Applied Energetics Inc (AERG, Financial) filed Quarterly Report for the period ended 2009-03-31.
APPLIED ENERGETICS INC. based in Tucson Ariz. specializes in development and manufacture of high performance lasers high voltage electronics advanced optical systems and integrated guided energy systems for defense aerospace industrial and scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy technology and related solutions for defense and security applications. Applied Energetics Inc has a market cap of $32.03 million; its shares were traded at around $0.37 with and P/S ratio of 1.93. Applied Energetics Inc had an annual average earning growth of 16.1% over the past 5 years.
Cost of revenue increased approximately $661,000 compared to the three months ended March 31, 2008, which was in line with the increase in revenues of 32% for the same period. In 2008, cost of revenue included gains from the sale of inventory, which had previously been written down to lower of cost or market of $36,000. Cost of revenue includes manufacturing labor, fringe and overhead, and an allocation of allowable general and administration and research and development costs in accordance with the terms of our government contracts.
General and administrative expenses decreased approximately $930,000 for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. Salaries, benefits and temporary help decreased by $74,000, which is a result of reduced headcount of $472,000 offset by separation expenses of approximately $398,000. In addition, non-cash employee compensation decreased by $466,000, operational expenses decreased by $85,000, insurance and professional fees decreased by $14,000, travel and related expenses decreased by $56,000 and depreciation and amortization decreased by $43,000. Applied labor and overhead was favorable as a direct result of increased revenues and research and development activities of $192,000.
Our operations for the three months ended March 31, 2009 resulted in a net loss of approximately $3.0 million, a reduction of approximately $322,000 compared to the $3.3 million loss for the same period of 2008.
At March 31, 2009, we had approximately $15.3 million of cash and cash equivalents. Our cash position decreased during the first quarter of 2009 by approximately $184,000. During the first three months of 2009, we used $131,000 of cash in operating activities, which is comprised of our net loss of $3.0 million, plus adjustments in depreciation and amortization of $195,000, non-cash share-based compensation expense of $877,000 and loss on equipment disposal of $1,000. Changes in assets and liabilities that provided cash include a decrease in accounts receivable of $1.4 million, in billings in excess of costs of $2,000 and in accrued expenses, deposits and deferred rent of $794,000, and decreases in prepaid expenses and deposits of $171,000. Changes in assets and liabilities that used cash were increases in other receivables of $176,000 and in inventory of $95,000, and a decrease in accounts payable of $325,000.
As part of our total cash use during the first three months of 2009, investment activities provided approximately $3,000. Financing activities used approximately $57,000 (primarily from the preferred stock cash dividend paid in February 2009).
Read the The complete Report
APPLIED ENERGETICS INC. based in Tucson Ariz. specializes in development and manufacture of high performance lasers high voltage electronics advanced optical systems and integrated guided energy systems for defense aerospace industrial and scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy technology and related solutions for defense and security applications. Applied Energetics Inc has a market cap of $32.03 million; its shares were traded at around $0.37 with and P/S ratio of 1.93. Applied Energetics Inc had an annual average earning growth of 16.1% over the past 5 years.
Highlight of Business Operations:
Revenue increased approximately $626,000 for the three months ended March 31, 2009 compared to the three months ended March 31, 2008, which was attributable to increases in revenue from Counter-IED projects of approximately $742,000 from the U.S. Marine Corps contract received in June 2008, and from our LGE projects of approximately $80,000 from a funded modification to the current contract. These increases were offset by a reduction in revenue on High Voltage projects of $197,000.Cost of revenue increased approximately $661,000 compared to the three months ended March 31, 2008, which was in line with the increase in revenues of 32% for the same period. In 2008, cost of revenue included gains from the sale of inventory, which had previously been written down to lower of cost or market of $36,000. Cost of revenue includes manufacturing labor, fringe and overhead, and an allocation of allowable general and administration and research and development costs in accordance with the terms of our government contracts.
General and administrative expenses decreased approximately $930,000 for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. Salaries, benefits and temporary help decreased by $74,000, which is a result of reduced headcount of $472,000 offset by separation expenses of approximately $398,000. In addition, non-cash employee compensation decreased by $466,000, operational expenses decreased by $85,000, insurance and professional fees decreased by $14,000, travel and related expenses decreased by $56,000 and depreciation and amortization decreased by $43,000. Applied labor and overhead was favorable as a direct result of increased revenues and research and development activities of $192,000.
Our operations for the three months ended March 31, 2009 resulted in a net loss of approximately $3.0 million, a reduction of approximately $322,000 compared to the $3.3 million loss for the same period of 2008.
At March 31, 2009, we had approximately $15.3 million of cash and cash equivalents. Our cash position decreased during the first quarter of 2009 by approximately $184,000. During the first three months of 2009, we used $131,000 of cash in operating activities, which is comprised of our net loss of $3.0 million, plus adjustments in depreciation and amortization of $195,000, non-cash share-based compensation expense of $877,000 and loss on equipment disposal of $1,000. Changes in assets and liabilities that provided cash include a decrease in accounts receivable of $1.4 million, in billings in excess of costs of $2,000 and in accrued expenses, deposits and deferred rent of $794,000, and decreases in prepaid expenses and deposits of $171,000. Changes in assets and liabilities that used cash were increases in other receivables of $176,000 and in inventory of $95,000, and a decrease in accounts payable of $325,000.
As part of our total cash use during the first three months of 2009, investment activities provided approximately $3,000. Financing activities used approximately $57,000 (primarily from the preferred stock cash dividend paid in February 2009).
Read the The complete Report
