UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported):
November 3, 2009

MAXWELL TECHNOLOGIES, INC.
(Exact Name of Registrant as Specified in its Charter)

 
					
Delaware	 	1-15477	 	95-2390133	
(State or Other Jurisdiction
of Incorporation)	 	(Commission File Number)	 	(I.R.S. Employer
Identification Number)	
9244 Balboa Avenue
San Diego, California 92133
(Addresses of principal executive offices, including zip code)
(858) 503-3300
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02.	Results of Operations and Financial Condition.	
On November 3, 2009, Maxwell Technologies, Inc. (the “Company”) issued a press release announcing the Company’s results for the three and nine months ended September 30, 2009. A copy of this press release is attached hereto as Exhibit 99.1.
This information and the exhibits hereto are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
 
Item 9.01.	Financial Statements and Exhibits.	
(d) Exhibits

Exhibit
No.	 	Description	
		
Exhibit 99.1	 	Press release issued by Maxwell Technologies, Inc. on November 3, 2009	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MAXWELL TECHNOLOGIES, INC.	
		
By:	 	/s/    D AVID J. S CHRAMM        	
	 	David J. Schramm	
	 	Chief Executive Officer	
Date: November 3, 2009

EXHIBIT INDEX

Exhibit
No.	 	Description	
		
99.1	 	Press Release issued by Maxwell Technologies, Inc. on November 3, 2009	

Exhibit 99.1
NEWS RELEASE

For Immediate Release	 	Contact:	 	Michael Sund	
November 3, 2009	 		 	+1 858.503.3233	
	 		 	msund@maxwell.com	
MAXWELL TECHNOLOGIES REPORTS 3rd QUARTER FINANCIAL RESULTS

Ultracapacitor Sales Up 38%, Total Revenue Up 22% vs. Q3 2008 
CONFERENCE CALL & WEBCAST AT 5 P.M. (EDT) TODAY, – DETAILS BELOW
SAN DIEGO, Calif. — Maxwell Technologies, Inc. (Nasdaq: MXWL) today reported revenue of $26.1 million for its third quarter ended September 30, 2009, up 22 percent over the $21.4 million recorded in the same period in 2008. Operating loss for the third quarter 2009 was $1.7 million, compared with $4.0 million in the same period last year. Net loss for Q309 was $4.6 million, or $0.18 per share, including a non-cash charge of $2.8 million, or $0.11 per share, reflecting a quarterly “mark-to-market” valuation of conversion features and warrants associated with convertible debentures issued in 2005. That compares with a net loss of $5.7 million, or $0.27 per share, including a non-cash charge of $1.0 million, or $0.05 per share for the conversion feature valuation in Q308.
Third quarter BOOSTCAP ® ultracapacitor sales increased by 38 percent to $10.5 million, compared with $7.6 million for the same period last year. Sales of high voltage capacitor and microelectronics products also continued to grow, combining for Q309 revenue of $15.6 million, up 13 percent from the $13.8 million recorded in Q308.
“Continuing shipments to fulfill purchase orders totaling $13.5 million that we received in April from three leading Chinese bus producers for 48-volt ultracapacitor modules to support braking energy recuperation and torque assist systems in diesel-electric hybrid transit buses helped to drive another strong quarter for ultracapacitor sales,” said David Schramm, Maxwell’s president and chief executive officer. “That sales volume, along with significant ongoing manufacturing cost reductions for ultracapacitor products, enabled the company to generate positive cash flow from operations for the second consecutive quarter.”
“Primary markets for our products, such as public transportation, renewable energy, electric utility infrastructure and aerospace continue to be stable,” Schramm added. “Sales are up more than 27 percent and operating results have shown significant improvement compared with the first three quarters of 2008. We expect sequential sales growth and additional operating results improvement in the fourth quarter, capping a year of solid progress.”
Other significant recent developments include:
 
 	•	 	Selection of Maxwell’s BOOSTCAP ultracapacitors by Continental AG, one of the world’s leading automotive electronics and mechatronics suppliers, as the energy storage element of a voltage stabilization and stop-start fuel efficiency system that Continental has developed for automobiles.	
 
 	•	 	Introduction of an enhanced version of Maxwell’s PC-10 ultracapacitor product, incorporating proprietary electrode to ensure the reliability of backup power in enterprise storage, power wireless transmitters in smart utility meters and support other industrial applications.	
Q309 gross margin was 38 percent, compared with 29 percent in Q308. Operating expenses totaled approximately $11.6 million, or 45 percent of revenue in Q309, compared with $10.1 million, or 47 percent of revenue in Q308. Cash, cash equivalents and
-more-

MAXWELL TECHNOLOGIES REPORTS 3rd QUARTER FINANCIAL RESULTS
-2-
restricted cash totaled $38.2 million as of September 30, 2009, compared with $39.5 million as of June 30, 2009. Complete financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations will be available with the filing of the company’s Quarterly Report on Form 10-Q with the Securities & Exchange Commission.
As reported previously, the company is conducting an internal review of payments made to an independent sales agent in China in connection with sales of high voltage capacitor products produced by Maxwell’s Swiss subsidiary. The company believes that the amount of the payments was immaterial in all periods involved. However, because the company’s international operations make it subject to the U.S. Foreign Corrupt Practices Act (FCPA), management is conducting further review to determine how these payments should be treated for FCPA purposes. The internal review has not been completed, and the company is voluntarily sharing information related to the review with the Securities and Exchange Commission and Department of Justice and has provided documents as requested by the SEC in connection with its review of this matter.
Management will conduct a conference call and simultaneous webcast to discuss third quarter financial results and the future outlook at 5 p.m. (eastern) today. The call may be accessed by dialing toll-free, (800) 262-9098 from the U.S. and Canada, or (785) 424-1051 for international callers. The live webcast may be accessed via the following link: http://www.maxwell.com/investors/investor-calendar.asp. Subsequent replay may be accessed at the company’s Presentation Archive via the following link: http://www.maxwell.com/investors/presentations.asp
Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our BOOSTCAP® ultracapacitor cells and multi-cell modules provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and telecommunications. Our CONDIS® high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation-mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications.
Forward-Looking Statements - Statements in this news release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:
 
 	•	 	the company’s history of losses and uncertainty about its ability to achieve or maintain profitability;	
 
 	•	 	disruption of global financial markets and reduced credit availability;	
 
 	•	 	general economic conditions in the markets served by our products;	
 
 	•	 	demand for original equipment manufacturers’ products reaching anticipated levels;	
 
 	•	 	cost-effective manufacturing and the success of outsourced product assembly;	
 
 	•	 	the impact of competitive products and pricing;	
 
 	•	 	risks and uncertainties involved in foreign operations, including the impact of currency fluctuations;	
 
 	•	 	product liability or warranty claims in excess of reserves.	
For further information regarding risks and uncertainties associated with Maxwell’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of these filings may be obtained by contacting Maxwell’s investor relations department at (858) 503-3434 or at our investor relations website: http://www.maxwell.com/investors/sec-filing.asp. All information in this release is as of November 3, 2009. The company undertakes no duty to update any forward-looking statement to reflect actual results or changes in the company’s expectations.

MAXWELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)

 	  	September 30,
2009	 	 	December 31,
2008	 	
ASSETS	  				 				
Current assets:	  				 				
Cash and cash equivalents	  	$	30,233	  	 	$	12,576	  	
Restricted cash	  	 	—  	  	 	 	8,000	  	
Trade and other accounts receivable, net	  	 	20,634	  	 	 	14,107	  	
Inventories, net	  	 	19,050	  	 	 	18,502	  	
Prepaid expenses and other current assets	  	 	1,612	  	 	 	1,645	  	
	  	 	 	 	 	 	 	 	
Total current assets	  	 	71,529	  	 	 	54,830	  	
			
Property and equipment, net	  	 	17,341	  	 	 	17,355	  	
Intangible assets, net	  	 	3,084	  	 	 	3,755	  	
Goodwill	  	 	22,783	  	 	 	22,408	  	
Prepaid pension asset	  	 	2,760	  	 	 	2,592	  	
Restricted cash	  	 	8,000	  	 	 	—  	  	
Other non-current assets	  	 	1,282	  	 	 	1,373	  	
	  	 	 	 	 	 	 	 	
Total assets	  	$	126,779	  	 	$	102,313	  	
	  	 	 	 	 	 	 	 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	  				 				
Current liabilities:	  				 				
Accounts payable and accrued liabilities	  	$	15,227	  	 	$	12,592	  	
Accrued warranty	  	 	840	  	 	 	905	  	
Accrued employee compensation	  	 	5,564	  	 	 	4,353	  	
Short-term borrowings and current portion of long-term debt	  	 	10,768	  	 	 	18,888	  	
Deferred tax liability	  	 	456	  	 	 	456	  	
	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	32,855	  	 	 	37,194	  	
Convertible debenture and long-term debt, excluding current portion	  	 	9,812	  	 	 	582	  	
Stock warrants	  	 	3,769	  	 	 	318	  	
Other long-term liabilities	  	 	609	  	 	 	972	  	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	47,045	  	 	 	39,066	  	
	  	 	 	 	 	 	 	 	
Commitments and contingencies	  				 				
Stockholders’ equity:	  				 				
Common stock, $0.10 par value per share, 40,000 shares authorized; 25,886 and 22,521 shares issued and outstanding at September 30, 2009 and December 31, 2008, respectively	  	 	2,615	  	 	 	2,253	  	
Additional paid-in capital	  	 	220,298	  	 	 	192,228	  	
Accumulated deficit	  	 	(147,839	) 	 	 	(134,902	) 	
Accumulated other comprehensive income	  	 	4,660	  	 	 	3,668	  	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	79,734	  	 	 	63,247	  	
	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	126,779	  	 	$	102,313	  	

MAXWELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)

 	  	Three Months Ended
September 30,	 	 	Nine Months Ended
September 30,	 	
 	  	2009	 	 	2008	 	 	2009	 	 	2008	 	
Revenues:	  				 				 				 				
Sales	  	$	26,101	  	 	$	20,973	  	 	$	73,314	  	 	$	56,035	  	
License fee and service revenue	  	 	—  	  	 	 	407	  	 	 	—  	  	 	 	1,469	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	26,101	  	 	 	21,380	  	 	 	73,314	  	 	 	57,504	  	
					
Cost of sales	  	 	16,164	  	 	 	15,239	  	 	 	47,409	  	 	 	41,427	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	9,937	  	 	 	6,141	  	 	 	25,905	  	 	 	16,077	  	
					
Operating expenses:	  				 				 				 				
Selling, general and administrative	  	 	7,288	  	 	 	6,044	  	 	 	17,962	  	 	 	16,448	  	
Research and development	  	 	4,274	  	 	 	4,003	  	 	 	12,066	  	 	 	10,796	  	
Amortization of intangibles	  	 	86	  	 	 	94	  	 	 	267	  	 	 	270	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	11,648	  	 	 	10,141	  	 	 	30,295	  	 	 	27,514	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from operations	  	 	(1,711	) 	 	 	(4,000	) 	 	 	(4,390	) 	 	 	(11,437	) 	
Interest expense, net	  	 	(59	) 	 	 	(132	) 	 	 	(202	) 	 	 	(399	) 	
Amortization of debt discount and prepaid debt costs	  	 	(73	) 	 	 	(553	) 	 	 	(695	) 	 	 	(1,922	) 	
Loss on embedded derivatives and warrants	  	 	(2,761	) 	 	 	(1,011	) 	 	 	(7,175	) 	 	 	(1,971	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations before income taxes	  	 	(4,604	) 	 	 	(5,696	) 	 	 	(12,462	) 	 	 	(15,729	) 	
Income tax provision	  	 	33	  	 	 	11	  	 	 	475	  	 	 	512	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	  	$	(4,637	) 	 	$	(5,707	) 	 	$	(12,937	) 	 	$	(16,241	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic and diluted net loss per common share	  	$	(0.18	) 	 	$	(0.27	) 	 	$	(0.54	) 	 	$	(0.79	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares used in computing basic and diluted net loss per common share	  	 	25,673	  	 	 	20,992	  	 	 	23,974	  	 	 	20,560