Maxwell Technologies, Inc.
) solid third quarter 2013 results had a positive effect on the
stock market, driving its share price 10.7% on Oct 25 to $8.19 on
daily trading. The company reported third quarter 2013 earnings
of 21 cents per share, far ahead of the Zacks Consensus Estimate
of a loss of 16 cents. The company's earnings were also up 16.7%
from the year-ago profit level of 18 cents, buoyed by robust
ultracapacitor revenue growth.
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The company's total revenue came in at $51.2 million, up 19.9%
from the year-earlier number of $42.7 million and 46.2% from the
Zacks Consensus Estimate of $35.0 million.
Ultracapacitor revenue in the third quarter was $37.0 million, up
30% year over year while revenue from high voltage capacitor and
microelectronics products was $14.2 million, down marginally by
1% year over year.
Operating expenses incurred during the quarter were $14.9
million, up 20.0% year over year due to an increase in selling,
general and administrative expenses (up 28.8%) and research and
development expenses (up 7.2%).
Cash and cash equivalents as of Sep 30, 2013 were $37.0 million
versus $28.7 million at the end of Dec 2012. Long-term debt was
$0.086 million versus $0.083 million as of Dec 2012.
Maxwell Technologies continues to be the market leader in the
growing ultracapacitor market. Overall, the company posted strong
results, driven mainly by hybrid bus and wind energy applications
in China, and a European automotive program.
Recently, the Chinese government declared a subsidy policy on all
electric buses and plug-in hybrid buses. These buses qualify for
the announced government subsidies, and incorporate
As a result, Maxwell Technologies expects sales of several
thousand ultracapacitor modules in the fourth quarter driven by
high plug-in hybrid demand.
However, the company's dependency on third parties for
manufacturing and logistics operations, foreign currency risks
and licensing law hurdles keep us concerned. The company
presently retains a short-term Zacks Rank #3 (Hold).
Stocks to look out for in the space are
Ballard Power Systems Inc.
). While Nidec holds a Zacks Rank #1 (Strong Buy), CalAmp and
Ballard Power carry a Zacks Rank #2 (Buy).