08062009
WAYTRONX REPORTS SECOND QUARTER REVENUE OVER $6,000,000
Company maintains 40% Gross Margins and EBIDTA exceeding $1.0 Million
TUALATIN, Ore. – August 6, 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 that it posted second quarter results for the three months ended June 30, 2009.
Waytronx and its wholly owned subsidiary, CUI, produced revenues of $6,035,790 and EBIDTA of $1,033,166 for the three months ended June 30, 2009. The company maintained a 40% gross margin and continues to focus on operational efficiencies.
“These results confirm the effectiveness of our continuing move to the new technology/licensing model,” explained William Clough, CEO of Waytronx. “The acquisition and commercialization of products such as the C14 and AMT Encoders and the $12,600,000 reduction in acquisition debt, have all contributed to our ability to maintain 40% gross margins in this difficult economic environment.”
Recent Waytronx highlights include entry into the Asian marketplace through the CUI Japan acquisition; design wins for the Company’s proprietary AMT encoder products; and the vertical expansion of sales through the signing of six outside sales manufacturer representative organizations, giving Waytronx comprehensive sales coverage of North America including parts of Canada and into Mexico.
“We strongly believe the initiatives we have implemented this year will continue to produce positive results in both revenue growth and increased shareholder value through the end of this year and into 2010,” concluded Clough.
About Waytronx, Inc.
Waytronx, Inc. has pioneered and is developing innovative thermal management solutions capable of revolutionizing the semiconductor, solar and electronic packaging industries, among others, utilizing its patented WayCool™/WayFast™ hybrid mesh architecture. n addition, through its acquisition of CUI in May 2008, Waytronx has developed the infrastructure, expertise, and platform necessary to acquire, develop, and commercialize new technologies. Waytronx changed its name from OnScreen Technologies in December 2007. 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 http://www.cui.com/.
EBITDA is a non-GAAP financial measure and is reconciled as follows:
| | For the three months
ended June 30, 2009 |
| Net Loss | |
| Plus: Interest expense - intrinsic value of convertible debt and amortization of debt discount | |
| Plus: Interest expense | |
| Pluse: Depreciation and amortization | |
| EBITDA | |
EBITDA 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.
Media Contact:
Maggie Lefor
CUI
info@waytronx.com
WayCool, WayFast, Waytronx and OnScreen are trademarks of Waytronx, Inc. Other names and brands are the property of their respective owners.