Liquidmetal Technologies Inc (OTCQB: LQMT), is a leading developer of bulk amorphous alloys. Amorphous alloys are unique materials that are distinguished by their ability to be injection molded and die cast into high performance applications for a broad range of markets.
The company recently announced that it has received two hot crucible amorphous metal molding machines from the Company’s licensing partner Eontec Ltd. LQMT’s hot-crucible machines provide the benefits of amorphous alloy technology to price-sensitive applications that were previously beyond its reach. Management is bullish about the synergistic benefits accruing due to merger of Eontec’s technology and expertise within Liquidmetal.
As per management, the company’s business risk profile is on a rapid growth trajectory and it’s making excellent progress on its plans to significantly expand market reach and the scale of operations.
Previously, the company announced that it has passed additional pre-screening biocompatibility tests for use in medical implants and is now pursuing collaborations with medical implant companies.
The results of these tests strategically position the Company to engage medical device customers in a broad range of implantable device applications including, cardiac rhythm, cochlear, spinal, and orthopedic implants among others. Liquidmetal will now focus on collaborating with medical implant manufacturers to identify specific applications to further explore the use of Liquidmetal.
_____________________________________________________________________
***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP – SMS/text alert service for free, simply text the word “Traders” to the phone number “25827” from your cell phone***
_____________________________________________________________________
In 2016, the company generated $480 thousand ($125 thousand in 2015) in revenue as it continued to focus on development and manufacturing of prototype and commercial parts for its customers, and collaborating with licensees on the development of the Company’s technology and production processes. Notwithstanding its revenue growth, Liquidmetal continues to struggle with subdued profitability, and high debt amongst other challenges.
The new addition of these systems along with the above-mentioned strategic developments could potentially benefit the company’s earnings and revenues, and consequently, this could drive LQMT shares. The company’s stock has witnessed significant strength in the recent past. Liquidmetal reported an increase in share price backed by its above-expected performance and robust guidance laying foundation for revenue visibility and business growth.
Description & about the Company: California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys and composites that utilize the performance advantages offered by amorphous alloy technology. Amorphous alloys are unique materials that are distinguished by their ability to retain a random structure when they solidify, in contrast to the crystalline atomic structure that forms in ordinary metals and alloys. Liquidmetal Technologies is the first company to produce amorphous alloys in commercially viable bulk form, enabling significant improvements in products across a wide array of industries.
About Eontec: EONTEC (“EON”) provides one-stop solutions in aluminum & magnesium die-casting. It is also an innovator in amorphous metals with substantive IP in alloys, molds, machines and manufacturing processes.
Commercialization process thus far:
Recent announcement & synergies:
Advanced Amorphous Metal Molding Systems: Liquidmetal received two hot crucible amorphous metal molding machines from the Company’s licensing partner Eontec Ltd.
These Machines allow the production of amorphous alloy parts that are up to three times larger and one-third the cost of established technologies. This technology complements Liquidmetal’s well established cold-crucible systems, which are capable of producing parts that meet requirements for the most demanding medical and automotive applications. The Machines are in the Company’s new 41,000 square-foot manufacturing facility in Lake Forest, CA., where operations are planned to commence in the second half of this year.
Liquidmetal’s hot-crucible machines provide the benefits of amorphous alloy technology to price-sensitive applications that were previously beyond company’s reach.
Implant Study: Liquidmetal has passed additional pre-screening biocompatibility tests for use in medical implants and is now pursuing collaborations with medical implant companies.
In February 2017, LQMT received long-term implantation results from parts 3, 10, 6 and 11 of the ISO 10993 (Biological Evaluation of Medical Devices) suite of tests, which include evaluation of genotoxicity, sub-chronic systemic toxicity, and pyrogenicity. LQMT alloy LM105 passed all of these tests well within the allowable limits. These results, combined with previously completed tests from ISO 10993 parts 10, 11, 4, and 5 which cover sensitization, irritation, acute systemic toxicity, hemocompatibility and cytotoxicity, indicate that the Liquidmetal process is compatible with a wide range of medical device requirements including long term implants.
The results of these tests are very exciting and it positions LQMT well to engage medical device customers in a broad range of implantable device applications including, cardiac rhythm, cochlear, spinal, and orthopedic implants among others.
Business outlook over the near to medium term:
With the above-mentioned developments, along with purchase of a new, larger manufacturing facility, as well as sourcing alternatives, manufacturing platforms and materials from China-based Eontec, Liquidmetal is actively moving towards increasing manufacturing capabilities, expanding the range of products it will be able to manufacture, and providing lower cost solutions to customers. Management believes that these investments, when combined with an improved capital structure and future strategies, will allow LQMT to accomplish goal of expanding the Liquidmetal brand and future profitability.
Key Stock Influences & Risk Factors:
Limited Track record & Competitive landscape: Liquidmetal competes against companies that have relatively more established products, longer operating histories and greater resources, which may prevent it from achieving rapid market penetration or increased operating results. Also, LQMT has a limited history of developing and selling products. Therefore, if the company cannot ramp up its business, as envisioned, it may not achieve the anticipated market penetration, revenue targets or profitability.
Liquidity & Financial Flexibility: Liquidmetal’s business is not currently profitable, and it may not be able to achieve profitability even if it continues to record significant growth in revenue. The operating loss for the fiscal years ended December 31, 2016, 2015, and 2014 were $9.9 million, $9.3 million, and $8.9 million, respectively. It had an accumulated deficit of approximately $236.7 million at December 31, 2016.
Therefore, its ability to maintain liquidity and financial flexibility to fund its incremental capital requirements will remain key financial sensitivity factor for the company.
Earnings Review: Total revenue increased by $355 thousand to $480 thousand for the year ended December 31, 2016 from $125 thousand for the year ended December 31, 2015. The increase for the period was attributable to a higher mix of small-scale pre-production orders during 2016 as a result of continued growth of on-site manufacturing capabilities.
Profitability: Gross profit (loss) increased by $151 thousand from $(224) thousand as of December 31, 2015 to $(73) thousand as of December 31, 2016.
Operating loss increased by $606 thousand from $9.3 million for the year ended December 31, 2015 to $9.9 million for the year ended December 31, 2016. Fluctuations in operating loss are primarily attributable to variations in operating expenses.
Also, annual net losses of $18.8 million as of December 31, 2016 and $7.3 million as of December 31, 2015 are reflective of operating expenses associated with on-going business as well as non-operational expenses.
Cash Flow & Balance Sheet: Cash and restricted cash totaled $58.9 million at December 31, 2016, as compared to $4.8 million at December 31, 2015.
The company anticipates that its current capital resources, when considering expected losses from operations, will be sufficient to fund the Company’s operations for the foreseeable future.
Stock Performance
On Wednesday, April 19th, 2017, LQMT shares surged by 3.36% to $0.268 on an average volume of 1.65 million shares exchanging hands. Market capitalization is $237.03M. The current 14 days RSI is 68.54
In the past 52 weeks, shares of LQMT have traded as low as $0.12 and as high as $0.29
At $0.268, shares of LQMT are trading above their 50-day moving average (MA) at $0.216 and above their 200-day MA at $0.187
The present support and resistance levels for the stock are at $0.2539 & $0.2669 respectively.
About Traders News Source:
Traders News Source recent profiles and track record, 534% in verifiable potential gains for our members on 3 small cap alerts alone!
January 31st, 2017 (NASDAQ: HIMX) opened at $5.10/share and hit a high of $9.68/share March 24th, 2017 for gains of 89% within 60 days- http://finance.yahoo.com/news/himax-technologies-review-4q-2016-130000319.html
February 6th, 2017- (NASDAQ: SCON) opened at $1.12/share hit a high of $1.80/share within 10 days our member potential gains- 60% – http://finance.yahoo.com/news/superconductor-technologies-potential-revolutionize-smart-130000844.html
March 6th, 2017 (OTC: USRM) opened at .035/share and hit over .17/share within 25 days for gains of 385% for our members- http://finance.yahoo.com/news/traders-news-issues-comprehensive-report-130000743.html
These are numbers that make traders drool. Any trader in any market would fall all over themselves to see numbers like this. So, if you’ve been on the fence, perhaps it’s time to start doing some research and verify our numbers for yourself. We are constantly raising the bar and separate ourselves from the rest of the small-cap newsletters as the best in business.
We know with a large following comes a large responsibility as we have everyone from institutional investors to the beginner following our profiled securities in our newsletters. This is something we take very seriously always seeking small cap growth companies that have both near and long-term potential for our members.
Disclaimer
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
17B Disclosure
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
