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    Stock Report for Liquidmetal Technologies Inc. (LQMT)

    Liquidmetal Technologies Inc. (LQMT) is a materials technology company that develops and commercializes 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. LQMT develops 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. The Company believes its proprietary bulk alloys are the only commercially viable bulk amorphous alloys currently available in the marketplace. In addition to its bulk alloys, the Company markets and sells a line of proprietary amorphous alloy-based industrial coatings under the Liquidmetal Armacor coatings brand.

    Share Statistics (07-Mar-12)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol LQMT Revenue, $Mn 10.77 30.27 181.1% 17.31 2.91 -83.2%
    Current price $0.24 Gross marg. 45.4% 78.5% 72.9% 92.5% 41.6% -55.0%
    52wk Range: $0.12-$0.70 Oper. margin 41.3% -60.0%
    Avg Vol (3m): 918,936 Net margin 2.3% -15.5% -773.9% -96.1% 254.3% -364.6%
    Market Cap. 31.47M              
    Shares Outstanding 133.90M EPS, $ 0.02 0.03 50.0% -0.22 0.05 -122.7%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Liquidmetal Technologies Inc. (LQMT) shares saw an interesting spike on Wednesday just as Apple Inc. (AAPL) was about to unveil its third-generation iPad.  A day earlier, LQMT announced it has commenced shipment of commercial parts to unnamed customers around the world.  The timing of LQMT’s new release made investors speculate that tech giant Apple is using LQMT’s unique metal alloy in its new product.

    LQMT added almost 47% to close at $0.24 as trading volume swelled to nearly 26 million shares, which dwarfed the 10-day average volume of over 540K.

    LQMT holds the exclusive rights to develop, manufacture and sell the only commercially available bulk amorphous alloys. The Company’s amorphous alloys, or Liquidmetal alloys, possess a combination of performance, processing and cost advantages that make them preferable to other materials in a variety of applications. Its alloys are in many cases stronger, harder, more elastic, and more wear and corrosion resistant than commonly used high-performance alloys. In addition, Liquidmetal alloys have the ability to be molded into highly finished products without costly post-finishing processes.

    LQMT inked a license agreement with Apple in 2010, which gave the latter “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.

    Shares of the Rancho Santa Margarita, CA-based company have risen 47.8% in the last five days and 86.1% in the last month.  Year-to-date, the stock is down 64.4%.

    Commenting on the latest announcement, Tom Steipp, president and CEO of LQMT, stated that the Company is very excited about the use of amorphous alloy technology to deliver stronger, lighter, and more corrosion resistant parts to its customers in varying industries globally. He added that these initial shipments represent a significant milestone in LQMT’s efforts to provide a new class of materials for its customers to consider when designing complex parts.

    LQMT noted in the release that parts delivery began this past December with continuing shipments scheduled for the months ahead. Meanwhile, additional customer parts are scheduled to be part of the manufacturing pipeline in the coming months as the Company continues to ramp its production capabilities.

    Source:

    http://phx.corporate-ir.net/phoenix.zhtml?c=130649&p=irol-newsArticle&ID=1669987&highlight=

    Financial Summary

    LQMT reported revenues of $2.9 million for the third quarter ended September 30, 2011, down 83.2% from $17.3 million reported in the comparable quarter of the previous year.  The result in the previous year is attributable to a one-time licensing fee with Apple that occurred during the three months ended September 30, 2010.

    The Company ended the quarter with an operating loss of $0.6 million, excluding a one-time settlement charge of $1.1 million.

    Source:

    http://phx.corporate-ir.net/phoenix.zhtml?c=130649&p=irol-newsArticle&ID=1629224&highlight=

    Financial Strength (07-Mar-12)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.15 0.13 0.73 0.74
    Current Ratio (MRQ) 0.19 0.20 1.11 1.10
    LT Debt to Equity (MRQ) 9.26 14.34 189.87
    Total Debt to Equity (MRQ) 20.24 32.57 247.86
    Interest Coverage (TTM) 0.32 0.02 1.01 30.43

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    LQMT is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for LQMT currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar07-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    RTI International Metals Inc. RTI 22.30 673.48M 39.12 18.74 0.95 0.79
    Titanium Metals Corp. TIE 13.51 2.37B 18.51 13.25 2.01 1.63
    Metalico Inc. MEA 4.38 207.87M 10.19 8.26 0.31 0.30
    Industrial Metals & Minerals Median       12.39 n/a 5.73 n/a
    Liquidmetal Technologies Inc. LQMT 0.24 31.47M n/a n/a n/a n/a

    Source: Thomson Financial

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