Southwall Announces 2010 First Quarter Results
Date : 05/11/2010 @ 8:23PM
Source : Business Wire
Stock : Southwall Technologies Inc. (SWTX)
Quote : 1.55 0.0 (0.00%) @ 7:43AM
Southwall Announces 2010 First Quarter Results
Southwall Technologies Inc. (OTCBB: SWTX) announced first quarter 2010 revenue of $10.5 million, an increase of 61% from first quarter 2009 revenues of $6.5 million. The year over year increase reflects the improving economy and increasing demand for higher energy efficiency products across our primary markets.
Gross profit for first quarter 2010 was $4.7 million, an increase of 93% from first quarter 2009 gross profit of $2.4 million. The year over year increase is primarily due to higher sales volume, improved production efficiencies and higher plant utilization resulting in more effective absorption of fixed manufacturing costs as a percentage of sales.
First quarter 2010 net income was $1.3 million, or $0.04 per fully diluted share, as compared with net income for the first quarter 2009 of $2.3 million, which included approximately $2.4 million of other income relating to the settlement of our Matrix debt, or $0.07 per fully diluted share.
"As evidenced by our first quarter results, the core markets in which we operate have stabilized, with the demand for higher energy efficiency being a key growth driver,” said Dennis Capovilla, Chief Executive Officer. “Our strategy to invest in growth and innovation during the market downturn has put us in a strong position, as the market recovers and the demand for green building continues.”
About Southwall Technologies Inc.
Southwall Technologies is the leading innovator of energy-saving films and glass products that dramatically improve the energy efficiency of buildings, homes and cars. Southwall is an ISO 9001/2000/14001-certified manufacturer with customers in over 25 countries around the world.
This press release may contain forward-looking statements, including, without limitation, statements regarding the Company's expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presented. These risks include the possibility that the Company’s expected future results will be materially worse than estimated, that the Company may not continue to be profitable in future quarters or may not be able to achieve future long-term growth, that there will be a decline in one or more portions of our business in 2010 or thereafter, that the Company will not be successful in improving operations performance or controlling costs, that the Company will suffer a decline in manufacturing or financial effectiveness, that the Company’s new product development will not be successful, that there may be decreasing demand in certain markets and that the Company will not be able to secure additional financing if required, as well as risks associated with its failure to meet potential covenant requirements under future credit facilities. Further risks are detailed in the Company's filings with the Securities and Exchange Commission, including those set forth in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2009, filed on March 25, 2010.
