Press Release
|
RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)--March 11, 2008--Liquidmetal(R) Technologies Inc. (OTCBB: LQMT) today reported financial results for the three months ended December 31, 2007. Revenue for the Fourth Quarter was $8.5 million. This represents a 42% increase from $6.0 million in the Fourth Quarter, 2006. In addition, financial numbers for the quarter include royalties on sales by licensees as opposed to gross revenue for direct customer sales by the Company as reported in the past. As indicated last quarter, pursuing licensing opportunities, Liquidmetal Technologies is inherently trading off higher, but less profitable top-line revenues in favor of higher profit margin, but lower absolute revenues from royalties and material sales. For comparison purposes, revenues for the quarter would have exceeded $10 million if the gross revenues would have been captured by LQMT for the quarter.
Overall Gross Margins was 16% in the Fourth Quarter versus 15% in the Fourth Quarter of 2006. Selling, General & Administrative Expenses came in at $2.0 million for the quarter, down from $2.6 million in the Fourth Quarter of 2006, and Research & Development Expense was at $0.2 million in the Fourth Quarter, a level consistent with the prior year.
The increase in the revenues and the reduction in the overall expenses allowed us to achieve a positive EBITDA. Earnings before interest, taxes, and depreciation for the Fourth Quarter were $0.8 million. This continues the improving trend seen in recent quarters. Under GAAP, the Company had a net loss of $1.7 million in the Fourth Quarter compared to a net loss of $0.7 million in the Fourth Quarter of 2006. The variation of net income results primarily reflects the accounting treatment for the outstanding warrants and conversion features of the convertible notes which are non-cash expenses.
Commenting on the operations, Mr. Larry Buffington, President and CEO, noted, "Increasing customer demand and accelerating adoption of our Liquidmetal technology continued our momentum of revenue growth in the fourth quarter. Our overall strategy to segment our business around defined market opportunities, whether through our own subsidiary, joint venture or licensee, allows each business unit to focus its resources and execute its strategy. We believe that this strategy is essential to enable Liquidmetal Technologies to capitalize upon many opportunities in the shortest possible time."
Conference Call
As previously announced, Liquidmetal Technologies will host a conference call at 4:30 pm (EST) on Tuesday March 11th, 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.
Liquidmetal Technologies, Inc.
Consolidated Statements of Operations Data
(In thousands, except per share data)
For the three months For the twelve months
ended ended
------------------------- -------------------------
12/31/2007 12/31/2006 12/31/2007 12/31/2006
------------ ------------ ------------ ------------
(Unaudited)
Revenue $ 8,518 $ 5,984 $ 29,022 $ 27,669
Cost of sales 7,138 5,081 26,459 22,418
------------ ------------ ------------ ------------
Gross profit 1,380 903 2,563 5,251
Operating expenses
Selling, general
and
administrative
expenses 2,041 2,599 8,921 9,962
Research and
development
expenses 236 197 1,123 950
------------ ------------ ------------ ------------
Total operating
expenses 2,277 2,796 10,044 10,912
------------ ------------ ------------ ------------
Loss before
interest, other
income and income
taxes (897) (1,893) (7,481) (5,661)
Loss from
extinguishments
of debt - - (648) -
Change in value of
warrants, gain 447 1,633 4,923 279
Change in value of
conversion
feature, gain
(loss) 828 1,707 6,965 (226)
Other income 177 - 226 572
Interest expense (1,910) (2,148) (9,364) (9,509)
Interest income 2 6 123 23
------------ ------------ ------------ ------------
Loss before
minority
interests and
income taxes (1,353) (695) (5,256) (14,522)
Minority interests (318) - (384) -
Income taxes - - - -
------------ ------------ ------------ ------------
Net loss $ (1,671) $ (695) $ (5,640) $ (14,522)
============ ============ ============ ============
Net loss per share
- basic and
diluted $ (0.04) $ (0.02) $ (0.13) $ (0.33)
============ ============ ============ ============
Weighted average
common shares -
basic and diluted 44,711 44,245 44,730 43,809
============ ============ ============ ============
CONTACT: Liquidmetal Technologies
Otis Buchanan
949-635-2120
otis.buchanan@liquidmetal.com
SOURCE: Liquidmetal Technologies