Monday, March 26, 2012 –
TUALATIN, OR – CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, today announced year-end financial results for the year ended December 31, 2011.
The Company’s revenues for the year ended December 31, 2011 were $38,938,326, up from $37,575,157 in FY 2010. More significantly, the company reported EBITDA of $2,004,747 for FY 2011 as compared to EBITDA of ($1,169,120) for FY 2010. Combined non-GAAP supplemental disclosure follows this release.
In addition, the company’s cash flow from continuing operating activities increased 107% to $860,705, while its income from operations for FY 2011 was $658,887 compared to a loss for FY 2010 of ($1,473,250). The company has reduced its net loss per share from ($1.12) per share in FY 2010 to ($0.01) in FY 2011. This reduction in net loss is a result of the company’s improved cash flow, strategic debt reduction, and introduction of other initiatives to reduce costs, increase revenues, and enhance profitability.
William Clough, chief executive officer, stated, “These results continue to demonstrate the effectiveness of our initiatives, including an enhanced sales channel, the retirement and/or re-structure of significant debt, and the continued introduction and commercialization of our new products, including product based upon CUI Global’s proprietary technologies.”
“Moreover, these results include no significant income from either our Vergence™ Technology or Novum™ Digital Point-of-Load Technology; and no income from our Solus™ Technology,” explained Clough. “As these exciting new technologies come to market this year and into FY 2013, coupled with the significant reduction in debt we recently accomplished, along with our recent up-listing to the Nasdaq Capital Market, should all combine to put us in a position to see significant growth in both revenue and shareholder value in FY 2012,” Clough concluded.
About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected World . . . . .
CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies and technologies. From its Vergence GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.’s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.
About CUI Inc.
CUI Inc. is a technology company dedicated to the development, commercialization, and distribution of new, innovative electro-mechanical products. Over the past 20 years, CUI has become a recognized name in electronic components worldwide in the areas of power, interconnect, motion control, and sound. CUI’s solid customer commitment and honest corporate message are a hallmark in the industry. CUI is a wholly owned subsidiary of CUI Global, Inc. For more information, please visit www.cui.com
For more information, please visit www.cuiglobal.com
EBITDA is a non-GAAP financial measure and is reconciled as follows:
||For the years ended December 31,|
|Net (loss) attributable to CUI Global, Inc.
| Plus: Interest expense- intrinsic value of convertible debt and amortization of debt offering costs and
amortization of debt discount
| Plus: Interest expense
| Plus: Depreciation and amortization
| Plus: Taxes
| EBITDA before impairment expenses
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.
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