Energy storage and power delivery products maker, Maxwell Technologies Inc. (MXWL) reported third quarter 2010 adjusted earnings of a penny per share, in line with the Zacks Consensus Estimate and soundly beat the year-ago quarterly loss per share of 4 cents. On a reported basis the company had a per share loss of 9 cents compared to a loss of 18 cents in the year-ago quarter.
The 10-cent variance in the reported period between the reported and adjusted earnings came from the impact of amortization of intangible assets (1 cent), a potential settlement with the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) (6 cents) and loss on embedded derivative and warrants (3 cents).
Operational Performance
Maxwell Technologies’ revenue was $31.5 million in the third quarter 2010, up 21% from $26.1 million in the year-ago quarter, beating the Zacks Consensus Estimate of $31 million. Ultracapacitor revenue was $18.6 million, up 78% from $10.5 million in the third quarter of 2009.
Revenue from high voltage capacitor and microelectronics products was $12.8 million, down 18% from $15.6 million in the year-ago quarter. In the third quarter 2010, Maxwell had a gross margin of 39% versus 38% in the year-ago quarter. Net loss for the third quarter 2010 was $2.4 million compared with a net loss of $4.6 million in the year-ago quarter.
Financial Condition
Maxwell Technologies’ reported cash and cash equivalents of $32.1 million compared to $29.6 million at fiscal-end 2009. Long-term debt decreased to $4.1 million in the reported quarter from $11.5 million at fiscal-end 2009.
Outlook
Maxwell Technologies is a leading manufacturer of ultracapacitors, high-voltage capacitors and microelectronics products. The company recorded consistent growth in its quarterly top-line in the recent past.
Looking ahead, the strong demand trend will continue for the company’s products related to the utility infrastructure, renewable energy, public transportation, and space programs. Also its key end-markets appear likely to benefit from government stimulus programs as well as more stringent automotive emissions legislation.
The European Union has taken the lead in enacting legislation requiring carbon dioxide emission reduction targets and levying penalties on vehicles whose emissions exceed the mandated limit. In the U.S., the Obama administration is focused on increasing federal investments in greener transportation technologies through laws like the Corporate Average Fuel Economy (CAFE) standards for U.S. automakers.
Maxwell Technologies expects its sales to grow 5% – 7% sequentially in the fourth quarter 2010.
We presently retain a short-term Zacks #3 Rank (Hold) and a longer-term Neutral recommendation on the stock.
MAXWELL TECH (MXWL): Free Stock Analysis Report
Zacks Investment Research
