Zacks_Analysts' Blog : Maxwell Tech's Lukewarm Quarter - Analyst Blog

Energy storage and power delivery products maker, Maxwell Technologies Inc. (MXWL) reported fourth quarter 2010 adjusted earnings of 4 cents per share, missing the Zacks Consensus Estimate of 5 cents. However results soundly beat the year-ago quarterly loss per share of 39 cents.

Operational Performance

Maxwell Technologies’ revenue was $34.2 million in the fourth quarter 2010, up 22.2% from $28 million in the year-ago quarter, beating the Zacks Consensus Estimate of $34 million. Ultracapacitor revenue was $20.2 million, up 36% year-over-year.

Revenue from high voltage capacitor and microelectronics products was $14 million, up 7% from the year-ago quarter. Net loss for the fourth quarter 2010 was $2.4 million compared with a net loss of $10 million in the year-ago quarter.

Financial Condition

Maxwell Technologies’ reported cash and cash equivalents of $39.8 million compared to $29.6 million at fiscal-end 2009. Long-term debt decreased to $2.2 million in the reported quarter from $11.5 million at fiscal-end 2009.

Outlook

Maxwell Technologies is a leading manufacturer of ultracapacitors, high-voltage capacitors and microelectronics products. The company displayed consistent growth in its quarterly top line in the recent past.

Looking ahead, the strong demand will remain for the company’s products related to the utility infrastructure, renewable energy, public transportation, and space programs. Also its key end-markets appear to benefit from government stimulus programs as well as more stringent automotive emissions legislation.

The European Union has taken the lead in enacting legislation that sets carbon dioxide emission reduction targets and penalizes vehicles which exceed the mandated emissions limit. In the U.S., the Obama administration is focused on increasing federal investments in greener transportation technologies through laws like the Corporate Average Fuel Economy (CAFE) standards for U.S. automakers.

We presently retain a short-term Zacks #4 Rank (Sell) and a longer-term Neutral recommendation on the stock. In the near-term we would advise investors to focus on the Zacks #1 Rank (short-term Strong Buy rating) peers like Multi-Fineline Electronix Inc. (MFLX) and Ceradyne Inc. (CRDN).