Maxwell Technologies Nosedives On China Market Worries
Maxwell Technologies Inc. (NASDAQ: MXWL) shares nosedived Friday on a weaker-than-expected outlook.
The energy storage and power delivery products company changed hands recently at $6.63, down nearly 20 percent. Maxwell is off more than 40 percent since November.
Chief Executive Franz Fink late Thursday forecast full-year revenue of $160 million to $180 million, versus Wall Street's expectation of $207.8 million.
Fink, appointed CEO last May, predicted a 35 percent decline in first-quarter revenue, citing the impact of a three-week Chinese New Year holiday factory shutdown, price pressure and foreign exchange woes.
The outlook suggests revenue of $34.4 million, versus Wall Street's expectation of $47.9 million.
Fink told investors in a conference call Thursday that he's "very encouraged" looking beyond 2015, but will be "aligning our operating expenses" in view of the new revenue outlook.
Although Fink is focused on reducing dependence on providing capacitors to the Chinese transportation market - specifically buses - China last year accounted for 48 percent of Maxwell's revenue.
Fink said Chinese government policy and subsidies favor all-electric buses, and the market "continues to represent a sizable business opportunity."
But Fink said "we are also seeing increasing technology competition which is bringing increasing price pressure and margin pressure as we respond."
The company posted fourth-quarter adjusted earnings of $0.02 a share, while revenue grew 36 percent to $52.9 million.
Wall Street expected adjusted earnings of $0.01 a share on revenue of $50.5 million.
Full-year adjusted margin declined to 37.1 percent in 2014, from 39.5 percent in 2013, driven by "less favorable revenue mix and lower manufacturing utilization," Fink said.
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