Stock Report for Liquidmetal Technologies Inc. (LQMT)
  • Stock Alert for Liquidmetal Technologies Inc. (LQMT)
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    Stock Alert for Liquidmetal Technologies Inc. (LQMT)

    Liquidmetal Technologies Inc. (LQMT) is a materials technology company engaged in the development and commercialization of products made from amorphous alloys. Its Liquidmetal family of alloys consists of a variety of proprietary coatings, powders, bulk alloys and composites that utilize the advantages offered by amorphous alloy technology.  The Company develops, manufactures, and sells products and components from bulk amorphous alloys to customers in various industries, and also partners with third-party licensees and distributors to develop and commercialize bulk Liquidmetal alloy products. In addition to its bulk alloys, it markets and sells a line of amorphous alloy-based industrial coatings under the Liquidmetal Armacor Coatings brand. The Company operates in two segments: Liquidmetal alloy industrial coatings and bulk Liquidmetal alloys.

    LQMT was founded in 1987 and is based in Rancho Santa Margarita, California.

    Share Statistics (21-June-11) FY 

    2009

    FY 

    2010

    %  

    Chg

    Q1 

    2010

    Q1 

    2011

    %  

    Chg

    Symbol LQMT Revenue, $Mn 10.77 30.27 181.1% 2.70 2.86 5.9%
    Current price $0.50 Gross marg. 45.4% 78.5% 72.9% 34.4% 40.6% 18.0%
    52wk Range: $0.11-$1.76 Oper. margin 50.6% -33.0%
    Avg Vol (3m): 196,191 Net margin 2.32% -15.5% -768.1% -1.1% -321.3% 29.1K%
    Market Cap. 56.25M
    Shares Outstanding 112.96M EPS, $ 0.02 -0.01 -150.0% 0.01 -0.10 -1100%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of LQMT rose Tuesday following a report that Apple’s (NASDAQ: AAPL) upcoming iPhone 5 will come with a “radical new case design.” The recent report triggered rumors that LQMT might be part of the smart phone’s new case design.  LQMT entered into a license agreement with Apple last year, giving the tech giant “a perpetual, worldwide, fully-paid, exclusive license to commercialize LQMT’s intellectual property in the field of consumer electronic product.” LQMT enjoyed a full-year revenue increase of 97% to $33.3 million, which it attributed to a license fee from Apple.

    While Apple is expected to announce the next-generation iPhone at its annual September event, gadget blog Boy Genius Reports, citing its source, said the Company may hold a special event in the beginning or middle of August to announce the new iPhone, with availability to follow at the end of August.

    LQMT develops bulk alloys and composites, coatings and powders that utilize the performance advantages offered by amorphous alloy technology. Amorphous alloys are unique materials that are distinguished by their ability to retain a random structure when they solidify, in contrast to the crystalline atomic structure that forms in ordinary metals and alloys. LQMT boasts of being the first company to produce amorphous alloys in commercially viable bulk form, enabling significant improvements in products across a wide array of industries.

    LQMT has focused its commercialization efforts for Liquidmetal alloys on four identified product areas: components for electronic products; sporting goods and leisure products, medical devices and industrial coatings and powders.  The Company believes that these areas are consistent with its strategy in terms of market size, building brand recognition, and providing an opportunity to develop and refine its processing capabilities. Although it believes that strategic partnering transactions could create valuable opportunities beyond the parameters of these target markets, LQMT anticipates continuing to pursue these markets both internally and in conjunction with partners.

    LQMT announced last week that president and CEO Tom Steipp would be a key speaker at the ENGEL North America Medical Days symposium in York, Pennsylvania. The two-day affair relating to manufacturing in the medical molding industry covered a wide spectrum of trends and solutions related to medical technology.

    Early this year, LQMT announced an exclusive licensing agreement with The Swatch Group Ltd., allowing the Swiss manufacturer to use the Liquidmetal alloy technology in their entire line of timepieces, which includes the brands Breguet, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Tiffany & Co., Longines, Rado, Union Glashütte, Tissot, cK watch & Jewelry, Balmain, Hamilton, Certina, Mido, Swatch, Flik Flak and Endura.

    Over the past 52-weeks, LQMT traded within the range of $0.11 – $1.56. The stock is currently above its 50-day moving average of $0.49 and below its 200-day moving average of $0.55. Market cap stands at $56.25 million and it has 112.96 million outstanding shares.

    Visit LQMT at www.liquidmetal.com

    Financial Summary

    LQMT reported revenues of $11.1 million and $33.0 million for the fourth quarter and fiscal year ending December 31, 2010, respectively. Operating income was $4.8 million for the quarter and $15.7 million for full year.

    Since its inception, the Company has funded its operations through the sale of equity securities in private placements and its initial public offering, the sale of convertible notes and warrants in private placements, debt financing, and cash generated from operations.

    Cash provided by (used in) operating activities was $10.1 million and ($3.4) million for the years ended December 31, 2010 and 2009, respectively. Its working capital deficit increased from $13.5 million at December 31, 2009 to $14.2 million at December 31, 2010, which the Company attributed to an increase in warrant liabilities of $8.8 million.  This increase was offset by an increase in cash and cash equivalents of $4.9 million, an increase in net account receivables of $0.6 million, an increase in inventories of $0.6 million, an increase in prepaid expenses and other current assets of $0.5 million, a decrease in long-term debt, current portion of $1.4 million and a decrease of other liabilities, current portion of $0.2 million.

    Financial Strength (21-June-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 0.19 0.67 1.18 0.71
    Current Ratio (MRQ) 0.22 0.84 1.59 1.03
    LT Debt to Equity (MRQ) 10.61 18.65 136.13
    Total Debt to Equity (MRQ) 19.41 36.75 181.83
    Interest Coverage (TTM) 0.09 0.21 18.15

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    No consensus recommendations data available.

    Technical Analysis

    Source: http://stockcharts.com

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    June20-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    RTI International Metals Inc. RTI 35.98 1.09B 257.00 30.49 2.15 1.76
    Metalico Inc. MEA 5.74 271.93M 9.73 8.83 0.41 0.39
    Titanium Metals Corp. TIE 17.30 3.12B 27.46 18.40 2.97 2.48
    Industrial Metals & Minerals Median 14.00 n/a 9.93 n/a
    Liquidmetal Technologies Inc. LQMT 0.51 57.05M n/a n/a n/a n/a

    Source: Thomson Financial

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