Applied Energetics Reports Fourth Quarter and Full Year 2008 Financial Results
TUCSON, Ariz., Mar 16, 2009 (BUSINESS WIRE) -- Applied Energetics, Inc., (Nasdaq: AERG), today reported summary financial results for the fourth quarter and full year ended December 31, 2008. The Company will host a live conference call today, March 16, 2009 at 11:00AM (Eastern Time).
Fourth Quarter Business Highlights
-- Counter-IED: The design and build phases of the Company's $9.3 million counter-IED contract was completed during the fourth quarter. We are actively working with our Customer in the training, deployment and operational support phases of this contract. We expect deployment of these systems will occur according to the Customer's timing.
-- Non-Military Programs: During the fourth quarter we shipped approximately $1.8 million of advanced high performance equipment to non-military customers. These shipments included a system that we have developed for a proprietary program with an aerospace customer, as well as some high voltage equipment for an industrial process development, and equipment for a research program.
Dana Marshall, Applied Energetics' Chairman, President and Chief Executive Officer, commented, "Last year was an important period for our Company. Our primary focus was on advancing our counter-IED technology with the USMC to address the problem of roadside bombs, or "IEDs". This work led to the award by the USMC of a $9.3 million dollar cost-plus contract in June 2008 for an initial production lot of battle-ready counter-IED systems and spares. Production of these systems was largely completed during the fourth quarter, and we are now engaged with our customer on the training, deployment and operational support phases of that contract.
"Our primary focus in 2009 will be to fully support our customer to ensure a successful deployment of our counter-IED systems in the war zone, and to secure follow-on orders for these systems. Additionally, we are continuing our disciplined execution of our LGE development programs through the multi-service ANVILS advanced laser program and for our customer at the US Army Research Development and Engineering Command (ARDEC)."
Fourth Quarter and Year End 2008 Summary Financial Results
Revenue for the fourth quarter of 2008 was approximately $5.0 million, compared to approximately $3.6 million for the same period last year. Revenue for the twelve-months ended December 31, 2008 was approximately $16.6 million, compared to approximately $12.4 million for the comparable period last year. The increase in revenue of approximately $1.4 million for the fourth quarter and $4.2 million for the twelve-month period was primarily attributable to the completion of certain commercial High Voltage contracts and increased revenues generated by continuing product development related to our CIED business.
Net loss attributable to common stockholders for the fourth quarter of 2008 was ($6.2) million, or ($0.08) per basic and diluted share compared to the prior-comparable period net loss of ($4.2) million or ($0.05) per basic and diluted common share. Net loss attributable to common stockholders for the twelve-months ended December 31, 2008 was ($12.9) million or ($0.16) per basic and diluted share compared to a net loss attributable to common stockholders for the comparable period in 2007 of ($14.8) million or ($0.19) per basic and diluted common share.
At December 31, 2008, the Company had approximately $15.5 million in cash and cash equivalents as compared to $22.5 million in cash and cash equivalents and securities available-for-sale at December 31, 2007.
As of December 31, 2008 the Company had a backlog of $4.6 million, which is expected to be completed within the next twelve-months. This backlog does not include proposals and contracts under negotiation.
Conference Call
Applied Energetics will host a conference call on March 16, 2009, at 11:00 AM (EDT). Shareholders and other interested parties may participate in the conference call by dialing +1 888 713 4217 (domestic) or + 1 617 213 4869 (international) and entering access code 34284517, a few minutes before 11:00 AM (EDT) on March 16, 2009. 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 March 23, 2009 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 19109339. 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 (LGE(R)) technology, and related solutions for defense and security applications. For more information about Applied Energetics, please visit www.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.
APPLIED ENERGETICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS
ENDED DECEMBER 31 ,
2008 2007
Revenue $ 4,960,821 $ 3,575,261
Cost of revenue 5,155,294 3,484,858
Gross profit (loss) (194,473 ) 90,403
Operating expenses:
General and administrative 2,300,549 3,927,815
Selling and marketing 78,346 37,551
Research and development 407,379 341,070
Total operating expenses 2,786,274 4,306,436
Operating loss (2,980,747 ) (4,216,033 )
Other income (expense)
Interest expense (159 ) (897 )
Interest income 98,309 330,462
Other income - -
Total other income 98,150 329,565
Loss before provision for income taxes (2,882,597 ) (3,886,468 )
Provision (benefit) for income taxes - -
Net Loss (2,882,597 ) (3,886,468 )
Preferred stock dividends (25,515 ) (295,093 )
Deemed dividend from induced conversion of Series A Preferred Stock (3,336,734 ) -
Net loss attributable to common stockholders $ (6,244,846 ) $ (4,181,561 )
Net loss attributable to common stockholders per common share - $ (0.08 ) $ (0.05 )
basic and diluted
Weighted average number of common shares outstanding, basic and 81,528,544 79,684,826
diluted
See accompanying notes to consolidated financial statements.
APPLIED ENERGETICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED
DECEMBER 31 ,
2008 2007
Revenue $ 16,614,211 $ 12,403,628
Cost of revenue 15,874,818 14,473,935
Gross profit (loss) 739,393 (2,070,307 )
Operating expenses:
General and administrative 8,470,656 11,442,279
Selling and marketing 251,349 368,706
Research and development 1,372,396 1,197,792
Total operating expenses 10,094,401 13,008,777
Operating loss (9,355,008 ) (15,079,084 )
Other income (expense)
Interest expense (2,099 ) (2,838 )
Interest income 637,475 1,410,303
Other income 10 7,847
Total other income 635,386 1,415,312
Loss before provision for income taxes (8,719,622 ) (13,663,772 )
Provision (benefit) for income taxes - -
Net Loss (8,719,622 ) (13,663,772 )
Preferred stock dividends (870,985 ) (1,180,419 )
Deemed dividend from induced conversion of Series A Preferred Stock (3,336,734 ) -
Net loss attributable to common stockholders $ (12,927,341 ) $ (14,844,191 )
Net loss attributable to common stockholders per common share - $ (0.16 ) $ (0.19 )
basic and diluted
Weighted average number of common shares outstanding, basic and 81,528,544 78,931,255
diluted
See accompanying notes to consolidated financial statements.
APPLIED ENERGETICS, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31,
2008 2007
ASSETS
Current assets
Cash and cash equivalents $ 15,467,386 $ 14,981,192
Accounts receivable - net 2,727,853 3,264,968
Inventory 157,189 1,468,391
Prepaid expenses 495,718 445,832
Other receivables 17,183 59,983
Total current assets 18,865,329 20,220,366
Securities available for sale - 7,500,000
Long term receivable - net 253,130 -
Property and equipment - net 3,523,641 1,600,887
Intangible assets - net 36,900 86,100
Other assets 29,089 59,517
TOTAL ASSETS $ 22,708,089 $ 29,466,870
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 883,228 $ 1,148,266
Estimated loss on uncompleted contract 98,239 -
Accrued expenses 290,591 516,589
Accrued compensation 1,084,880 1,060,603
Customer deposits 11,565 936,373
Current portion of capital lease obligations 2,028 13,937
Total current liabilities 2,370,531 3,675,768
Capital lease obligations - 2,028
Deferred rent 4,049 125,814
Total liabilities 2,374,580 3,803,610
Commitments and contingencies - -
Stockholders' equity
Series A convertible preferred stock, $.001 par value, 2,000,000 136 690
shares authorized and 135,572 shares issued and outstanding at
December 31, 2008 (Liquidation preference $3,389,300) and 690,000
shares issued and outstanding at December 31, 2007 (Liquidation
preference $17,249,000)
Common stock, $.001 par value, 125,000,000 shares authorized; 86,370 80,245
86,370,026 shares issued and outstanding at December 31, 2008;
80,244,617 shares issued and outstanding at December 31, 2007
Additional paid-in capital 73,936,085 66,344,066
Accumulated deficit (53,689,082 ) (40,761,741 )
Total stockholders' equity 20,333,509 25,663,260
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 22,708,089 $ 29,466,870
See accompanying notes to consolidated financial statements.
SOURCE: Applied Energetics, Inc.
CONTACT:
Cameron Associates Kevin McGrath, 212-245-4577 Kevin@cameronassoc.com |
