Liquidmetal(R) Technologies Reports 2006 Fourth Quarter and Year End Results
Liquidmetal(R) Technologies Inc. (OTCBB:LQMT) today reported financial results for the fourth quarter and year ended December 31, 2006.
Revenue for the full 2006 year was $27.7 million, up 69% over 2005 revenue of $16.4 million. The Company's gross margin also increased to 19%, up from 8% in 2005. During the year, selling general and administrative costs were $10.0 million compared to $8.5 million in 2005. Research and development costs came in at $1.0 million compared to $1.1 million in 2005. The Company had Adjusted EBITDA of negative $0.4 million in 2006 compared to a negative $5.0 million in 2005. Under GAAP, the Company had net loss of $14.5 million in 2006 compared to a net loss of $7.1 million in 2005. Changes in net income fully reflect the accounting treatment for the outstanding warrants and conversion features of convertible notes.
Revenue for the fourth quarter of 2006 was $6.0 million, compared to revenue of $5.5 million in 2005, a 9% increase. The Company’s gross margin was 15%, slightly down from the 16% of 2005. The selling, general and administrative costs were $2.6 million compared to $2.0 million in the fourth quarter of 2005. Research and development costs came in at $0.2 million compared to $0.3 million in the fourth quarter of 2005. The adjusted EBITDA for the fourth quarter of 2006 was a negative $0.7 million compared to a negative $0.6 million for the same period in 2005. Under GAAP, the Company had a net loss of $0.7 million for the fourth quarter of 2006 compared to a net income of $4.1 million for the same period in 2005.
Larry Buffington, President and CEO, commented, “Liquidmetal Technologies achieved several milestones during the past year in the adoption and commercialization of our revolutionary technology. In 2006, our customers incorporated Liquidmetal into several key products which have been introduced into commercial markets. We successfully demonstrated our supplier capabilities by manufacturing large quantities to meet product demand while also maintaining the quality standards of our world class customers. Achieving ISO certification in our manufacturing operations and complying with Rule 404 of the Sarbanes Oxley Act are further indications of the foundation established in all areas of our Company. As we look ahead in 2007, we are laying the groundwork to make Liquidmetal a more pervasive technology by combining the superior performance characteristics of our technology with a highly cost-competitive position and efficient, capable manufacturing expertise.”
Conference Call
As previously announced, Liquidmetal Technologies will host a conference call at 4:30 pm (EDT) on Thursday, March 15, 2007 to discuss the results.
Listeners may access the conference call live over the Internet from Liquidmetal Technologies' website ir.liquidmetal.com or at companyboardroom.com.
Use of Non-GAAP Numbers
The financial results disclosed in this release include certain measures calculated and presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"). In addition to the GAAP financial measures, Liquidmetal Technologies provides supplemental, non-GAAP financial measures to facilitate evaluation of Liquidmetal Technologies' operating performance. Management believes that Adjusted EBITDA is a useful financial measure that facilitates evaluating the past and future performance of Liquidmetal Technologies' operations on a comparable basis. Liquidmetal Technologies reports Adjusted EBITDA as an alternative method for assessing total company performance. Included in this press release is a reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as provided with the financial statements attached to this press release. |
