Applied Energetics Reports Fourth Quarter 2009 Financial Results
TUCSON, Ariz., March 16 /PRNewswire-FirstCall/ -- Applied Energetics, Inc., (Nasdaq: AERG), today reported summary financial results for the fourth quarter ended December 31, 2009. The Company will host a live conference call today, March 16, 2010 at 11:30AM (Eastern Time).
Year-to-Date 2009 Summary Financial Results
Revenue for the twelve months ended December 31, 2009 was approximately $7.5 million, compared to approximately $16.6 million for the same period last year, a decrease of approximately 54.8%. CIED revenue decreased by $4.7 million to $2.4 million in 2009 due to revenues deriving mostly from operational support and testing of the Company's CIED systems compared to manufacturing of CIED systems and spares in 2008. LGE revenues decreased by $2.8 million to $4.4 million in 2009 mostly attributable to ending of certain LGE contracts in the first half of 2009 and then increasing in the second half of 2009 with the announcement of two new contracts.
Net loss attributable to common stockholders for the twelve months ended December 31, 2009 was $9.7 million, or $0.11 per basic and diluted common share, as compared to a net loss attributable to common stockholders of $12.9 million or $0.16 per basic and diluted common share for the same period last year. The decrease in net loss per share was partially due to the increased number of shares outstanding in 2009 and to a deemed dividend from induced conversion of Series A preferred stock for $3.3 million in 2008.
Joe Hayden, COO, commented, "Our primary focus in 2009 was advancing our CIED program with the U.S. Marine Corps, and working with the U.S. Army and Navy on applications of our LGE and laser technologies, respectively. We have made important progress on all of these activities and believe 2010 will be a year of transition for Applied Energetics as we move our systems from development activities to field deployment.
"In 2009, we integrated our CIED technology into military vehicles and delivered multiple systems to the Marine Corps for use in their Operational Assessment. Technical and field results of the CIED technologies are highly sensitive or classified, but we are satisfied that our technology has performed well in addressing the threat of IEDs, a critical issue for U.S. military operations. Confirmation of the customer's interest in our technology was received in January 2010 with a $10.4 million contract increase to continue further Operational Assessment of the technology. In addition to supplying more systems, training and field support, the customer also requested that we develop a smaller version of the technology for installation on other Marine Corps and Army vehicles and platforms, and to develop a comprehensive engineering package in preparation for Low Rate Initial Production of the system.
"We recently were informed that Marine Corps Systems Command (MCSC) has made the decision to begin transitioning this program from the Marine Corps Warfighting Laboratory to MCSC to become part of an existing Program of Record for Ground Support Equipment for Combat Engineers within the Marine Corps. The decision by the customer is a significant milestone for the Company, and the first indication that one of our technologies is expected to be produced for regular military procurement. Additionally, the customer has requested that our systems remain in the field beyond the conclusion of the Operational Assessment, and we will continue to provide Field Support for these systems as they remain in operation.
"In the second quarter of 2009 our decline in revenue for the year was apparent. Therefore, we made significant expense reductions in 2009 and will continue to manage our cost structure as we execute our strategic plan for growth and to ensure that our costs are commensurate with our business plan as we move forward."
Fourth Quarter 2009 Summary Financial Results
Revenue for the fourth quarter of 2009 was approximately $1.3 million, compared to approximately $5.0 million for the same period last year, a decrease of 74%. Revenues were derived from contracts received in prior periods. Counter-IED (CIED) program revenues decreased by $0.6 million to $0.4 million for the fourth quarter of 2009 as activities were focused on operational support. Laser Guided Energy™ (LGE) revenues decreased by $1.7 million to $0.5 million for the fourth quarter of 2009 as program activity for contracts received late in the third quarter were started. Laser program revenue was $0.4 million, an increase of $0.4 million for this new product line.
Net loss attributable to common stockholders for the fourth quarter of 2009 was $1.7 million, or $0.02 per basic and diluted share, compared to the prior-comparable period net loss attributable to common stockholders of $6.2 million or $0.08 per basic and diluted common share.
At December 31, 2009, the Company had approximately $9.6 million in cash and cash equivalents and $0.2 million in a certificate of deposit as compared to $15.2 million in cash and cash equivalents and $0.2 million in a certificate of deposit at December 31, 2008. The Company anticipates that its short-term and long-term funding needs will be provided from available cash and expected cash flow from servicing Government contracts, and believes that it has sufficient working capital to fulfill existing contracts and expected contracts in 2010 and into 2011.
At December 31, 2009, the Company had a backlog of approximately $3.4 million, which is expected to be completed within the next twelve months from that date. As of February 28, 2010, the Company's backlog was approximately $11.6 million.
Conference Call
Applied Energetics will host a conference call on March 16, 2010, at 11:30 a.m. ET. Shareholders and other interested parties may participate in the conference call by dialing +1 888 678 8035 (domestic) or +1 617 213 4848 (international) and entering access code 63140966, a few minutes before 11:30 a.m. ET on March 16, 2010. The call will also be broadcast live on the Internet at www.streetevents.com, www.fulldisclosure.com and www.appliedenergetics.com.
A replay of the conference call will be accessible two hours after its completion through March 23, 2010 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 20802385. The call will also be archived for 30 days at www.streetevents.com, www.fulldisclosure.com and 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," "demonstrate," "intend," "expect," "contemplate," "estimate," "anticipate," "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.
APPLIED ENERGETICS, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31,
-----------------
2009 2008
---- ----
ASSETS
Current assets
Cash and cash equivalents $9,604,643 $15,242,386
Certificate of Deposit 225,000 225,000
Accounts receivable - net 1,074,944 2,727,853
Inventory 785,479 157,189
Prepaid expenses 447,295 495,718
Other receivables 52,295 17,183
------ ------
Total current assets 12,189,656 18,865,329
Long term receivable 205,313 253,130
Property and equipment - net 2,845,607 3,523,641
Intangible assets - net - 36,900
Other assets 20,800 29,089
------ ------
TOTAL ASSETS $15,261,376 $22,708,089
=========== ===========
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $428,413 $883,228
Estimated loss on uncompleted contract - 98,239
Accrued expenses 313,448 290,591
Insurance premium financing (4.49%
interest) 214,834 -
Accrued compensation 505,188 1,084,880
Customer deposits 104,160 11,565
Billings in excess of costs 42,716 -
Current portion of capital lease
obligations - 2,028
----- -----
Total current liabilities 1,608,759 2,370,531
Deferred rent - 4,049
----- -----
Total liabilities 1,608,759 2,374,580
--------- ---------
Stockholders’ equity
Series A convertible preferred stock,
$.001 par value, 2,000,000 shares
authorized and 135,572 shares issued
and outstanding at December 31, 2009
and 2008 (Liquidation preference
$3,389,300) 136 136
Common stock, $.001 par value,
125,000,000 shares
authorized; 88,968,812 shares issued
and outstanding at December 31, 2009;
86,370,026 shares issued and
outstanding at December 31, 2008 88,969 86,370
Additional paid-in capital 76,931,065 73,936,085
Accumulated deficit (63,367,553) (53,689,082)
----------- -----------
Total stockholders’ equity 13,652,617 20,333,509
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $15,261,376 $22,708,089
=========== ===========
APPLIED ENERGETICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS
ENDED DECEMBER 31,
--------------------
2009 2008
---- ----
Revenue $1,264,404 $4,960,821
Cost of revenue 1,197,321 5,155,294
--------- ---------
Gross profit 67,083 (194,473)
Operating expenses:
General and administrative 1,524,149 2,300,549
Selling and marketing 70,168 78,346
Research and development 131,081 407,379
------- -------
Total operating expenses 1,725,398 2,786,274
--------- ---------
Operating loss (1,658,315) (2,980,747)
Other income (expense)
Interest expense (1,111) (160)
Interest income 4,340 98,309
Other income - -
----- ------
Total other income 3,229 98,149
----- ------
Loss before provision for income taxes (1,655,086) (2,882,598)
Provision (benefit) for income taxes - -
----- ------
Net Loss (1,655,086) (2,882,598)
Preferred stock dividends (55,082) (25,514)
Deemed dividend from induced
conversion of Series A Preferred
Stock - (3,336,734)
---------- ----------
Net loss attributable to common
stockholders $(1,710,168) $(6,244,846)
=========== ===========
Net loss attributable to common
stockholders per common share
– basic and diluted $(0.02) $(0.08)
------ ------
Weighted average number of common
shares outstanding, basic and diluted 88,968,812 81,528,544
========== ==========
APPLIED ENERGETICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED
DECEMBER 31,
------------------
2009 2008
---- ----
Revenue $7,459,808 $16,614,211
Cost of revenue 7,007,923 15,874,818
--------- ----------
Gross profit 451,885 739,393
Operating expenses:
General and administrative 6,795,972 8,470,656
Settlement expenses 1,337,409 -
Selling and marketing 631,578 251,349
Research and development 1,182,652 1,372,396
--------- ---------
Total operating expenses 9,947,611 10,094,401
--------- ----------
Operating loss (9,495,726) (9,355,008)
Other income (expense)
Interest expense (1,131) (2,099)
Interest income 60,562 637,475
Other income - 10
------ -------
Total other income 59,431 635,386
------ -------
Loss before provision for income taxes (9,436,295) (8,719,622)
Provision (benefit) for income taxes - -
------ -------
Net Loss (9,436,295) (8,719,622)
Preferred stock dividends (242,174) (870,985)
Deemed dividend from induced
conversion of Series A Preferred
Stock - (3,336,734)
---------- ----------
Net loss attributable to common
stockholders $(9,678,469) $(12,927,341)
=========== ============
Net loss attributable to common
stockholders per common share
– basic and diluted $(0.11) $(0.16)
------ ------
Weighted average number of common
shares outstanding, basic and diluted 86,794,287 81,528,544
========== ==========
SOURCE Applied Energetics, Inc.
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