Maxwell Technologies Inc. (MXWL) reported a weaker-than-expected first-quarter 2010 loss per share of 7 cents, below the Zacks Consensus loss per share estimate of 2 cents. In the year-ago period, the company had reported a loss of 7 cents as well.
 
Operational Performance
 
Maxwell Technologies reported revenues of $26.6 million in the reported quarter, up 18.5% from $22.5 million recorded in the year-ago quarter. Ultracapacitor revenues increased 79% to $13.8 million compared with $7.7 million in the year-ago quarter. Sales of high voltage capacitor and microelectronics products totaled $12.8 million for the reported quarter, down 13% from $14.7 million in the year-ago quarter.
 
Operating expenses totaled approximately $11.8 million, or 44% of revenues in the reported quarter, compared with $8.8 million, or 39% of revenues in the year-ago quarter. Operating loss in the reported quarter was $1.6 million compared with a loss of $1.8 million in the year-ago quarter.
 
Net income in the reported quarter was $1.2 million, compared with a net loss of $3 million in the year-ago quarter. Reported quarter results include a non-cash gain of $3.2 million compared with a non-cash loss of $0.6 million in the year-ago quarter, based on the quarterly valuation of conversion features and warrants associated with convertible debentures issued in 2005.
 
Gross margin was 38% in the reported quarter, compared with 31% in the year-ago quarter. Gross margin was affected by a less favorable revenue mix in the quarter and the positive impact of several non-recurring items in the year-ago quarter.
 
Financial Condition
 
Cash and restricted cash totaled $38.1 million as of March 31, 2010, compared with $38.2 million as of fiscal end 2009. Long term debt decreased to $10.1 billion in the reported quarter from $11.5 billion at fiscal-end 2009.
 
Outlook
 
Maxwell Technologies expects strong Ultracapacitor sales growth to continue in the second quarter of fiscal 2010 driven primarily by increasing demand for energy storage and power delivery systems for hybrid transit buses and wind turbines. The company is optimistic of strong Ultracapacitor sales growth for various backup power applications as well. The current Zacks Consensus Earnings Estimate for the second quarter of 2010 currently stands at profit of 2 cents per share.
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