Maxwell Technologies Q2 Loss Wider than Expected, Sales Beat

Zacks

Maxwell Technologies, Inc. (MXWL) reported an adjusted loss of 4 cents per share in the second quarter of 2014 as against earnings of 12 cents per share in the year-ago quarter. Quarterly loss was wider than the Zacks Consensus Estimate of a loss of a penny. The year-over-year decline was due to lower revenues.

 

Revenue

Maxwell Technologies’ revenues of $46.1 million in the reported quarter surpassed the Zacks Consensus Estimate of $46 million by 0.2%. However, the reported top line dropped 17.1% year over year due to lower ultracapacitor (down 13.7% year over year) and high voltage capacitor and microelectronics products (down 25.6%) revenues.

Operational Highlights

In the quarter under review, Maxwell Technologies’ cost of revenue was $29.5 million, down 13.2% year over year.

Total operating expenses edged down 1.1% to $17.2 million from $17.4 million a year ago.

In the second quarter, the company’s interest expense was $0.03 million compared with $0.04 million in the prior-year quarter.

Business Update

In Jun 2014, Maxwell Technologies introduced a new 2.85 volt, 3400-farad ultracapacitor cell integrating its DuraBlue Shock and Vibration Technology. The introduction of the new cell will improve the performance of its K2 family of ultracapacitors and boost reliability.

Financial Condition

As of Jun 30, 2014, Maxwell Technologies had cash and cash equivalents of $30.7 million versus $30.6 million as of Dec 31, 2013.

Long-term debt (excluding current portion) was $0.07 million as of Jun 30, 2014, down from $0.1 million as of Dec 31, 2013.

During the first half of 2014, net cash from (used in) operating activities was ($0.6) million compared with $18 million in the year-ago period.

Guidance

Maxwell Technologies expects revenues in third-quarter 2014 to decline approximately 15% from the preceding quarter on the basis of customer projections for bus and other ultracapacitor applications and contracts for microelectronics and high voltage capacitor products.

Other Earnings Releases

Ballard Power Systems Inc. (BLDP) reported a second-quarter 2014 loss of 3 cents, in line with the Zacks Consensus Estimate.

Littelfuse Inc. (LFUS) announced second-quarter 2014 earnings of $1.26 per share, missing the Zacks Consensus Estimate of $1.31 by 3.8%.

Zacks Rank

Maxwell Technologies currently has a Zacks Rank #3 (Hold). However, a better-ranked stock in the same industry is AVX Corporation (AVX), carrying a Zacks Rank #1 (Strong Buy).

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