CUI Global Reports Unaudited Consolidated (Second Quarter 2013) Revenue of $18,151,091

  CUI Global Reports Unaudited Consolidated (Second Quarter 2013) Revenue of
                                 $18,151,091

PR Newswire

TUALATIN, Ore., Aug. 14, 2013

TUALATIN, Ore., Aug. 14, 2013 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI),
a platform company dedicated to the acquisition, development, and
commercialization of new, innovative products and technologies, today reported
unaudited results for the second quarter ended June 30, 2013.

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

For the six months ended June 30, 2013, CUI Global produced consolidated total
revenues of $28,210,451. The numbers demonstrate that gross revenues for the
Second Quarter ($18,151,091) grew 80% sequentially from First Quarter revenues
($10,059,360) and 81% year-over-year, when compared to Second Quarter 2012
($10,011,758), before the acquisition of Orbital-UK and associated accretive
revenues.

The company had $28,105,549 of cash and cash equivalents as of June 30, 2013 –
an increase of more than $25,000,000 since December 31, 2012 ($3,039,840).

The company earned a net profit of $0.02 earnings per share (EPS) for the
quarter ended June 30, 2013. The earnings before interest, taxes,
depreciation and amortization (EBIDTA) per share for the second quarter were
$0.08.

In addition, as an operating unit, the power and electro-mechanical segment
(CUI Inc and CUI Japan) posted record YTD revenues of $22,253,366, which
represented a $3,771,845 (20%) increase as compared to the same period in
2012.

The sales order back log at June 30, 2013 was a consolidated $38.2 million, a
$26.0 million (200%) increase from the June 30, 2012 back log balance of $12.2
million (before the acquisition of Orbital-UK and associated accretive
revenues).

"This is the first consolidated reporting period following our acquisition of
Orbital-UK and the results are quite compelling," explained William Clough,
CUI Global's president & CEO. "The sequential growth in revenue; the dramatic
increase in customer back orders; and our turn to profitability all
demonstrate the tangible results of this immediately accretive acquisition and
our continuing efforts, now through CUI, Inc., CUI Japan and Orbital-UK, to
increase our penetration into both the electronics and natural gas markets."

"Moreover, the 200% increase in sales order back log, year-to-year, ensures us
of a robust delivery schedule for the Third Quarter of 2013."

"The acquisition of Orbital-UK and its recognized expertise in the natural gas
industry, along with its team of professional engineers should only enhance
the penetration into the market of our GasPT Technology; the recently acquired
VE-Probe Technology; and our proprietary IRIS remote telemetry system –
All-in-all, very exciting times for our company and its shareholders," Clough
concluded.

The Company will conduct a conference call and web cast to review the results
on Thursday, August 15, 2013 at 11:00 a.m. ET.

CUI Global, Inc. Second Quarter Results Conference Call
Thursday, August 15, 2013 at 11:00 a.m. Eastern
Dial in number: 877-407-8029

A simultaneous webcast will also be available via:
http://www.investorcalendar.com/IC/CEPage.asp?ID=171427

In addition, a replay of the conference call will be archived and available
until September 14, 2013 at the following number: 877-660-6853, conference
ID: 418837.



Condensed Consolidated Balance Sheets

(unaudited)
                                               June 30,        December 31,
                                               2013            2012
                                               (unaudited)
Assets:
Current Assets:
Cash and cash equivalents                      $         $       
                                               28,105,549     3,039,840
Trade accounts receivable, net of allowance of 8,932,614       4,965,926
$150,000 and $130,000, respectively
Inventories, net of allowance of $603,634 and  6,169,021       4,843,905
$250,000, respectively
Costs in excess of billings                    260,072         -
Prepaid expenses and other                     1,070,934       378,885
Total current assets                           44,538,190      13,228,556
Property and equipment, net                    2,693,213       1,016,219
Other assets:
Investment - equity method                     254,118         258,244
Other Intangible assets, net                   23,755,391      8,618,524
Deposits and other                             -               11,360
Notes receivable, net                          485,416         501,422
Debt offering costs, net                       6,111           42,778
Goodwill, net                                  18,174,366      13,046,358
Total other assets                             42,675,402      22,478,686
Total assets                                   $         $      
                                               89,906,805     36,723,461
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable                               $        $       
                                               4,522,990       2,496,881
Line of credit                                 -               459,448
Leases payable, current                        88,348          -
Accrued expenses                               2,219,296       1,140,743
Accrued compensation                           581,909         186,636
Accrued taxes payable                          672,901         2,096
Unearned revenue                               676,397         371,541
Billings in excess of costs                    5,854,993       -
Total current liabilities                      14,616,834      4,657,345
Leases payable, net of current portion         33,459          -
Long term note payable, related party          5,303,683       7,303,683
Total long term liabilities                    5,337,142       7,303,683
Total liabilities                              19,953,976      11,961,028
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001; 10,000,000  -               -
shares authorized
Common stock, par value $0.001; 325,000,000
shares authorized; 20,564,163shares issued
and outstanding at June 30, 2013 and           20,564          10,883
10,883,280 shares issued andoutstanding at
December 31, 2012
Additional paid-in capital                     146,368,848     100,947,708
Accumulated deficit                            (76,339,136)    (76,171,822)
Accumulated other comprehensive (loss)         (97,447)        (24,336)
Total stockholders' equity                     69,952,829      24,762,433
Total liabilities and stockholders' equity     $         $      
                                               89,906,805     36,723,461
See accompanying notes to unaudited condensed consolidated financial
statements



Condensed Consolidated Statements of Operations

(unaudited)
                        For the three months       For the six months

                        ended June 30,             ended June 30,
                        2013          2012         2013          2012
Revenues:
Product Sales           $ 18,138,599  $ 9,996,133  $ 28,190,845  $ 18,459,939
Revenue from freight    12,492        15,625       19,606        21,582
Total revenue           18,151,091    10,011,758   28,210,451    18,481,521
Cost of revenues        11,085,366    6,209,955    17,132,971    11,395,134
Gross profit            7,065,725     3,801,803    11,077,480    7,086,387
Operating expenses
Selling, general and    6,272,515     3,937,262    10,422,272    7,957,440
administrative
Research and            198,775       176,301      443,465       354,490
development
Bad debt                47,470        10,000       42,470        -
Impairment of
intangible, trademark   -             278,428      -             278,428
and trade name
V-Infinity
Total operating         6,518,760     4,401,991    10,908,207    8,590,358
expenses
Income (loss) from      546,965       (600,188)    169,273       (1,503,971)
operations
Other income (expense)
Other income            56,057        9,735        117,295       34,881
Other expense           (4,961)       (3,481)      (9,906)       (3,696)
Earnings (loss) from    (6,229)       19,214       (4,126)       39,791
equity investment
Amortization of debt    (18,333)      (18,334)     (36,666)      (36,667)
offering costs
Interest expense        (86,979)      (114,331)    (201,453)     (301,529)
Total other income      (60,445)      (107,197)    (134,856)     (267,220)
(expense), net
Income (loss) before    486,520       (707,385)    34,417        (1,771,191)
taxes
Provision for taxes     191,742       7,500        201,731       15,456
Consolidated Net Income $ 294,778     $ (714,885)  $ (167,314)   $ (1,786,647)
(loss)
Basic income (loss) per $ 0.02        $ (0.07)     $ (0.01)      $ (0.19)
common share
Diluted income (loss)   $ 0.02        $ (0.07)     $ (0.01)      $ (0.19)
per common share
Basic weighted average
common shares           18,835,103    10,551,530   14,881,158    9,495,579
outstanding
Diluted weighted
average common and      18,843,674    10,551,530   14,889,630    9,495,579
common equivalents
shares outstanding
See accompanying notes to unaudited condensed consolidated financial
statements



Condensed Consolidated Statements of Cash Flows

(unaudited)
                                             For the six months ended June 30,
                                             2013              2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                     $          $      
                                             (167,314)         (1,786,647)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Stock, options and notes issued for          295,541           616,547
compensation and services
Non-cash interest expense, including         36,666            36,667
amortization of debt offering costs
Earnings from Equity Investment              4,126             (39,791)
Bad debt expense                             42,470            -
Amortization of intangibles                  866,403           18,365
Inventory reserve                            18,400            15,000
Impairment of intangible, trademark and      -                 278,428
trade name V-Infinity
Depreciation                                 327,999           278,484
(Increase) decrease in assets:
Trade accounts receivable                    1,654,312         (66,621)
Inventory                                    (898,397)         (895,013)
Costs in excess of billings                  90,871            -
Prepaid expenses and other current assets    (673,266)         247,567
Deposits and other assets                    11,360            68,716
Increase (decrease) in liabilities:
Accounts payable                             456,307           413,235
Accrued expenses                             (1,514,443)       30,933
Accrued compensation                         124,547           3,520
Accrued taxes payable                        (401,223)         (71,011)
Unearned revenue                             259,539           100,543
Billings in excess of costs                  68,803            -
NET CASH PROVIDED BY (USED IN) OPERATING     602,701           (751,078)
ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid upon acquisition, net of cash      (17,709,507)      -
received
Investment in patents                        (2,500)           -
Investment in other intangible assets        -                 (39,940)
Proceeds from Notes receivable               18,116            25,511
Purchase of property and equipment           (442,086)         (359,562)
NET CASH (USED IN) INVESTING ACTIVITIES      (18,135,977)      (373,991)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from (payments to) demand notes     (459,448)         (1,528,900)
payable, net of debt offering costs
Payments on leases payable                   (3,736)           -
Payments on notes and loans payable          -                 (4,000,000)
Payments on notes payable, related party     (2,000,000)       (3,000,000)
Payments on convertible note payable,        -                 (35,000)
related party
Proceeds from sales of common stock, and
exercise of warrants and options, net of     45,135,280        12,723,515
offeringcosts
NET CASH PROVIDED BY FINANCING ACTIVITIES    42,672,096        4,159,615
EFFECT OF EXCHANGE RATE CHANGES ON CASH      (73,111)          (20,548)
Cash and cash equivalents at beginning of    3,039,840         176,775
year
Cash and cash equivalents at end of period   28,105,549        3,190,773
NET INCREASE IN CASH AND CASH EQUIVALENTS    $            $      
                                             25,065,709       3,013,998



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

CUI Global, Inc. is a publicly traded company dedicated to maximizing
shareholder value through the acquisition and development of innovative
companies, products and technologies. From Orbital Gas Systems' advanced
GasPT2 platform targeting the energy sector, to CUI Inc's digital power
platform serving the networking and telecom space, CUI Global and its
subsidiaries have 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. But most importantly, a commitment to conduct
business with a high level of integrity, respect, and philanthropic dedication
allows the organization to make a difference in the lives of their customers,
employees, investors and global community.

For more information please visit www.cuiglobal.com

About CUI Inc
CUI Inc is a technology company dedicated to the development,
commercialization, and distribution of new, innovative electro-mechanical
products. Over the past 20 years, CUI has become a recognized name in
electronic components worldwide in the areas of power, interconnect, motion
control, and sound. CUI's solid customer commitment and honest corporate
message are a hallmark in the industry. CUI is a wholly owned subsidiary of
CUI Global, Inc.

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

About Orbital Gas Systems Ltd.
Orbital Gas Systems Ltd ("Orbital-UK") is the largest natural gas systems
integrator in the United Kingdom. For over 25 years, Orbital-UK has developed
its portfolio of products, services and resources to offer a diverse range of
personalized gas engineering solutions to the gas utilities, power generation,
emissions, manufacturing and automotive industries. Orbital-UK's
internationally recognized expertise in the natural gas industry, including
bringing together the patented VE-technologywith the ground-breaking GasPTi
device, offers natural gas operators and users a comprehensive engineering
array for the next generation of energy metering systems. Orbital-UK is a
wholly owned subsidiary of CUI Global, Inc.

For more information, please visit www.orbital-uk.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.

Reconciliation of Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure and is reconciled in the table below.
EBITDA does not represent funds available for management's discretionary use
and is not intended to represent cash flow from operations. EBITDA should not
be construed as a substitute for net loss or as a better measure of liquidity
than cash flow from operating activities, which is determined in accordance
with United States generally accepted accounting principles ("GAAP"). EBITDA
excludes components that are significant in understanding and assessing the
company's results of operations and cash flows. In addition, EBITDA is not a
term defined by GAAP and as a result our measure of EBITDA might not be
comparable to similarly titled measures used by other companies. However,
EBITDA is used by management to evaluate, assess and benchmark the company's
operational results and the company believes EBITDA is relevant and useful
information which is often reported and widely used by analysts, investors and
other interested parties in the company's industry. Accordingly, the company
is disclosing this information to permit a more comprehensive analysis of its
operating performance, to provide an additional measure of performance and
liquidity and to provide additional information with respect to the company's
ability to meet future debt service, capital expenditure and working capital
requirements.



                    Unaudited
                    For the three months ended,  For the six months ended,
                    June 30,      June 30,       June 30,      June 30,
                    2013          2012           2013          2012
Net Income (loss)   $        $          $         $  
                    294,778       (714,885)      (167,314)     (1,786,647)
 Plus:
Interest expense -
amortization of     18,333        18,334         36,666        36,667
 debt
offering costs
 Plus:          86,979        114,331        201,453       301,529
Interest expense
 Plus:
Depreciation and    983,266       155,810        1,194,402     296,849
amortization
 Plus:
Provision for       191,742       7,500          201,731       15,456
taxes
EBITDA              $          $          $          $  
                    1,575,098    (418,910)      1,466,938    (1,136,146)
Basic EBITDA per    $       $        $       $       
common share          0.08       (0.04)         0.10      (0.12)
Diluted EBITDA per  $       $        $       $       
common share          0.08       (0.04)         0.10      (0.12)
Basic weighted
average common      18,835,103    10,551,530     14,881,158    9,495,579
shares
 outstanding
Diluted weighted
average common and
 common          18,843,674    10,551,530     14,889,630    9,495,579
equivalents shares
outstanding



SOURCE CUI Global, Inc.

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