TUALATIN, Ore., May 9, 2012 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, reported unaudited financial results for the three months ended March 31, 2012.
First Quarter 2012 Financial Results
The Company's net revenues for the three months ended March 31, 2012 were approximately $8.5 million with a net loss of approximately $1.1 million and net cash provided by continuing operating activities of approximately $365,000.
CUI Global generated more than $9.8 million in new sales orders during the first quarter ended 2012, an increase of nearly $890,000 from the fourth quarter of 2011 and an increase of nearly $170,000 from the first quarter of 2011. As reported earlier this week, as of April 30th the company has new orders exceeding $11.0 million.
The company finished the quarter ended March 31, 2012 with a backlog of orders of approximately $10.7 million, up from approximately $9.2 million at year-end 2011 and approximately $10.1 million at the previous March 31. Again, as recently reported, as of April 30th the company has back orders exceeding $11.0 million.
As of March 31, 2012 CUI Global had on hand $4.4 million of cash and cash equivalents. During the first quarter of 2012, CUI Global has paid down more than $7.0 million in notes and loans payable and more than $1.5 million in demand notes payable on the working capital line of credit.
First Quarter 2012 Highlights
- Presented and exhibited at the Applied Power Electronics Conference (APEC) February 5-9, 2012
- Announced second exclusive 3-year distribution agreement for the Vergence Gas Metering Device
- Presented at the 2012 World Money Show on February 9-12, 2012
- CUI Global completed uplisting to NASDAQ Capital Market February 17, 2012
- Completed equity raises of more than $14 million, before expenses. A portion of the monies from the raise were used to pay down and retire certain corporate debt and the remainder will be used for working capital, and to rapidly bring new products and technologies to the marketplace
- $10,000,000 Equity Raise Closed in February 2012
- Over Allotment Funding of $1,500,000 Million closed in March 2012
- $2,565,0000 Equity Raise Closed in March 2012
- Added to the Wilshire 5000 Total Market Index(SM) effective after markets' close March 16, 2012
- Two analysts initiated coverage of CUI Global, Inc.
- Continued release of new products including:
The net loss is primarily the result of a decrease in revenues and related gross profits which management believes will be reversed during the remainder of 2012; an increase in sales, general and administrative expenses, including costs associated with the equity raises and the up-listing to the Nasdaq Capital Market; and increased sales efforts and related costs for the Vergence™ GasPT2 device. Commercialization of the Vergence device required significant travel and some continuing development and costs associated with safety certification of the device prior to sale and installation.
William Clough, President & CEO, stated, "The first quarter of 2012 saw the company reach several very significant milestones, including recapitalization, elimination of significant debt, and up-listing to the Nasdaq Capital Market. These accomplishments occurred with some associated, one-time costs, and during a weak first quarter, generally, in the electronics industry. These factors are all reflected in our first quarter numbers."
"Additionally, as we have recently reported, unlike the majority of the electronics industry, we have seen our numbers in both new sales orders and back orders increase dramatically since the end of 2011. We also expect to see revenues from our Vergence product line in the near future. With that in mind, I am confident that the company is still pursuing the right strategy that will lead to long-term growth, profitability, and enhanced shareholder value," Clough continued.
"CUI Global's new product introductions, including its Novum™ and Solus™ Technologies, will continue during the year further broadening the opportunities for our company," 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, commercialization, and distribution of new, innovative electro-mechanical products. Over the past 20 years, CUI has become a recognized name in electronic components worldwide in the areas of power, interconnect, motion control, and sound. CUI's solid customer commitment and honest corporate message are a hallmark in the industry. CUI is a wholly owned subsidiary of CUI Global, Inc. For more information, please visit 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.
SOURCE CUI Global, Inc.