7/30/2002 - Maxwell Technologies, Inc. (Nasdaq: MXWL) today reported revenue from continuing operations of $13.2 million for its second quarter ended June 30, 2002. The Q2 revenue total includes $1.5 million of revenue originally reported in the first quarter ended March 31, 2002, that has been shifted into Q2 in connection with a restatement of Q1 for that revenue. The restatement of Q1 is the result of a determination by Maxwell that a shipment to a European customer, which left Maxwell’s factory at the end of Q1 but did not arrive in Europe until April 3, should have been recognized in Q2. Although Maxwell’s standard terms provide that title is transferred when the goods leave Maxwell’s facilities, terms to this particular customer provided that title was not transferred until the goods arrived at the destination.
James Baumker, Maxwell’s vice president and chief financial officer, emphasized that the company has received full payment for the shipment, and said that complete financial details of the restatement of Q1 for that shipment will be reported in a Form 10-Q/A filing with the Securities and Exchange Commission within 2 days.
The Q202 revenue from continuing operations of $13.2 million compares with $20.5 million for the three months ended June 30, 2001, including $3.8 million from the Sierra-KD medical electronics business, which was sold in June 2001.
Second quarter operating loss was $8.8 million, or $0.78 per share, including charges of $0.8 million for severance and facility closures and $3.0 million for inventory reserves related to restructuring of the company’s I-Bus/Phoenix power and computing systems unit. That compares with an operating loss of $7.4 million, or $0.74 per share, for the three months ended June 30, 2001, before an after-tax gain of $25.4 million, or $2.53 per share, on the sale of the Sierra-KD business.
Second quarter net loss, including a loss of $0.9 million from discontinued operations, was $9.4 million, or $0.83 per share, compared with net income of $19.6 million, or $1.79 per diluted share, including the Sierra-KD sale gain and a loss of $0.5 million from discontinued operations, for the three months ended June 30, 2001.
Carl Eibl, Maxwell’s chief executive officer, said that with the completion of its acquisition of Montena Components, Ltd., and the announced restructure of the company’s I-Bus/ Phoenix operations, Maxwell is working to lower its breakeven threshold and to position itself for long-term growth and profitability.
“The Montena acquisition broadens our components revenue base, enhances our ultracapacitor product development and production capabilities and gives us a strong position in the European rail, industrial and automotive markets,” Eibl said. “The steps we’ve taken to build our components business and to focus I-Bus/Phoenix on proprietary power and computing systems for major OEMs position Maxwell to manufacture and market high-value, proprietary, power and computing components and systems and to reduce significantly operating expenses.”
Eibl also said that, in view of unfavorable market conditions, the company has decided not to go forward at this time with a previously announced plan to spin off its PurePulse Technologies subsidiary to Maxwell shareholders. He said that PurePulse continues to pursue equity funding and is exploring other strategic alternatives.
Management will conduct a conference call and simultaneous live webcast to discuss second quarter financial results and the outlook for the balance of 2002, and answer analysts’ questions at 11 a.m. (eastern) tomorrow, July 30. 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, www.maxwell.com, by clicking on “Investors,” then on “Presentations.”
Maxwell Technologies applies industry-leading capabilities in power and computing to develop and commercialize electronic components and power and computing systems for customers in multiple industries, including transportation, telecommunications, consumer and industrial electronics, medical and aerospace.
This news release contains financial projections and forward-looking statements that are subject to significant 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, successful assimilation of acquired businesses, completion of restructuring steps to improve operating performance 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 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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