Applied Energetics, Inc. Reports Fourth Quarter And Full Year 2008 Financial Results
Fourth Quarter Business Highlights
Counter-IED: The design and build phases of the Company's $9.3 million counter-IED contract was completed during the fourth quarter. We are actively working with our Customer in the training, deployment and operational support phases of this contract. We expect deployment of these systems will occur according to the Customer's timing.
Non-Military Programs: During the fourth quarter we shipped approximately $1.8 million of advanced high performance equipment to non-military customers. These shipments included a system that we have developed for a proprietary program with an aerospace customer, as well as some high voltage equipment for an industrial process development, and equipment for a research program.
Dana Marshall, Applied Energetics' Chairman, President and Chief Executive Officer, commented, "Last year was an important period for our Company. Our primary focus was on advancing our counter-IED technology with the USMC to address the problem of roadside bombs, or "IEDs". This work led to the award by the USMC of a $9.3 million dollar cost-plus contract in June 2008 for an initial production lot of battle-ready counter-IED systems and spares. Production of these systems was largely completed during the fourth quarter, and we are now engaged with our customer on the training, deployment and operational support phases of that contract.
"Our primary focus in 2009 will be to fully support our customer to ensure a successful deployment of our counter-IED systems in the war zone, and to secure follow-on orders for these systems. Additionally, we are continuing our disciplined execution of our LGE development programs through the multi-service ANVILS advanced laser program and for our customer at the US Army Research Development and Engineering Command (ARDEC)."
Fourth Quarter and Year End 2008 Summary Financial Results
Revenue for the fourth quarter of 2008 was approximately $5.0 million, compared to approximately $3.6 million for the same period last year. Revenue for the twelve-months ended December 31, 2008 was approximately $16.6 million, compared to approximately $12.4 million for the comparable period last year. The increase in revenue of approximately $1.4 million for the fourth quarter and $4.2 million for the twelve-month period was primarily attributable to the completion of certain commercial High Voltage contracts and increased revenues generated by continuing product development related to our CIED business.
Net loss attributable to common stockholders for the fourth quarter of 2008 was ($6.2) million, or ($0.08) per basic and diluted share compared to the prior-comparable period net loss of ($4.2) million or ($0.05) per basic and diluted common share. Net loss attributable to common stockholders for the twelve-months ended December 31, 2008 was ($12.9) million or ($0.16) per basic and diluted share compared to a net loss attributable to common stockholders for the comparable period in 2007 of ($14.8) million or ($0.19) per basic and diluted common share.
At December 31, 2008, the Company had approximately $15.5 million in cash and cash equivalents as compared to $22.5 million in cash and cash equivalents and securities available-for-sale at December 31, 2007.
As of December 31, 2008 the Company had a backlog of $4.6 million, which is expected to be completed within the next twelve-months. This backlog does not include proposals and contracts under negotiation.
Conference Call
Applied Energetics will host a conference call on March 16, 2009, at 11:00 AM (EDT). Shareholders and other interested parties may participate in the conference call by dialing +1 888 713 4217 (domestic) or + 1 617 213 4869 (international) and entering access code 34284517, a few minutes before 11:00 AM (EDT) on March 16, 2009. 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, 2009 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 19109339. 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 Ariz., specializes in development and manufacture of 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 (LGE®) 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.