Maxwell Technologies Inc. (NASDAQ:MXWL) reported revenue of $34.7 million for its first quarter ended March 31, 2015, down 25 percent from the $46.0 millionrecorded in the first quarter of 2014.
First quarter ultracapacitor revenue was down 31 percent compared with the $32.0 million recorded in the first quarter of 2014. Sales of high voltage capacitor and microelectronics products totaled $12.7 million in Q115, down 9 percent from the $14.0 million recorded in Q114.
“First quarter revenue and gross margin were in line with our guidance,” said Dr. Franz Fink, Maxwell’s president and CEO. “While operating expenses were higher than anticipated, we are making progress in the second quarter towards our quarterly target of $15 million on a non-GAAP basis. We expect to have fully executed our expense reduction plan during the third quarter, so the full impact of those reductions will be seen in the fourth quarter of 2015.”
On a U.S. generally accepted accounting principles (GAAP) basis, operating loss for the first quarter 2015 was$8.9 million, compared with operating income of $346,000 in Q414 and operating income of $760,000 in Q114. GAAP net loss for Q115 was $9.3 million, or $0.32 per share, compared with a net loss of $2.1 million, or $0.07per share in Q414 and net income of $319,000, or $0.01 per diluted share, in Q114.
On a non-GAAP basis, the Company reported an operating loss of $8.1 million in Q115 compared with operating income of $1.4 million in Q414 and operating income of $1.5 million in Q114. Non-GAAP net loss for Q115 was $8.5 million, or $0.29 cents per share, compared with net income of $506,000, or $0.02 cents per diluted share, in Q414 and net income of $1.1 million, or $0.04 per diluted share, in Q114. A reconciliation of GAAP to non-GAAP financial measures is included as an addendum to this release.
GAAP gross margin was 30 percent in Q115, compared with 35 percent in Q414 and 39 percent in Q114. GAAP operating expenses totaled approximately $19.3 million, or 56 percent of revenue, in Q115, compared with$18.2 million, or 34 percent of revenue, in Q414, and $17.1 million, or 37 percent of revenue, in Q114. Non-GAAP operating expenses totaled approximately $18.7 million, or 54 percent of revenue, in Q115 compared with $17.3 million, or 33 percent of revenue, in Q414 and $16.6 million, or 36 percent of revenue, in Q114. Cash and cash equivalents totaled $23.1 million as of March 31, 2015, compared with $24.7 million as of December 31, 2014. Complete financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations will be available with the filing of the Company’s Quarterly Report on Form 10-Q with the Securities & Exchange Commission.
Outlook: “We expect 5 to 10 percent sequential top line growth in the second quarter, and that sales momentum, driven by projected seasonally increasing volume in the China bus market, will build in the second half of the year, enabling us to achieve total revenue in a range of $160 million to $180 million for the year,” said Dr. Fink.
Non-GAAP Financial Measures: The Company uses non-GAAP financial measures for internal evaluation and to report the results of its business. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss), and non-GAAP net income (loss) per diluted share. These measures are not in accordance with, nor an alternative to, GAAP. These measures are intended to supplement GAAP financial information, and may be computed differently from non-GAAP financial measures used by other companies. The Company believes that these measures provide useful information to its management, board of directors and investors about its operating activities and business trends related to its financial condition and results of operations. The Company believes that it is useful to provide investors with information to understand how specific line items in the statement of operations are affected by certain non-cash or non-recurring items, such as stock-based compensation expense.
In addition, the Company’s management and board of directors use these non-GAAP financial measures in developing operating budgets and in reviewing the Company’s results of operations, as non-cash and non-recurring items have limited impact on current and future operating decisions. Additionally, the Company believes that inclusion of non-GAAP financial measures provide consistency and comparability with its past reports of financial results. However, investors should be aware that non-GAAP measures have inherent limitations and should be read in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Please refer to the accompanying tables for a detailed reconciliation of GAAP to non-GAAP gross profit, operating expenses, income from operations, net income, and net income per share. (Original Source)
Shares of Maxwell Technologies closed today at $7.18, up $0.24 or3.46%. MXWL has a 1-year high of $18.43 and a 1-year low of $6.29. The stock’s 50-day moving average is $7.54 and its 200-day moving average is $8.61.
On the ratings front, Maxwell has been the subject of a number of recent research reports. In a report issued on March 26, Northland Securities analyst Noah Kaye reiterated a Hold rating on MXWL, with a price target of $8, which implies an upside of 14.4% from current levels. Separately, on February 6, Canaccord Genuity’s Jonathan Dorsheimer maintained a Buy rating on the stock and has a price target of $9.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Noah Kaye and Jonathan Dorsheimer have a total average return of -4.7% and -1.5% respectively. Kaye has a success rate of 60.0% and is ranked #2940 out of 3577 analysts, while Dorsheimer has a success rate of 39.3% and is ranked #3055.
Maxwell Technologies Inc develops, manufactures and markets energy storage and power delivery products for transportation, industrial, information technology and other applications and microelectronic products for space and satellite applications.