Maxwell Technologies Reports Lower Losses

Maxwell Technologies, Inc. (Nasdaq: MXWL) reported a net loss of $4.3 million or $0.25 per share, on revenue of $12.6 million for its first quarter 2007, compared with a net loss of $7.5 million, or $0.45 per share, on revenue of $12.0 million for the same period in 2006.

BOOSTCAP® ultracapacitor revenue for Q107 increased by 18 percent to $3.3 million, compared with $2.8 million for the same period in 2006, but declined, quarter-to-quarter from Q406, as a result of lower-than-expected shipments to certain large customers. The company expects ultracapacitor revenue to rebound in Q2, based on strong recent sales and bookings activity.

“New heavy transportation and industrial design wins in North America, China and Europe have taken longer to move into production than we anticipated, so ultracapacitor sales in Q1 continued to be concentrated with a relatively small number of existing wind energy, transportation and industrial customers,” Balanson said. “Several of those existing customers consumed less product last quarter for a variety of reasons unrelated to ultracapacitors. While none of this alters our views about the company’s long term growth prospects, in the short term it puts our run rate a quarter or two behind where we had expected to be at this point.”

“We are expecting more news on ultracapacitor design wins in the hybrid bus and truck markets and new orders for wind energy, industrial and telecommunications applications that will help to drive revenue growth in the second and succeeding quarters,” Balanson said. “We believe that the new products we have introduced over the past year will enable us to continue broadening and diversifying the ultracapacitor customer base, and that our ongoing initiatives to improve efficiency and control costs will contribute to improving financial performance and allow the company to become more predictable over the next few quarters.”

Gross margin increased from 24 percent in Q406 to 27 percent in Q107, reflecting ongoing improvements in ultracapacitor manufacturing costs and production efficiency.