9/20/2002 - Maxwell Technologies announced that it will focus exclusively on Maxwell’s core business as a supplier of high-reliability, high-value, proprietary power and microelectronics products.
"With the completion of the Montena Components acquisition, Maxwell has assembled a power and microelectronics product platform that should be self-sustaining by year-end and positioned for growth and profitability in 2003,” said Carl Eibl, Maxwell’s chief executive officer.
Maxwell’s power products include ultracapacitors, high-voltage capacitors and power distribution and energy storage systems. Its microelectronic products include power modules, memory modules, application specific integrated circuits (ASICs) and single board computers for space and military applications.
Eibl said that the computing business of Maxwell’s I-Bus Phoenix unit is being downsized to make it self-supporting on existing revenues, and will be divested by the end of 2002. He said that Maxwell is in discussions with a group of I-Bus/Phoenix senior managers who have expressed interest in purchasing the computing business and operating it as an independent company.
Maxwell will retain the power systems business that is currently part of I-Bus/Phoenix and relocate the power systems operations to Maxwell’s electronic components facility in San Diego. Computing systems manufacturing will be consolidated into a production facility in the United Kingdom, and the company-owned San Diego facility that currently houses I-Bus/Phoenix’s North American operations will be vacated by the end of the year and sold.
Eibl said that the computing business divestiture and facility closure, which Maxwell plans to complete by the end of the fourth quarter ending December 31, 2002, are expected to reduce the quarterly breakeven run rate for the core power and microelectronics business to approximately $15 million by year-end. He said that the company’s goal is to be cash flow positive on projected revenue for this core business of more than $15 million for the fourth quarter.
"As we enter 2003, with a lean, focused organization consolidated into two primary facilities, one in San Diego and another Rossens, Switzerland, Maxwell will be positioned for significant profit leverage with additional revenue,” Eibl said.
Eibl noted that the company will record non-cash charges of approximately $14 million, and cash charges of about $1 million, for severance, facility closure and other charges related to the computing business consolidation and divestiture in its third quarter ending September 30. He said that additional charges will be incurred as the divestiture and power systems transition are completed in the fourth quarter.
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