Applied Energetics Reports First Quarter 2008 Financial Results
TUCSON, Ariz., May 12, 2008 (BUSINESS WIRE) -- Applied Energetics, Inc., (Nasdaq: AERG) the Guided Energy(TM) Company, today reported financial results for the first quarter ended March 31, 2008. The Company will host a conference call today, May 12, 2008, at 11:00 a.m. (Eastern Daylight Time).
Applied Energetics highlighted the following activities and accomplishments during the quarter:
-- The Company supported a counter-IED program for the U.S. Marine Corps with pre-production engineering activities and a build-up of inventories in advance of anticipated contracts.
-- The Company delivered an Ultra-Short Pulse Laser "Transportable Demonstrator" mobile laboratory to the U.S. Navy in February, and is supporting the Navy's operation of that system to establish new understanding of the atmospheric propagation of terawatt-class lasers in support of Laser Guided Energy (R) (LGE(R)) and other military applications.
-- Development of the Company's proprietary Laser Guided Energy technology continued largely according to plan under contracts from both the U.S. Navy and the U.S. Army.
After the close of the quarter the Company reported the receipt of a $4.5 million Sole Source Contract from the U.S. Army's Research, Development and Engineering Command (ARDEC - Picatinny NJ) for the development and advancement of the Company's LGE technology.
Dana Marshall, Applied Energetics' Chairman, President and Chief Executive Officer, commented, "We're pleased by our accomplishments in our laser development and LGE programs during the first quarter, and by the delivery of our USP laser Technology Demonstrator to the Navy. We are especially excited by our promising counter-IED activities insofar as we have made significant progress in our efforts to move these technologies through testing and toward potential deployment by our customers".
First Quarter 2008 Financial Results
Revenue for the first quarter of 2008 was approximately $2.0 million, compared to approximately $2.1 million for the same period last year. The decrease in revenue was primarily attributable to a reduction in revenue from Counter-IED projects of approximately $476,000 offset by increases in LGE revenue of approximately $212,000 and non-government revenue of $154,000.
Net loss attributable to common shareholders for the first quarter of 2008 was ($3.6) million, or ($0.04) per diluted common share as compared to a net loss of ($2.7) million or ($0.3) per diluted common share for the same period last year. This increase in loss reflects increases in general and administrative of $1.0 million, research and development of $238,000 and a decrease of net interest income of $134,000, offset by an increase in gross margin of $362,000 and a decrease of sales and marketing of approximately $91,000.
At March 31, 2008, the Company had approximately $10.8 million of cash and cash equivalents and $7.1 million securities available-for-sale as compared to $15.0 million of cash and cash equivalents and $7.5 million securities available-for-sale at December 31, 2007.
As of March 31, 2008 the Company had a backlog of $4.9 million, which is expected to be completed within the next twelve-months. This backlog does not include the LGE contract for $4.5 million with ARDEC, nor other proposals and contracts under negotiation at March 31, 2008.
Conference Call
As previously announced, Applied Energetics will host a conference call on May 12, 2008, at 11:00 a.m. (Eastern Daylight Time). Shareholders and other interested parties may participate in the conference call by dialing +1 888 713 4216 (domestic) or +1 617 213 4868 (international) and entering access code 85374505, a few minutes before 11:00 a.m. ET on May 12, 2008. The call will also be broadcast live on the Internet at www.streetevents.com, www.fulldisclosure.com and www.appliedenergetics.com.
A replay of the conference call will be accessible two hours after its completion through May 19, 2008 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 10941846. The call will also be archived for 30 days at www.streetevents.com, www.fulldisclosure.com and www.appliedenergetics.com.
About Applied Energetics Inc.
Applied Energetics, Inc., based in Tucson Ariz., specializes in development and manufacture of high performance lasers, high voltage electronics, advanced optical systems, and integrated guided energy systems for defense, aerospace, industrial, and scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy(R) (LGE(R)) technology, and related solutions for defense and security applications. For more information about Applied Energetics, please visit appliedenergetics.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, but are not limited to: the dependence on sales of a limited number of products and the uncertainty of the timing and magnitude of government funding and orders, dependence on sales to government customers; the uncertainty of patent protection; the uncertainty of strategic alliances; the uncertainty of management tenure; the impact of third-party suppliers' manufacturing constraints or difficulties; management's ability to achieve business performance objectives, market acceptance of, and demand for, the Company's products, and resulting revenues; development and testing of technology and products; manufacturing capabilities; impact of competitive products and pricing; litigation and other risks detailed in the Company's filings with the Securities and Exchange Commission. The words "looking forward," "believe," "demonstrate," "intend," "expect," "contemplate," "estimate," "anticipate," "likely" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Applied Energetics undertakes no obligation to update any forward-looking statements contained in this news release.
SOURCE: Applied Energetics, Inc.
CONTACT: Cameron Associates
Kevin McGrath, 212-245-8800 Ext. 203
Kevin@cameronassoc.com
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