03302009

Waytronx Announces 2008 Financial Results

First year of combined operations between Waytronx and its wholly owned subsidiary, CUI, produce better than expected EBITDA.

TUALATIN, Ore. – March 30, 2009 – Waytronx, Inc. (OTCBB: WYNX), a leading provider of openly licensable advanced systems cooling solutions and its wholly owned subsidiary, CUI, INC., a provider of electromechanical components, today announced year-end financial results for Calendar Year 2008.

The Company’s revenues for the year ended December 31, 2008 were $19.5 million with an EBITDA of nearly $2.4 million. These results represent the first calendar year of operations for the combined companies and reflect CUI results from the date of acquisition in May 2008. Combined non-GAAP supplemental disclosure follows this release.

William Clough, chief executive officer, stated, "These results clearly demonstrate the continuing value of the CUI acquisition to Waytronx and its shareholders. Such results, when taken in context with these troubling financial times, demonstrate the operational efficiencies between the two companies."

Clough concluded, "Based on our synergies and in spite of the downturn in the economy generally, we continue to seek out and acquire new product lines; identify strategic partnerships; develop new technologies; and institute other initiatives to streamline our company and enhance profitability."

 

About Waytronx, Inc.

Waytronx, Inc. has pioneered and is commercializing innovative thermal management solutions capable of revolutionizing the semiconductor, solar and electronic packaging industries, among others. Utilizing its patented WayCool™ hybrid mesh architecture, Waytronx can enhance system performance and remove thermal barriers caused by "microwarming" in today’s advanced computing devices. The Company’s proprietary central and graphics processor solutions, solar energy cooling solutions and power supply cooling solutions deliver more cost effective and efficient thermal management to the industry. Waytronx changed its name from OnScreen Technologies in December 2007. Waytronx acquired CUI, Inc. in May 2008. For more information, please visit www.waytronx.com.

 

About CUI, Inc.

CUI, Inc. is a solutions provider of electromechanical components and industrial controls for OEM manufacturing. Since its inception in 1989, CUI has been delivering quality products, extensive application solutions, and superior personal service. CUI’s solid customer commitment and honest corporate message are a hallmark in the industry. CUI is a wholly-owned subsidiary of Waytronx, Inc. For more information, please visit www.cui.com.

 

EBITDA is a non-GAP financial measure and is reconciled to our GAAP net loss as follows:

  For the year ended
December 31
  2008
 Net loss $              (1,830,367)
   Plus: Interest expense - including amortization of
beneficial conversion value, warrant related debt
discounts and intrinsic value of convertible debt and
amortization of debt discount 		                2,342,374
 Plus: Interest expense                1,362,416
 Plus: Depreciation and amortization                   523,706
 EBITDA $             2,398,129

 

EBTIDA does not represent funds available for management’s discretionary use and is not intended to represent cash flow from operations. EBITDA should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP").

 

EBITDA excludes components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies.

 

However, EBITDA is used by management to evaluate, assess and benchmark the Company’s operational results and the Company believes that EBITDA is relevant and useful information, which is often reported and widely used by analysts, investors and other interested parties in our industry. Accordingly, the Company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the Company’s ability to meet future debt service, capital expenditure and working capital requirements.

 

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.

 

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Media Contact:

 

Maggie Lefor

CUI

503-612-2300

info@waytronx.com

 

WayCool, WayFast, Waytronx and OnScreen are trademarks of Waytronx, Inc. Other names and brands are the property of their respective owners.