Applied Energetics Reports Second Quarter 2010 Financial Results
TUCSON, Ariz., Aug 09, 2010 /PRNewswire via COMTEX/ -- Applied Energetics, Inc., (Nasdaq: AERG), today reported summary financial results for the second quarter ended June 30, 2010. The Company will host a live conference call today, August 9, 2010 at 11:30 a.m. (Eastern Time).
Second Quarter and Year-to-Date 2010 Summary Financial Results
Revenue for the second quarter of 2010 increased about 66% to approximately $2.9 million, compared to approximately $1.7 million for the same period last year. Counter-IED (CIED) program revenues increased by $1.4 million to $2.1 million for the second quarter of 2010 as activities were focused on fulfilling our customers' requirements under the $10.4 million contract modification received in January of 2010. Laser Guided Energy(TM) (LGE) revenue decreased by $257,000 to $667,000 for the second quarter of 2010. The Company generated revenue of $100,000 from its new Ultrashort Pulse Laser product line.
Net loss attributable to common stockholders for the second quarter of 2010 was $745,000, or $0.01 per basic and diluted share, compared to the prior comparable period net loss attributable to common stockholders of $3.3 million or $0.04 per basic and diluted common share.
Revenue for the six months ended June 30, 2010 was approximately $6.5 million, compared to approximately $4.3 million for the same period last year, an increase of 50%.
Net loss attributable to common shareholders for the six months ended June 30, 2010 was $1.8 million, or $0.02 per basic and diluted common share, as compared to a net loss of $6.3 million or $0.07 per basic and diluted common share for the same period last year. Net loss attributable to common shareholders included non-cash stock based compensation of $658,000 and $1.1 million for the 2010 and 2009 periods, respectively.
At June 30, 2010, the Company had approximately $9.2 million in cash, cash equivalents, and a certificate of deposit as compared to $9.8 million at December 31, 2009.
At June 30, 2010, we had a backlog (workload remaining on signed contracts) of approximately $9.4 million, to be completed within the next twelve months.
Joe Hayden, President & COO, commented, "Our second quarter and six month results continue to show improvement in revenue, reduction in loss and progress toward our goal of being profitable and generating cash flow.
"We delivered our first ultrashort pulse (USP) laser system to our U.S. Navy customer in June, which is a significant achievement for this new business initiative. This demonstration system was specifically designed to explore USP laser effects and determine requirements for potential deployment of USP lasers on a military test aircraft. In June, we also received a $1.8 million increase to our Army contract for LGE to support the continued development of our core technology. Most importantly, our Counter-IED technology continues to perform well as we provide extended operational field support for the U.S. Marine Corps at the request of the Field Commander. The transition of the technology to the Marine Corps Systems Command is progressing well as we work with them to develop a smaller version of the technology that will be capable of being integrated on other USMC and Army vehicles to provide further operational capability.
"We also continue to make progress towards establishing a strategic Teaming Agreement with a major defense contractor to support us in the next generation of Counter-IED systems. We believe that the resources and capabilities of these potential partners will allow us to better focus our expertise on the development of the technology and devote our efforts to our core capabilities and maintaining the excellent working relationship we have established with our customers. Upon conclusion of a Teaming Arrangement, we would expect to maintain the position of prime contractor for future contracts, if any, with these other organizations acting as subcontractors within their areas of expertise."
Conference Call
Applied Energetics will host a conference call on August 9, 2010, at 11:30 a.m. ET. Shareholders and other interested parties may participate in the conference call by dialing +1 888 679 8035 (domestic) or +1 617 213 4848 (international) and entering access code 13135639, a few minutes before 11:30 a.m. ET on August 9, 2010. The call will also be broadcast live on the Internet at www.appliedenergetics.com or videonewswire.com.
A replay of the conference call will be accessible two hours after its completion through August 16, 2010 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 81076391. The call will also be archived for 30 days at www.appliedenergetics.com.
About Applied Energetics, Inc.
Applied Energetics, Inc., based in Tucson, Arizona, specializes in development and manufacture of advanced 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(TM) (LGE(TM)) 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," "may," "plan," "strategy," "demonstrate," "intend," "expect," "continue," "contemplate," "estimate," "anticipate," "will," "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 STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
June 30,
--------
2010 2009
---- ----
Revenue $2,879,932 $1,730,141
Cost of revenue 2,794,693 1,631,316
--------- ---------
Gross profit 85,239 98,825
Operating expenses
General and administrative 525,354 2,825,062
Selling and marketing 232,699 191,001
Research and development 3,658 322,986
----- -------
Total operating expenses 761,711 3,339,049
------- ---------
Operating loss (676,472) (3,240,224)
Other (expense) income
Interest expense (1,667) -
Interest income 2,110 16,807
----- ------
Total other 443 16,807
--- ------
Net loss (676,029) (3,223,417)
Preferred stock dividends (57,557) (55,076)
Deemed dividend from induced
conversion of Series A Preferred
Stock (11,478) -
------- ---
Net loss attributable to common
stockholders $(745,064) $(3,278,493)
========= ===========
Net loss per common share - basic
and diluted $(0.01) $(0.04)
====== ======
Weighted average number of shares
outstanding, basic and diluted 89,687,321 86,137,728
========== ==========
APPLIED ENERGETICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the six months ended
June 30,
--------
2010 2009
---- ----
Revenue $6,474,709 $4,317,539
Cost of revenue 6,163,369 4,032,763
--------- ---------
Gross profit 311,340 284,776
Operating expenses
General and administrative 1,602,586 5,260,785
Selling and marketing 304,353 429,024
Research and development 36,520 840,647
------ -------
Total operating expenses 1,943,459 6,530,456
--------- ---------
Operating loss (1,632,119) (6,245,680)
Other (expense) income
Interest expense (3,334) (19)
Interest income 4,572 47,834
----- ------
Total other 1,238 47,815
----- ------
Net loss (1,630,881) (6,197,865)
Preferred stock dividends (115,541) (110,152)
Deemed dividend from induced
conversion of Series A Preferred
Stock (11,478) -
------- ---
Net loss attributable to common
stockholders $(1,757,900) $(6,308,017)
=========== ===========
Net loss per common share - basic
and diluted $(0.02) $(0.07)
====== ======
Weighted average number of shares
outstanding, basic and diluted 89,281,990 86,201,037
========== ==========
APPLIED ENERGETICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31,
June 30, 2010 2009
------------- -------------
(Unaudited)
-----------
ASSETS
Current assets
Cash and cash equivalents $8,928,536 $9,604,643
Short term investments 225,000 225,000
Accounts receivable 1,959,413 1,074,944
Inventory 740,059 785,479
Prepaid expenses and deposits 145,091 447,295
Other receivables 53,589 52,295
------ ------
Total current assets 12,051,688 12,189,656
Long term receivables - net 205,313 205,313
Property and equipment - net 2,625,718 2,845,607
Other assets 20,800 20,800
------ ------
TOTAL ASSETS $14,903,519 $15,261,376
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $579,423 $428,413
Estimated loss on uncompleted
contract 15,154 -
Accrued expenses 479,238 313,448
Short term financing 53,709 214,834
Accrued compensation 470,231 505,188
Customer deposits 149,120 104,160
Billings in excess of costs 3,592 42,716
----- ------
Total current liabilities 1,750,467 1,608,759
Total liabilities 1,750,467 1,608,759
--------- ---------
Commitments and contingencies
Stockholders' equity
Series A Convertible Preferred Stock,
$.001 par value, 2,000,000 shares 135 136
authorized; 134,572 shares issued and
outstanding at June 30, 2010
and 135,572 shares issued and
outstanding at December 31, 2009
Common stock, $.001 par value,
125,000,000 shares authorized; 90,561 88,969
90,568,061 shares issued and
outstanding at June 30, 2010 and
88,968,812 shares issued and
outstanding at December 31, 2009
Additional paid-in capital 78,187,809 76,931,065
Accumulated deficit (65,125,453) (63,367,553)
----------- -----------
Total stockholders' equity 13,153,052 13,652,617
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $14,903,519 $15,261,376
=========== ===========
SOURCE Applied Energetics, Inc.
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