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After a long wait, Maxwell Technologies, Inc. (MXWL - Analyst Report) filed its annual report on Form 10-K for the fiscal year ended Dec 31, 2012, and form 10-Q for the first and second quarters of 2013, for the period ending Mar 31, 2013 and Jun 30, 2013, respectively. This removed a considerable overhang on the stock.

In May 2013, the company had received a notification letter from NASDAQ that would have prohibited it to continue its listing in NASDAQ for not filing Form 10-Q for the period ended Mar 31, 2013, and Form 10-K for the fiscal year ended Dec 31, 2012, with the Securities and Exchange Commission.

With this filing the company also restated its results for fiscal year 2011 and the first three quarters of 2012.

Bottom Line

For the fourth quarter of 2012, the company reported pro forma earnings per share of 12 cents compared with earnings of 2 cents in the year-ago quarter. Also, the figure was above the Zacks Consensus Estimate of 6 cents.

For the first quarter of 2013, the company reported pro forma earnings per share of 2 cents as compared to 1 cent in the prior-year quarter. However, the figure missed the Zacks Consensus Estimate of 11 cents.

During the second quarter, earnings per share were significantly up 400% year over year to 15 cents. Also, the results easily surpassed the Zacks Consensus Estimate of 7 cents.

Top Line

For the quarter ending Dec 31, 2012, net revenue was $44.5 million, up 19% year over year. The figure surpassed the Zacks Consensus estimate of $39 million.

For the period ending Mar 31, 2013, net revenue was $47.7 million, up 33.2% year over year. The top line again surpassed our expectation of $39 million.

For the second quarter of 2013, revenue was $55.6 million, up 53.6% year over year. The figure was able to beat the Zacks Consensus Estimate by $11.6 million.

Segment Highlights

Ultracapacitor revenue in fourth quarter 2012 was $29.5 million, up 40% year over year while revenue from high voltage capacitor and microelectronics products was $15.1 million, down 7.4% year over year.
 
For the period ending Mar 31, 2013, Ultracapacitor revenue was $33.8 million, significantly up 81.7%. Revenue from high voltage capacitor and microelectronics products declined 18.6% year over year to $14 million.

For the period ending Jun 2013, Ultracapacitor revenue surged 100.5% year over year to $39.3 million while revenue from high voltage capacitor and microelectronics products declined approximately 2% year over year.

Operational Highlights

Operating expenses incurred during the fourth quarter of 2012 were $13.5 million, down 2.2% year over year while it increased 18.3% year over year to $16.8 million in the first quarter of 2013. Operating expenses also increased 26.5% year over year to $16.7 million in the second quarter.

Financial Highlights

Cash and cash equivalents were $28.7 million, $34.1 million and $34.6 million as of Dec 31, 2012, Mar 31, 2013 and Jun 31, 2013, respectively.

Restatements

As a result of the restatement, revenues declined by $10.1 million and $9.2 million for fiscal year 2011 and quarter ending Mar 31, 2012.

Our Take

Maxwell Technologies continues to be the market leader in the growing ultracapacitor market. Overall, the company posted strong results, driven mainly by hybrid bus and wind energy applications in China, and a European automotive program. In Jun 2013, Maxwell received a contract from the California Energy Research and Development Commission for the designing and integration of an ultracapacitor-based energy storage system with Soitec's Concentrating Photovoltaic system.

However, the company’s dependency on third parties for manufacturing and logistics operations, foreign currency risks and licensing law hurdles keep us concerned. The company presently retains a short-term Zacks Rank #3 (Hold).

Stocks to look out for in the space are AVX Corp. (AVX - Snapshot Report), CalAmp Corp. (CAMP - Snapshot Report) and InvenSense, Inc. (INVN - Snapshot Report), all with a Zacks Rank #2 (Buy).

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