Applied Energetics Inc (AERG, Financial) filed Quarterly Report for the period ended 2010-06-30.
Applied Energetics Inc has a market cap of $115.66 million; its shares were traded at around $1.28 with and P/S ratio of 15.5. AERG is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Cost of revenue increased approximately $1.2 million to $2.8 million for the three months ended June 30, 2010, compared to $1.6 million for the three months ended June 30, 2009. The increase in cost of revenue is tied to the increase in sales revenue of 66%, and to provisions for losses on current contracts of approximately $38,000, which are tied to the High Voltage and Laser product lines.
General and administrative expenses decreased approximately $2.3 million to $525,000 for the three months ended June 30, 2010 compared to $2.8 million for the three months ended June 30, 2009. The change was the result of decreases in salaries and wages of approximately $490,000 as a result of our staff reductions which took place in 2009; supplies and building related expenses of $200,000 as a result of consolidating facilities, which reduced overall operational costs in 2010; depreciation and amortization expense of $88,000; and non-cash compensation costs of approximately $80,000. Applied labor, overhead and material handling costs allocated to cost of revenue increased by approximately $224,000, reducing general and administrative expense. In addition, there was a reduction in professional services of approximately $1.1 million from the settlement of the class action and derivative lawsuits that occurred in 2009 and asset disposals of $93,000 for leasehold improvements made to the St. Louis facility in 2009.
Revenue increased approximately $2.2 million to $6.5 million for the six months ended June 30, 2010 compared to $4.3 million for the six months ended June 30, 2009. Revenues from the CIED product line increased by $2.8 million to $4.3 million and the new Ultrashort Pulse Laser product line had revenues of approximately $665,000 in the 2010 period. Offsetting these increases were the decreases in the LGE product line of approximately $1.2 million and the High Voltage line of approximately $78,000.
General and administrative expenses decreased approximately $3.7 million to $1.6 million for the six months ended June 30, 2010 compared to $5.3 million for the six months ended June 30, 2009. The change was the result of decreases in salaries and wages of approximately $1.3 million as a result of downsizing efforts which took place in 2009; non-cash compensation costs of approximately $434,000; supplies and building related expenses of $278,000 as a result of consolidation of facilities which reduced overall operations costs in 2010; depreciation and amortization expense of $173,000, and travel expenses of approximately $43,000. Applied labor, overhead and material handling costs allocated to cost of revenue increased by $187,000 reducing general and administrative expense. In addition, there was a reduction in professional services of approximately $1.1 million from the settlement of the class action and derivative lawsuits that occurred in 2009 and asset disposals of $93,000 for leasehold improvements made to our former St. Louis facility in 2009.
At June 30, 2010, we had approximately $8.9 million of cash and cash equivalents, and $225,000 in a certificate of deposit. Our cash position increased by $46,000 for the three months ended June 30, 2010, while the total cash decreased for the first six months of 2010 by approximately $676,000. During the first six months of 2010, we used $1.1 million of cash in operating activities, which was primarily comprised of our net loss of $1.6 million, and increases in accounts receivables and other receivables of approximately $886,000. Partially offsetting these amounts were non-cash compensation expense of $658,000, an increase in accounts payable and accrued expenses of $127,000, a decrease in prepaid expenses of $302,000, and depreciation and amortization of approximately $217,000. Additionally, investing activities used approximately $2,000, and financing activities provided approximately $473,000 in proceeds from employee option exercises.
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Applied Energetics Inc has a market cap of $115.66 million; its shares were traded at around $1.28 with and P/S ratio of 15.5. AERG is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenue increased approximately $1.2 million to $2.9 million for the three months ended June 30, 2010 compared to $1.7 million for the three months ended June 30, 2009. Revenues from the CIED product line increased by $1.4 million to $2.1 million as work continues on the contract modification of $10.4 million received in January 2010. Additional revenue of $100,000 was derived from our new Ultrashort Pulse Laser product line. LGE product line revenues decreased by $257,000 to $667,000, and High Voltage product line revenues decreased by $77,000 for the three months ended June 30, 2010 compared to the three months ended June 30, 2009.Cost of revenue increased approximately $1.2 million to $2.8 million for the three months ended June 30, 2010, compared to $1.6 million for the three months ended June 30, 2009. The increase in cost of revenue is tied to the increase in sales revenue of 66%, and to provisions for losses on current contracts of approximately $38,000, which are tied to the High Voltage and Laser product lines.
General and administrative expenses decreased approximately $2.3 million to $525,000 for the three months ended June 30, 2010 compared to $2.8 million for the three months ended June 30, 2009. The change was the result of decreases in salaries and wages of approximately $490,000 as a result of our staff reductions which took place in 2009; supplies and building related expenses of $200,000 as a result of consolidating facilities, which reduced overall operational costs in 2010; depreciation and amortization expense of $88,000; and non-cash compensation costs of approximately $80,000. Applied labor, overhead and material handling costs allocated to cost of revenue increased by approximately $224,000, reducing general and administrative expense. In addition, there was a reduction in professional services of approximately $1.1 million from the settlement of the class action and derivative lawsuits that occurred in 2009 and asset disposals of $93,000 for leasehold improvements made to the St. Louis facility in 2009.
Revenue increased approximately $2.2 million to $6.5 million for the six months ended June 30, 2010 compared to $4.3 million for the six months ended June 30, 2009. Revenues from the CIED product line increased by $2.8 million to $4.3 million and the new Ultrashort Pulse Laser product line had revenues of approximately $665,000 in the 2010 period. Offsetting these increases were the decreases in the LGE product line of approximately $1.2 million and the High Voltage line of approximately $78,000.
General and administrative expenses decreased approximately $3.7 million to $1.6 million for the six months ended June 30, 2010 compared to $5.3 million for the six months ended June 30, 2009. The change was the result of decreases in salaries and wages of approximately $1.3 million as a result of downsizing efforts which took place in 2009; non-cash compensation costs of approximately $434,000; supplies and building related expenses of $278,000 as a result of consolidation of facilities which reduced overall operations costs in 2010; depreciation and amortization expense of $173,000, and travel expenses of approximately $43,000. Applied labor, overhead and material handling costs allocated to cost of revenue increased by $187,000 reducing general and administrative expense. In addition, there was a reduction in professional services of approximately $1.1 million from the settlement of the class action and derivative lawsuits that occurred in 2009 and asset disposals of $93,000 for leasehold improvements made to our former St. Louis facility in 2009.
At June 30, 2010, we had approximately $8.9 million of cash and cash equivalents, and $225,000 in a certificate of deposit. Our cash position increased by $46,000 for the three months ended June 30, 2010, while the total cash decreased for the first six months of 2010 by approximately $676,000. During the first six months of 2010, we used $1.1 million of cash in operating activities, which was primarily comprised of our net loss of $1.6 million, and increases in accounts receivables and other receivables of approximately $886,000. Partially offsetting these amounts were non-cash compensation expense of $658,000, an increase in accounts payable and accrued expenses of $127,000, a decrease in prepaid expenses of $302,000, and depreciation and amortization of approximately $217,000. Additionally, investing activities used approximately $2,000, and financing activities provided approximately $473,000 in proceeds from employee option exercises.
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