Maxwell Beats EPS, Meets Revenue - Analyst Blog

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Energy storage and power delivery products maker, Maxwell Technologies Inc. ( MXWL ) reported second quarter 2012 adjusted earnings (earnings before non-recurring items, but including stock-based compensation expense) of 9 cents per share, higher than the Zacks Consensus Estimate of a penny. Results also came above the year-ago quarterly earnings of 4 cents per share.

On a reported basis, the company reported earnings of 9 cents per share in the quarter versus loss of 4 cents in the year-ago quarter.

Operational Performance

Maxwell Technologies' revenue was $40.9 million in the second quarter 2012, up 6% from $38.5 million in the year-ago quarter, and in line with the Zacks Consensus Estimate. Ultracapacitor revenue was $24.2 million, slightly lower than the $24.4 million recorded in the year-ago period. Revenue from high voltage capacitor and microelectronics products was $16.7 million, up 19% from the year-ago quarter.

In the reported quarter, Maxwell Technologies clocked operating income of $3.4 million, compared with an operating loss of $1.6 million in the year-ago period. Overall, the company recorded net income of $2.7 million compared with a loss of $1.2 million in the year-ago period.

Financial Condition

Maxwell Technologies reported cash and cash equivalents of $22.3 million compared with $29.3 million at year-end 2011. Long-term debt rose to $3.4 million in the reported quarter from $0.1 million at year-end 2011. In the reported quarter the company spent $4.2 million in capital investments focusing on capacity expansion and product development for ultracapacitor products.

Background

Maxwell Technologies is a leading manufacturer of ultracapacitors, high-voltage capacitors and microelectronics products. Looking ahead, the company's products are sure to experience strong demand growth related to the utility infrastructure, renewable energy, public transportation, and space programs. Particularly, the company's key end markets appear likely to benefit from government stimulus programs as well as from more stringent automotive emissions legislation.

Outlook

Maxwell Technologies, based on current order flow and customer forecasts in core ultracapacitor market segments, expects sequential top-line growth of 7%-10% in the third quarter of 2012. Overall, for full-year 2012, the company expects year-over-year growth in the range of 15%-20%. The company's bullishness comes on the heels of its major market China's five-year plan which calls for wind energy to account for 3% to 5% of the country's total power generation by 2020. Also, the company's Ultracapacitor sales for hybrid bus drive systems are also going strong as the Chinese central government and many regional and local governments continue to provide subsidies and policy support for hybridization of public transit vehicles to both improve fuel efficiency and to reduce urban air pollution.

The stock retains a short-term Zacks #3 Rank (Hold), in sync with our longer-term Neutral recommendation. Thus, the company is in line with its peers Advanced Photonix Inc. ( API ) and Anaren Inc. ( ANEN ).


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ANEN , API , MXWL

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