Press Release
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Overall Gross Margins was 25% in the Third Quarter versus 18% in the Second Quarter of 2008. The growth in the Company’s Gross Margin is a direct result of the reduction in manufacturing costs. Selling, General & Administrative Expenses came in at $1.4 million for the quarter, up slightly from $1.3 million in the Second Quarter of 2008. Research & Development Expense was at $0.3 million in the Third Quarter, a level consistent with prior year.
Commenting on the operations, Mr. Larry Buffington, President and CEO pointed out, “While revenue was lower in many respects due to economic conditions, the Company achieved significant improvement in gross margin, driven by the successful execution of initiatives started earlier this year to lower our manufacturing costs. As a result, the Company actually reduced its operating loss by $122,000. We believe that the Company is well-poised for profitable growth with new customer projects in our pipeline for 2009. In the short-term, we remain focused on our efforts to address our capital needs and debt obligations even as we improve our manufacturing operations and deploy our licensing strategy.”
Conference Call
As previously announced, Liquidmetal Technologies will host a conference call at 4:30 pm (EST) on Wednesday November 19th, 2008 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.
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.
| Liquidmetal Technologies, Inc. | |||||||||||||||||||
| Consolidated Statements of Operations Data | |||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||
| Revenue | $ | 5,041 | $ | 7,106 | $ | 17,478 | $ | 20,504 | |||||||||||
| Cost of sales | 3,791 | 5,194 | 13,325 | 19,321 | |||||||||||||||
| Gross profit | 1,250 | 1,912 | 4,153 | 1,183 | |||||||||||||||
| Operating expenses | |||||||||||||||||||
| Selling, general, and administrative | 1,417 | 1,853 | 4,617 | 6,880 | |||||||||||||||
| Research and development | 279 | 331 | 815 | 887 | |||||||||||||||
| Total operating expenses | 1,696 | 2,184 | 5,432 | 7,767 | |||||||||||||||
| Loss from operations | (446 | ) | (272 | ) | (1,279 | ) | (6,584 | ) | |||||||||||
| Loss from extinguishments of debt | - | - | - | (648 | ) | ||||||||||||||
| Change in value of warrants, gain | 989 | 220 | 2,385 | 4,476 | |||||||||||||||
| Change in value of conversion feature, gain | 642 | 625 | 2,104 | 6,137 | |||||||||||||||
| Other expense | - | - | (17 | ) | - | ||||||||||||||
| Other Income | - | - | 247 | 49 | |||||||||||||||
| Interest expense | (1,860 | ) | (1,991 | ) | (5,280 | ) | (7,454 | ) | |||||||||||
| Interest income | - | 14 | 3 | 121 | |||||||||||||||
| Loss before minority interest | (675 | ) | (1,404 | ) | (1,837 | ) | (3,903 | ) | |||||||||||
| Minority interests | (115 | ) | (66 | ) | (341 | ) | (66 | ) | |||||||||||
| Loss from continuing operations | (790 | ) | (1,470 | ) | (2,178 | ) | (3,969 | ) | |||||||||||
| Net loss | (790 | ) | (1,470 | ) | (2,178 | ) | (3,969 | ) | |||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||
| Foreign exchange translation (loss) gain | (729 | ) | 122 | (1,542 | ) | 399 | |||||||||||||
| Comprehensive income (loss) | $ | (1,519 | ) | $ | (1,348 | ) | $ | (3,720 | ) | $ | (3,570 | ) | |||||||
| Net loss per share basic and diluted: | |||||||||||||||||||
| Loss per share basic and diluted | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.09 | ) | |||||||
| Number of weighted average shares - basic and diluted | 44,726 | 44,652 | 44,726 | 44,736 | |||||||||||||||
Contact:
Liquidmetal Technologies Otis Buchanan, 949-635-2120 otis.buchanan@liquidmetal.com
Source: Liquidmetal(R) Technologies Inc.