Applied Energetics Reports Third Quarter 2010 Financial Results

TUCSON, Ariz., Nov. 8, 2010 /PRNewswire-FirstCall/ -- Applied Energetics, Inc., (Nasdaq: AERG), today reported summary financial results for the third quarter ended September 30, 2010.  The Company will host a live conference call today, November 8, 2010 at 9:00 a.m. (Eastern Time).

Third Quarter and Year-to-Date 2010 Summary Financial Results

Revenue for the third quarter of 2010 increased about 74% to approximately $3.3 million, compared to approximately $1.9 million for the same period last year. Counter-IED (CIED) program revenue for the third quarter of 2010 increased by $1.8 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™ (LGE) for the third quarter of 2010 decreased by $272,000 to $866,000, and the Ultrashort Pulse Laser product line had no revenue, a decrease of $116,000. Revenue for the third quarter of 2010 from High Voltage products increased by $17,000 to $27,000.

Net loss attributable to common stockholders for the third quarter of 2010 was $374,000, or $0.004 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 nine months ended September 30, 2010 was approximately $9.7 million, compared to approximately $6.2 million for the same period last year, an increase of 57%.  

Net loss attributable to common stockholders for the nine months ended September 30, 2010 was $2.1 million, or $0.02 per basic and diluted common share, as compared to a net loss attributable to common stockholders of $8.0 million or $0.09 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 $814,000 and $1.3 million for the 2010 and 2009 periods, respectively.

At September 30, 2010, the Company had approximately $9.1 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 September 30, 2010, we had a backlog (workload remaining on signed contracts) of approximately $6.4 million, to be completed within the next twelve months.  

Joe Hayden, President & COO, commented, "Our third quarter and nine month results continue to show improvement in revenue and reduction in loss.

"We continue to support our US Marine Corps customers' Counter-IED requirements in overseas operations and are making significant progress in developing a smaller version of the technology for installation on other military platforms and vehicles.  This past quarter, we entered into a strategic teaming agreement with L-3 Interstate Electronics Corporation ("L-3 IEC") for pursuit of additional CIED contracts which allows us to focus on technology development, the development of high voltage systems, systems integration and testing and field support for our customers.  L-3 IEC provides expertise in electronics design and manufacturing, systems engineering, and configuration management. This relationship is already providing benefits as L-3 IEC is supporting the development of the next generation counter-IED system under our $10.4 million contract we received last January.  We believe that this agreement positions us well as we seek to expand our CIED product line. We continue to look for other opportunities to team with established companies that can augment our capabilities to deliver integrated systems to our military customers.  

"We also have continued the development and advancement of our LGE technology by working with our customer, the U.S. Army's Research, Development and Engineering Command, supported by a $1.8 million increase in funding in June to our existing Army contract.  This brings the total contract value to $4.9 million.  Additionally, we completed a 300kV Electron Beam Gun system utilizing our Nested High Voltage Generator technology, which is waiting final acceptance from a major chemical manufacturer.  

"In October, we hired a Vice President of Business Development whose office is based in the Washington, DC area to better serve our existing Government customers and develop new customers."

Conference Call

Applied Energetics will host a conference call on November 8, 2010, at 9:00 a.m. ET.  Shareholders and other interested parties may participate in the conference call by dialing +1 888 680 0878 (domestic) or +1 617 213 4855 (international) and entering access code 49795160 , a few minutes before 9:00 a.m. ET on November 8, 2010.  The call will also be broadcast live on the Internet at www.appliedenergetics.com.

A replay of the conference call will be accessible two hours after its completion through November 15, 2010 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 16160896. 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.

SOURCE Applied Energetics, Inc.