Maxwell Technologies Reports 2013 Financial Results CONFERENCE CALL & WEBCAST AT 5 P.M. (EST) TODAY - DETAILS BELOW PR Newswire SAN DIEGO, Feb. 20, 2014 SAN DIEGO, Feb. 20, 2014 /PRNewswire/ -- Maxwell Technologies, Inc. (Nasdaq: MXWL) today reported revenue of $39.0 million for its fourth quarter ended December31, 2013, down 12 percent from the $44.5 million recorded in the same period in 2012. Revenue for the fiscal year ended December31, 2013, totaled $193.5 million, up 22 percent over the $159.3 million recorded in fiscal 2012. Enabling Energy's Future. Ultracapacitor revenue decreased by 11 percent, to $26.3 million in Q413, compared with $29.5 million in the same period last year, and totaled $136.3 million for the full year, up 42 percent from the $96.0 million recorded in 2012. Sales of high voltage capacitor and microelectronics products totaled $12.7 million in Q413, down 16 percent from the $15.1 million recorded in Q412; full year sales for those products totaled $57.3 million, down 10 percent from the $63.3 million recorded in 2012. On a U.S. generally accepted accounting principles (GAAP) basis, operating loss for the fourth quarter 2013 was $2.6 million, compared with operating income of $3.4 million in Q412. GAAP operating income for the full year was $8.6 million, compared with operating income of $9.7 million in 2012. GAAP net loss for Q413 was $2.8 million, or $0.10 per share, compared with net income of $2.9 million, or $0.10 per diluted share, in Q412. GAAP net income for the full year was $6.3 million, or $0.22 per diluted share, compared with net income of $7.2 million, or $0.25 per diluted share, in 2012. On a non-GAAP basis, the Company reported an operating loss of $1.2 million in Q413 compared with operating income of $3.9 million in Q412. Non-GAAP operating income for the full year was $12.5 million compared with $12.8 million in 2012. Non-GAAP net loss for Q413 was $1.5 million, or $0.05 per share, compared with net income of $3.4 million or $0.12 per diluted share in Q412. Non-GAAP net income for the full year was $10.3 million, or $0.36 per diluted share compared with $10.3 million, or $0.36 per diluted share, in 2012. A reconciliation of GAAP to non-GAAP financial measures is included as an addendum to this release. GAAP gross margin was 37 percent in Q413, compared with 39 percent in Q412 and 41 percent in Q313. For the full year, gross margin was 39 percent in 2013, compared with 41 percent in 2012. GAAP operating expenses totaled approximately $16.9 million, or 43 percent of revenue, in Q413 compared with $13.9 million, or 31 percent of revenue in Q412. Non-GAAP operating expenses totaled approximately $15.9 million, or 41 percent of revenue, in Q413 compared with $13.5 million, or 30 percent of revenue, in Q412. Cash and cash equivalents totaled $30.6 million as of December31, 2013, compared with cash and restricted cash of $41.1 million as of September30, 2013. Complete financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations will be available with the filing of the Company's Annual Report on Form 10-K with the Securities & Exchange Commission. Outlook: "We are experiencing strengthening demand in the wind market due to new design wins and increased purchasing activity from existing customers. In addition, we are in the early phases of an anticipated ramp for plug-in hybrid buses in China," said John Warwick, Maxwell's interim president and CEO. "Based on our customer inputs, we expect first quarter total revenue to be flat to slightly up compared with the fourth quarter of 2013." Non-GAAP Financial Measures: The Company uses non-GAAP financial measures for internal evaluation and to report the results of its business. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income, and non-GAAP net income per diluted share. These measures are not in accordance with, nor an alternative to, GAAP. These measures are intended to supplement GAAP financial information, and may be computed differently from non-GAAP financial measures used by other companies. The Company believes that these measures provide useful information to its management, board of directors and investors about its operating activities and business trends related to its financial condition and results of operations. The Company believes that it is useful to provide investors with information to understand how specific line items in the statement of operations are affected by certain non-cash or non-recurring items, such as stock-based compensation expense. In addition, the Company's management and board of directors use these non-GAAP financial measures in developing operating budgets and in reviewing the Company's results of operations, as non-cash and non-recurring items have limited impact on current and future operating decisions. Additionally, the Company believes that inclusion of non-GAAP financial measures provide consistency and comparability with its past reports of financial results. However, investors should be aware that non-GAAP measures have inherent limitations and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Please refer to the accompanying tables for a detailed reconciliation of GAAP to non-GAAP gross profit, operating expenses, income from operations, net income, and net income per share. Management will conduct a conference call and simultaneous webcast to discuss fourth quarter of 2013 financial results and the future outlook at 5 p.m. (EST) today. The call may be accessed by dialing toll-free, (866) 952-1906 from the U.S. and Canada, or (785) 424-1825 for international callers, and entering the conference ID, MAXWELL. The live web cast and subsequent archived replay may be accessed at the Company's web site via the following link: http://investors.maxwell.com/phoenix.zhtml?c=94560&p=irol-calendar. Maxwell is a global leader in the development and manufacture of innovative, cost-effective energy storage and power delivery solutions. Our ultracapacitor products provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation, renewable energy and information technology. Our CONDIS® high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation-mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications. For more information, visit www.maxwell.com. Forward-looking statements: Statements in this news release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Such risks, uncertainties and contingencies include, but are not limited to, the following: oDependence upon the sale of products to a small number of customers and vertical markets, some of which are heavily dependent on government funding or government subsidies which may or may not continue in the future; oDependence upon the sale of products into China and Europe, where macroeconomic factors outside our control may adversely affect our sales; oOur ability to remain competitive and stimulate customer demand through successful introduction of new products, and to educate our prospective customers on the products we offer; oRisks related to our international operations including, but not limited to, our ability to adequately comply with the changing rules and regulations in countries where our business is conducted, our ability to oversee and control our foreign subsidiaries and their operations, our ability to effectively manage foreign currency exchange rate fluctuations arising from our international operations, and our ability to continue to comply with the U.S. Foreign Corrupt Practices Act as well as the anti-bribery laws of foreign jurisdictions and the terms and conditions of our settlement agreements with the Securities and Exchange Commission and the Department of Justice; oSuccessful acquisition, development and retention of key personnel; oOur ability to effectively manage our reliance upon certain suppliers of key component parts, specialty equipment and logistical services; oOur ability to match production volume to actual customer demand; oOur ability to manage product quality problems; oOur ability to protect our intellectual property rights and to defend claims against us; oOur ability to effectively identify, enter into, manage and benefit from strategic alliances; oOccurrence of a catastrophic event at any of our facilities; oOccurrence of a technology systems failure, network disruption, or breach in data security; oOur ability to obtain sufficient capital to meet our operating or other needs; and, oOur ability to manage and minimize the impact of unfavorable legal proceedings. For further information regarding risks and uncertainties associated with Maxwell's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of these documents may be obtained by contacting Maxwell's investor relations department at (858) 503-3434, or at our investor relations website: investors.maxwell.com. All information in this release is as of February20, 2014. The Company undertakes no duty to update any forward-looking statement to reflect actual results or changes in the Company's expectations. Media & Investor Contact: Michael Sund +1 (858) 503-3233; firstname.lastname@example.org MAXWELL TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, December December 2013 2012 31, 2013 31, 2012 Revenue $ $ $ $ 38,979 44,503 193,534 159,258 Cost of revenue 24,605 27,274 118,241 94,206 Gross profit 14,374 17,229 75,293 65,052 Operating expenses: Selling, general and 11,250 8,117 44,195 33,656 administrative Research and 5,691 5,752 22,542 21,700 development Total operating 16,941 13,869 66,737 55,356 expenses Income (loss) from (2,567) 3,360 8,556 9,696 operations Interest income 117 22 (4) (116) (expense), net Amortization of debt discount and prepaid debt (14) (15) (60) (57) costs Income (loss) before (2,464) 3,367 8,492 9,523 income taxes Income tax provision 350 500 2,152 2,349 Net income (loss) $ $ $ $ (2,814) 2,867 6,340 7,174 Net income (loss) per common share: $ $ $ $ Basic (0.10) 0.10 0.22 0.25 $ $ $ $ Diluted (0.10) 0.10 0.22 0.25 Weighted average common shares outstanding: Basic 28,917 28,738 28,869 28,568 Diluted 28,917 28,759 28,903 28,709 MAXWELL TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (Unaudited) December 31, December 31, 2013 2012 ASSETS Current assets: Cash and cash equivalents $ $ 30,647 28,739 Trade and other accounts receivable, net 29,869 33,420 Inventories 44,736 41,620 Prepaid expenses and other current assets 2,314 3,228 Total current assets 107,566 107,007 Property and equipment, net 44,941 36,235 Intangible assets, net 369 669 Goodwill 25,978 25,416 Pension asset 10,568 6,939 Other non-current assets 665 206 Total assets $ $ 190,087 176,472 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ $ 25,436 27,181 Accrued warranty 180 269 Accrued employee compensation 8,788 4,743 Deferred revenue 1,043 6,408 Short-term borrowings and current portion of 7,914 9,452 long-term debt Deferred tax liability 890 980 Total current liabilities 44,251 49,033 Deferred tax liability, long-term 2,125 1,384 Long-term debt, excluding current portion 100 83 Other long-term liabilities 3,401 1,039 Total liabilities 49,877 51,539 Stockholders' equity: Common stock, $0.10 par value per share, 40,000 shares authorized; 29,563 and 29,162 2,953 2,913 shares issued and outstanding at December31, 2013 and 2012, respectively Additional paid-in capital 271,928 267,623 Accumulated deficit (151,794) (158,134) Accumulated other comprehensive income 17,123 12,531 Total stockholders' equity 140,210 124,933 Total liabilities and stockholders' equity $ $ 190,087 176,472 MAXWELL TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, except per share data) (Unaudited) Three Months Ended Tweleve Months Ended December September December December December 31, 2013 30, 31, 2012 31, 2013 31, 2012 2013 Gross Profit Reconciliation: $ $ $ $ $ GAAP gross profit 14,374 21,113 17,229 75,293 65,052 Stock-based compensation A 316 228 157 1,079 701 expense included in cost of sales Non-GAAP gross $ $ $ $ $ profit 14,690 21,341 17,386 76,372 65,753 Total Operating Expenses Reconciliation: GAAP total $ $ $ $ $ operating expenses 16,941 14,905 13,869 66,737 55,356 Stock-based compensation A (1,042) (491) (370) (2,901) (2,387) expense Non-GAAP total $ $ $ $ $ operating expenses 15,899 14,414 13,499 63,836 52,969 Income (Loss) From Operations Reconciliation: GAAP income (loss) $ $ $ $ $ from operations (2,567) 6,208 3,360 8,556 9,696 Stock-based compensation A 1,358 719 527 3,980 3,088 expense Non-GAAP income $ $ $ $ $ (loss) from (1,209) operations 6,927 3,887 12,536 12,784 Net Income (Loss) Reconciliation: GAAP net income $ $ $ $ $ (loss) (2,814) 6,027 2,867 6,340 7,174 Stock-based compensation A 1,358 719 527 3,980 3,088 expense Non-GAAP net income $ $ $ $ $ (loss) (1,456) 6,746 3,394 10,320 10,262 (Diluted) Net Income (loss) per Share Reconciliation: GAAP (diluted) net $ $ $ $ $ income (loss) per (0.10) share 0.21 0.10 0.22 0.25 Stock-based compensation A 0.05 0.02 0.02 0.14 0.11 expense Non-GAAP (diluted) $ $ $ $ $ net income (loss) (0.05) per share 0.23 0.12 0.36 0.36 See notes on next page MAXWELL TECHNOLOGIES, INC. Stock-based compensation expense consists of non-cash charges for employee (A) stock options, restricted stock awards, restricted stock units and employee stock purchase plan awards.Results include stock-based compensation expense as follows (in thousands): Three Months Ended Tweleve Months Ended December September December December December 31, 2013 30, 31, 2012 31, 2013 31, 2012 2013 $ $ $ $ $ Cost of revenue 316 228 157 1,079 700 Selling, general and 804 332 250 2,140 1,836 administrative Research and 238 159 120 761 552 development Total stock-based $ $ $ $ $ compensation expense 1,358 719 527 3,980 3,088 Logo: http://photos.prnewswire.com/prnh/20121018/LA91771LOGO SOURCE Maxwell Technologies, Inc. Website: http://www.maxwell.com
Maxwell Technologies Reports 2013 Financial Results
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