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Maxwell Technologies Inc. Reports Operating Results (10-Q)

August 10, 2009 | About:

Maxwell Technologies Inc. (MXWL) filed Quarterly Report for the period ended 2009-06-30.

Maxwell Technologies Inc. is a leading developer and manufacturer of innovative cost-effective energy storage and power delivery solutions. Company\'s BOOSTCAP ultracapacitor cells and multi-cell modules and POWERCACHE backup power systems provide safe and reliable power solutions for applications in consumer and industrial electronics transportation and telecommunications. Our CONDIS high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport distribution and measurement of high-voltage electrical energy. Its radiation-mitigated microelectronic products include power modules memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications. Maxwell Technologies Inc. has a market cap of $344.74 million; its shares were traded at around $13.69 with and P/S ratio of 4.19.

Highlight of Business Operations:

We reported revenue of $24.8 million and a net loss of $5.3 million, or $0.22 per diluted share, for the three months ended June 30, 2009; compared with revenue of $19.0 million and a net loss of $5.0 million, or $0.24 per diluted share, for the three months ended June 30, 2008. We reported revenue of $47.2 million and a net loss of $8.3 million, or $0.36 per diluted share, for the six months ended June 30, 2009; compared with revenue of $36.1 million and a net loss of $10.5 million, or $0.52 per diluted share, for the six months ended June 30, 2008.

Net loss for the second quarter of 2009 was $358,000 greater than the same period one year ago. Net loss reported in the current quarter was $5.3 million, or $0.22 per share, while net loss was $5.0 million, or $0.24 per share, in the same quarter one year ago. The increase in net loss was driven by a loss on embedded derivatives and warrants of $3.8 million for the second quarter of 2009, compared to a gain on embedded derivatives and warrants of $33,000 for the same period in 2008.

A substantial amount of our revenue is generated through our Swiss subsidiary. As such the fluctuation of the Swiss Franc to U.S. dollar, our reporting currency, can materially impact revenue. The quarterly weighted-average foreign exchange rate of the U.S. dollar to the Swiss Franc decreased 7% to $0.8984 per Swiss Franc for the quarter ended June 30, 2009, down from $0.9703 per Swiss Franc for the same period one year ago. To quantify this change, the revenue from foreign operations generated during the second quarter of 2009 compared to the same period on year ago decreased $1.3 million due to the decrease in foreign exchange rates.

Gross Profit. In the second quarter of 2009, gross profit increased $4.0 million or 82% compared with the same period one year ago. Gross profit increased $2.5 million due to net reductions of product costs and $1.5 million due to an increase in the volume of sales. As a percentage of revenue, gross profit increased to 36% compared to 26% in the same period one year ago.

We recorded an income tax provision of $319,000 for the second quarter of fiscal 2009 compared with $255,000 for the same period in 2008. This provision is for our Swiss subsidiarys operations. Unremitted earnings of foreign subsidiaries have been included in the consolidated financial statements without giving effect to the United States taxes that may be payable as it is not anticipated such earnings will be remitted to the United States. If remitted, the additional United States taxes paid would not be material.

Net loss for the six months ended June 30, 2009 improved $2.2 million, or 21%, compared to the same period one year ago. Net loss reported for the six months ended June 30, 2009 was $8.3 million, or $0.36 per share, while net loss was $10.5 million, or $0.52 per share, in the same period one year ago. The improvement in net loss was impacted by $3.5 million of greater losses on embedded derivatives and warrants during the six months ended June 30, 2009 compared to the same period on year ago.

Read the The complete ReportMXWL is in the portfolios of Arnold Van Den Berg of Century Management.

Rating: 4.1/5 (7 votes)

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