Maxwell Technologies has posted a third quarter net loss of US$1.4m, an improvement from US$9.4m in the second quarter.

Total revenues for the third quarter of 2015 were US$45.1m, an increase of 19.3% from the second quarter of 2015 and an rise of 8.4% from the prior year quarter.

Ultracapacitor revenue increased to US$31.8m, an increase of 35.6% from the second quarter of 2015 and an increase of 10.4% from the prior year quarter. The company reported US$3.8m of adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) for the third quarter of 2015, compared with $711,000 in the second quarter of 2015 and US$1.6m for the prior year quarter.

"During the third quarter, we made meaningful progress transitioning our business to higher growth opportunities and executing on our restructuring plan, which is already yielding positive results," said Maxwell president and CEO, Franz Fink.

"We achieved better than expected revenue, primarily driven by upside demand in the China hybrid bus market. We expect this strength to continue into the fourth quarter. While we expect the new China hybrid bus policy to put pressure on our top-line revenue early in 2016, we believe there is a long-term baseline business for ultracapacitors in that market."

"As our business evolves and diversifies, our continued focus on costs and operational efficiencies should position us for sustainable profitability over the long term. Maxwell's opportunity is large and growing, with our current served available market of nearly US$600m expected to grow to more than US$1.4bn by 2020 and further beyond that.

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Maxwell Reports Third Quarter Results

- Higher than expected revenue and reductions in operating expense drive non-GAAP EPS of $0.01

- Restructuring efforts on track; enhancing cost discipline and realizing operational efficiencies across the organization

Note: A webcast of Maxwell's conference call will be available at 5:00 p.m. EDT today at http://investors.maxwell.com.

SAN DIEGO, Oct. 29, 2015 /PRNewswire/ -- Maxwell Technologies, Inc. (NASDAQ: MXWL) today reported operational and financial results for the three and nine months ended September 30, 2015. Total revenues for the third quarter of 2015 were $45.1 million, an increase of 19.3% from the second quarter of 2015 and an increase of 8.4% from the prior year quarter. Ultracapacitor revenue increased to $31.8 million, an increase of 35.6% from the second quarter of 2015 and an increase of 10.4% from the prior year quarter. The Company reported $3.8 million of adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) for the third quarter of 2015, compared with $711,000 in the second quarter of 2015 and $1.6 millionfor the prior year quarter. Net loss for the third quarter of 2015 was $1.4 million, compared with $9.4 million in the second quarter of 2015 and $3.3 million in the prior year quarter.

"During the third quarter, we made meaningful progress transitioning our business to higher growth opportunities and executing on our restructuring plan, which is already yielding positive results," said Dr. Franz Fink, Maxwell's president and chief executive officer. "We achieved better than expected revenue, primarily driven by upside demand in the China hybrid bus market. We expect this strength to continue into the fourth quarter. While we expect the new China hybrid bus policy to put pressure on our top-line revenue early in 2016, we believe there is a long-term baseline business for ultracapacitors in that market."

"As our business evolves and diversifies, our continued focus on costs and operational efficiencies should position us for sustainable profitability over the long term. Maxwell's opportunity is large and growing, with our current served available market of nearly $600 million expected to grow to more than $1.4 billion by 2020 and further beyond that. Our five-year plan for revenue growth will build upon a solid revenue base today to more mid- and long-term opportunities as we diversify further in auto, rail and grid energy storage. Looking ahead, we are excited about the significant prospects for our company, and we are confident that we are taking the right steps to grow our business and enhance shareholder returns," concluded Fink.

Financial Results and Operating Metrics (1)

(Unaudited; in millions, except for per share amounts)


 

Three Months Ended

Nine Months Ended


 

September 30, 2015

June

30, 2015

September 30, 2014

September 30, 2015

September 30, 2014

Total revenue

$

45,076


 

$

37,796


 

$

41,593


 

$

117,542


 

$

133,668

Ultracapacitor revenue

$

31,801


 

$

23,449


 

$

28,809


 

$

77,194


 

$

94,719

High-Voltage revenue

$

10,275


 

$

11,892


 

$

10,428


 

$

32,818


 

$

30,514

Microelectronics revenue

$

3,000


 

$

2,455


 

$

2,356


 

$

7,530


 

$

8,435

Non-GAAP gross margin

32.3

%

33.0

%

37.6

%

32.0

%

37.8

%

Operating loss

$

(651)


 

$

(6,259)


 

$

(2,282)


 

$

(15,482)


 

$

(1,569)

Non-GAAP operating income (loss)

$

1,032


 

$

(2,158)


 

$

(1,271)


 

$

(8,858)


 

$

1,365

Adjusted EBITDA

$

3,765


 

$

711


 

$

1,605


 

$

(381)


 

$

9,785

Net loss

$

(1,449)


 

$

(9,376)


 

$

(3,292)


 

$

(20,166)


 

$

(4,154)

Non-GAAP net income (loss)

$

234


 

$

(3,190)


 

$

(2,281)


 

$

(11,457)


 

$

(1,220)

Non-GAAP net income (loss) per share










 

Basic and diluted

$

0.01


 

$

(0.11)


 

$

(0.08)


 

$

(0.38)


 

$

(0.04)

Net cash provided by operating activities

$

7,406


 

$

1,901


 

$

6,878


 

$

8,530


 

$

6,251

Cash purchases of property and equipment

$

562


 

$

942


 

$

2,319


 

$

2,779


 

$

5,195

Cash, cash equivalents and restricted cash

$

25,213


 

$

25,031


 

$

30,798


 

$

25,213


 

$

30,798











 

(1) For a reconciliation of non-GAAP financial measures, please refer to the section entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" included at the end of this release

Discussion of Financial and Operational Results for the Quarter
Revenue and Non-GAAP Gross Margin

Total revenue for the third quarter of 2015 was $45.1 million, compared with $37.8 million in the second quarter of 2015, primarily due to increases in ultracapacitor and microelectronics revenue.

Ultracapacitor revenue for the third quarter of 2015 was $31.8 million, compared with $23.4 million in the second quarter of 2015, primarily driven by increased demand in the China hybrid bus market.

High-voltage revenue was $10.3 million for the third quarter of 2015, compared with $11.9 million in the second quarter of 2015.

Microelectronic revenue for the third quarter of 2015 was $3.0 million, compared with $2.5 million in the second quarter of 2015.

Non-GAAP gross margin in the third quarter of 2015 was 32.3%, a slight decrease when compared with the second quarter of 2015, reflecting increased demand in the ultracapacitor business.

Adjusted EBITDA & Operating Expense

Adjusted EBITDA for the third quarter of 2015 was $3.8 million, compared with $711,000 in the second quarter of 2015. The quarter-over-quarter increase was primarily driven by higher revenues due to increased demand for our ultracapacitor products and a reduction in our operating expenses as a result of our restructuring and cost reduction efforts.

Operating expense in the third quarter of 2015 was $14.9 million, compared with $18.4 millionin the second quarter of 2015, primarily driven by lower restructuring related charges and cost reduction efforts.

Non-GAAP operating expense for the third quarter of 2015 was $13.5 million and excludes adjustments for stock-based compensation, restructuring related and various other non-standard charges.

Third quarter 2015 operating loss was $651,000, compared with an operating loss of $6.3 million in the second quarter of 2015. The quarter-over-quarter reduction in operating loss was primarily driven by lower restructuring related charges, increased demand for our ultracapacitor products and reduction in our operating expenses as a result of our restructuring and cost reduction efforts.

Non-GAAP operating income for the third quarter of 2015 was $1.0 million.

Net loss for the third quarter of 2015 was $1.4 million, or $(0.05) per share, compared with a net loss of $9.4 million, or $(0.31) per share, in the second quarter of 2015.

Non-GAAP net income for the third quarter of 2015 was $234,000.

Capital Expenditures

Capital expenditures during the third quarter of 2015 were $562,000, compared with$942,000 in the second quarter of 2015.

Business Outlook

Total revenue for the fourth quarter of 2015 is expected to be between $46 million and $50 million, a 6 percent increase at the midpoint of guidance.

Non-GAAP gross margin for the fourth quarter of 2015 is expected to be between 31% and 33%.

Non-GAAP operating expense for the fourth quarter of 2015 is expected to be approximately$13.5 million.

Other Business & Operational Highlights

Secured $25 million revolving credit facility with East West Bank.

Selected as the exclusive capacitive energy storage supplier by China's largest rail company,China Railway Rolling Stock Corporation.

Announced the availability of Maxwell's Engine Start Module (ESM) as a factory-installed option on select new Peterbilt trucks.

Announced that Continental Automotive System's Maxwell-powered voltage stabilization system (VSS) will be a standard feature on 2016 Cadillac ATS and CTS sedans and ATS coupes (excludes the ATS-V, CTS-V and CT6 models). Production rollout began in July.

Webcast Information

As previously announced, Maxwell management will host a live webcast at approximately 5:00 p.m. EDT / 2:00 p.m. PDT today to discuss these results.  Other forward-looking and material information may also be discussed during this call.

The call may be accessed by dialing toll-free, (877) 876-9174 from the U.S. and Canada, or (785) 424-1669 for international callers, and entering the conference ID, MAXWELL.

More information about this event including a live webcast and other supporting materials may be accessed by visiting http://investors.maxwell.com.

A replay of the conference call will be available for a limited time by visiting http://investors.maxwell.com.

About Maxwell

Maxwell is a global leader in the development and manufacture of innovative, cost-effective energy storage and power delivery solutions. Our ultracapacitor products provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation, renewable energy and information technology. 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. Our radiation-hardened microelectronic products for satellites and spacecraft include single board computers and components incorporating our proprietary RADPAK® packaging and shielding technology that enables them to perform reliably in space. For more information, visit www.maxwell.com.

Original source: http://investors.maxwell.com/phoenix.zhtml?c=94560&p=irol-newsArticle&ID=2104397

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