7/19/2002 - Maxwell Technologies, Inc. (Nasdaq: MXWL) announced today that it has restructured its I-Bus/Phoenix power and computing systems business to focus on producing systems that leverage converging power and computing technologies and proprietary hybrid switch architecture to provide "guaranteed availability" solutions for major original equipment manufacturers (OEMs).
Carl Eibl, Maxwell's chief executive officer, said this focused strategy better positions I-Bus/Phoenix for long-term growth and profitability, and that facility consolidations and streamlining of operations in the US and Europe will result in significant expense reductions. He said that restructuring-related charges of $0.8 million for severance and facility closures and $3.0 million of inventory reserves were recorded in the company's second quarter ended June 30, 2002, and that approximately $0.4 million of additional charges will be recorded in the third quarter ending September 30.
"Given the current turmoil in capital equipment markets, we're playing to I-Bus/Phoenix's systems engineering strengths by concentrating on providing high-value solutions based on proprietary power and computing building blocks for a relatively small number of large OEM customers rather than continuing to support dozens of platforms for hundreds of smaller customers," Eibl said.
Eibl said that I-Bus/Phoenix's guaranteed availability strategy leverages the convergence of power and computing technologies by:
"I-Bus/Phoenix's value-add comes both from the proprietary power and computing building blocks we have developed, and from our strong systems engineering capabilities," Eibl said. "We are well positioned to capitalize on the accelerating trend among OEMs to outsource the power and computing portions of larger systems."
Management will conduct a conference call and simultaneous webcast to provide additional details and answer analysts' questions at 11 a.m. (eastern) tomorrow, July 19. The call may be accessed by dialing (888) 584-2147 from the US and Canada or (706) 679-7677 for international callers; the webcast and subsequent replay may be accessed at the company's web site via this link.
Maxwell Technologies manufactures and markets high-reliability power and computing components and automated test instruments. The company's microelectronic products include power modules, integrated circuits and single board computers that combine commercial-off-the-shelf (COTS) components and Maxwell's proprietary radiation shielding technology to provide optimal performance and reliability in aerospace, military and other applications. Maxwell's PowerCache ultracapacitors are high-density energy storage cells that deliver bursts of high power on demand in applications such as automotive electrical systems and powertrains, wireless communications and consumer and industrial electronic devices. The company's instrument products include automated accelerated reliability test systems (AARTS) for RF and photonic components.
This news release contains forward-looking statements that are subject to risks and uncertainties. These include development and acceptance of products based on new technologies, demand for original equipment manufacturers' products reaching anticipated levels, general economic conditions in the markets served by the company's products, cost-effective manufacturing of new products, the completion of restructuring steps to reach anticipated reductions in operating expenses and risks and uncertainties involved in foreign operations. These and other risks are detailed from time-to-time in the Company's SEC reports, including the report on Form 10-K for the fiscal year ended December 31, 2001. Actual results may differ materially from those projected. These forward-looking statements represent the Company's judgment as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements.
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