Applied Energetics Reports Fourth Quarter 2010 Financial Results
TUCSON, Ariz., March 14, 2011 /PRNewswire/ — Applied Energetics, Inc., (Nasdaq: AERG), today reported summary financial results for the fourth quarter and fiscal year ended December 31, 2010. The Company will host a live conference call today, March 14th at 11:00 a.m. (Eastern Time).
Fourth Quarter and Year-to-Date 2010 Summary Financial Results
Revenue for the fourth quarter of 2010 increased about 162% to approximately $3.4 million, compared to approximately $1.3 million for the same period last year. Counter-IED (CIED) program revenue for the fourth quarter of 2010 increased by $2.1 million to $2.4 million as activities were focused on fulfilling our customers’ requirements under the $10.4 million contract modification received in January of 2010. Revenue from Laser Guided Energy(TM) (LGE) for the fourth quarter of 2010 increased by $15,000 to $563,000 , and revenue from High Voltage products also increased by $191,000 to $329,000 for the fourth quarter of 2010. Revenues for the Ultrashort Pulse Laser product line had a decrease of $192,000 for the fourth quarter of 2010
Net loss attributable to common stockholders for the fourth quarter of 2010 was $1.0 million, or $0.01 per basic and diluted common share, compared to the prior comparable period net loss attributable to common stockholders of $1.7 million or $0.02 per basic and diluted common share.
Revenue for the twelve months ended December 31, 2010 was approximately $13.1 million, compared to approximately $7.5 million for the same period last year, an increase of 75%. Revenues from the CIED product line increased by $6.7 million to $9.1 million and revenues from the Ultrashort Pulse Laser product line increased by $358,000 to $684,000. Additionally, our High Voltage product line increased by $120,000 to $370,000. Offsetting these increases was a reduction in LGE product line revenue of approximately $1.5 million; total LGE revenue for 2010 was $2.9 million.
Net loss attributable to common stockholders for the twelve months ended December 31, 2010 was $3.2 million, or $0.04 per basic and diluted common share, as compared to a net loss attributable to common stockholders of $9.7 million or $0.11 per basic and diluted common share for the same period last year. Net loss attributable to common stockholders included non-cash stock based compensation of $1.0 million and $1.8 million for the 2010 and 2009 periods, respectively.
At December 31, 2010, the Company had approximately $9.0 million in cash and cash equivalents as compared to $9.8 million in cash, cash equivalents and a certificate of deposit at December 31, 2009.
At December 31, 2010, the Company had a backlog (workload remaining on signed contracts) of approximately $3.3 million, to be completed within the next twelve months.
Joe Hayden, President, commented, “2010 showed improvement for our company with increased revenues, controlled costs and several significant events including the continued field support of our Banshee Counter-IED system, the development of the next generation Banshee system, and the establishment of an important teaming agreement with L-3 Interstate Electronics Corporation. Our efforts to implement our Strategic Plan to diversify our business are beginning to show positive results with increased interest from potential commercial customers. Increasing our commercial revenues will be especially important given the challenging Federal Budget environment which has adversely affected funding for development programs within the military. We believe that the ultra-short pulse laser and high voltage technologies that we have developed will offer new capabilities for commercial applications and our investment in these areas will provide diversification in a time of reduced Federal, and military, budgets.”
Conference Call
Applied Energetics will host a conference call on March 14, 2011, at 11:00 a.m. ET. Shareholders and other interested parties may participate in the conference call by dialing +1 888 680 0892 (domestic) or +1 617 213 4858 (international) and entering access code 66215688, a few minutes before 11:00 a.m. ET on March 14, 2011. A link to the call can also be found on the Internet at www.appliedenergetics.com.
A replay of the conference call will be accessible two hours after its completion through March 21 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 37055234. The call will also be archived for 30 days at www.appliedenergetics.com.
About Applied Energetics, Inc.
Applied Energetics, Inc., based in Tucson, Arizona, specializes in development and manufacture of advanced high performance lasers, high voltage electronics, advanced optical systems, and integrated guided energy systems for defense, aerospace, industrial, and scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy(TM) (LGE(TM)) technology, and related solutions for defense and security applications. For more information about Applied Energetics, please visit www.appliedenergetics.com.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements contained in this News Release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, but are not limited to: the dependence on sales of a limited number of products and the uncertainty of the timing and magnitude of government funding and orders, dependence on sales to government customers; the uncertainty of patent protection; the uncertainty of strategic alliances; the uncertainty of management tenure; the impact of third-party suppliers’ manufacturing constraints or difficulties; management’s ability to achieve business performance objectives, market acceptance of, and demand for, the Company’s products, and resulting revenues; development and testing of technology and products; manufacturing capabilities; impact of competitive products and pricing; litigation and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The words “looking forward,” “believe,” “may,” “plan,” “seek,’ “strategy,” “demonstrate,” “intend,” “expect,” “continue,” “contemplate,” “estimate,” “anticipate,” “will,” “likely” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Applied Energetics undertakes no obligation to update any forward-looking statements contained in this news release.
-Financial Table to Follow-
APPLIED ENERGETICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
December 31,
------------
2010 2009
---- ----
Revenue $3,354,339 $1,264,404
Cost of revenue 3,124,750 1,197,321
--------- ---------
Gross profit 229,589 67,083
Operating expenses
General and administrative 909,356 1,524,149
Selling and marketing 225,299 70,168
Research and development 69,243 131,081
------ -------
Total operating expenses 1,203,898 1,725,398
--------- ---------
Operating loss (974,309) (1,658,315)
Other (expense) income
Interest expense (928) (1,112)
Interest income 1,942 4,339
----- -----
Total other 1,014 3,227
----- -----
Net loss (973,295) (1,655,088)
Preferred stock dividends (45,842) (55,080)
------- -------
Net loss attributable to common
stockholders $(1,019,137) $(1,710,168)
=========== ===========
Net loss per common share - basic and
diluted $(0.01) $(0.02)
====== ======
Weighted average number of shares
outstanding, basic and diluted 91,068,357 88,968,812
========== ==========
APPLIED ENERGETICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER
31
--------------------
2010 2009
---- ----
Revenue $13,089,136 $7,459,808
Cost of revenue 12,274,759 7,007,923
---------- ---------
Gross profit 814,377 451,885
Operating expenses:
General and administrative 2,924,439 6,795,972
Settlement expenses - 1,337,409
Selling and marketing 664,665 631,578
Research and development 161,280 1,182,652
Total operating expenses 3,750,384 9,947,611
--------- ---------
Operating loss (2,936,007) (9,495,726)
Other income (expense):
Interest expense (5,374) (1,131)
Interest income 8,588 60,562
Other income - -
--- ---
Total other income 3,214 59,431
----- ------
Loss before provision for income
taxes (2,932,793) (9,436,295)
Provision (benefit) for income taxes - -
--- ---
Net loss (2,932,793) (9,436,295)
Preferred stock dividends (207,221) (242,174)
Deemed dividend from induced
conversion of Series A preferred
stock (11,478) -
------- ---
Net loss attributable to common
stockholders $(3,151,492) $(9,678,469)
=========== ===========
Net loss attributable to common
stockholders per $(0.04) $(0.11)
common share - basic and diluted ------ ------
Weighted average number of common
shares 89,211,315 86,794,287
outstanding, basic and diluted ========== ==========
APPLIED ENERGETICS, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31 ,
-------------
2010 2009
---- ----
ASSETS
Current assets
Cash and cash equivalents $8,983,281 $9,604,643
Certificate of Deposit - 225,000
Accounts receivable - net 2,022,292 1,074,944
Inventory - net 683,546 785,479
Prepaid expenses 365,506 447,295
Other receivables 48,717 52,295
------ ------
Total current assets 12,103,342 12,189,656
Long term receivable 205,313 205,313
Property and equipment - net 2,507,814 2,845,607
Other assets 10,000 20,800
------ ------
TOTAL ASSETS $14,826,469 $15,261,376
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $870,009 $428,413
Accrued expenses 798,962 313,448
Insurance premium financing (3.9%
interest for 2010, 4.5% interest for
2009) 206,720 214,834
Accrued compensation 507,341 505,188
Customer deposits 126,282 104,160
Billings in excess of costs 6,505 42,716
----- ------
Total current liabilities 2,515,819 1,608,759
--------- ---------
Total liabilities 2,515,819 1,608,759
--------- ---------
Commitments and contingencies
Stockholders' equity
Series A convertible preferred stock,
$.001 par value, 2,000,000 shares
authorized and 107,172 shares issued
and outstanding at December 31, 2010
(Liquidation preference $2,679,300);
135,572 shares issued and outstanding
at December 31, 2009 (Liquidation 107 136
Common stock, $.001 par value,
125,000,000 shares 91,068 88,969
authorized; 91,068,357 shares issued
and outstanding at December 31, 2010;
88,968,812 shares issued and
outstanding at December 31, 2009
Additional paid-in capital 78,738,520 76,931,065
Accumulated deficit (66,519,045) (63,367,553)
----------- -----------
Total stockholders' equity 12,310,650 13,652,617
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $14,826,469 $15,261,376
=========== ===========
SOURCE Applied Energetics, Inc.