Press Release
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Revenue up 64% Sequentially over First Quarter 2007
RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)--Aug. 3, 2007--Liquidmetal(R) Technologies Inc. (OTCBB:LQMT) today reported financial results for the three months ended June 30, 2007. Revenue for the second quarter was $8.3 million, up 64% over the first quarter of 2007 and 18% over the second quarter of 2006.
The record second quarter revenue was driven by the continued strength and growth in our Coating business and the recovery in our Bulk Alloy business. In comparison to the prior quarter, Bulk Alloy and Coatings revenues grew by 125% and 13% respectively. The Company's gross margin also recovered to 8%, up from a negative 27% in the first quarter of 2007 due to a higher level of efficient utilization of manufacturing plant operations. During the quarter, selling general and administrative costs were $2.5 million, the same level as the first quarter of 2007. Research and development costs came in at $0.3 million, identical to $0.3 million in the first quarter of 2007. Under GAAP, the Company had a net loss of $2.7 million in the second quarter of 2007 compared to a net income of $0.5 million in the first quarter 2007. The variation of net income results reflects the accounting treatment for the outstanding warrants and conversion features of the convertible notes.
Commenting on the operations, Mr. Larry Buffington, President and CEO, noted, "We are very pleased with the revenue growth and solid recovery in the Company during the second quarter. We were also able to satisfy $10.2 million of debt obligations last month which was a major objective for us and helps strengthen the Company for the future. We are also pursuing our licensing strategy as a way to continue to expand our markets while reducing our costs and our capital requirements. While this will reduce the rate of growth in gross revenues, we feel that this strategy will maximize our profits and accelerate the penetration of our technology into the general market."
Conference Call
As previously announced, Liquidmetal Technologies will host a conference call at 4:30 p.m. (EDT) on Friday, August 3rd, 2007 to discuss the results.
Listeners may access the conference call live over the Internet from Liquidmetal Technologies' website http://ir.liquidmetal.com or at http://www.companyboardroom.com.
Liquidmetal Technologies, Inc.
Consolidated Statements of Operations Data
(In thousands, except per share data)
For the three For the six
months ended months ended
----------------------- -----------------------
6/30/2007 6/30/2006 6/30/2007 6/30/2006
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Revenue $ 8,331 $ 7,090 $ 13,398 $ 13,645
Cost of sales 7,686 5,564 14,127 10,888
----------- ----------- ----------- -----------
Gross (loss) profit 645 1,526 (729) 2,757
Operating expenses
Selling, general and
administrative
expenses 2,495 2,368 5,027 5,073
Research and
development
expenses 293 281 556 484
----------- ----------- ----------- -----------
Total operating
expenses 2,788 2,649 5,583 5,557
----------- ----------- ----------- -----------
Loss before interest,
other income and
income taxes (2,143) (1,123) (6,312) (2,800)
Loss from
extinguishments of
debt - - (648) -
Change in value of
warrants, gain
(loss) 564 (1,426) 4,256 (2,715)
Change in value of
conversion feature,
gain (loss) 1,168 (2,137) 5,512 (3,920)
Other income 49 92 49 572
Interest expense (2,379) (3,277) (5,142) (5,059)
Interest income 46 7 107 9
----------- ----------- ----------- -----------
Income (loss) before
income taxes (2,695) (7,864) (2,178) (13,913)
Income taxes - - - -
----------- ----------- ----------- -----------
Net income (loss) $ (2,695) $ (7,864) $ (2,178) $ (13,913)
=========== =========== =========== ===========
Net income (loss) per
share - basic and
diluted $ (0.06) $ (0.18) $ (0.05) $ (0.32)
=========== =========== =========== ===========
Weighted average
common shares - basic
and diluted 44,632 44,075 44,778 43,446
=========== =========== =========== ===========
This press release may contain "forward-looking statements" that involve risks and uncertainties, including statements regarding our plans, future events, objectives, expectations, forecasts, or assumptions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and in some cases, words such as "believe," "estimate," "project," "expect," "intend," "may," "anticipate," "plans," "seeks," and similar expressions identify forward-looking statements. These statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the anticipated outcomes or result, and undue reliance should not be placed on these statements. These risks and uncertainties may include: our limited operating history in developing and manufacturing products from bulk amorphous alloys; the adoption of our alloys by customers; the commercial success of our customer's products; our ability to identify, develop, and commercialize new applications for our alloys; competition with suppliers of incumbent materials; the development of new materials that render our alloys obsolete; the ability to manage our anticipated growth; our limited direct experience in manufacturing bulk alloy products; scaling-up our manufacturing facilities; protecting our intellectual property; problems associated with manufacturing and selling our alloys outside of the United States; and other risks and uncertainties discussed in filings made with the Securities and Exchange Commission (including risks described in subsequent reports on Form 10-Q, Form 10-K, Form 8-K, and other filings). Liquidmetal Technologies disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
CONTACT: Liquidmetal Technologies
Otis Buchanan, 949-635-2120
otis.buchanan@liquidmetal.com
SOURCE: Liquidmetal Technologies