The company has reported revenue of $23.5 million for its fourth quarter ended December 31, 2008, up 39% over the $17.0 million recorded in the same period in 2007. Operating loss for the fourth quarter 2008 was $1.3 million, compared with $2.6 million in the same period last year. Net income for fourth quarter of 2008 was $1.4 million, or $0.07 per diluted share, compared with a net loss of $1.1 million, or $0.04 per diluted share, in fourth quarter of 2007. The net income/loss comparison is affected by a non-cash gain of $3.2 million, or $0.15 per share, in fourth quarter of 2008, versus a non-cash gain of $2.3 million, or $0.12 per share, in fourth quarter of 2007, reflecting a quarterly “mark-to-market” valuation of conversion features and warrants associated with convertible debentures issued in 2005.
Fourth quarter of 2008 BOOSTCAP ultracapacitor revenue increased by 69% to $9.0 million, compared with $5.3 million for the same period last year. High voltage capacitor and microelectronics products also generated strong sales growth, combining for fourth quarter of 2008 revenue of $14.5 million, up 25% from the $11.7 million recorded in fourth quarter of 2007.
“Worldwide demand for greener, more efficient and reliable energy storage solutions continues to drive ultracapacitor sales growth,” said David Schramm, Maxwell’s president and chief executive officer. “Wind turbine blade pitch mechanisms and braking energy recuperation systems for low-emission hybrid transit buses and energy-efficient electric rail vehicles accounted for the majority of our 2008 ultracapacitor sales, and higher volumes helped us to improve operating results.
“It is difficult to predict how global economic conditions might affect our business in the coming months, but so far many key markets for our products, such as utility infrastructure, renewable energy, public transportation and space programs have been relatively stable, and some appear likely to benefit from government stimulus programs,” Schramm added. “Q109 revenue is on pace to come in well above last year’s first quarter, so we are off to a good start, and we believe that our ongoing efficiency and cost-reduction programs will enable us to continue to improve operating performance.”
Other significant recent developments include:
An order from Vanner Inc., a manufacturer of electrical power conversion products, for multi-cell BOOSTCAP ultracapacitor modules for a retrofit diesel engine starter system that Vanner is installing in Chicago transit buses.
An order from a contractor for the Korean federal government for BOOSTCAP ultracapacitor modules to outfit a high-efficiency braking energy recuperation system designed to reduce grid power consumption and improve network stability in Korea’s subway system.
Fourth quarter of 2008 gross margin was 41%, compared with 29% in fourth quarter of 2007, and 30% in third quarter of 2008. Fourth quarter of 2008 gross margin was positively impacted by several nonrecurring items including a $500,000 forfeited deposit for the purchase of some manufacturing equipment and $500,000 of reimbursed R&D expenses. Operating expenses totaled about $10.8 million, or 46% of revenue in fourth quarter of 2008, compared with $7.5 million, or 44% of revenue in fourth quarter of 2007, and $10.1 million, or 46% of revenue in third quarter of 2008. Cash and restricted cash totaled $20.6 million as of December 31, 2008, compared with $21.6 million as of September 30, 2008. The company raised about $1.9 million, net of fees, through the sale of 390,400 shares of common stock at an average price of $4.96, under its Equity Distribution Program.
