Energy storage and power delivery products maker,
Maxwell Technologies Inc.
) reported third-quarter 2012 adjusted earnings (earnings before
non-recurring items, but including stock-based compensation
expense) of 19 cents per share, beating the Zacks Consensus
Estimate by 11 cents. Results also came above the year-ago
quarterly earnings of 9 cents per share.
On a reported basis, the company reported earnings of 19 cents
per share in the quarter versus 9 cents in the year-ago quarter.
Maxwell Technologies' revenue was $43.9 million in the third
quarter of 2012, up 6.8% from $41.1 million in the year-ago
quarter. The top line also surpassed the Zacks Consensus Estimate
of $45 million. Ultracapacitor revenue was $28.2 million,
significantly up 15% year over year. Revenue from high voltage
capacitor and microelectronics products was $15.1 million, down
7% from the year-ago quarter.
Total operating expenses during the quarter were $12.4 million,
down 18.8% year over year. In the reported quarter, Maxwell
Technologies clocked operating income of $6.5 million, up from
$2.1 million in the year-ago quarter.
Maxwell Technologies reported cash and cash equivalents of $20
million compared with $40 million at the end of September 30,
2011. Long-term debt rose to approximately $3 million from $2.3
million at the end of third quarter of 2011.
Wind energy and hybrid transit bus applications continue to be
the primary drivers of ultracapacitor sales. Currently, the
company is working to resolve the hybrid bus drive system
application issues. This would lead to delay in previously
forecasted deliveries. As a result of those delays and generally
lower demand, the company expects revenue in the fourth quarter
of 2012 to be similar to the one recorded in the first quarter of
However, the company is confident of its current cash and credit
resources and believes them to be adequate to allow it to advance
its core technologies, develop and launch new products and expand
production capacity as needed.
Maxwell Technologies easily surpassed the Zacks Consensus
Estimates. The company continues to be the market leader in the
budding ultracapacitor market. Though, ultracapacitor sales
growth has slowed down due to lower demand in Europe and other
places, the company is trying to focus on developing new growth
opportunities, improving efficiency and controlling expenses to
improve its profits. Future top-line growth should be fueled by
the expected increase in ultracapacitor sales through a
production ramp-up for automotives, as well as its focus on
improving its cost structure and the steady demand from heavy
transportation, wind, braking recuperation and automotive
In the near term, downside risks include the rate of penetration
for ultracapacitor technology into broader markets, a higher cost
structure for ultracapacitor production, research and development
overheads and earnings dilutive equity issuances. The company
presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the
Based in San Diego, California Maxwell Technologies, Inc.
develops, manufactures and markets energy storage and power
delivery products for transportation, industrial
telecommunications and other applications and microelectronic
products for space and satellite applications. Maxwell
Technologies markets and sells its products in North America,
Europe, and Asia.
Some of the main competitors are
Park Electrochemical Corp.
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