Liquidmetal Technologies Reports Third Quarter 2013 Results

  Liquidmetal Technologies Reports Third Quarter 2013 Results

    Prototype Shipments Continue to Reach Customers in Targeted Industries

Business Wire

RANCHO SANTA MARGARITA, Calif. -- November 8, 2013

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of
amorphous alloys and composites, reported results for the quarter ended
September 30, 2013.

Q3 2013 Operational Highlights

During the third quarter, Liquidmetal continued to deliver prototype shipments
to new customers and made further advancements on commercialized production
processes.

  *Prototype shipments in the aerospace and defense industry represented a
    positive step in the future commercialization of our product. The success
    story in this case was the canard for Lockheed Martin’s EAPS missile. The
    canard is scheduled to be part of a live flight test early next year.
  *The announcement of the availability of a standard Liquidmetal injection
    molding system from ENGEL, one of the world’s leading suppliers of
    injection molding equipment. These machines have already been quoted, have
    a standard availability, and can be installed and supported anywhere in
    the world.

Management Commentary

“During the third quarter, we shipped 3 prototypes into very exciting markets.
We are also pleased with the subsequent closing of our Common Stock Purchase
Agreement that will allow us flexibility in the funding of our on-going
operations through discretionary issuances of our common stock” said Tom
Steipp, President and CEO of Liquidmetal Technologies.

Q3 2013 Financial Summary

In Q3 2013, the company generated revenues of $456 thousand as it focused on
the development of prototype parts for its customers.

Selling, marketing, general and administrative expense was $1.2 million
compared to $1.4 million in Q3 2012. The decrease was primarily due to
reductions in external consultant and legal expenses off-set by additional
headcount to support the Company’s sales and business development efforts.

Research and development expense was $368,000 compared to $217,000 in Q3 2012.

Cash totaled $3.0 million at September 30, 2013, as compared to $7.2 million
at December 31, 2012.

Conference Call

Liquidmetal Technologies management will hold a conference call later today
(November 8, 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: Friday November 8, 2013
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-888-438-5491
International: 1-719-325-2472
Conference ID: 1752720

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.

A replay of the call will be available after 7:30 p.m. Eastern time on the
same day through November 15th, 2013.

Toll-Free Replay Number: 1-888-203-1112
International Replay Number: 1-719-457-0820
Replay PIN Number: 1752720

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)
                                                                
                                                                  
                                                  September 30,   December 31,
                                                    2013         2012     
                                                  (Unaudited)     (Audited)
ASSETS
                                                                  
Current
assets:
               Cash                               $  3,023        $ 7,162
               Trade accounts receivable, net of
               allowance for doubtful accounts of    431            64
               $3 and $11, respectively
               Prepaid expenses and other current   548          689      
               assets
                        Total current assets      $  4,002        $ 7,915
Property and equipment, net                          265            161
Patents and trademarks, net                          792            869
Other assets                                        28           28       
                        Total assets              $  5,087       $ 8,973    
                                                                  
LIABILITIES AND SHAREHOLDERS' DEFICIT
                                                                  
Current liabilities:
               Accounts payable                      243            154
               Accrued liabilities                   704            248
               Accrued dividends                     -              222
               Convertible notes, net of debt
               discount of $0 and $4,635,            -              2,365
               respectively
               Embedded conversion feature          -            3,934    
               liabilities on convertible notes
                        Total current liabilities $  947          $ 6,923
                                                                  
Long-term liabilities:
               Warrant liabilities                   4,481          2,766
               Other long-term liabilities          856          856      
                        Total liabilities         $  6,284        $ 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 September
                        30, 2013 and December 31,    -              -
                        2012, respectively
               Common stock, $0.001 par value;
               500,000,000 shares and 400,000,000
                        authorized at September
                        30, 2013 and December 31,
                        2012, respectively;
                        373,040,523 and
                        242,074,324 shares issued
                        and outstanding at
                        September
                        30, 2013 and December 31,    373            242
                        2012, respectively
               Warrants                              18,179         18,179
               Additional paid-in capital            182,304        169,891
               Accumulated deficit                   (202,013 )     (189,884 )
               Non-controlling interest in           (40      )     -
               subsidiary
                                                                 
                        Total shareholders'          (1,197   )     (1,572   )
                        deficit
                                                                 
                        Total liabilities and     $  5,087       $ 8,973    
                        shareholders' deficit
                                                                  
                        Working Capital              3,055          992
                        (Deficit):
                                                                  
                                                     -              -


LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE LOSS

(in thousands, except share and per share data)

(unaudited)

                                                           
                        For the Three Months Ended         For the Nine Months Ended
                        September 30,                      September 30,
                         2013           2012           2013           2012        
                                                                             
Revenue
     Products           $ 456             $ 80             $ 721             $ 471
     Licensing and       -               27             7               46          
     royalties
           Total          456               107              728               517
           revenue
                                                                             
Cost of sales            396             73             589             256         
     Gross profit         60                34               139               261
                                                                             
Operating expenses
     Selling,
     marketing, general   1,213             1,372            3,735             3,338
     and administrative
     Research and         368               217              829               616
     development
     Manufacturing       -               -              -               6,300       
     contract costs
           Total
           operating     1,581           1,589          4,564           10,254      
           expenses
Operating loss            (1,521      )     (1,555      )    (4,425      )     (9,993      )
                                                                             
     Change in value of
     warrants, gain       (2,511      )     4,184            (1,715      )     4,010
     (loss)
     Change in value of
     embedded
     conversion feature
           liabilities,   (2,435      )     2,785            621               2,785
           gain (loss)
     Debt discount
     amortization         (361        )     (6,247      )    (6,504      )     (6,247      )
     expense
     Financing costs      -                 -                -                 (1,355      )
     Interest expense     (21         )     (240        )    (242        )     (258        )
     Interest income      1                 10               5                 18
     Gain on
     extinguishment of   91              -              91              -           
     debt (Note 7)
                                                                             
Net loss                  (6,757      )     (1,063      )    (12,169     )     (11,040     )
                                                                             
Net loss attributable
to non-controlling       32              -              40              -           
interest
Net loss and
comprehensive loss
attributable to
     Liquidmetal
     Technologies       $ (6,725      )   $ (1,063      )  $ (12,129     )   $ (11,040     )
     shareholders
                                                                             
                                                                             
                                                                             
Net loss per common
share attributable to
Liquidmetal
     Technologies
     shareholders,      $ (0.02       )   $ (0.01       )  $ (0.04       )   $ (0.06       )
     basic and diluted
                                                                             
Number of weighted
average shares - basic   372,840,523     195,275,681    330,329,312     173,544,833 
and diluted

Contact:

Liquidmetal Technologies, Inc.
Otis Buchanan, Media Relations
949-635-2120
otis.buchanan@liquidmetal.com
 
Press spacebar to pause and continue. Press esc to stop.