Southwall announces third-quarter 2009 results

Southwall Technologies Inc. has announced third-quarter 2009 revenue of USD 8.6 million, an increase of 3% compared to second-quarter 2009 revenues of USD 8.3 million and a decrease of 19% from third-…

Southwall Technologies Inc. has announced third-quarter 2009 revenue of USD 8.6 million, an increase of 3% compared to second-quarter 2009 revenues of USD 8.3 million and a decrease of 19% from third-quarter 2008 revenues of USD10.6 million. The year-over-year decrease was mainly caused by a drop in sales of automotive and window film products, in turn due to lower market demand caused by the global economic crisis. Net income for the third quarter of 2009 was USD 0.7 million, or USD 0.02 per diluted share, compared to net income of USD 1.5 million, or USD 0.04 per diluted share in the second quarter of 2009, and USD 1.0 million, or USD 0.03 per diluted share in the third quarter of 2008. Second-quarter 2009 net income included USD 0.5 million of other income relating to the receipt of the final milestone payment under the Technology Transfer and Services agreement with Sunfilm. Gross profit in the third quarter of 2009 was USD 3.7 million, or 43% of net revenues, compared to USD 3.7 million, or 44% of net revenues, in the second quarter of 2009 and USD 4.2 million, or 40% of net revenues, in the third quarter of 2008. Southwall posted income from operations of USD 1.0 million in the third quarter of 2009, compared to USD 0.9 million in the second quarter of 2009 and USD 1.4 million in the third quarter of 2008. The company also reached an amicable settlement with Pilkington Automotive GmbH on a patent allowed by the European Patent Office, which involves an up-front license payment with no future royalties or other licensing restrictions for Southwall or its customers.