Maxwell Technologies Reports Fourth Quarter and Year-End Results;
Q4 Product Sales Drive Significant Revenue Growth And Improvement in Operating Results;
Company Sees Profitability in 2001;
DATELINE: SAN DIEGO, Feb. 12
BODY:
Maxwell Technologies, Inc. (Nasdaq: MXWL) today reported revenue from continuing operations of $27.4 million for its fourth quarter ended December 31, 2000, representing a 28 percent increase over revenues of $21.5 million for the comparable quarter ended December 31, 1999, and a 27 percent increase over revenues of $21.7 million for the previous quarter ended September 30, 2000.
Fourth quarter loss from continuing operations was $0.9 million, or $0.09 per share. That compares to a loss from continuing operations, before restructuring and other charges, of $3.1 million, or $0.32 per share, for the three months ended December 31, 1999, and a loss, before restructuring and other charges, of $5.2 million, or $0.53 per share, for the previous quarter ended September 30, 2000. Including a contribution of $0.9 million of income from discontinued operations, net income for the fourth quarter was $8,000, or $0.00 per share. That compares to a net loss of $11.4 million for the three months ended December 31, 1999, and a net loss of $13.0 million for the quarter ended September 30, 2000.
Revenue from continuing operations for the fiscal year ended December 31, 2000, was $102.3 million, compared to $103.6 million for the year ended December 31, 1999. The loss from continuing operations, before restructuring and other charges, for fiscal year 2000 was $8.1 million, or $0.83 per share. That compares to a net loss from continuing operations, before restructuring and other charges and before a one-time tax credit of $7.7 million, of $2.8 million, or $0.28 per share, for the 12 months ended December 31, 1999.
The company announced on January 10, 2001, that it had signed letters of intent to sell its government contracting business, and today announced its intention to seek strategic alternatives for its PurePulse business. Both businesses have been classified as discontinued operations, and results for prior periods have been restated accordingly.
Vickie Capps, Maxwell's chief financial officer, said that the company's fourth quarter results reflect the tremendous progress made by the company during 2000, culminating in the completion of the company's restructuring activities in October 2000.
"The sequential revenue increase and reduced operating loss from Q3 to Q4 provide a clear measurement of how our continuing operations are progressing," Capps said. "The integration of our core businesses and the investments we made in infrastructure and new management talent over the first three quarters began to pay off in the fourth quarter, and we expect our businesses to show continuing, gradual progress in the current fiscal year."
Capps also noted that the company's year-to-year comparisons are distorted by the impact on 2000 sales and operating results of the conclusion of a major supply agreement in the company's I-Bus/Phoenix power and computing systems business, which contributed $10.8 million less in revenue in 2000 than it did in 1999, and that gross margins in 2000 were negatively impacted by significant investments in the company's manufacturing capabilities.
Carl Eibl, Maxwell's president and chief executive officer, said that he expects the company to generate positive operating income by the third quarter of 2001, and to be profitable on a full-year basis.
"Our Electronic Components Group recorded its first-ever profit in Q4, but it will take another quarter or two for some of the new I-Bus/Phoenix power and computing products we are introducing to gain traction," Eibl said. "We expect consolidated sales to show some growth in the first half of the year and begin to ramp in the second half of the year. That should establish a pattern of quarter-to-quarter gross margin improvement, and although operating expenses will increase over last year in absolute dollars, they will decline as a percentage of revenues."
Eibl said that the company expects 2001 consolidated revenues to grow by more than 30 percent, and that gross margins will be in the range of 35 percent by the fourth quarter, with a higher growth rate and gross margin contribution anticipated from the company's Electronic Components Group.
Capps said that proceeds from the sale of Maxwell's government contracting business, which is expected to be completed before the end of the current quarter, will be used to pay down bank debt, resulting in decreased interest expense. She noted that, while the company does not expect to generate positive cash flow from operations until the third quarter, it has negotiated a new credit facility to finance projected growth until that time.
The company will conduct a conference call and simultaneous webcast to discuss 2000 financial results, provide an update on other developments and answer analysts' questions at 11 a.m. (eastern) tomorrow, February 13, 2001. The call may be accessed by dialing (212) 896-6097; the webcast and subsequent replay may be accessed at the company's web site, www.maxwell.com. The company will also make a presentation at an investor conference sponsored by Banc of America Securities LLC at 9 a.m. (eastern) on Wednesday, February 14, in New York, and will provide a live webcast and replay of the presentation and subsequent breakout meeting at the company's web site. Both webcasts and replays can be accessed by clicking on Investor Relations, then clicking on Audio Presentations.
Maxwell Technologies applies industry-leading capabilities in power and computing to develop and commercialize electronic components and power and computing systems for customers in multiple industries, including transportation, telecommunications, e-commerce, consumer and industrial electronics, energy, medical and aerospace. |
