From the latest 10Q: RESULTS OF OPERATIONS
COMPARISON OF THREE MONTHS ENDED MARCH 31, 2000 AND MARCH 31, 1999
PRODUCT REVENUE. Product revenue increased by $3.9 million or 219% from $1.8 million to $5.6 million. This increase was attributable to $2.7 million in revenue from Ling Electronics and a $1.1 million increase in revenue from the Company's microelectronics products, high performance motors and magnetic levitation (AMAT purchases) products.
FUNDED RESEARCH AND DEVELOPMENT REVENUE.
Funded research and development revenue was substantially unchanged at $1.9 million for each period. During the three months ended March 31, 2000 the Company devoted more resources to internally funded research and development programs including development of power conversion products for the distributed power generation market (Plug Power - PLUG).
GROSS MARGIN. Gross margin increased by $911,000 or 52% from $1.7 million to $2.7 million. Gross margin from products increased by $906,000 and gross margin from product revenue as a percentage of product revenue increased to 14%
from (8%). The improvement in gross margin from product revenue as a percentage of revenue is due to improved plant utilization at MagMotor due to higher revenue and gross margin from Ling Electronics.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and administrative expenses increased by $1.4 million or 135% from $1.0 million to $2.4 million. The increase was primarily due to the inclusion of $725,000 of
costs from Ling Electronics, $300,000 of costs for facilities and staffing in an effort to meet expected growth and demand for our products and in 1999, the
deferral of $400,000 of costs associated with a research and development contract.
RESEARCH AND DEVELOPMENT EXPENSES.
Research and development expenses increased by $427,000 or 29% from $1.5 million to $1.9 million. The increase was
attributable to the Company's increased focus on internally funded research and development projects including the development of power conversion products for the distributed power generation market.
AMORTIZATION OF INTANGIBLES. Amortization of intangibles increased by $235,000 or 250% from $94,000 to $329,000. This increase was the result of amortization of intangibles recorded in connection with the acquisitions of Inductive and Lighthouse in January 1999, Ling Electronics in October 1999 and certain intellectual property and other intangible assets from Northrop Grumman Corporation in November 1999.
LOSS FROM INVESTMENT IN BEACON POWER CORPORATION. For the three months ended March 31, 2000 the Company did not record a loss from its investment in Beacon Power Corporation. For the three months ended March 31, 1999, the Company recorded a loss of $424,000. As of December 31, 1999, the Company's investment in Beacon had been reduced to zero and no additional losses were recorded during the period from January 1, 2000 through March 31, 2000.
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AMAT sales should continue nicely as Semi equip. is just starting to ramp up big time.
Plug Power stuff might pay off in a few years.
I had not seen the Beacon info before this.
Jim |
