Applied Energetics Reports Second Quarter 2011 Financial Results

Aug 09, 2011, 08:30 ET from Applied Energetics, Inc.

TUCSON, Ariz., Aug. 9, 2011 /PRNewswire/ -- Applied Energetics, Inc., (NASDAQ: AERG), today reported summary financial results for the second quarter ended June 30, 2011.  The Company will host a live conference call today, August 9 at 11:00 a.m. (Eastern Time).

Second Quarter and Year-to-Date 2011 Summary Financial Results

Revenue for the second quarter decreased by approximately $1.9 million to $1.0 million for the three months ended June 30, 2011 compared to $2.9 million for the three months ended June 30, 2010.  Revenue decreased approximately $2.6 million to $3.8 million for the six months ended June 30, 2011 compared to $6.5 million for the six months ended June 30, 2010.   These decreases were primarily the result of completion of the Company's counter-IED ("C-IED") related contracts with the US Marine Corp ("USMC").  

Net loss attributable to common shareholders for the three months ended June 30, 2011 was $1.6 million, or $0.02 per basic and diluted common share, as compared to a net loss of $0.7 million or $0.01 per basic and diluted common share for the same period last year.  

Net loss attributable to common shareholders for the six months ended June 30, 2011 was $3.0 million, or $0.03 per basic and diluted common share, as compared to a net loss of $1.8 million or $0.02 per basic and diluted common share for the same period last year.  

At June 30, 2011, the Company had approximately $7.0 million in cash and cash equivalents as compared to $9.0 million in cash and cash equivalents at December 31, 2010.

At June 30, 2011, the Company had a backlog (workload remaining on signed contracts) of approximately $1.1 million, to be completed within the next twelve months.

Joe Hayden, President, commented, "The second quarter was challenging as we were impacted by the delay in the approval of the federal budget, and the inability of government organizations to solicit for, or issue, contracts without an approved budget.  We have been proactive in conserving our cash resources by reducing staff and other cost saving measures. During the second quarter we focused on the completion of our new commercial application center for our laser product line, and another center for our HV product line.  We believe that these unique facilities will provide potential industrial customers with the opportunity to see our new products in use, and to use these products to develop new industrial processes and capabilities."

Conference Call

Applied Energetics will host a conference call on August 9, 2011, at 11:00 a.m. ET.  Shareholders and other interested parties may participate in the conference call by dialing +1 888 679 8040 (domestic) or +1 617 213 4851 (international) and entering access code 98584861, a few minutes before 11:00 a.m. ET on August 9, 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 August 16 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 81983436.  The call will also be archived for 30 days at www.appliedenergetics.com.

About Applied Energetics, Inc.

Applied Energetics develops and manufactures applied energy systems for military and commercial applications.  Through our efforts in developing our core technology, Laser Guided Energy ("LGE"), we have gained expertise and proprietary knowledge in high performance lasers, high-voltage electronics, advanced dynamic optics and atmospheric and plasma interactions.  We apply these technologies to deliver innovative solutions to urgent military requirements, including neutralizing improvised explosive devices ("IEDs") and other high priority missions of U.S. and allied military forces.  We have developed an effective and robust counter-IED ("C-IED") technology as a result of our research and development.  Additionally, we develop and manufacture high voltage and ultra-short pulse ("USP") laser products for government and commercial customers for a range of 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 BALANCE SHEETS

June 30, 2011

December 31, 2010

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$                6,950,451

$                  8,983,281

Accounts receivable

527,464

2,022,292

Inventory

259,302

683,546

Prepaid expenses and deposits

152,293

365,506

Other receivables

47,945

48,717

Total current assets

7,937,455

12,103,342

Long term receivables - net

205,313

205,313

Property and equipment - net

2,426,514

2,507,814

Other assets

-

10,000

TOTAL ASSETS

$              10,569,282

$                14,826,469

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$                   245,645

$                     870,009

Accrued expenses

234,850

1,005,682

Accrued compensation

480,359

507,341

Customer deposits

42,954

126,282

Billings in excess of costs

1,614

6,505

Total current liabilities

1,005,422

2,515,819

Total liabilities

1,005,422

2,515,819

Commitments and contingencies - See Note 9

Stockholders’ equity

Series A Convertible Preferred Stock, $.001 par value, 2,000,000 shares  authorized; 107,172 shares issued and outstanding at June 30, 2011  and at December 31, 2010

107

107

Common stock, $.001 par value, 125,000,000 shares authorized;   91,371,191 shares issued and outstanding at June 30, 2011 and   91,068,357 shares issued and outstanding at December 31, 2010

91,371

91,068

Additional paid-in capital

79,040,055

78,738,520

Accumulated deficit

(69,567,673)

(66,519,045)

Total stockholders’ equity

9,563,860

12,310,650

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$              10,569,282

$                14,826,469

APPLIED ENERGETICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

For the three months ended June 30,

2011

2010

Revenue

$            1,022,765

$            2,879,932

Cost of revenue

927,728

2,794,693

Gross profit

95,037

85,239

Operating expenses

General and administrative

903,884

525,354

Selling and marketing

341,060

232,699

Research and development

445,588

3,658

Total operating expenses

1,690,532

761,711

Operating loss

(1,595,495)

(676,472)

Other (expense) income

Interest expense

(928)

(1,667)

Interest income

892

2,110

  Total other

(36)

443

Net loss

(1,595,531)

(676,029)

Preferred stock dividends

(45,834)

(57,557)

Deemed dividend from induced conversion of   Series A Preferred Stock

-

(11,478)

Net loss attributable to common stockholders

$           (1,641,365)

$              (745,064)

Net loss per common share – basic and diluted

$                    (0.02)

$                    (0.01)

Weighted average number of shares outstanding, basic and diluted

91,096,836

89,687,321

APPLIED ENERGETICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

For the six months ended June 30,

2011

2010

Revenue

$            3,839,343

$            6,474,709

Cost of revenue

3,599,842

6,163,369

Gross profit

239,501

311,340

Operating expenses

General and administrative

1,898,570

1,602,586

Selling and marketing

665,901

304,353

Research and development

631,788

36,520

Total operating expenses

3,196,259

1,943,459

Operating loss

(2,956,758)

(1,632,119)

Other (expense) income

Interest expense

(2,339)

(3,334)

Interest income

2,140

4,572

  Total other

(199)

1,238

Net loss

(2,956,957)

(1,630,881)

Preferred stock dividends

(91,669)

(115,541)

Deemed dividend from induced conversion of   Series A Preferred Stock

-

(11,478)

Net loss attributable to common stockholders

$           (3,048,626)

$           (1,757,900)

Net loss per common share – basic and diluted

$                    (0.03)

$                    (0.02)

Weighted average number of shares outstanding, basic and diluted

91,076,429

89,281,990

SOURCE Applied Energetics, Inc.



RELATED LINKS

http://www.appliedenergetics.com