LAKE FOREST, Calif., Aug 09, 2005 (BUSINESS WIRE) -- Liquidmetal(R) Technologies Inc. (OTC:LQMT) today announced financial results for the three months ended June 30, 2005.

Revenue for the second quarter was $3.7 million compared to $2.8 million in the first quarter of 2005, an increase of $0.9 million or 32%.

John Kang, Chairman and Chief Executive Officer of Liquidmetal Technologies states, "We are very encouraged by the steady growth of our revenues in the second quarter. The growth rate of our revenues was similar in both our bulk alloy business and our coatings business. I am especially pleased that the growth of the alloy business was driven much by new products from new customers. As we continue to build on these recent relationships and start new ones, we expect to see continued growth in our base of customers and revenues."

Bulk Alloy revenues were $2.4 million for the second quarter compared to $1.8 million in the first quarter, an increase of $0.6 million, which is primarily attributable to the introduction of new products by its customers. Loss before interest expense, discontinued operations, and impairment of long lived assets was $1.3 million compared to $1.1 million in the prior quarter.

Coatings revenues were $1.3 million for the second quarter compared to $1.0 million in the prior quarter, showing growth of 30% in business. Income before interest expense and discontinued operations was $0.4 million compared to $0.3 million in the prior quarter, which also shows stable profitability.

In addition to the loss, the company also took an impairment of long lived assets of $3.4 million due to the underutilization of the assets at its manufacturing plant. As a result, net loss for the second quarter was $6.4 million or $0.15 per share compared to $4.1 million or $0.10 per share in the first quarter.

During the quarter, selling general and administrative costs was $1.6 million compared to $2.5 million in the first quarter, a reduction of $0.9 million or 36%. Research and development costs were also down, coming in at $0.2 million compared to $0.4 million in the first quarter.

Commenting on the operations, Mr. Kang noted, "We are pleased with the progress that we have been able to make during the second quarter. We saw solid revenue growth and the company helped its customers launch new products into the marketplace, which can be challenging. Our operating expenses came down dramatically as much of our expense reduction plan began to bear results. Lastly, the refinancing of the company's debt and relisting on the OTC have been major milestones for the company. With the overall operation focused and new products continuing to launch, we believe the company is well poised to see healthy improvements in our overall business in the coming quarters."

As previously announced, Liquidmetal Technologies will host a conference call at 4:30 pm (EDT) on Tuesday, August 9, 2005 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.

The dial-in-number to access this operator-assisted call is toll free 1-800-289-0494 or toll 1-913-981-5520 for International callers. Institutional investors can also access the call via CCBN's password-protected event management site, StreetEvents http://www.streetevents.com.

About Liquidmetal Technologies

Liquidmetal Technologies (http://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 Revolution(TM) in material science.

This press release may contain "forward-looking statements" that involve risks and uncertainties, including statements regarding our anticipated financial results, as well as our plans, future events, objectives, expectations, forecasts, and the assumptions on which those statements are based. 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 include: unforeseen events that could further delay completion of the company's ongoing audit process; pending litigation against the company and its potential outcome; 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.

SOURCE: Liquidmetal Technologies Inc.