UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 9, 2003
LIQUIDMETAL TECHNOLOGIES, INC.
(Exact name of Registrant as Specified in its Charter)
Delaware 000-31332 20-0121262
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
100 North Tampa St., Suite 3150
Tampa, Florida 33602
(Address of Principal Executive Offices; Zip Code)
Registrant's telephone number, including area code: (813) 314-0280
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LIQUIDMETAL TECHNOLOGIES, INC.
FORM 8-K
Item 9. Regulation FD Disclosure
The following information is being furnished under Item 9 of Form 8-K: Press
release by Liquidmetal Technologies, Inc. announcing its revenue estimate for
the quarter ended September 30, 2003. A copy of this press release is attached
as Exhibit 99.1 to this Form 8-K.
Item 12. Results of Operations and Financial Condition
The following information is being furnished under Item 12 of Form 8-K: Press
release by Liquidmetal Technologies, Inc. announcing its revenue estimate for
the quarter ended September 30, 2003. A copy of this press release is attached
as Exhibit 99.1 to this Form 8-K.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunder duly authorized.
LIQUIDMETAL TECHNOLOGIES, INC.
By: /s/ John Kang
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John Kang
President and Chief Executive Officer
Date: October 9, 2003
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press Release, dated October 9, 2003.
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LIQUIDMETAL
TECHNOLOGIES
News Release
FOR IMMEDIATE RELEASE
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CONTACT: David Townsend
813-314-0280 ext. 127
david.townsend@liquidmetal.com
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Liquidmetal Technologies Provides Third Quarter Revenue Estimate,
Introduces New Operating Strategy Focused on Strategic Partnerships
TAMPA, Fla., October 9, 2003 --Liquidmetal Technologies, Inc.
(NASDAQ:LQMT) today provided a revised revenue estimate for its third quarter
ended September 30, 2003 and announced a significant change in its operating and
market focus.
Full details of third quarter results will be announced on October 30;
however, based on preliminary results, the company today said it expects
revenues for the third quarter to be in the range of $3.2 to $3.5 million. This
compares to revenues of $3.7 million generated in the same quarter of 2002 and
$6.4 million recorded in the 2003 second quarter.
The company noted that revenues in the preceding second-quarter
benefited from a one-time, $2.0 million sale of Liquidmetal(R) alloy processing
machinery as part of a new strategic partnership, and that there were no
comparable machine sale transactions in the just-ended third quarter. Second
quarter 2003 revenues also included $1.5 million in sales of other manufacturing
equipment by the company's equipment manufacturing division. Sales of this type
of equipment were significantly lower in the third quarter. In addition,
revenues for the third quarter were below previous company guidance of $6.4
million as
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a result of various factors, the largest of which were lower-than-expected
shipments of cellular phone casing components and a less-than-anticipated
revenue increase from the company's coatings segment. The shortfall in casing
component shipments was largely due to a company-driven decision to halt
production of a large customer order that was determined could not be
manufactured at planned costs, as well as cancellation of another large volume
order as a result of a customer-driven decision to discontinue a cell phone
model.
Modified Business Strategy Announced
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In addition to providing revised revenue guidance, the company
announced a major shift in its operating strategy. Key elements of the modified
strategy are:
o Manufacturing of casing components for mass-market cell phones has
been unprofitable and is being sharply curtailed. Future production
of electronic casing components will be limited to select products
that require the high-performance qualities of Liquidmetal alloys and
can be priced accordingly.
o In keeping with this emphasis on performance-driven product
opportunities, internal manufacturing and marketing emphasis will be
focused on higher-margin, value-added products in the company's
targeted sports and medical markets.
o Strategic partnerships, principally in the form of technology
licensing and product distribution relationships, will be
aggressively pursued with industry partners whose resources, market
position and established technologies or processes will facilitate
more rapid and effective development and commercialization of new
products employing Liquidmetal alloys. This will enable the company
to operate on a less capital-intensive basis than under its previous,
internal-only manufacturing strategy.
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"We initially targeted the mass-production cell phone casings market
because of its potential for high product volumes and branding opportunities;
however, current manufacturing process limitations, higher-than-expected
production costs, unpredictable customer adoption cycles, short product shelf
life, and intense pricing pressures have made it difficult to compete profitably
in this commodity-driven market at this stage of our company's evolution," said
Chairman and CEO John Kang.
"Our revised strategy addresses the reality that our unprecedented
technology is still new in the marketplace, and that while we have made great
progress in developing and improving our proprietary processes over the past
year, they are not yet refined to the point that we can cost-effectively
manufacture price-sensitive, commodity products. Our core competency is alloy
development, and we believe that a business model heavily weighted to funded,
strategic partnerships will provide a more direct path to revenue growth and
success," Kang said.
In support of this transition, the company is intensifying cost
improvement programs initiated in previous quarters that to date have
substantially reduced operating expenses. Further cost reduction actions are
planned in the current fourth quarter to more fully align expenses with the
company's limited near-term manufacturing focus.
To further support these initiatives and strengthen its cash resources,
the company reported that it is actively exploring potential sources of funding
in the form of equity or debt financing.
Going forward, funded research and development activities, principally
for defense-related and medical products, and stable demand for the company's
coatings products are expected to continue to provide a baseline of revenues.
However, the company said that while it continues to progress with development
of sports and medical products, the timeframe for bringing these products to
market is being extended.
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As an outgrowth of this timing shift, the company said it no longer expects to
reach profitability in the fourth quarter of 2003. Profitability will continue
to be a primary focus of operations, and with the deployment of the modified
business strategy, the company will make further statements about its outlook
for reaching profitability when appropriate.
Conference Call Scheduled
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For additional perspective on today's announcement, the company has
scheduled a web cast/conference call for 9 a.m. ET today. This call is not
intended to replace the company's regularly scheduled earnings conference call
on October 30. Today's call will not focus on detailed financial results for the
third quarter, but will primarily focus on the modified strategy initiatives
outlined in this release. Interested parties may access the conference call live
via the Internet from Liquidmetal Technologies' web site at
http://ir.liquidmetal.com or at www.companyboardroom.com. The dial-in number for
analysts and investors participating in the operator-assisted call is toll-free
1-800-915-4836 or toll 1-973-317-5319 for international callers. Institutional
investors may also access the call via CCBN's password-protected event
management site, www.streetevents.com. A rebroadcast will be available after 11
a.m. the day of the call on the company's website or at toll-free 1-800-428-6051
or 1-973-709-2089 for international callers, access code 309533.
About Liquidmetal Technologies, Inc.
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Liquidmetal Technologies, Inc. (www.liquidmetal.com) is the leading developer,
manufacturer, and marketer of products made from amorphous alloys. Amorphous
alloys are unique materials that are characterized by a random atomic structure,
in contrast to the crystalline atomic structure possessed by ordinary metals and
alloys. Bulk Liquidmetal(R) alloys are two to three times stronger than commonly
used titanium alloys, harder than tool steel, and relatively non-corrosive and
wear resistant. Bulk Liquidmetal alloys can also be molded into precision
net-shaped parts similar to plastics, resulting in intricate and sophisticated
engineered designs. Liquidmetal Technologies is the first company to produce
amorphous alloys in commercially viable bulk form, enabling significant
improvements in products across a wide array of industries. The combination of a
super alloy's performance coupled with unique processing advantages positions
Liquidmetal alloys for what the company believes will be The Third RevolutionTM
in material science.
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This news 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 and improving our intellectual property and manufacturing
processes; 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.
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