Stock Report for Liquidmetal Technologies Inc. (LQMT)
  • Stock Alert for Liquidmetal Technologies Inc. (LQMT)
  • Is Apple leveraging LQMT Technology to Tap into ZAGG Opportunity?
  • " />

    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 












    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:, 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

    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:, SEC Filings.

    Analyst Consensus

    No consensus recommendations data available.

    Technical Analysis


    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

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at

    Leave a Reply

    Your email address will not be published. Required fields are marked *