CUI Global, Inc. Announces FY 2012 Financial Results Company reports FY 2012 Revenue of $41,084,589

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

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.