Applied Energetics Inc (AERG, Financial) filed Quarterly Report for the period ended 2010-09-30.
Applied Energetics Inc has a market cap of $82.35 million; its shares were traded at around $0.909 with and P/S ratio of 11.04. AERG is in the portfolios of Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
General and administrative expenses decreased by approximately $936,000 to $413,000 for the three months ended September 30, 2010 compared to $1.35 million for the three months ended September 30, 2009. The change was the result of decreases in salaries, wages and benefits of approximately $110,000 due to our staff reductions which took place in 2009; non-cash compensation costs of approximately $99,000; supplies and building related expenses of $39,000 due to the consolidation of our facilities, which reduced overall operational costs in 2010; and depreciation and amortization expense of $20,000. Applied labor, overhead and material handling costs allocated to cost of revenue increased by approximately $419,000, further reducing general and administrative expenses. In addition, there was a reduction in legal costs of approximately $243,000 due to the settlement of class action and derivative lawsuits in 2009.
Revenue increased by approximately $3.5 million to $9.7 million for the nine months ended September 30, 2010 compared to $6.2 million for the nine months ended September 30, 2009. Revenue from the CIED product line increased by $4.6 million to $6.6 million and the Ultrashort Pulse Laser product line revenue increased by approximately $550,000 to $665,000. Offsetting these increases were the decreases in revenue from the LGE product line of approximately $1.5 million and the High Voltage line of approximately $61,000.
General and administrative expenses decreased by approximately $4.6 million to $2.0 million for the nine months ended September 30, 2010 compared to $6.6 million for the nine months ended September 30, 2009. The improvement was the result of decreases in salaries, wages, benefits and temporary help of approximately $1.4 million due to our downsizing efforts which took place in 2009; non-cash compensation costs of approximately $533,000; supplies and building related expenses of $316,000 due to the consolidation of our facilities which reduced overall operations costs in 2010; professional services of $202,000; depreciation and amortization expense of $193,000; and travel related expenses of $47,000. Applied labor, overhead and material handling costs allocated to cost of revenue increased by $605,000, further reducing general and administrative expense. In addition, there was a reduction in legal costs of approximately $1.2 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.
Selling and marketing expenses decreased by approximately $122,000 to $439,000 for the nine months ended September 30, 2010 compared to $561,000 for the nine months ended September 30, 2009. The decrease is related to reductions in general marketing expenses and reduced tradeshow participation expenses of $83,000 and to reductions in business development activities of $39,000. During 2010 we continue to focus our business development activities on our Laser and High voltage product lines to grow our non-government market revenue.
At September 30, 2010, we had approximately $9.1 million of cash and cash equivalents. Our cash position increased by $179,000 for the three months ended September 30, 2010, while the total cash decreased for the first nine months of 2010 by approximately $497,000. During the first nine months of 2010, we used $1.2 million of cash in operating activities, which was primarily comprised of our net loss of $2.0 million, and increases in accounts receivables and inventory of approximately $1.2 million. Partially offsetting these amounts were non-cash compensation expense of $814,000, an increase in accounts payable and accrued expenses of $685,000, a decrease in prepaid expenses of $127,000, and depreciation and amortization of approximately $306,000. Additionally, investing activities provided approximately $160,000, and financing activities provided approximately $577,000 in proceeds from employee option exercises.
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Applied Energetics Inc has a market cap of $82.35 million; its shares were traded at around $0.909 with and P/S ratio of 11.04. AERG is in the portfolios of Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Revenue increased by approximately $1.4 million to $3.3 million for the three months ended September 30, 2010 compared to $1.9 million for the three months ended September 30, 2009. Revenue from the CIED product line increased by $1.8 million to $2.4 million as work continues on the $10.4 million contract modification received in January 2010. Revenue from the High Voltage product line also increased by $17,000 to $27,000. LGE product line revenue decreased by $272,000 to $866,000, and Ultrashort Pulse Laser product line had no revenue, a decrease of $116,000.General and administrative expenses decreased by approximately $936,000 to $413,000 for the three months ended September 30, 2010 compared to $1.35 million for the three months ended September 30, 2009. The change was the result of decreases in salaries, wages and benefits of approximately $110,000 due to our staff reductions which took place in 2009; non-cash compensation costs of approximately $99,000; supplies and building related expenses of $39,000 due to the consolidation of our facilities, which reduced overall operational costs in 2010; and depreciation and amortization expense of $20,000. Applied labor, overhead and material handling costs allocated to cost of revenue increased by approximately $419,000, further reducing general and administrative expenses. In addition, there was a reduction in legal costs of approximately $243,000 due to the settlement of class action and derivative lawsuits in 2009.
Revenue increased by approximately $3.5 million to $9.7 million for the nine months ended September 30, 2010 compared to $6.2 million for the nine months ended September 30, 2009. Revenue from the CIED product line increased by $4.6 million to $6.6 million and the Ultrashort Pulse Laser product line revenue increased by approximately $550,000 to $665,000. Offsetting these increases were the decreases in revenue from the LGE product line of approximately $1.5 million and the High Voltage line of approximately $61,000.
General and administrative expenses decreased by approximately $4.6 million to $2.0 million for the nine months ended September 30, 2010 compared to $6.6 million for the nine months ended September 30, 2009. The improvement was the result of decreases in salaries, wages, benefits and temporary help of approximately $1.4 million due to our downsizing efforts which took place in 2009; non-cash compensation costs of approximately $533,000; supplies and building related expenses of $316,000 due to the consolidation of our facilities which reduced overall operations costs in 2010; professional services of $202,000; depreciation and amortization expense of $193,000; and travel related expenses of $47,000. Applied labor, overhead and material handling costs allocated to cost of revenue increased by $605,000, further reducing general and administrative expense. In addition, there was a reduction in legal costs of approximately $1.2 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.
Selling and marketing expenses decreased by approximately $122,000 to $439,000 for the nine months ended September 30, 2010 compared to $561,000 for the nine months ended September 30, 2009. The decrease is related to reductions in general marketing expenses and reduced tradeshow participation expenses of $83,000 and to reductions in business development activities of $39,000. During 2010 we continue to focus our business development activities on our Laser and High voltage product lines to grow our non-government market revenue.
At September 30, 2010, we had approximately $9.1 million of cash and cash equivalents. Our cash position increased by $179,000 for the three months ended September 30, 2010, while the total cash decreased for the first nine months of 2010 by approximately $497,000. During the first nine months of 2010, we used $1.2 million of cash in operating activities, which was primarily comprised of our net loss of $2.0 million, and increases in accounts receivables and inventory of approximately $1.2 million. Partially offsetting these amounts were non-cash compensation expense of $814,000, an increase in accounts payable and accrued expenses of $685,000, a decrease in prepaid expenses of $127,000, and depreciation and amortization of approximately $306,000. Additionally, investing activities provided approximately $160,000, and financing activities provided approximately $577,000 in proceeds from employee option exercises.
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