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



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SOURCE Maxwell Technologies, Inc.

Website: http://www.maxwell.com
 
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