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, firstname.lastname@example.org; Investor Relations: CUI Global, Inc., Main: +1-503-612-2317, email@example.com; Outside IR contact: BPC Financial Marketing, John Baldissera, +1-800-368-1217
CUI Global, Inc. Announces FY 2012 Financial Results
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