Applied Energetics Reports Third Quarter 2008 Financial Results
TUCSON, Ariz., Nov 07, 2008 (BUSINESS WIRE) -- Applied Energetics, Inc., (Nasdaq: AERG), the Guided Energy(TM) Company, today reported financial results for the third-quarter ended September 30, 2008. The Company will host a conference call Friday, November 7, 2008, at 1:00 PM (Eastern Standard Time).
Applied Energetics highlighted the following activities and accomplishments during the quarter:
-- Counter-IED: The design and build phases of the company's $9.3 million counter-IED contract are now substantially complete. We are actively working with our Customer to appropriately deploy these systems according to the Customer's timing.
-- LGE: We continue to make progress in advancing our ultra-short pulse laser technologies. Our near-term focus continues in the areas of range extension, size reduction, and increased ruggedness of our technologies.
-- Non-Military Programs: We delivered a proprietary system to an aerospace customer, and several high voltage systems to non-military customers in October, amounting to approximately $1.6 million in product shipped.
Dana Marshall, Applied Energetics' Chairman, President and Chief Executive Officer, commented, "We have substantially completed our counter-IED system build phase on schedule and within budget. Although we are working through some customer delays in deployment, we remain confident that our equipment will soon be in the field, and believe that our technology will contribute to saving lives on the battlefield." Regarding the October delivery of a proprietary system to an aerospace customer, Mr. Marshall commented, "Completing this system was a year-long, challenging accomplishment for our team and an expensive project for the Company. We are pleased that this system has been delivered to this important customer."
Third Quarter 2008 and Year-to-Date 2008 Financial Results
Revenue for the third quarter of 2008 was approximately $4.0 million, compared to approximately $3.6 million for the same period last year, an increase of 11%. This increase in revenue was primarily attributable to an increase in Counter-IED project revenue of $1.7 million offset by a decrease in revenue from Laser Guided Energy of $1.2 million and High-Voltage projects of $49 thousand.
Net loss attributable to common shareholders for the third quarter of 2008 was ($2.0) million, or ($0.02) per basic and diluted common share as compared to a net loss of ($5.5) million or ($0.07) per basic and diluted common share for the same period last year or a reduction in loss of 63% for the comparable period.
Revenue for the nine months ended June 30, 2008 was approximately $11.7 million, compared to approximately $8.8 million for the same period last year, an increase of 32%. This increase in revenue was primarily attributable to an increase in Counter-IED project revenue of $5.1 million, an increase in non-government revenue of $0.2 million, offset by a decrease in revenue of approximately $2.5 million from Laser Guided Energy projects.
Net loss attributable to common shareholders for the nine months ended September 30, 2008 was ($6.7) million, or ($0.08) per basic and diluted common share as compared to a net loss of ($10.7) million or ($0.14) per basic and diluted common share for the same period last year or a reduction in loss of 37% for the comparable period.
At September 30, 2008, the Company had approximately $8.5 million of cash and cash equivalents and $7.0 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 September 30, 2008 the Company had a backlog of $9.4 million, which is expected to be completed within the next twelve-months.
Conference Call
Applied Energetics will host a conference call on November 7, 2008, at 1:00 PM (EST). Shareholders and other interested parties may participate in the conference call by dialing +1 866 700 7441 (domestic) or + 1 617 213 8839 (international) and entering access code 10435550, a few minutes before 1:00 PM (EST) on November 7, 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 November 14, 2008 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 71847321. 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 conference call 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 customer 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," "may," "plans," "strategy," "prospects," "potential," "continue," "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.
APPLIED ENERGETICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2008 December 31, 2007
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 8,449,212 $ 14,981,192
Accounts receivable 4,071,551 3,264,968
Inventory 2,084,263 1,468,391
Prepaid expenses and deposits 173,060 445,832
Other receivables 47,151 59,983
Total current assets 14,825,237 20,220,366
Securities available for sale - net 7,030,000 7,500,000
Long term receivables - net 253,130 -
Property and equipment - net 3,555,158 1,600,887
Intangible assets - net 49,200 86,100
Other assets 37,935 59,517
TOTAL ASSETS $ 25,750,660 $ 29,466,870
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 935,995 $ 1,148,266
Accrued expenses 506,302 516,589
Accrued compensation 1,067,585 1,060,603
Customer deposits 1,064,600 936,373
Billings in excess of costs 20,530 -
Current portion of capital lease obligations 4,491 13,937
Total current liabilities 3,599,503 3,675,768
Capital lease obligations - 2,028
Deferred rent 5,025 125,814
Total liabilities 3,604,528 3,803,610
Commitments and contingencies
Stockholders' equity
Series A Convertible Preferred stock, $.001 par value, 2,000,000 651 690
shares
authorized; 650,672 shares issued and
outstanding at September 30, 2008
and 690,000 shares issued
and outstanding at December 31, 2007
Common stock, $.001 par value, 125,000,000 shares authorized; 81,079 80,245
81,078,499
shares issued and outstanding at September 30, 2008 and
80,244,617
shares issued and outstanding at December 31, 2007
Additional paid-in capital 69,881,952 66,344,066
Accumulated deficit (47,447,550 ) (40,761,741 )
Accumulated other comprehensive loss (370,000 ) -
Total stockholders' equity 22,146,132 25,663,260
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 25,750,660 $ 29,466,870
APPLIED ENERGETICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
September 30,
2008 2007
Revenue $ 4,014,302 $ 3,608,584
Cost of revenue 3,789,962 5,641,565
Gross profit (loss) 224,340 (2,032,981 )
Operating expenses:
General and administrative 1,647,366 2,851,179
Selling and marketing 61,565 76,340
Research and development 359,807 548,895
Total operating expenses 2,068,738 3,476,414
Operating loss (1,844,398 ) (5,509,395 )
Other (expense) income
Interest expense (388 ) (453 )
Interest income 123,558 341,872
Total other 123,170 341,419
Net loss (1,721,228 ) (5,167,976 )
Preferred stock dividends (277,274 ) (295,105 )
Net loss attributable to common stockholders $ (1,998,502 ) $ (5,463,081 )
Net loss per common share -- basic and $ (0.02 ) $ (0.07 )
diluted
Weighted average number of shares outstanding, basic 80,628,098 79,107,767
and
diluted
APPLIED ENERGETICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the nine months ended
September 30,
2008 2007
Revenue $ 11,653,390 $ 8,828,367
Cost of revenue 10,719,524 10,989,077
Gross profit (loss) 933,866 (2,160,710 )
Operating expenses:
General and administrative 6,170,107 7,514,464
Selling and marketing 173,003 331,155
Research and development 965,017 856,722
Total operating expenses 7,308,127 8,702,341
Operating loss (6,374,261 ) (10,863,051 )
Other (expense) income
Interest expense (1,940 ) (1,941 )
Interest income 539,166 1,079,841
Other 10 7,847
Total other 537,236 1,085,747
Net loss (5,837,025 ) (9,777,304 )
Preferred stock dividends (854,585 ) (885,326 )
Net loss attributable to common stockholders $ (6,691,610 ) $ (10,662,630 )
Net loss per common share -- basic and $ (0.08 ) $ (0.14 )
diluted
Weighted average number of shares outstanding, basic 80,416,412 78,677,306
and
diluted
SOURCE: Applied Energetics, Inc.
CONTACT:
Cameron Associates Kevin McGrath, 212-245-8800 Ext. 203 Kevin@cameronassoc.com
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