December 31, 2011, respectively
      Additional paid-in capital                100,947,708    86,217,169
      Accumulated deficit                        (76,171,822)   (73,645,501)
      Accumulated other comprehensive income     (24,336)       17,969
      (loss)
      Total stockholders' equity                 24,762,433     12,597,003
      Total liabilities and stockholders' equity $ 36,723,461   $ 31,978,491



CUI Global, Inc.
Consolidated Statements of Operations


                        For the Three Months Ended  For the Years Ended
                        December 31,                December 31,
                        (unaudited)
                        2012           2011         2012          2011
Revenues:
   Product Sales        $ 11,873,640   $           $ 41,031,050  $ 38,877,698
                                       8,779,824
   Revenue from freight 17,122         10,874       53,539        60,628
   Total revenue        11,890,762     8,790,698    41,084,589    38,938,326
Cost of revenues        7,533,794      5,567,794    25,707,893    24,133,073
Gross profit            4,356,968      3,222,904    15,376,696    14,805,253
Operating expenses
   Selling, general and 4,298,695      3,123,580    16,221,373    13,347,853
   administrative
   Research and         232,499        186,458      791,332       716,321
   development
   Bad debt             32,784         4,743        65,763        82,192
   Impairment of
   intangible,          -              -            278,428       -
   trademark and trade
   name V-Infinity
   Total operating      4,563,978      3,314,781    17,356,896    14,146,366
   expenses
Income (loss) from      (207,010)      (91,877)     (1,980,200)   658,887
continuing operations
Other income (expense)
   Other income         51,608         17,504       95,069        53,657
   Other expense        (1,682)        9,616        (18,567)      (38,678)
   Gain on sale of      -              143,636      -             143,636
   technology rights
   Earnings from equity 23,150         20,015       59,623        41,472
   investment
   Interest expense -
   amortization of debt
   offering costs and   (18,333)       (18,333)     (73,333)      (334,747)
   debt
    discount
   Interest expense    (114,689)      (231,276)    (575,199)     (918,189)
Total other income      (59,946)       (58,838)     (512,407)     (1,052,849)
(expense), net
Loss from continuing    (266,956)      (150,715)    (2,492,607)   (393,962)
operations before taxes
   Provision for taxes  9,719          8,137        33,714        29,810
Consolidated (loss)
from continuing         (276,675)      (158,852)    (2,526,321)   (423,772)
operations
Income (loss) from
discontinued operations
   (Loss) from
   discontinued         -              -            -             (160,153)
   operations
   Gain on divestment   -              -            -             603,034
   of Comex Electronics
   Net income from
   discontinued         -              -            -             442,881
   operations
Consolidated net income (276,675)      (158,852)    (2,526,321)   19,109
(loss)
   Less: Net income
   from discontinued
   operations -         -              -            -             67,872
   noncontrolling 
    interest
Net (loss) allocable to $             $           $             $  
common stockholders     (276,675)     (158,852)   (2,526,321)   (48,763)
Basic and diluted
(loss) per common share $          $        $         $    
from continuing         (0.03)        (0.02)      (0.25)       (0.06)
operations
Basic and diluted
income per common share
from discontinued       $        $       $        $     
 operations -         -             -         -        0.05
attributable to CUI
Global, Inc.
Basic and diluted       $          $        $         $    
(loss) per common share (0.03)        (0.02)      (0.25)       (0.01)
Basic weighted average
common and common       10,878,323     7,309,687    10,175,989    7,249,180
equivalents shares
outstanding



CUI Global, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2012 and 2011


                                                2012           2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) - attributable to common             $ (2,526,321)  $   (48,763)
stockholders
Adjustments to reconcile net (loss) to net cash
provided by (used in) operating activities:
  Stock based compensation                      1,190,081      227,867
  Non-cash interest expense, including
  amortization of beneficial conversion value,
  warrant related
   debt discounts and intrinsic value of     73,333         334,747
  convertible debt and amortization of debt
  discount and
   amortization of debt offering costs
  Earnings in equity investment                 (59,623)       (41,472)
  Bad debt expense                              65,763         82,192
  Amortization of technology rights             26,510         245,144
  Amortization of patent costs                  664            333
  Amortization of website development           13,718         4,328
  Amortization of intangible, trademark and     109,540        -
  trade name V-Infinity
  Impairment of intangible, trademark and trade 278,428        -
  name V-Infinity
  Inventory reserve                             10,000         75,995
  Gain on sale of technology rights             -              (143,636)
  Loss on disposal of assets                    -              1,563
  Net income - noncontrolling interest in       -              67,872
  discontinued operations
  Depreciation                                  579,861        520,959
(Increase) decrease in assets:
  Trade accounts receivable                     (1,337,048)    107,902
  Inventory                                     (1,290,794)    96,535
  Prepaid expenses and other current assets     285,690        (335,302)
  Deposits and other assets                     80,856         (29,001)
Increase (decrease) in liabilities:
  Accounts payable                              382,852        356,347
  Accrued expenses                              (47,919)       (391,289)
  Accrued compensation                          59,964         (272,341)
  Unearned revenue                              300,786        725
  NET CASH PROVIDED BY (USED IN) CONTINUING     (1,803,659)    860,705
  OPERATING ACTIVITIES
  NET CASH PROVIDED BY DISCONTINUED OPERATING   -              22,141
  ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
  Investment in patents                         -              (6,646)
  Investment in other intangible assets, net    (80,343)       (37,418)
  Proceeds from Notes receivable                46,808         63,506
  Proceeds from sales of technology rights      -              425,000
  Purchase of property and equipment            (685,269)      (422,970)
  NET CASH PROVIDED BY (USED IN) CONTINUING     (718,804)      21,472
  INVESTING ACTIVITIES
  NET CASH PROVIDED BY DISCONTINUED INVESTING   -              195,278
  ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments to demand notes payable, net of      (1,069,452)    (20,879)
  proceeds
  Payments to notes and loans payable, net of   (4,000,000)    (481,326)
  proceeds
  Proceeds from (payments to) convertible notes (35,000)       35,000
  payable, related party
  Payments on notes and loans payable, related  (3,000,000)    (300,000)
  party
  Proceeds from sales of common stock, and
  exercise of warrants and options, net of      13,532,285     50,000
  offering costs
  NET CASH PROVIDED BY (USED IN) CONTINUING     5,427,833      (717,205)
  FINANCING ACTIVITIES
  NET CASH (USED IN) DISCONTINUED FINANCING     -              (648,218)
  ACTIVITIES
EFFECT OF EXCHANGE RATE CHANGES ON CASH         (42,305)       68,779
Cash and cash equivalents at beginning of year  176,775        373,823
Cash and cash equivalents at end of period      3,039,840      176,775
NET INCREASE (DECREASE) IN CASH AND CASH        $  2,863,065  $  (197,048)
EQUIVALENTS



SOURCE CUI Global, Inc.

Website: http://www.cuiglobal.com
Contact: Company Contact: CUI Global, Inc., Media Contact: Maggie Lefor, Main:
+1-503-612-2300, press@cuiglobal.com; Investor Relations: CUI Global, Inc.,
Main: +1-503-612-2317, investors@cuiglobal.com; Outside IR contact: BPC
Financial Marketing, John Baldissera, +1-800-368-1217
 
Press spacebar to pause and continue. Press esc to stop.