Subj: Maxwell Technologies Reports 118 Percent Increase in Net...
Date: 98-05-26 20:56:32 EDT
From: AOL News
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Maxwell Technologies Reports 118 Percent Increase in Net Income Before Special Charges
SAN DIEGO--(BUSINESS WIRE)--May 26, 1998--Maxwell Technologies Inc. (NMS:MXWL) today announced net income of $2,305,000 or $.26 per share on a diluted basis, before special charges, for the third quarter ended April 30, 1998.
This compares to net income of $1,059,000 or $.16 per share for the quarter ended April 30, 1997. The special charges relate primarily to costs associated with three acquisitions completed during the quarter. These acquisition-related charges consist of the write-off of in-process research and development and other transaction-related expenses.
A portion of the special charges also relates to costs of the company's software-related business segment which has been discontinued. After recognition of the special charges, which amounted to $8.9 million, the company's net loss was $6.6 million, or $.79 per share.
Revenue for the quarter was $31.7 million, a gain of 22 percent over revenue of $25.9 million in the same period one year ago.
"Before special charges, earnings per share increased 63 percent over last year," commented Kenneth F. Potashner, president and chief executive officer of Maxwell Technologies. "Looking beyond the positive results for the quarter, we believe that the most important achievement of the period was our success in advancing the company's strategic plan for global expansion and vertical integration. During the quarter three important acquisitions were completed, each of which is expected to play a key role in our future.
"The acquisition of UK-based Tri-MAP Ltd. enables our I-Bus business to significantly expand its product offerings to range from standard and catalog products to leading edge systems for highly customized applications. Of equal importance, this acquisition gives us a channel for manufacturing and marketing our products in Europe. We expect to achieve significant growth in our I-Bus business in FY 1999. Maxwell currently sells some technology and products into Europe and Asia, and Tri-MAP represents a major step toward capitalizing in a significant way on the many opportunities we see for Maxwell products around the globe.
"The acquisition of Physics International, with its strong technical resources, enhances Maxwell's ability to offer the most advanced pulsed-power capabilities in the world. Maxwell is the preeminent supplier of large pulsed power systems to the U.S. government and national laboratories.
"During the quarter, we also acquired Phoenix Power Systems, a developer and manufacturer of leading power electronics and power conditioning systems for the telecommunications, broadcasting, semiconductor manufacturing, and medical markets. The addition of Phoenix Power will also improve our ability to integrate our PowerCache ultracapacitors with power electronics to meet a wider range of performance requirements than can be addressed by ultracapacitors alone."
Maxwell Technologies is a leader in pulsed power technologies, providing pulsed power based systems and components for a wide range of commercial applications and research and development for both commercial customers and the U.S. government. The company's advanced technology solutions address diverse markets such as utilities, telecommunications, medical equipment and products, food processing and packaging and transportation. The company also offers industrial computers and subsystems, primarily to OEMs in computer telephony and other markets, and software products and services, both for government research and for various commercial applications.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including product development based on new technologies, applications and acceptance of new products in major markets, demand for the OEM's product reaching anticipated levels, the successful integration of acquired businesses, continued funding of government programs, the impact of competitive products and pricing, and other risks detailed from time-to-time in the company's SEC reports, including the report on Form 10-K for the year ended July 31, 1997.
Actual results may differ materially from those projected. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims, however, any intent or obligation to update these forward-looking statements.
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Maxwell Technologies Inc. (MXWL) Summary of Results
($ in thousands except for per share amounts)
Quarter ended Nine months ended
April 30, April 30, 1998 1997 1998 1997
Consolidated Statement of Operations (Unaudited)
Sales $ 31,680 $ 25,922 $ 89,589 $ 74,516 Cost of sales 21,457 17,599 59,543 51,496 Gross profit 10,223 8,323 30,046 23,020
Operating Expenses: Selling, general and administrative expenses 6,037 5,875 19,342 16,543 Research and development expenses 2,392 1,407 5,885 3,677 Acquired in-process R&D and other special charges 8,942 -- 8,942 -- Total operating expenses 17,371 7,282 34,169 20,220 Operating income (loss) (7,148) 1,041 (4,123) 2,800 Interest and other (511) (18) (860) 13 Net income (loss) $ (6,637) $ 1,059 $ (3,263) $ 2,787
Basic earnings (loss) per share $ (0.79) $ 0.18 $ (0.44) $ 0.47 Diluted earings (loss) per share $ (0.79) $ 0.16 $ (0.44) $ 0.42
Weighted average shares of common stock and common stock equivalents used in calculating diluted earnings per share
(in thousands) 8,356 6,714 7,421 6,640
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--30--ktbh/sd & lc/sd
CONTACT:
Maxwell Technologies
Tracy Perry, 619/576-7547
URL maxwell.com |
