Maxwell Technologies Inc. Reports Operating Results (10-Q)
Maxwell Tech has a market cap of $463.5 million; its shares were traded at around $15.8 with a P/E ratio of 182.6 and P/S ratio of 3.
Highlight of Business Operations:In Q1 2012, revenues were $39.2 million, representing an increase of 11% compared with the same period one year ago. This growth is more modest when compared with the 20 to 30% annual growth rate achieved in the two most recent fiscal years, and is primarily attributable to a slower pace of growth for our ultracapacitor product line, which grew by 3% compared with Q1 2011. Significant factors affecting the disparity between our recent annual growth rate and this quarters growth rate are the impact of the Chinese New Year holiday and overall historical seasonal softness in the first quarter. In addition, certain regulatory factors have caused the wind energy market for our ultracapacitor products in China to slow, however, we expect that activity in this market will return to previous levels over the next few quarters. Revenue growth in Q1 2012 is primarily attributable to increases in both high voltage and microelectronics product sales, which grew by 25% and 22%, respectively, compared with Q1 2011. These mature product lines continue to complement our business and provide significant contributions towards our gross margin rate and cash flows. Further, overall gross profit in Q1 2012 was 41% compared with 39% in Q1 2011. The improvement in gross profit is due mainly to a shift in product mix toward higher margin products.
Net income reported for the three months ended March 31, 2012 was $504,000, or $0.02 per diluted share, compared with net income of $196,000, or $0.01 per diluted share, in the same quarter one year ago. The increase in net income was primarily driven by revenue growth combined with improvement in gross profit and operating margins, offset by a decrease associated with a $1.1 million gain on embedded derivatives recorded during the three months ended March 31, 2011.
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