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
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