CUI Global, Inc. (OTCBB:CUGI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, reported results for the second quarter ended June 30, 2011.
For the three and six months ended June 30, 2011, CUI Global produced consolidated total revenues of $9,878,862 and $19,419,413, respectively. The six months consolidated total revenues represent an increase of 17.5% or more than $2,800,000 over the first half of 2010. The company maintained 38% gross margins over the first six months of 2011, as it continued to improve operational efficiencies.
The company reduced its consolidated net loss to $327,405 in the quarter ended June 30, 2011 from $2,187,393 in the same year-ago period. The first six months results demonstrate savings of more than $3,100,000, with $246,362 in consolidated net losses for the first half of 2011 compared to $3,356,395 in the same period of 2010.
William Clough, CUI Global’s president and CEO, commented: “We are especially encouraged by these results. The growth in revenue coupled with the dramatic reduction of losses demonstrates the effectiveness of continued product line expansion, technology developments, and our calculated decision to build out infrastructure and engineering support to spur present and future growth. These strategic improvements have allowed us to get into the design cycle much earlier and much more effectively.”
“It is also important to note these results do not reflect any significant impact from our latest technologies,” said Clough. “Our Solus™ Power Topology and the Vergence™ GasPT2 device are both scheduled for introduction into the marketplace later this year and into 2012.”
The company has achieved a number of significant milestones during the three months ended June 30, 2011, which include:
- Obtaining final safety approval for the Vergence GasPT2 inferential gas metering device;
- Deploying the Vergence GasPT2 production devices for initial field testing with SNAM RETE in Italy, GASUNIE in the Netherlands, and National Grid in the UK;
- Entering into a Statement of Cooperation with Ericsson (NASDAQ:ERIC) under which CUI and Ericsson will develop and market multi-source, digital Point-of-Load (POL) power solutions; and,
- Preparing, filing, and distributing a Proxy Statement seeking authorization for the company to reverse its common shares in conjunction with an up-listing to a national exchange.
“These milestones and our year-over-year revenue growth and reduced losses again demonstrate the effectiveness of our new technology/licensing model,” continued Clough. “This progress, along with our recently announced plans to reverse our stock and up-list to a national exchange, are all part of our larger, long-term plans to expand our product offerings, focus on operational efficiencies, and continue to re-structure and/or retire corporate debt.”
“We are increasingly confident that the initiatives we have implemented will continue to produce positive results in revenue growth and profitability. We are squarely focused on increasing shareholder value,” Clough concluded.
About CUI Global, Inc.
CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies and technologies. From its Vergence GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.’s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.
Important Cautions Regarding Forward-Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.
Maggie Lefor, 503-612-2300
IR Coordinator, 503-612-2317
Investor Relations Contact:
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Scott Liolios or Chris Tyson, 949-574-3860
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