Liquidmetal Technologies Reports Second Quarter 2013 Results
Liquidmetal Technologies Reports Second Quarter 2013 Results
New Prototype Shipments Reach Customers in Targeted Industries
RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)-- Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for the quarter ended June 30, 2013.
Q2 2013 Operational Highlights
During the second quarter, Liquidmetal delivered prototype shipments to new customers in the automotive, golf and medical industries.
Two prototype shipments were high performance automotive components intended for evaluation and testing by customers.
Prototype shipments were also completed under the Company's development program with iGolf which leverages the Company's materials technology and iGolf's equipment design expertise.
The medical industry prototype shipment was in the dental appliance category where the strength and resilience of Liquidmetal alloy provides remarkable advantages over current manufacturing methods.
Management Commentary
"During the second quarter, we shipped 5 prototypes into very exciting markets. We are also pleased with the subsequent repayment of our debt in July and the continued expansion of our IP portfolio," said Tom Steipp, President and CEO of Liquidmetal Technologies.
Q2 2013 Financial Summary
In Q2 2013, the company generated nominal revenues as it focused on the development of prototype parts for its customers.
Selling, marketing, general and administrative expense was $1.2 million compared to $1.0 million in Q2 2012. The increase was primarily due to additional headcount to support the Company's sales and business development efforts.
Research and development expense was $224,000 compared to $211,000 in Q2 2012.
Cash totaled $4.2 million at June 30, 2013, as compared to $7.2 million at December 31, 2012.
Conference Call
Liquidmetal Technologies management will hold a conference call later today (August 6, 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, August 6, 2013
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-800-768-6569
International: 1-785-830-7992
Conference ID: 3363898
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 (person and number?).
A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 13th, 2013.
Toll-Free Replay Number: 1-888-203-1112
International Replay Number: 1-719-457-0820
Replay PIN Number: 4613351
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) | ||||||||
June 30, | December 31, | |||||||
2013 | 2012 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 4,208 | $ | 7,162 | ||||
Trade accounts receivable, net of allowance for doubtful accounts of $25 and $11, respectively | 141 | 64 | ||||||
Prepaid expenses and other current assets | 598 | 689 | ||||||
Total current assets | $ | 4,947 | $ | 7,915 | ||||
Property and equipment, net | 284 | 161 | ||||||
Patents and trademarks, net | 810 | 869 | ||||||
Other assets | 28 | 28 | ||||||
Total assets | $ | 6,069 | $ | 8,973 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||
Current liabilities: | ||||||||
Accounts payable | 143 | 154 | ||||||
Accrued liabilities | 401 | 248 | ||||||
Accrued dividends | - | 222 | ||||||
Convertible notes, net of debt discount of $627 and $4,635, respectively | 373 | 2,365 | ||||||
Embedded conversion feature liabilities on convertible notes | 878 | 3,934 | ||||||
Total current liabilities | $ | 1,795 | $ | 6,923 | ||||
Long-term liabilities: | ||||||||
Warrant liabilities | 1,970 | 2,766 | ||||||
Other long-term liabilities | 856 | 856 | ||||||
Total liabilities | $ | 4,621 | $ | 10,545 | ||||
Shareholders' equity (deficit): | ||||||||
Convertible, redeemable Series A Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 and 506,936 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively | - | - | ||||||
Common stock, $0.001 par value; 500,000,000 shares and 400,000,000 authorized at June 30, 2013 and December 31, 2012, respectively; 350,868,867 and 242,074,324 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively | 351 | 242 | ||||||
Warrants | 18,179 | 18,179 | ||||||
Additional paid-in capital | 178,214 | 169,891 | ||||||
Accumulated deficit | (195,288 | ) | (189,884 | ) | ||||
Noncontrolling interest in subsidiary | (8 | ) | - | |||||
Total shareholders equity (deficit) | 1,448 | (1,572 | ) | |||||
Total liabilities and shareholders' equity (deficit) | $ | 6,069 | $ | 8,973 | ||||
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | ||||||||||||||||
Products | $ | 150 | $ | 208 | $ | 265 | $ | 391 | ||||||||
Licensing and royalties | - | 6 | 7 | 19 | ||||||||||||
Total revenue | 150 | 214 | 272 | 410 | ||||||||||||
Cost of sales | 111 | 102 | 193 | 184 | ||||||||||||
Gross profit | 39 | 112 | 79 | 226 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, marketing, general and administrative | 1,209 | 1,007 | 2,523 | 1,964 | ||||||||||||
Research and development | 224 | 211 | 460 | 399 | ||||||||||||
Manufacturing contract costs | - | 6,300 | - | 6,300 | ||||||||||||
Total operating expenses | 1,433 | 7,518 | 2,983 | 8,663 | ||||||||||||
Operating loss | (1,394 | ) | (7,406 | ) | (2,904 | ) | (8,437 | ) | ||||||||
Change in value of warrants, gain (loss) | 286 | (174 | ) | 796 | (174 | ) | ||||||||||
Change in value of embedded conversion feature liabilities, gain | 1,378 | - | 3,056 | - | ||||||||||||
Debt discount amortization expense | (2,108 | ) | - | (6,143 | ) | - | ||||||||||
Financing costs | - | (1,355 | ) | - | (1,355 | ) | ||||||||||
Interest expense | (80 | ) | 22 | (221 | ) | (18 | ) | |||||||||
Interest income | 1 | 4 | 4 | 8 | ||||||||||||
Net loss before noncontrolling interest | (1,917 | ) | (8,909 | ) | (5,412 | ) | (9,976 | ) | ||||||||
Noncontrolling interest | 8 | - | 8 | - | ||||||||||||
Net loss | $ | (1,909 | ) | $ | (8,909 | ) | $ | (5,404 | ) | $ | (9,976 | ) | ||||
Per common share basic and diluted | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.06 | ) | ||||
Number of weighted average shares - basic and diluted | 335,472,213 | 171,651,573 | 309,073,707 | 162,679,410 | ||||||||||||
Liquidmetal Technologies, Inc.
Otis Buchanan
Media Relations
949-635-2120
otis.buchanan@liquidmetal.com
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
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