Maxwell Technologies Reports First Quarter Financial Results

Q1 Revenue in Line With Expectations;

Slower Growth Seen for Balance of Fiscal 2001



Conference Call Tomorrow, April 24; Investor Day, Annual Meeting

And Investor Conference Presentation Set for Coming Week - Details Below



Apr 23, 2001, 01:00 ET from Maxwell Technologies, Inc.

    SAN DIEGO, April 23 /PRNewswire Interactive News Release/ -- Maxwell
 Technologies, Inc. (Nasdaq:   MXWL) today reported revenue from continuing
 operations of $27.0 million for its first quarter ended March 31, 2001,
 compared to $26.1 million for the three months ended March 31, 2000.  First
 quarter loss from continuing operations was $2.7 million, or $0.27 per share,
 compared to $1.4 million, or $0.14 per share, for the three months ended March
 31, 2000.
     Including a contribution of $3.4 million from discontinued operations, net
 income for the first quarter was $0.7 million, or $0.07 per share.  Results
 from discontinued operations reflect a gain of $4.1 million from the sale of
 the company's defense contracting business, which was partially offset by a
 net loss of $0.7 million in the Company's PurePulse unit.
     Vickie Capps, Maxwell's chief financial officer, said that, while revenue
 from continuing operations was in line with expectations, sales of newer,
 proprietary products were below forecasts, resulting in a less favorable
 product mix and lower gross margins than had been anticipated.
     "Reductions in capital expenditures for telecommunications infrastructure
 have affected sales of our computing products, and a slowdown in the
 introduction of new consumer electronics products has resulted in postponement
 or cancellation of expected shipments of small-cell ultracapacitors that we
 had factored into our forecasts," Capps said.
     Carl Eibl, Maxwell's president and chief executive officer, said that,
 based on current purchasing patterns in key target markets, the company is
 reducing its 2001 revenue growth forecast from 30 percent to 15 percent.  He
 said that financial results from continuing operations in the second quarter
 are expected to be similar to those for the first quarter and should improve
 gradually in the second half of the year, turning profitable in the fourth
 quarter.
     "The investments we made last year in commercial talent, product
 development and high-volume production capacity have positioned Maxwell for
 product-driven growth," Eibl said.  "With that foundation in place, we have
 stepped up our focus and investments in sales and marketing, and we believe
 that the new computing products coming through the development pipeline and
 additional design-ins we are pursuing for ultracapacitors will enable us to
 improve product mix and increase sales and gross margins beginning later this
 year.  The sales ramp for our new products has been slower than we expected
 due to a general reluctance by our OEM customers to bring new or improved end
 products to market in the current economic environment."
     The company will conduct a conference call and simultaneous webcast to
 discuss first quarter financial results and the outlook for the balance of
 2001, and answer analysts' questions at 11 a.m. (eastern) tomorrow, April 24.
 The call may be accessed by dialing (212) 896-6105; the webcast and subsequent
 replay may be accessed at the company's web site, www.maxwell.com, by clicking
 on Investor Relations, then on Audio Presentations.  The company also will
 conduct an Investor Day on Thursday, April 26, and hold its Annual
 Shareholders Meeting on Friday, April 27.  Management presentations for both
 events will be webcast live and will be available for subsequent replay at the
 company's web site.  At 4:30 p.m. (Pacific) on Monday, April 30, management
 will make a presentation at the JPMorgan H&Q Technology Conference at the
 Westin St. Francis Hotel in San Francisco.  That presentation will be webcast
 live and will be available for subsequent replay at the company's web site.
 
     Maxwell Technologies applies industry-leading capabilities in power and
 computing to develop and commercialize electronic components and power and
 computing systems for customers in multiple industries, including
 transportation, telecommunications, consumer and industrial electronics,
 medical and aerospace.
 
     This news release contains financial projections and forward-looking
 statements that are subject to significant risks and uncertainties.  These
 include achievement of sales forecasts, development and acceptance of products
 based on new technologies, demand for original equipment manufacturers'
 products reaching anticipated levels, cost-effective manufacturing of new
 products, and risks and uncertainties involved in foreign operations.  These
 and other risks are detailed from time-to-time in the Company's SEC reports,
 including the report on Form 10-K for the year ended December 31, 2000.
 Actual results may differ materially from those projected.  These forward-
 looking statements represent the Company's judgment as of the date of this
 news release.  The Company disclaims any intent or obligation to update these
 forward-looking statements.
 
 
                       Maxwell Technologies, Inc. (MXWL)
                     Summary of Unaudited Quarterly Results
                   ($ in thousands, except per share amounts)
 
                                                Three Months Ended
                                            March 31,           March 31,
                                              2001                2000
 
     Consolidated Statements of Operations
 
     Continuing Operations:
       Sales                                $27,000             $26,149
       Cost of sales                         20,851              18,645
       Gross profit                           6,149               7,504
       Operating expenses:
         Selling, general and
          administrative expenses             6,267               7,319
         Research and development expenses    3,199               1,837
         Restructuring, acquisition
          and other charges                      --                 498
         Total operating expenses             9,466               9,654
       Operating loss                        (3,317)             (2,150)
       Interest expense                        (878)                (74)
       Interest income and other                 47                  35
       Loss before income taxes
        and minority interest                (4,148)             (2,189)
       Income tax provision (credit)         (1,440)               (805)
       Minority interest in
        net loss of subsidiaries                (48)                 --
       Loss from continuing operations       (2,660)             (1,384)
     Discontinued operations, net of taxes    3,397                (107)
     Net income (loss)                         $737             $(1,491)
 
     Basic net income (loss) per share:
       Income (loss) from
        continuing operations               $(0.27)             $(0.14)
       Income (loss) from
        discontinued operations                0.34              (0.01)
       Net income (loss) per share            $0.07             $(0.15)
     Diluted net income (loss) per share:
       Income (loss) from
        continuing operations               $(0.27)             $(0.14)
       Income (loss) from
        discontinued operations                0.34              (0.01)
       Net income (loss) per share            $0.07             $(0.15)
 
     Weighted average shares of common
      stock and common stock equivalents
      used in calculating diluted earnings
      (loss) per shares (in thousands)        9,939               9,727
 
 
                       Maxwell Technologies, Inc. (MXWL)
                     Summary of Unaudited Quarterly Results
                                ($ in thousands)
 
                                            March 31,        December 31,
     Condensed Consolidated Balance Sheets    2001               2000
 
     Assets:
       Current assets:
         Cash and cash equivalents           $3,430              $2,686
         Accounts receivable, net            23,283              24,652
         Inventories                         26,972              24,769
         Other current assets                 1,179               1,133
         Deferred income taxes               13,031              13,031
         Net assets of discontinued
          operations                          6,824              13,963
           Total current assets              74,719              80,234
       Property, plant and equipment,
        net                                  23,294              22,567
       Goodwill and other non-current
        assets                               20,301              19,308
                                           $118,314            $122,109
 
     Liabilities and stockholders' equity:
       Total current liabilities            $42,284             $47,290
       Minority interest                      5,138               5,065
       Stockholders' equity                  70,892              69,754
                                           $118,314            $122,109
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X45472013
 
 

SOURCE Maxwell Technologies, Inc.
    SAN DIEGO, April 23 /PRNewswire Interactive News Release/ -- Maxwell
 Technologies, Inc. (Nasdaq:   MXWL) today reported revenue from continuing
 operations of $27.0 million for its first quarter ended March 31, 2001,
 compared to $26.1 million for the three months ended March 31, 2000.  First
 quarter loss from continuing operations was $2.7 million, or $0.27 per share,
 compared to $1.4 million, or $0.14 per share, for the three months ended March
 31, 2000.
     Including a contribution of $3.4 million from discontinued operations, net
 income for the first quarter was $0.7 million, or $0.07 per share.  Results
 from discontinued operations reflect a gain of $4.1 million from the sale of
 the company's defense contracting business, which was partially offset by a
 net loss of $0.7 million in the Company's PurePulse unit.
     Vickie Capps, Maxwell's chief financial officer, said that, while revenue
 from continuing operations was in line with expectations, sales of newer,
 proprietary products were below forecasts, resulting in a less favorable
 product mix and lower gross margins than had been anticipated.
     "Reductions in capital expenditures for telecommunications infrastructure
 have affected sales of our computing products, and a slowdown in the
 introduction of new consumer electronics products has resulted in postponement
 or cancellation of expected shipments of small-cell ultracapacitors that we
 had factored into our forecasts," Capps said.
     Carl Eibl, Maxwell's president and chief executive officer, said that,
 based on current purchasing patterns in key target markets, the company is
 reducing its 2001 revenue growth forecast from 30 percent to 15 percent.  He
 said that financial results from continuing operations in the second quarter
 are expected to be similar to those for the first quarter and should improve
 gradually in the second half of the year, turning profitable in the fourth
 quarter.
     "The investments we made last year in commercial talent, product
 development and high-volume production capacity have positioned Maxwell for
 product-driven growth," Eibl said.  "With that foundation in place, we have
 stepped up our focus and investments in sales and marketing, and we believe
 that the new computing products coming through the development pipeline and
 additional design-ins we are pursuing for ultracapacitors will enable us to
 improve product mix and increase sales and gross margins beginning later this
 year.  The sales ramp for our new products has been slower than we expected
 due to a general reluctance by our OEM customers to bring new or improved end
 products to market in the current economic environment."
     The company will conduct a conference call and simultaneous webcast to
 discuss first quarter financial results and the outlook for the balance of
 2001, and answer analysts' questions at 11 a.m. (eastern) tomorrow, April 24.
 The call may be accessed by dialing (212) 896-6105; the webcast and subsequent
 replay may be accessed at the company's web site, www.maxwell.com, by clicking
 on Investor Relations, then on Audio Presentations.  The company also will
 conduct an Investor Day on Thursday, April 26, and hold its Annual
 Shareholders Meeting on Friday, April 27.  Management presentations for both
 events will be webcast live and will be available for subsequent replay at the
 company's web site.  At 4:30 p.m. (Pacific) on Monday, April 30, management
 will make a presentation at the JPMorgan H&Q Technology Conference at the
 Westin St. Francis Hotel in San Francisco.  That presentation will be webcast
 live and will be available for subsequent replay at the company's web site.
 
     Maxwell Technologies applies industry-leading capabilities in power and
 computing to develop and commercialize electronic components and power and
 computing systems for customers in multiple industries, including
 transportation, telecommunications, consumer and industrial electronics,
 medical and aerospace.
 
     This news release contains financial projections and forward-looking
 statements that are subject to significant risks and uncertainties.  These
 include achievement of sales forecasts, development and acceptance of products
 based on new technologies, demand for original equipment manufacturers'
 products reaching anticipated levels, cost-effective manufacturing of new
 products, and risks and uncertainties involved in foreign operations.  These
 and other risks are detailed from time-to-time in the Company's SEC reports,
 including the report on Form 10-K for the year ended December 31, 2000.
 Actual results may differ materially from those projected.  These forward-
 looking statements represent the Company's judgment as of the date of this
 news release.  The Company disclaims any intent or obligation to update these
 forward-looking statements.
 
 
                       Maxwell Technologies, Inc. (MXWL)
                     Summary of Unaudited Quarterly Results
                   ($ in thousands, except per share amounts)
 
                                                Three Months Ended
                                            March 31,           March 31,
                                              2001                2000
 
     Consolidated Statements of Operations
 
     Continuing Operations:
       Sales                                $27,000             $26,149
       Cost of sales                         20,851              18,645
       Gross profit                           6,149               7,504
       Operating expenses:
         Selling, general and
          administrative expenses             6,267               7,319
         Research and development expenses    3,199               1,837
         Restructuring, acquisition
          and other charges                      --                 498
         Total operating expenses             9,466               9,654
       Operating loss                        (3,317)             (2,150)
       Interest expense                        (878)                (74)
       Interest income and other                 47                  35
       Loss before income taxes
        and minority interest                (4,148)             (2,189)
       Income tax provision (credit)         (1,440)               (805)
       Minority interest in
        net loss of subsidiaries                (48)                 --
       Loss from continuing operations       (2,660)             (1,384)
     Discontinued operations, net of taxes    3,397                (107)
     Net income (loss)                         $737             $(1,491)
 
     Basic net income (loss) per share:
       Income (loss) from
        continuing operations               $(0.27)             $(0.14)
       Income (loss) from
        discontinued operations                0.34              (0.01)
       Net income (loss) per share            $0.07             $(0.15)
     Diluted net income (loss) per share:
       Income (loss) from
        continuing operations               $(0.27)             $(0.14)
       Income (loss) from
        discontinued operations                0.34              (0.01)
       Net income (loss) per share            $0.07             $(0.15)
 
     Weighted average shares of common
      stock and common stock equivalents
      used in calculating diluted earnings
      (loss) per shares (in thousands)        9,939               9,727
 
 
                       Maxwell Technologies, Inc. (MXWL)
                     Summary of Unaudited Quarterly Results
                                ($ in thousands)
 
                                            March 31,        December 31,
     Condensed Consolidated Balance Sheets    2001               2000
 
     Assets:
       Current assets:
         Cash and cash equivalents           $3,430              $2,686
         Accounts receivable, net            23,283              24,652
         Inventories                         26,972              24,769
         Other current assets                 1,179               1,133
         Deferred income taxes               13,031              13,031
         Net assets of discontinued
          operations                          6,824              13,963
           Total current assets              74,719              80,234
       Property, plant and equipment,
        net                                  23,294              22,567
       Goodwill and other non-current
        assets                               20,301              19,308
                                           $118,314            $122,109
 
     Liabilities and stockholders' equity:
       Total current liabilities            $42,284             $47,290
       Minority interest                      5,138               5,065
       Stockholders' equity                  70,892              69,754
                                           $118,314            $122,109
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X45472013
 
 SOURCE  Maxwell Technologies, Inc.