CUI Global Reports First Quarter 2013 Revenue Of $10,059,360

TUALATIN, Ore., May 6, 2013 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative products and technologies, reported results for the first quarter ended March 31, 2013.

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

For the three months ended March 31, 2013, CUI Global produced consolidated total revenues of $10,059,360.  The numbers demonstrate that gross revenues for the First Quarter grew 19% year-over-year ($1,589,597), when compared to revenues of $8,469,763 for the same period in FY 2012.

In addition, CUI Inc posted first quarter bookings of $11.7 million in new sales orders, which represented a $2.3 million (24%) increase in new sales orders as compared to the same period in 2012.  Further, CUI Inc had a sales order back log at March 31, 2013 of $15.7 million, a $5.0 million (47%) increase from the March 31, 2012 sales order back log balance of $10.7 million.

Significantly, the company saw its first quarter 2013 year-over-year selling, general, and administrative costs (SG&A) decrease by 6% as a percentage of gross revenues to 41% as compared with 47% during the prior year comparative period.   

The company experienced a net loss of $0.04 per share (EPS) for the quarter which is a 69% year-over-year improvement.  The net loss includes costs associated with our equity raise completed in April 2013, along with SG&A and research and development expenses relative to increased sales efforts and product development related costs for the Vergence®, Novum®, and Solus® product families.

The company had $2,518,175 of cash and cash equivalents as of March 31, 2013.

"These results are quite encouraging," explained William Clough, CUI Global's president & CEO.  "The sequential growth in revenue, the decrease in SG&A as a percentage of gross revenues, and the dramatic increase in new customer sales orders and back log orders demonstrate the tangible results of our joint marketing efforts with our distribution partner, Digi-Key; our new and developing relationship with Future Electronics; and the continuing impact of our focused efforts, through our Area Sales Directors and manufacturer representatives, to increase our OEM business."

"Moreover, the nearly 50% increase in sales order back log, year-over-year, ensures us of a robust delivery schedule through the second quarter of 2013."

"This is not to mention the significant impact our recent equity raise and acquisition of Orbital-UK will have on our continuing business model and growth curve – all of which should continue to produce positive results in both revenue growth and enhanced shareholder value," Clough concluded.

The Company will conduct a conference call and web cast to review the results on Tuesday, May 7, 2013 at 11:00 a.m. ET.

CUI Global, Inc. 2013 First Quarter Earnings Conference Call
Tuesday, May 7, 2013 at 11:00 a.m. Eastern
Dial in number: 877-407-8029  
A simultaneous webcast will also be available via:  
http://www.investorcalendar.com/IC/CEPage.asp?ID=170949   

In addition, a replay of the conference call will be archived and available until June 7, 2013 at the following number:  877-660-6853, conference ID: 413712.

Condensed Consolidated Balance Sheets





March 31,

December 31,


2013

2012


(unaudited)


Assets:



Current Assets:



Cash and cash equivalents

$               2,518,175

$               3,039,840

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

3,837,874

4,965,926

Inventories, net of allowance of $220,000 and $250,000, respectively

5,163,530

4,843,905

Prepaid expenses and other

1,060,709

378,885

Total current assets

12,580,288

13,228,556




Property and equipment, net

976,565

1,016,219




Other assets:



Investment - equity method

260,347

258,244

Other Intangible assets, net

8,550,997

8,618,524

Deposits and other

980

11,360

Notes receivable, net

503,905

501,422

Debt offering costs, net

24,445

42,778

Goodwill, net

13,046,358

13,046,358

Total other assets

22,387,032

22,478,686

Total assets

$              35,943,885

$              36,723,461




Liabilities and stockholders' equity:



Current liabilities:



Accounts payable

$               2,259,871

$               2,496,881

Line of credit

-

459,448

Accrued expenses

1,356,929

1,142,839

Accrued compensation

161,377

186,636

Unearned revenue

494,665

371,541

Total current liabilities

4,272,842

4,657,345

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

7,303,683

7,303,683

Total long term liabilities

7,303,683

7,303,683

Total liabilities

11,576,525

11,961,028




Commitments and contingencies






Stockholders' equity:



Preferred stock, par value $0.001; 10,000,000 shares authorized

-

-

Common stock, par value $0.001; 325,000,000 shares
    authorized; and 10,883,280 shares issued and outstanding at
    March 31, 2013 and December 31, 2012

10,883

10,883

Additional paid-in capital

101,035,497

100,947,708

Accumulated deficit

(76,633,914)

(76,171,822)

Accumulated other comprehensive (loss)

(45,106)

(24,336)

Total stockholders' equity

24,367,360

24,762,433

Total liabilities and stockholders' equity

$              35,943,885

$              36,723,461




 

Condensed Consolidated Statements of Operations 

(unaudited)





For the three months ended March 31,


2013

2012

Revenues:



Product Sales

$            10,052,246

$              8,463,806

Revenue from freight

7,114

5,957

Total revenue

10,059,360

8,469,763

Cost of revenues

6,047,605

5,185,179




Gross profit

4,011,755

3,284,584




Operating expenses



Selling, general and administrative

4,149,757

4,020,178

Research and development

244,690

178,189

Bad debt

(5,000)

(10,000)

Total operating expenses

4,389,447

4,188,367




(Loss) from operations

(377,692)

(903,783)




Other income (expense)



Other income

61,238

25,146

Other expense

(4,945)

(215)

Earnings from equity investment

2,103

20,577

Amortization of debt offering costs

(18,333)

(18,333)

Interest expense

(114,474)

(187,198)

Total other income (expense), net

(74,411)

(160,023)




(Loss) before taxes

(452,103)

(1,063,806)

Provision for taxes

9,989

7,956

Consolidated Net (loss)

$               (462,092)

$             (1,071,762)




Basic and diluted (loss) per common share 

$                     (0.04)

$                     (0.13)

Basic and diluted weighted average common and  common equivalents shares
outstanding

10,883,280

8,439,629




 

Condensed Consolidated Statements of Cash Flows

(unaudited)





For the three months ended March 31,


2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES:



Net (loss) 

$               (462,092)

$             (1,071,762)

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



Stock, options and notes issued for compensation and services

87,789

367,884

Non-cash interest expense, including amortization of debt offering costs 

18,333

18,333

Earnings from Equity Investment

(2,103)

(20,577)

Bad debt expense

(5,000)

(10,000)

Amortization of technology rights

6,625

6,628

Amortization of patent costs

166

166

Amortization of website development

5,966

1,724

Amortization of intangible, trademark and trade name V-Infinity

54,770

0

Inventory reserve

(30,000)

(15,000)

Depreciation

143,609

132,521

(Increase) decrease in assets:



Trade accounts receivable

1,133,052

246,641

Inventory

(289,625)

56,880

Prepaid expenses and other current assets

(684,307)

174,073

Deposits and other assets

10,380

44,212

Increase (decrease) in liabilities:



Accounts payable

(237,010)

321,190

Accrued expenses

214,090

(164,329)

Accrued compensation

(25,259)

83,070

Unearned revenue

123,124

193,009

NET CASH PROVIDED BY OPERATING ACTIVITIES

62,508

364,663

CASH FLOWS FROM INVESTING ACTIVITIES:



Proceeds from Notes receivable

-

15,831

Purchase of property and equipment

(103,955)

(148,037)

NET CASH (USED IN) INVESTING ACTIVITIES

(103,955)

(132,206)

CASH FLOWS FROM FINANCING ACTIVITIES:



Proceeds from (payments to) demand notes payable, net of debt offering costs

(459,448)

(1,528,900)

Payments on notes and loans payable

-

(4,000,000)

Payments on notes and loans payable, related party

-

(3,000,000)

Payments on convertible notes payable, related party

-

(35,000)

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

-

12,605,515

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

(459,448)

4,041,615

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(20,770)

(26,373)

Cash and cash equivalents at beginning of year

3,039,840

176,775

Cash and cash equivalents at end of period

2,518,175

4,424,474

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

$               (521,665)

$              4,247,699




 

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.cuiglobal.com and www.cui.com.

About Orbital-UK  
Orbital-UK is the largest natural gas systems integrator in the U.K. For over 25 years, Orbital has developed its portfolio of products, services and resources to offer a diverse range of personalized gas engineering solutions to the gas utilities, power generation, emissions, manufacturing and automotive industries.  Orbital-UK's internationally recognized expertise in the natural gas industry, including bringing together the patented VE-technology with the ground-breaking Vergence® GasPT2 device, offers natural gas operators and users a comprehensive engineering array for the next generation of energy metering systems. 

For more information, please visit www.orbital-uk.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.



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