Post by highskier on Nov 14, 2019 16:56:25 GMT
Liquidmetal Technologies Reports Third Quarter 2019 Results
Business Wire November 12, 2019
LAKE FOREST, Calif.--(BUSINESS WIRE)--
Liquidmetal® Technologies, Inc. (LQMT), the foremost authority on commercial applications of amorphous alloys, reported results for its third quarter ended September 30, 2019.
Management Commentary
Our operating results for the third quarter reflect operations related to on-going manufacturing efforts from our Lake Forest, CA facility. These efforts have been executed to provide existing customers with buffer inventories to sustain them through our transition to outsourced manufacturing, both domestically and abroad. As of today, we have shipped all remaining quantities due under these orders to our customers, thus marking the end of our on-site manufacturing. In addition, we are nearing the completion of the remaining elements of our previously announced restructuring plan, with the full effect of associated cost reductions beginning Q1 2019.
Going forward, we will continue to develop domestic and global markets for amorphous metal applications. This will be in partnership with Dongguan Yihao Metal Materials Technology Co. Ltd., which is continuing to see progress in volume production and entrance into new markets.
Q3 2019 Financial Summary
During the third quarter of 2019, the Company generated $421 thousand in revenue primarily as a result of the completion of transition orders with existing customers, as well as continued product development efforts with the goal of furthering the commercialization of the Company’s technology and generating sustained part deliveries.
Selling, marketing, general and administrative expense was $1.4 million in both Q3 2019 and Q3 2018. Expenses for Q3 2019 are inclusive of $272 thousand in additional expense related to our restructuring efforts. Resulting headcount reductions are expected to result in a lower overall cost structure in subsequent periods.
Research and development expense was $0.3 million in Q3 2019, as compared to $0.6 million in Q3 2018. The decrease from the prior year was mainly due to decreases in expenses associated with alloy and application development efforts. Such trend is expected to continue as a result of our restructuring efforts.
Cash and restricted cash totaled $31.2 million at September 30, 2019, as compared to $35.2 million at December 31, 2018.
For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s September 30, 2019 Form 10Q, which was filed earlier today.
About Liquidmetal Technologies
Lake Forest, California-based Liquidmetal Technologies, Inc. is the leading developer of parts made with amorphous alloys, also known scientifically as Bulk Metallic Glasses or BMGs. The non-crystalline atomic structure of these materials imparts unique performance properties, including the ability to injection-mold with micron-level precision, lustrous finishes, high strength, hardness and corrosion resistance, and remarkable elasticity. Liquidmetal Technologies is the first company to produce amorphous alloy parts commercially, enabling significant improvements in products across a wide array of industries. For more information, go to www.liquidmetal.com.
Forward-Looking Statement
This press release contains "forward-looking statements," including but not limited to statements regarding the advantages of Liquidmetal's amorphous alloy technology, scheduled manufacturing of customer parts and other statements associated with Liquidmetal's technology and operations. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Liquidmetal's expectations and projections. Risks and uncertainties include, among other things; customer adoption of Liquidmetal's technologies and successful integration of those technologies into customer products; potential difficulties or delays in manufacturing products incorporating Liquidmetal's technologies; Liquidmetal's ability to fund its current and anticipated operations; the ability of third party suppliers and manufacturers to meet customer product requirements; general industry conditions; general economic conditions; and governmental laws and regulations affecting Liquidmetal's operations. Additional information concerning these and other risk factors can be found in Liquidmetal's public periodic filings with the U.S. Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Liquidmetal's 2018 Annual Report on Form 10-K.
Liquidmetal® Technologies, Inc. (LQMT), the foremost authority on commercial applications of amorphous alloys, reported results for its third quarter ended September 30, 2019.
Management Commentary
Our operating results for the third quarter reflect operations related to on-going manufacturing efforts from our Lake Forest, CA facility. These efforts have been executed to provide existing customers with buffer inventories to sustain them through our transition to outsourced manufacturing, both domestically and abroad. As of today, we have shipped all remaining quantities due under these orders to our customers, thus marking the end of our on-site manufacturing. In addition, we are nearing the completion of the remaining elements of our previously announced restructuring plan, with the full effect of associated cost reductions beginning Q1 2019.
Going forward, we will continue to develop domestic and global markets for amorphous metal applications. This will be in partnership with Dongguan Yihao Metal Materials Technology Co. Ltd., which is continuing to see progress in volume production and entrance into new markets.
Q3 2019 Financial Summary
During the third quarter of 2019, the Company generated $421 thousand in revenue primarily as a result of the completion of transition orders with existing customers, as well as continued product development efforts with the goal of furthering the commercialization of the Company’s technology and generating sustained part deliveries.
Selling, marketing, general and administrative expense was $1.4 million in both Q3 2019 and Q3 2018. Expenses for Q3 2019 are inclusive of $272 thousand in additional expense related to our restructuring efforts. Resulting headcount reductions are expected to result in a lower overall cost structure in subsequent periods.
Research and development expense was $0.3 million in Q3 2019, as compared to $0.6 million in Q3 2018. The decrease from the prior year was mainly due to decreases in expenses associated with alloy and application development efforts. Such trend is expected to continue as a result of our restructuring efforts.
Cash and restricted cash totaled $31.2 million at September 30, 2019, as compared to $35.2 million at December 31, 2018.
For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s September 30, 2019 Form 10Q, which was filed earlier today.
About Liquidmetal Technologies
Lake Forest, California-based Liquidmetal Technologies, Inc. is the leading developer of parts made with amorphous alloys, also known scientifically as Bulk Metallic Glasses or BMGs. The non-crystalline atomic structure of these materials imparts unique performance properties, including the ability to injection-mold with micron-level precision, lustrous finishes, high strength, hardness and corrosion resistance, and remarkable elasticity. Liquidmetal Technologies is the first company to produce amorphous alloy parts commercially, enabling significant improvements in products across a wide array of industries. For more information, go to www.liquidmetal.com.
Forward-Looking Statement
This press release contains "forward-looking statements," including but not limited to statements regarding the advantages of Liquidmetal's amorphous alloy technology, scheduled manufacturing of customer parts and other statements associated with Liquidmetal's technology and operations. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Liquidmetal's expectations and projections. Risks and uncertainties include, among other things; customer adoption of Liquidmetal's technologies and successful integration of those technologies into customer products; potential difficulties or delays in manufacturing products incorporating Liquidmetal's technologies; Liquidmetal's ability to fund its current and anticipated operations; the ability of third party suppliers and manufacturers to meet customer product requirements; general industry conditions; general economic conditions; and governmental laws and regulations affecting Liquidmetal's operations. Additional information concerning these and other risk factors can be found in Liquidmetal's public periodic filings with the U.S. Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Liquidmetal's 2018 Annual Report on Form 10-K.