Liquidmetal Technologies Reports First Quarter 2013 Results

  Liquidmetal Technologies Reports First Quarter 2013 Results

  New Prototype Shipments Increased 67% Sequentially in Q1 2013, Reflecting
 Growing Interest in the Unique Applications and Capabilities of Liquidmetal
                                    Alloy

Business Wire

RANCHO SANTA MARGARITA, Calif. -- May 14, 2013

Liquidmetal® Technologies, Inc. (LTI) (OTCQB: LQMT), the leading developer of
amorphous alloys and composites, reported results for the quarter ended March
31, 2013.

Q1 2013 Operational Highlights

  *During the first quarter, LTI delivered five new Liquidmetal prototype
    shipments to five different customers, which was up 67% from the prior
    quarter and compared to zero in the same year-ago period. Each shipment
    contained multiple prototype parts.
  *Most of the prototype shipments were to new customers in the oil and gas
    industry for use in exploration and development activities, which
    represents a new market for the company.
  *The company increased its prototype activity with a major customer in the
    aerospace and defense industry by shipping additional parts of existing
    active prototypes for further testing and evaluation.
  *At the end of the first quarter of 2013, there were 18 prototypes actively
    being evaluated by customers, up from 13 at the end of the previous
    quarter and four at the end of Q1 2012.
  *At quarter-end, the company’s IP portfolio included 56 owned or licensed
    U.S. patents, with an additional 56 patent applications pending. Its
    patent applications relate to the composition, processing, and application
    of Liquidmetal alloys.

Management Commentary

“During the first quarter, we made steady progress in our transition from a
development stage to a commercial products company,” said Tom Steipp,
president and CEO of Liquidmetal Technologies. “This is demonstrated by the
five new prototype parts shipped during the quarter, as well as the 18 active
prototypes currently in development. The increasing number of active
prototypes undergoing extensive evaluation by customers shows a growing
interest in Liquidmetal alloy’s distinctive performance characteristics.

“As we continue to collaborate with customers to perfect their Liquidmetal
alloy parts, we expect to see a number of these prototypes progress to
commercial production over the course of the year. We will also continue to
pursue opportunities for IP licensing.

“We believe progress in these areas will result in a broader base of
customers, a stronger foundation for licensees and partners, and ultimately
increased value to shareholders.”

Q1 2013 Financial Summary

In Q1 2013, the company generated nominal revenues as it focused on the
development of prototype parts for its customers.

Selling, marketing, general and administrative expense was $1.3 million
compared to $1.0 million in Q1 2012. The increase was primarily due to
additional headcount to support the company’s sales and business development
efforts.

Research and development expense was $236,000 compared to $188,000 in Q1 2012.
The increase reflects the escalation of prototype activity, as well as
additional research and development of manufacturing techniques for
Liquidmetal alloys.

Total operating expenses were $1.6 million compared to $1.1 million in Q1
2012.

Cash totaled $5.5 million at March 31, 2013, as compared to $7.2 million at
December 31, 2012.

Conference Call

Liquidmetal Technologies management will hold a conference call later today
(May 14, 2013) to discuss these results. The company’s President and CEO Tom
Steipp and CFO Tony Chung will host the call starting at 4:30 p.m. Eastern
time. A question and answer session will follow management’s presentation.

Date: Tuesday, May 14, 2013
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-877-941-1427
International: 1-480-629-9664
Conference ID: 4613351

The conference call will be broadcast simultaneously and available for replay
via the investor section of the company's website at www.liquidmetal.com.

Please call the conference telephone number 5-10 minutes prior to the start
time. An operator will register your name and organization. If you have any
difficulty connecting with the conference call, please contact Liolios Group
at 1-949-574-3860.

A replay of the call will be available after 7:30 p.m. Eastern time on the
same day through June 14, 2013.

Toll-Free Replay Number: 1-877-870-5176
International Replay Number: 1-858-384-5517
Replay PIN Number: 4613351

About Liquidmetal Technologies

Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the
leading developer of bulk alloys and composites that utilize the performance
advantages offered by amorphous alloy technology. Amorphous alloys are unique
materials that are distinguished by their ability to retain a random structure
when they solidify, in contrast to the crystalline atomic structure that forms
in ordinary metals and alloys. Liquidmetal Technologies is the first company
to produce amorphous alloys in commercially viable bulk form, enabling
significant improvements in products across a wide array of industries. For
more information, go to www.liquidmetal.com.

Forward-Looking Statement

This press release contains "forward-looking statements," including but not
limited to statements regarding the advantages of Liquidmetal's amorphous
alloy technology, scheduled manufacturing of customer parts and other
statements associated with Liquidmetal's technology and operations. These
statements are based on current expectations of future events. If underlying
assumptions prove inaccurate or unknown risks or uncertainties materialize,
actual results could vary materially from Liquidmetal's expectations and
projections. Risks and uncertainties include, among other things; customer
adoption of Liquidmetal's technologies and successful integration of those
technologies into customer products; potential difficulties or delays in
manufacturing products incorporating Liquidmetal's technologies; Liquidmetal's
ability to fund its current and anticipated operations; the ability of third
party suppliers and manufacturers to meet customer product requirements;
general industry conditions; general economic conditions; and governmental
laws and regulations affecting Liquidmetal's operations. Additional
information concerning these and other risk factors can be found in
Liquidmetal's public periodic filings with the U.S. Securities and Exchange
Commission, including the discussion under the heading "Risk Factors" in
Liquidmetal's 2012 Annual Report on Form 10-K.


LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
                                                 
  
                                                    March 31,     December 31,
                                                     2013        2012     
                                                    (Unaudited)   (Audited)
ASSETS
                                                                  
Current assets:
      Cash                                          $ 5,506       $ 7,162
      Trade accounts receivable, net of allowance
      for doubtful accounts of $14 and $11,           123           64
      respectively
      Prepaid expenses and other current assets      637         689      
              Total current assets                  $ 6,266       $ 7,915
Property and equipment, net                           181           161
Patents and trademarks, net                           840           869
Other assets                                         28          28       
              Total assets                          $ 7,315      $ 8,973    
                                                                  
LIABILITIES AND SHAREHOLDERS' DEFICIT
                                                                  
Current liabilities:
      Accounts payable                                81            154
      Accrued liabilities                             286           248
      Accrued dividends                               -             222
      Deferred revenue                                5             -
      Convertible notes, net of debt discount of      1,833         2,365
      $2,167 and $4,635, respectively
      Embedded conversion feature liabilities on     2,256       3,934    
      convertible notes
              Total current liabilities             $ 4,461       $ 6,923
                                                                  
Long-term liabilities
      Warrant liabilities                             2,256         2,766
      Other long-term liabilities                    856         856      
              Total liabilities                     $ 7,573       $ 10,545
                                                                  
Shareholders' deficit:
      Convertible, redeemable Series A Preferred
      Stock, $0.001 par value; 10,000,000
      shares authorized; 0 and 506,936 shares
      issued and outstanding at
      March 31, 2013 and December 31, 2012,           -             -
      respectively
      Common stock, $0.001 par value; 500,000,000
      shares and 400,000,000 authorized
      at March 31, 2013 and December 31, 2012,
      respectively; 305,762,752
      and 242,074,324 shares issued and
      outstanding at March 31, 2013
      and December 31, 2012, respectively             306           242
      Warrants                                        18,179        18,179
      Additional paid-in capital                      174,635       169,891
      Accumulated deficit                            (193,378 )   (189,884 )
              Total shareholders' deficit           $ (258     )  $ (1,572   )
                                                                 
              Total liabilities and shareholders'   $ 7,315      $ 8,973    
              deficit
                                                                  


LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
                                                           
 
                                                               
                                             Three Months Ended March 31,
                                              2013            2012        
                                                               
Revenue
  Products                                   $ 117             $ 183
  Licensing and royalties                     5               13          
           Total revenue                       122               196
                                                               
Cost of revenue, products                     82              81          
  Gross margin                                 40                115
                                                               
Operating expenses
  Selling, marketing, general and              1,314             959
  administrative
  Research and development                    236             188         
           Total operating expenses           1,550           1,147       
Operating loss                                 (1,510      )     (1,032      )
                                                               
  Change in value of warrants, gain            510               -
  Change in value of embedded conversion       1,678             -
  feature liabilities, gain
  Debt discount amortization expense           (4,034      )     -
  Interest expense                             (141        )     (39         )
  Interest income                             3               4           
                                                               
Loss before income taxes                       (3,494      )     (1,067      )
                                                               
  Income taxes                                -               -           
                                                               
Net loss                                      (3,494      )    (1,067      )
                                                               
                                                               
Per common share basic and diluted:
                                                               
  Loss per share                             $ (0.01       )   $ (0.01       )
                                                               
                                                               
Number of weighted average shares             282,675,201     153,707,246 
                                                                             

Contact:

Liquidmetal Technologies, Inc.
Otis Buchanan
Media Relations
949-635-2120
otis.buchanan@liquidmetal.com
or
Liolios Group, Inc.
Matt Glover or Michael Koehler
Investor Relations
949-574-3860
LQMT@liolios.com
 
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