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Maxwell Technologies Reports 2013 Financial Results

             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; msund@maxwell.com    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