Applied Energetics Reports Second Quarter 2009 Financial Results
TUCSON, Ariz., Aug 10, 2009 /PRNewswire-FirstCall via COMTEX/ -- Applied Energetics, Inc., (Nasdaq: AERG), today reported summary financial results for the second quarter ended June 30, 2009.
Second Quarter 2009 and Year-to-Date 2009 Summary Financial Results
Revenue for the second quarter of 2009 was approximately $1.7 million, compared to approximately $5.7 million for the same period last year, a decrease of 70%. Revenues were derived from contracts received in prior periods for Counter-IED projects for the USMC and Laser Guided Energy(TM) (LGE) projects from government research contracts.
Net loss attributable to common stockholders for the second quarter of 2009 was $3.3 million, or $0.04 per basic and diluted share, and included non-cash stock based compensation of $221,000, or $0.00 per basic and diluted share, compared to the prior-comparable period net loss of $1.1 million or $0.01 per basic and diluted common share with non-cash stock based compensation of $953,000, or $0.01 per basic and diluted share.
Revenue for the six months ended June 30, 2009 was approximately $4.3 million, compared to approximately $7.6 million for the same period last year, a decrease of 43%.
Net loss attributable to common shareholders for the six months ended June 30, 2009 was $6.3 million, or $0.07 per diluted common share, and included non-cash stock based compensation of $1.1 million, or $0.01 per basic and diluted share, as compared to a net loss of $4.7 million or $0.06 per diluted common share for the same period last year with non-cash stock based compensation of $2.3 million, or $0.03 per basic and diluted share.
At June 30, 2009, the Company had approximately $13.2 million in cash and cash equivalents as compared to $15.5 million in cash and cash equivalents at December 31, 2008.
As of June 30, 2009, the Company had a backlog of $2.2 million, which is expected to be completed within the next twelve months. This backlog does not include proposals and contracts under negotiation at June 30, 2009 or awarded since the end of the second quarter.
Joe Hayden, COO, commented, "While we are disappointed in our financial results for the quarter, we believe there are many positive developments in our business that will lead to improved performance going forward. The Counter-IED systems we delivered to the U.S. Marine Corps are performing well in the Operational Assessment being conducted by our customer. The Marines have asked us to limit discussion on the activities of these Counter-IED systems until the Operational Assessment is completed, so we cannot comment on specifics of that activity. The feedback we have received from our customer has been encouraging and the reliability of our systems, to date, gives us confidence in our ability to produce technologies that will withstand the rugged environment in which our military customers operate. LGE technology recently underwent an extensive technical review and evaluation by our Army customer. The results of that evaluation indicate we continue to make technical progress toward reaching the contractual goals.
"We recently received a new contract for the U.S. Navy that expands our business into missions that require only lasers, indicating that the advanced technologies we have developed for LGE will have broader use and application. We also continue to pursue commercial business opportunities that utilize our High Voltage technologies."
Mr. Hayden continued, "Subsequent to the end of the second quarter, we entered into agreements to settle the class action and derivative lawsuits that have been ongoing since 2006. The entire amount of the settlements, except for certain related expenses and the issuance of equity by us in the class action, will be covered by our insurance settlement. These additional expenses were recorded in the second quarter of this year.
"We have reduced costs significantly this quarter by taking a number of measures, including closing our St. Louis facility, eliminating excess materials, consolidating facilities in Tucson, and reducing employee headcount. We have added new Board members who will provide us the benefit of their experience and knowledge as we refine our strategy and business plans for the future. Overall we are positive about the future prospects for our business in this challenging economic climate."
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2009 December 31, 2008
------------- -----------------
(Unaudited)
-----------
ASSETS
Current assets
Cash and cash equivalents $13,235,875 $15,467,386
Accounts receivable 1,182,470 2,727,853
Inventory 271,006 157,189
Prepaid expenses and deposits 207,955 495,718
Insurance receivable 5,654,695 12,788
Other receivables 269,032 4,395
------- -----
Total current assets 20,821,033 18,865,329
Long term receivables - net - 253,130
Property and equipment - net 3,049,782 3,523,641
Intangible assets - net 12,300 36,900
Other assets 10,000 29,089
------ ------
TOTAL ASSETS $23,893,115 $22,708,089
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $429,573 $883,228
Estimated loss on uncompleted
contract - 98,239
Accrued expenses 288,883 326,697
Litigation settlement liability 5,525,000 -
Accrued compensation 1,067,466 1,048,774
Customer deposits 236,248 11,565
Billings in excess of costs 21,533 -
Current portion of capital lease
obligations - 2,028
-- -----
Total current liabilities 7,568,703 2,370,531
Litigation settlement liability -
LT 1,200,000 -
Deferred rent - 4,049
-- -----
Total liabilities 8,768,703 2,374,580
--------- ---------
Commitments and contingencies
Stockholders' equity
Series A Convertible Preferred
Stock, $.001 par value,
2,000,000 shares
authorized; 135,572 shares issued
and outstanding at June 30,
2009 and at December 31, 2008 136 136
Common stock, $.001 par value,
125,000,000 shares authorized;
86,424,948 shares issued and
outstanding at June 30, 2009 and
86,370,026 shares issued and
outstanding at December 31, 2008 86,425 86,370
Additional paid-in capital 75,034,952 73,936,085
Accumulated deficit (59,997,101) (53,689,082)
----------- -----------
Total stockholders' equity 15,124,412 20,333,509
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $23,893,115 $22,708,089
=========== ===========
See accompanying notes to condensed consolidated financial statements
(unaudited)
APPLIED ENERGETICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
June 30,
--------------------------
2009 2008
---- ----
Revenue $1,730,141 $5,677,998
Cost of revenue 1,631,316 5,189,454
--------- ---------
Gross profit 98,825 488,544
Operating expenses:
General and administrative 2,825,062 1,157,277
Selling and marketing 191,001 72,854
Research and development 322,986 243,272
------- -------
Total operating expenses 3,339,049 1,473,403
--------- ---------
Operating loss (3,240,224) (984,859)
Other (expense) income:
Interest expense - (239)
Interest income 16,807 165,780
------ -------
Total other 16,807 165,541
------ -------
Net loss (3,223,417) (819,318)
Preferred stock dividends (55,076) (282,220)
------- --------
Net loss attributable to common
stockholders $(3,278,493) $(1,101,538)
=========== ===========
Net loss per common share - basic
and diluted $(0.04) $(0.01)
====== ======
Weighted average number of shares
outstanding, basic and diluted 86,137,728 80,594,626
========== ==========
See accompanying notes to condensed consolidated financial
statements (unaudited)
APPLIED ENERGETICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the six months ended
June 30,
------------------------
2009 2008
---- ----
Revenue $4,317,539 $7,639,088
Cost of revenue 4,032,763 6,929,562
--------- ---------
Gross profit 284,776 709,526
Operating expenses:
General and administrative 5,260,785 4,522,741
Selling and marketing 429,024 111,438
Research and development 840,647 605,210
------- -------
Total operating expenses 6,530,456 5,239,389
--------- ---------
Operating loss (6,245,680) (4,529,863)
Other (expense) income:
Interest expense (19) (1,552)
Interest income 47,834 415,608
Other - 10
-- --
Total other 47,815 414,066
------ -------
Net loss (6,197,865) (4,115,797)
Preferred stock dividends (110,152) (577,311)
-------- --------
Net loss attributable to common
stockholders $(6,308,017) $(4,693,108)
=========== ===========
Net loss per common share - basic
and diluted $(0.07) $(0.06)
====== ======
Weighted average number of shares
outstanding, basic and diluted 86,201,037 80,499,620
========== ==========
See accompanying notes to condensed consolidated financial
statements (unaudited)
SOURCE Applied Energetics, Inc.
URL: appliedenergetics.com
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