Applied Energetics Reports Fourth Quarter 2010 Financial Results

Mar 14, 2011, 08:30 ET from Applied Energetics, Inc.

TUCSON, Ariz., March 14, 2011 /PRNewswire/ -- Applied Energetics, Inc., (Nasdaq: AERG), today reported summary financial results for the fourth quarter and fiscal year ended December 31, 2010.  The Company will host a live conference call today, March 14th at 11:00 a.m. (Eastern Time).

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

Revenue for the fourth quarter of 2010 increased about 162% to approximately $3.4 million, compared to approximately $1.3 million for the same period last year. Counter-IED (CIED) program revenue for the fourth quarter of 2010 increased by $2.1 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 fourth quarter of 2010 increased by $15,000 to $563,000 , and revenue from High Voltage products also increased by $191,000 to $329,000 for the fourth quarter of 2010.  Revenues for the Ultrashort Pulse Laser product line had a decrease of $192,000 for the fourth quarter of 2010

Net loss attributable to common stockholders for the fourth quarter of 2010 was $1.0 million, or $0.01 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 twelve months ended December 31, 2010 was approximately $13.1 million, compared to approximately $7.5 million for the same period last year, an increase of 75%.  Revenues from the CIED product line increased by $6.7 million to $9.1 million and revenues from the Ultrashort Pulse Laser product line increased by $358,000 to $684,000.  Additionally, our High Voltage product line increased by $120,000 to $370,000.  Offsetting these increases was a reduction in LGE product line revenue of approximately $1.5 million; total LGE revenue for 2010 was $2.9 million.  

Net loss attributable to common stockholders for the twelve months ended December 31, 2010 was $3.2 million, or $0.04 per basic and diluted common share, as compared to a net loss attributable to common stockholders of $9.7 million or $0.11 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 $1.0 million and $1.8 million for the 2010 and 2009 periods, respectively.

At December 31, 2010, the Company had approximately $9.0 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 December 31, 2010, the Company had a backlog (workload remaining on signed contracts) of approximately $3.3 million, to be completed within the next twelve months.  

Joe Hayden, President, commented, "2010 showed improvement for our company with increased revenues, controlled costs and several significant events including the continued field support of our Banshee Counter-IED system, the development of the next generation Banshee system, and the establishment of an important teaming agreement with L-3 Interstate Electronics Corporation.  Our efforts to implement our Strategic Plan to diversify our business are beginning to show positive results with increased interest from potential commercial customers. Increasing our commercial revenues will be especially important given the challenging Federal Budget environment which has adversely affected funding for development programs within the military.   We believe that the ultra-short pulse laser and high voltage technologies that we have developed will offer new capabilities for commercial applications and our investment in these areas will provide diversification in a time of reduced Federal, and military, budgets."

Conference Call

Applied Energetics will host a conference call on March 14, 2011, at 11:00 a.m. ET.  Shareholders and other interested parties may participate in the conference call by dialing +1 888 680 0892 (domestic) or +1 617 213 4858 (international) and entering access code 66215688, a few minutes before 11:00 a.m. ET on March 14, 2011.  A link to the call can also be found on the Internet at www.appliedenergetics.com.

A replay of the conference call will be accessible two hours after its completion through March 21 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 37055234.  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.

-Financial Table to Follow-

APPLIED ENERGETICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

For the three months ended December 31,

2010

2009

Revenue

$            3,354,339

$            1,264,404

Cost of revenue

3,124,750

1,197,321

Gross profit

229,589

67,083

Operating expenses

General and administrative

909,356

1,524,149

Selling and marketing

225,299

70,168

Research and development

69,243

131,081

Total operating expenses

1,203,898

1,725,398

Operating loss

(974,309)

(1,658,315)

Other (expense) income

Interest expense

(928)

(1,112)

Interest income

1,942

4,339

  Total other

1,014

3,227

Net loss

(973,295)

(1,655,088)

Preferred stock dividends

(45,842)

(55,080)

Net loss attributable to common stockholders

$           (1,019,137)

$           (1,710,168)

Net loss per common share – basic and diluted

$                    (0.01)

$                    (0.02)

Weighted average number of shares outstanding, basic and diluted

91,068,357

88,968,812

APPLIED ENERGETICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31 

2010

2009

Revenue

$  13,089,136

$    7,459,808

Cost of revenue

12,274,759

7,007,923

Gross profit

814,377

451,885

Operating expenses:

General and administrative

2,924,439

6,795,972

Settlement expenses

-

1,337,409

Selling and marketing

664,665

631,578

Research and development

161,280

1,182,652

Total operating expenses

3,750,384

9,947,611

Operating loss

(2,936,007)

(9,495,726)

Other income (expense):

Interest expense

(5,374)

(1,131)

Interest income

8,588

60,562

Other income

-

-

  Total other income

3,214

59,431

Loss before provision for income taxes

(2,932,793)

(9,436,295)

Provision (benefit) for income taxes

-

-

Net loss

(2,932,793)

(9,436,295)

Preferred stock dividends

(207,221)

(242,174)

Deemed dividend from induced conversion of Series A preferred stock

(11,478)

-

Net loss attributable to common stockholders

$  (3,151,492)

$  (9,678,469)

Net loss attributable to common stockholders per  common share – basic and diluted

$           (0.04)

$           (0.11)

Weighted average number of common shares  outstanding, basic and diluted

89,211,315

86,794,287

APPLIED ENERGETICS, INC.

CONSOLIDATED BALANCE SHEETS

DECEMBER 31 ,

2010

2009

ASSETS

Current assets

Cash and cash equivalents

$           8,983,281

$           9,604,643

Certificate of Deposit

-

225,000

Accounts receivable - net

2,022,292

1,074,944

Inventory - net

683,546

785,479

Prepaid expenses

365,506

447,295

Other receivables

48,717

52,295

Total current assets

12,103,342

12,189,656

Long term receivable

205,313

205,313

Property and equipment - net

2,507,814

2,845,607

Other assets

10,000

20,800

TOTAL ASSETS

$         14,826,469

$         15,261,376

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$              870,009

$              428,413

Accrued expenses

798,962

313,448

Insurance premium financing (3.9% interest for 2010, 4.5% interest for 2009)

206,720

214,834

Accrued compensation

507,341

505,188

Customer deposits

126,282

104,160

Billings in excess of costs

6,505

42,716

Total current liabilities

2,515,819

1,608,759

Total liabilities

2,515,819

1,608,759

Commitments and contingencies

Stockholders’ equity

Series A convertible preferred stock, $.001 par value, 2,000,000 shares authorized and 107,172 shares issued and outstanding at December 31, 2010 (Liquidation preference $2,679,300); 135,572 shares issued and outstanding at December 31, 2009 (Liquidation

107

136

Common stock, $.001 par value, 125,000,000 shares authorized; 91,068,357 shares issued and outstanding at December 31, 2010; 88,968,812 shares issued and outstanding at December 31, 2009

91,068

88,969

     Additional paid-in capital

78,738,520

76,931,065

     Accumulated deficit

(66,519,045)

(63,367,553)

Total stockholders’ equity

12,310,650

13,652,617

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$         14,826,469

$         15,261,376

SOURCE Applied Energetics, Inc.



RELATED LINKS

http://www.appliedenergetics.com