Liquidmetal Technologies Inc (OTCMKTS:LQMT) 4Q2014 revenue came at $193,000 compared to $298,000 in 4Q2013. For FY2014, the revenue was $603,000 compared to $1 million in FY2013. Tony Chung, the CFO said that the financial performance in the 4Q and FY2014 reflects continued investments of the company in the infrastructure. It is essential to support the part and licensing business along with continued focus on technology and production processes.
Liquidmetal Technologies posted gross margin of $120,000 in FY2014 compared to $252,000 in FY2013. A large part of current product mix comprises prototype components and other revenue that have higher internal variable cost relative to revenue. The gross margin may keep on fluctuating as per quoted production cost per unit and volume. Liquidmetal expects gross margins to stabilize in coming quarters.
The financial performance
Liquidmetal Technologies Inc (OTCMKTS:LQMT) reported total expenses in 4Q at $1.7million compared to $1.4 million in 4Q2013. The increase in expenses was primarily due to higher legal costs incurred during the arbitration process with Visser and higher headcount for company’s business development measures and sales. The focus is on the expansion of marketing and sales expense within current account base. The R&D expense came at $372,000 versus $141,000 in 4Q2013. The increase in R7D expenses was due to higher headcount in FY2014 to support the development work of Manufacturing Center of Excellence.
The management view
Tom Steipp, the President and CEO of Liquidmetal said that the company secured its first production order from Miltner Adams in December 2014. The company closed the formal certification process for its core set of partners. Also, it appointed Paul Hauck, an experienced worldwide VP of support and sales who has thirty years of extensive experience in the metal injection industry. The company also closed the contract dispute with its exclusive contract manufacturing associated tat allowed it to consolidate engineering, manufacturing and sales in one entity.