Southwall Announces 2010 Second Quarter Results
Southwall Technolgies (BB) (OTCBB:SWTX)
Southwall Technologies Inc. (OTCBB: SWTX) announced second quarter 2010 revenue of $11.8 million, an increase of 42% from second quarter 2009 revenues of $8.3 million, and up approximately 13% from first quarter 2010 revenues of $10.5 million. Revenues for the six month period ended June 30, 2010 were $22.3 million, an increase of 51% compared to $14.8 for the six months ended June 30, 2009. The year over year increase reflects the improving economy and increasing demand for higher energy efficiency products across our primary markets.
Gross profit for the second quarter 2010 was $5.9 million, an increase of 59% from second quarter 2009 gross profit of $3.7 million. For the six months ended June 30, 2010, gross profit increased 74% to $10.6 million compared to $6.1 million for the same period in 2009. 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.
Second quarter 2010 net income was $2.9 million, or $0.08 per fully diluted share, as compared with net income for the second quarter 2009 of $1.4 million, or $0.04 per fully diluted share. Net income for the quarter ended June 30, 2010 included approximately $0.7 million, or $0.02 per fully diluted share, after tax gain relating to the acquisition of the controlling interest in Southwall Insulating Glass, LLC. Net Income for the first half of 2010 was $4.1 million, up 17% from the net income earned for the first six months of 2009.
During the second quarter, Southwall Technologies increased its ownership in Southwall Insulating Glass, LLC from 66.3% to 75% and obtained the controlling interest in that operation. Southwall Insulating Glass’ main operations are located in Chicago, Illinois.
“The Heat Mirror energy retrofit of the Empire State Building, the receipt of a $1.4 million stimulus grant from the US Department of Energy, and securing a controlling interest in our insulating glass manufacturing joint venture are highlights of our increasing momentum and commitment to green building innovation. We remain committed to accelerated investment in longer-term growth initiatives,” said Dennis Capovilla, Chief Executive Officer.
