CUI Global, Inc. Announces FY 2012 Financial Results

Company reports FY 2012 Revenue of $41,084,589

19 Feb, 2013, 05:30 ET from CUI Global, Inc.

TUALATIN, Ore., Feb. 19, 2013 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, today announced year-end financial results for the year ended December 31, 2012.  The Company's revenues for the year ended December 31, 2012 of $41,084,589 represent a 5.5% increase from the 2011 year ended revenues of $38,938,326. More significantly, the company reported year-end back orders of $14.15 million (unaudited) for FY 2012, up over 50% from FY 2011 back orders of $9.24 million (unaudited).

(Logo:  http://photos.prnewswire.com/prnh/20120320/FL72629LOGO)

In addition, the company reported a year-over-year quarter-to-quarter revenue increase of better than 35%; $11.9 million in fourth quarter 2012, compared to $8.8 million in fourth quarter FY 2011.  The company reported increased revenue on a quarter-to-quarter basis as well, up from $10.7 million in third quarter FY 2012.

For the third quarter in a row, the company decreased its quarterly Earnings Per Share (EPS) loss attributable to the year-to-date period from $0.04 per share in third quarter to a net loss of $0.02 per share in fourth quarter and a year-end loss of $0.25 per share.

Along with the above financial accomplishments, the company reached several other significant milestones in FY 2012, including, but not limited to the following:

  • Completion of $13.5 million (net to the company) equity raise;
  • Successful up-listing to the Nasdaq Capital Market;
  • Retirement/termination of $8.1 million in short and long-term debt;
  • Listing on the Wilshire 5000 Total Market Index;
  • Listing on the Russell® Microcap Index;
  • Inclusion in the MSCI Global Microcap Indices;
  • Negotiation and signing of additional distribution relationship with Future Electronics;
  • Industry recognition of its Novum® Technologies, including:
    • Winner Electronics Product Magazine Product of the Year Award;
    • Named one of EDN Top 100 Products of 2012;
    • Finalist Design News Golden Mousetrap Award;
    • Appearance at electronica 2012 trade show;
  • Certification of the Vergence® GasPT2 Metering Device by Italian, Polish, UK, and Canadian authorities, along with the first substantial purchase order from its North American Distributor, EMC; and more.

William Clough, president & chief executive officer, stated, "These financial results and the other accomplishments we achieved in 2012 continue to demonstrate the effectiveness of our initiatives, including an enhanced sales channel, the elimination of significant debt, and the continued introduction and commercialization of our new products, including products based upon CUI Global's proprietary technologies."

"As our Vergence® Technology; our Novum® Digital Point-of-Load Technology; and our Solus® Technology come to market this year, coupled with the significant reduction in debt we accomplished in 2012, should both combine to put us in a position to see significant growth in revenue.  Our up-listing to the Nasdaq Capital Market in 2012, which has significantly broadened our shareholder base, should also enhance our ability to increase shareholder value in 2013," Clough concluded.

About CUI Global, Inc. Delivering Innovative Technologies for an Interconnected World . . . . .

CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies and technologies. From its Vergence GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.'s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.

About CUI, Inc.

CUI Inc is a technology company dedicated to the development and distribution of electro-mechanical products. Their broad power and component product portfolios allow customers to address design challenges across a range of industries and applications. Built on a solid foundation of core operating principals, CUI seeks to maximize value for customers through their engineering, manufacturing, and supply chain capabilities. As an industry leader, CUI continues to invest in the future through new technologies, talented employees, expanded manufacturing capabilities, and a growing global reach.

For more information, please visit www.cuiglobal.com and www.cui.com.

Important Cautions Regarding Forward Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.

CUI Global, Inc. Consolidated Balance Sheets For the Years Ended December 31, 2012 and 2011

 

December 31, 2012

December 31, 2011

Assets:

Current Assets:

Cash and cash equivalents

$   3,039,840

$      176,775

Trade accounts receivable, net of allowance of $130,000 and $125,000, respectively

4,965,926

3,694,641

Inventories, net of allowance of $250,000 and $240,000, respectively

4,843,905

3,563,111

Prepaid expenses and other

378,885

683,101

Total current assets

13,228,556

8,117,628

Property and equipment, net

1,016,219

910,810

Other assets:

Investment - equity method

258,244

198,621

Other intangible assets, net

8,618,524

8,967,041

Deposits and other

11,360

92,216

Notes receivable, net

501,422

529,706

Debt offering costs, net

42,778

116,111

Goodwill

13,046,358

13,046,358

Total other assets

22,478,686

22,950,053

Total assets

$ 36,723,461

$ 31,978,491

Liabilities and stockholders' equity:

Current liabilities:

Accounts payable

$   2,496,881

$   2,114,029

Preferred stock dividends payable

-

5,054

Line of credit

459,448

1,528,900

Accrued expenses

1,142,839

1,197,395

Accrued compensation

186,636

126,672

Unearned revenue

371,541

70,755

Notes payable, current portion due

-

4,000,000

Convertible notes payable, related party, current portion due

-

35,000

Total current liabilities

4,657,345

9,077,805

Long term notes payable, related party, net of current portion due

7,303,683

10,303,683

Total long term liabilities

7,303,683

10,303,683

Total liabilities

11,961,028

19,381,488

Commitments and contingencies

Stockholders' equity:

Preferred stock, par value $0.001; 0 and 10,000,000 shares authorized at December 31, 2012 and     2011, respectively

-

-

Convertible Series A preferred stock, 0 and 5,000,000 shares authorized, 0 and 50,543 shares     issued and outstanding liquidation preference of $0 and $50,543 at December 31, 2012 and     December 31, 2011, respectively

-

51

Convertible Series B preferred stock, 0 and 30,000 shares authorized, and no shares     outstanding at December 31, 2012 and December 31, 2011, respectively

-

-

Convertible Series C preferred stock, 0 and 10,000 shares authorized, and no shares     outstanding at December 31, 2012 and December 31, 2011, respectively

-

-

Common stock, par value $0.001; 325,000,000 and 325,000,000 shares authorized and   10,883,280 and 7,134,856 shares issued and outstanding at December 31, 2012     and December 31, 2011, respectively

10,883

7,315

Additional paid-in capital 

100,947,708

86,217,169

Accumulated deficit

(76,171,822)

(73,645,501)

Accumulated other comprehensive income (loss)

(24,336)

17,969

Total stockholders' equity

24,762,433

12,597,003

Total liabilities and stockholders' equity

$ 36,723,461

$ 31,978,491

 

CUI Global, Inc. Consolidated Statements of Operations

 

For the Three Months Ended December 31, (unaudited)

For the Years Ended December 31,

2012

2011

2012

2011

Revenues:

Product Sales

$ 11,873,640

$   8,779,824

$ 41,031,050

$ 38,877,698

Revenue from freight

17,122

10,874

53,539

60,628

Total revenue

11,890,762

8,790,698

41,084,589

38,938,326

Cost of revenues

7,533,794

5,567,794

25,707,893

24,133,073

Gross profit

4,356,968

3,222,904

15,376,696

14,805,253

Operating expenses

Selling, general and administrative

4,298,695

3,123,580

16,221,373

13,347,853

Research and development

232,499

186,458

791,332

716,321

Bad debt

32,784

4,743

65,763

82,192

Impairment of intangible, trademark and trade name V-Infinity

-

-

278,428

-

Total operating expenses

4,563,978

3,314,781

17,356,896

14,146,366

Income (loss) from continuing operations

(207,010)

(91,877)

(1,980,200)

658,887

Other income (expense)

Other income

51,608

17,504

95,069

53,657

Other expense

(1,682)

9,616

(18,567)

(38,678)

Gain on sale of technology rights

-

143,636

-

143,636

Earnings from equity investment

23,150

20,015

59,623

41,472

Interest expense - amortization of debt offering costs and debt     discount

(18,333)

(18,333)

(73,333)

(334,747)

Interest expense 

(114,689)

(231,276)

(575,199)

(918,189)

Total other income (expense), net

(59,946)

(58,838)

(512,407)

(1,052,849)

Loss from continuing operations before taxes

(266,956)

(150,715)

(2,492,607)

(393,962)

Provision for taxes

9,719

8,137

33,714

29,810

Consolidated (loss) from continuing operations

(276,675)

(158,852)

(2,526,321)

(423,772)

Income (loss) from discontinued operations

(Loss) from discontinued operations

-

-

-

(160,153)

Gain on divestment of Comex Electronics

-

-

-

603,034

Net income from discontinued operations

-

-

-

442,881

Consolidated net income (loss)

(276,675)

(158,852)

(2,526,321)

19,109

Less:  Net income from discontinued operations - noncontrolling       interest

-

-

-

67,872

Net (loss) allocable to common stockholders

$    (276,675)

$    (158,852)

$ (2,526,321)

$      (48,763)

Basic and diluted (loss) per common share from continuing operations

$          (0.03)

$          (0.02)

$          (0.25)

$          (0.06)

Basic and diluted income per common share from discontinued     operations - attributable to CUI Global, Inc.

$                -

$                -

$                -

$            0.05

Basic and diluted (loss) per common share

$          (0.03)

$          (0.02)

$          (0.25)

$          (0.01)

Basic weighted average common and common equivalents shares outstanding 

10,878,323

7,309,687

10,175,989

7,249,180

 

CUI Global, Inc. Consolidated Statements of Cash Flows For the Years Ended December 31, 2012 and 2011

 

2012

2011

CASH FLOWS FROM OPERATING ACTIVITIES:

Net (loss) - attributable to common stockholders

$ (2,526,321)

$      (48,763)

Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:

Stock based compensation

1,190,081

227,867

Non-cash interest expense, including amortization of beneficial conversion value, warrant related     debt discounts and intrinsic value of convertible debt and amortization of debt discount and     amortization of debt offering costs

73,333

334,747

Earnings in equity investment

(59,623)

(41,472)

Bad debt expense

65,763

82,192

Amortization of technology rights

26,510

245,144

Amortization of patent costs

664

333

Amortization of website development

13,718

4,328

Amortization of intangible, trademark and trade name V-Infinity

109,540

-

Impairment of intangible, trademark and trade name V-Infinity

278,428

-

Inventory reserve

10,000

75,995

Gain on sale of technology rights

-

(143,636)

Loss on disposal of assets

-

1,563

Net income - noncontrolling interest in discontinued operations

-

67,872

Depreciation

579,861

520,959

(Increase) decrease in assets:

Trade accounts receivable

(1,337,048)

107,902

Inventory

(1,290,794)

96,535

Prepaid expenses and other current assets

285,690

(335,302)

Deposits and other assets

80,856

(29,001)

Increase (decrease) in liabilities:

Accounts payable

382,852

356,347

Accrued expenses

(47,919)

(391,289)

Accrued compensation

59,964

(272,341)

Unearned revenue

300,786

725

NET CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES

(1,803,659)

860,705

NET CASH PROVIDED BY DISCONTINUED OPERATING ACTIVITIES

-

22,141

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment in patents

-

(6,646)

Investment in other intangible assets, net

(80,343)

(37,418)

Proceeds from Notes receivable

46,808

63,506

Proceeds from sales of technology rights

-

425,000

Purchase of property and equipment

(685,269)

(422,970)

NET CASH PROVIDED BY (USED IN) CONTINUING INVESTING ACTIVITIES

(718,804)

21,472

NET CASH PROVIDED BY DISCONTINUED INVESTING ACTIVITIES

-

195,278

CASH FLOWS FROM FINANCING ACTIVITIES:

Payments to demand notes payable, net of proceeds

(1,069,452)

(20,879)

Payments to notes and loans payable, net of proceeds

(4,000,000)

(481,326)

Proceeds from (payments to) convertible notes payable, related party

(35,000)

35,000

Payments on notes and loans payable, related party

(3,000,000)

(300,000)

Proceeds from sales of common stock, and exercise of warrants and options, net of offering costs  

13,532,285

50,000

NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES

5,427,833

(717,205)

NET CASH (USED IN) DISCONTINUED FINANCING ACTIVITIES

-

(648,218)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(42,305)

68,779

Cash and cash equivalents at beginning of year

176,775

373,823

Cash and cash equivalents at end of period

3,039,840

176,775

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

$   2,863,065

$    (197,048)

 

SOURCE CUI Global, Inc.



RELATED LINKS

http://www.cuiglobal.com