Liquidmetal Technologies Reports Fiscal Year 2012 Results

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Liquidmetal Technologies Reports Fiscal Year 2012 Results

Prototype Shipments Increased 233% in 2012, Reflecting Growing Interest in the Unique Applications and Capabilities of Liquidmetal Alloy

RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)-- Liquidmetal® Technologies, Inc. (LTI) (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for the fiscal year ended December 31, 2012.


Q4 2012 Operational Highlights

  • In 2012, 10 prototype shipments were delivered to customers in the aerospace/defense, medical and other industries, which was up 233% from 2011.
  • At the end of Q4 2012, there were 10 Liquidmetal prototype parts actively being evaluated by customers. This is up from seven in the prior quarter and three in the prior year comparative quarter.
  • LTI partnered with a leading original design manufacturer to introduce the next generation of golf club design. The clubs will feature the "pure energy transfer" of Liquidmetal amorphous alloy, which allows for long, forgiving shots off the tee, with increased overall performance.
  • LTI completed the first successful transition of a prototype part into commercial production with the shipment of a large order of specialized parts from its certified manufacturing partner.
  • At quarter-end, the company's IP portfolio included 56 owned or licensed U.S. patents, with an additional 50 patent applications pending. Its patent applications relate to the composition, processing, and application of Liquidmetal alloys.

Management Commentary

"During 2012, we made strong continued progress in our transition from a development stage to a commercial products company," said Tom Steipp, President and CEO. "This is reflected in the 233% increase in prototype parts shipped versus last year.

"The increasing demand for prototype parts has been well-timed to the certification of our first commercial production capabilities. With our third-generation Liquidmetal manufacturing process introduced in early 2012, we've demonstrated we can meet the demanding requirements of our customers. As a result, interest and confidence in our Liquidmetal alloys has increased and our prototype pipeline is stronger than ever.

"As we continue to work closely with our customers to perfect their Liquidmetal alloy parts, we expect to see more prototypes entering into commercial production over the course of 2013."

Fiscal Year 2012 Financial Summary

In 2012, the company generated nominal revenues as it focused on penetrating target applications and customers to sell prototype parts.

Selling, marketing, general and administrative expense was $4.9 million compared to $4.2 million in 2011. The increase was primarily due to additional headcount to support the company's sales and business development efforts to further penetrate its existing customer base.

Research and development expense was $0.9 million compared to $1.1 million in 2011. The decrease was primarily due to lower spending on production supplies and consulting services. While research and development expense decreased year-over-year, the company continues to research Liquidmetal alloys and related processing capabilities, as well as manufacturing techniques that advance the development of Liquidmetal alloys.

Total operating expenses were $12.1 million compared to $7.1 million in 2011. The increase was primarily due to a one-time, non-cash expense of $6.3 million for the discount pricing Visser received under its master transaction agreement in June 2012.

Cash totaled $7.2 million at December 31, 2012, as compared to $8.7 million at the end of the prior quarter.

Conference Call

Liquidmetal Technologies, Inc.'s management will hold a conference call later today (February 26, 2013) to discuss these results. The company's President and CEO Tom Steipp and CFO Tony Chung will host the call starting at 4:30 p.m. Eastern time. A question and answer session will follow management's presentation.

Date: Tuesday, February 26, 2013
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-888-846-5003
International: 1-480-629-9856
Conference ID#: 4600833

The conference call will be broadcast simultaneously and available for replay via the investor section of the company's website at www.liquidmetal.com.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through March 26, 2013.

Toll-Free Replay Number: 1-877-870-5176
International Replay Number: 1-858-384-5517
Replay PIN Number: 4600833

About Liquidmetal Technologies

Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys and composites that utilize the performance advantages offered by amorphous alloy technology. Amorphous alloys are unique materials that are distinguished by their ability to retain a random structure when they solidify, in contrast to the crystalline atomic structure that forms in ordinary metals and alloys. 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. For more information, go to www.liquidmetal.com.

Forward-Looking Statement

This press release contains "forward-looking statements," including but not limited to statements regarding the advantages of Liquidmetal's amorphous alloy technology, scheduled manufacturing of customer parts and other statements associated with Liquidmetal's technology and operations. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Liquidmetal's expectations and projections. Risks and uncertainties include, among other things; customer adoption of Liquidmetal's technologies and successful integration of those technologies into customer products; potential difficulties or delays in manufacturing products incorporating Liquidmetal's technologies; Liquidmetal's ability to fund its current and anticipated operations; the ability of third party suppliers and manufacturers to meet customer product requirements; general industry conditions; general economic conditions; and governmental laws and regulations affecting Liquidmetal's operations. Additional information concerning these and other risk factors can be found in Liquidmetal's public periodic filings with the U.S. Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Liquidmetal's 2012 Annual Report on Form 10-K.

LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share data)

    
December 31,December 31,
20122011
 

ASSETS

 
Current assets:
Cash$7,162$122
Trade accounts receivable, net of allowance for doubtful accounts of $11 and $064241
Related party notes receivable-200
Prepaid expenses and other current assets 689  248 
Total current assets$7,915$811
Property and equipment, net161162
Patents and trademarks, net869968
Other assets 28  52 
Total assets$8,973 $1,993 
 

LIABILITIES AND SHAREHOLDERS' DEFICIT

 
Current liabilities:
Accounts payable154803
Accrued liabilities248457
Accrued dividends222571
Deferred revenue-67
Short-term debt-1,712
Convertible note, net of debt discount of $4,6352,365-
Embedded conversion feature liability 3,934  - 
Total current liabilities$6,923$3,610
 
Long-term liabilities
Warrant liabilities2,766-
Other long-term liabilities 856  609 
Total liabilities$10,545$4,219
 
Shareholders' deficit:
Convertible, redeemable Series A Preferred Stock, $0.001 par value; 10,000,000
shares authorized; 506,936 and 1,299,151 shares issued and outstanding at
December 31, 2012 and December 31, 2011, respectively-1
Common stock, $0.001 par value; 400,000,000 shares authorized; 242,074,324
and 134,467,554 shares issued and outstanding at December 31, 2012
and December 31, 2011, respectively242130
Warrants18,17924,438
Additional paid-in capital169,891149,064
Accumulated deficit (189,884) (175,859)
Total shareholders' deficit$(1,572)$(2,226)
  
Total liabilities and shareholders' deficit$8,973 $1,993 
 

LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in thousands, except share and per share data)

     
 
Years Ended December 31,
20122011
 
Revenue
Products$591$572
Licensing and royalties 59  400 
Total revenue650972
 
Cost of revenue, products 354  373 
Gross margin296599
 
Operating expenses
Selling, marketing, general and administrative4,8504,243
Research and development9431,120
Manufacturing contract costs6,300-
Settlement expense -  1,713 
Total operating expenses 12,093  7,076 
Operating loss from continuing operations(11,797)(6,477)
 
Change in value of warrants, gain6,5471,328
Change in value of embedded conversion feature liability, gain4,931-
Debt discount amortization expense(11,949)-
Financing costs(1,355)-
Other income3426
Interest expense(459)(90)
Interest income 23  22 
 
Loss from continuing operations before income taxes(14,025)(5,191)
 
Income taxes -  - 
 
Loss from continuing operations(14,025)(5,191)
 
Discontinued operations:
Gain on disposal of subsidiary, net of tax-12,109
Loss from operations of discontinued operations, net of tax -  (763)
 
Net income (loss)(14,025)6,155
 
Other comprehensive income

Foreign exchange translation gain during the period

 -  - 
Comprehensive income (loss)$(14,025)$6,155 
 
Per common share basic and diluted:
 
Net income (loss) per share - basic
Loss from continuing operations$(0.07)$(0.04)
Income from discontinued operations -  0.09 
Basic income (loss) per share$(0.07)$0.05 
 
Net income (loss) per share - diluted
Loss from continuing operations$(0.07)$(0.04)
Income from discontinued operations -  0.07 
Diluted income (loss) per share$(0.07)$0.03 
 
Number of weighted average shares - basic 188,298,113  118,523,228 
Number of weighted average shares - diluted 188,298,113  163,292,496 



Liquidmetal Technologies, Inc.
Otis Buchanan
Media Relations
949-635-2120
otis.buchanan@liquidmetal.com
or
Liolios Group, Inc.
Matt Glover or Michael Koehler
Investor Relations
949-574-3860
LQMT@liolios.com

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

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