MXWL full text Dow Jones story:
<<Maxwell Tech Off 33% On Co.'s FY2000 Outlook
By Rachel Engers
NEW YORK -- Maxwell Technologies Inc.'s (MXWL) stock plunged 33.9% this morning as lower-than-expected fourth quarter net income and weaker projections for the first half of fiscal 2000 overshadowed record revenue.
"What came as a surprise is that they may not hit analysts' numbers," said Frederick Lacy, an analyst with Hagerty Stewart & Associates.
The San Diego provider of computer-oriented products and services reported revenue of $48.8 million for its fourth quarter ended July 31, compared with more than $39.9 million for the same period a year ago.
Net income, which included a $4.2 million charge and a $6.1 million income tax credit, rose to $3.7 million, or 38 cents a share, from $2.2 million, or 22 cents a share.
Joseph T. Arsenio, an analyst with Hambrecht & Quist, downgraded Maxwell's rating from a buy to a market perform this morning when the earnings failed to meet his expectation of 35 cents a share. Adjusted for the charge and tax credit, Maxwell's earnings were closer to 16 cents a share, Arsenio said.
Shares of Maxwell closed Tuesday at 19 9/16 at Tuesday's and opened today at 11 7/8.
The company said Tuesday that operating income in the early part of fiscal 2000 will be hurt by its investments in medical sterilization, water purification, and ultracapacitator and space product development and marketing. The company expects stronger profits in the second half of 2000.
Robert W. Stone, an analyst at S.G. Cowen & Co., cut Maxwell's rating from a strong buy to neutral and lowered his fiscal 2000 earnings expectation to 65 cents a share from $1.65.
"The selloff on Maxwell stock is a major overreaction," Maxwell Chief Executive Tom Horgan told analysts in a conference call. "The company will continue to sustain growth and have a profitable year."
Hambrecht & Quist's Arsenio said now that the stock has plunged, it appears to be oversold. "This company is worth more than $12 (a share)," he said.
Shares of Maxwell recently changed hands at 13, down 6 9/16, or 33.5%, on composite volume of 3.8 million shares. Average daily volume is 61,272 shares.
-Rachel Engers; 201-938-5174>>
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