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Maxwell Technologies, Inc. Message Board

  • mrboo56 mrboo56 May 6, 2013 9:18 AM Flag

    The GOOD The BAD The UGLY

    Pretty much sums up MXWL at the moment
    The GOOD

    1. Record UC sales in Q1 2013 of 33.1 million (unaudited)
    2. Days of shipments outstanding down to 67 ( remember-it was this very high number last year that tipped of some to a possible issue)
    3. Strong UC demand continues into the 2nd qtr
    4. New Arizona facility on schedule to be live in q4 ( Under current circumstances why would MXWL push forward with expansion unless they were confident of future demand?)
    5. BOD Cortes purchased 125000shares 6 months ago avg price around 6.25 ( Cotes historically has been a seller as he owns a significant amount of shares- 1st time I've seen an open market purchase -ever
    6. Officers exercising contract options in Feb with almost zero sales to pay taxes which is SOP. (Exception being 1834 shares for $9500 by Kevin Royal which short promoter dave likes to call Insider Sales :).
    7. The ease of bringing on a new accounting firm - one with an outstanding global reputation to move forward

    The BAD

    1. Visibility still not great. China bus business brisk but sales lead time makes it difficult to provide guidance going forward, especially as MXWL must be ultra conservative and cautious considering the pending revenue restatement issue.

    The UGLY

    1. Obviously, the acknowledged errors in income recognition timing and the related lawsuits, sec and doj issues. Unfortunately, these issues will take time to resolve and the resulting cloud will be hanging overhead for the foreseeable future.

    continued

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    • what's the impact of plaintiffs?

    • Part 2

      IMO

      Financial statements will be restated and released -probably by the end of the summer. If, the results are essentially the same as what has previously been projected by the company then the focus will turn back on the fundamentals of the business. Ironically, when the numbers are restated and 2011 and q1-q3 2012 are lowered due to revenue timing, UC revenue growth will from 2011-2012 and the 2013 will be even more impressive. Company is investing now for significant production expansion and directors and officers have either bought shares in the open market or exercised options without selling any for tax purposes. UC's are growing 30+% , the company has plenty of cash, they make money, and carries a current market cap of 1x 2013 projected sales.
      While I am obviously disappointed in the revenue recognition issue , I factor in the fact that they are still in the very early stages of growth with new sales and distribution channels still developing. The company discovered the issues internally, albeit late, and took immediate steps to recognize and report the issues. Clearly internal controls were lacking but these will now be improved going forward.

      Comments welcome

 
MXWL
7.11-0.25(-3.40%)Mar 4 4:00 PMEST

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