CUI Global, Inc. (CUI) Announces FY 2012 Financial Results

TUALATIN, Ore., Feb. 19, 2013 /PRNewswire/ — 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, 2012.  The Company’s revenues for the year ended December 31, 2012 of $41,084,589 represent a 5.5% increase from the 2011 year ended revenues of $38,938,326. More significantly, the company reported year-end back orders of $14.15 million (unaudited) for FY 2012, up over 50% from FY 2011 back orders of $9.24 million (unaudited).

(Logo:  http://photos.prnewswire.com/prnh/20120320/FL72629LOGO)

In addition, the company reported a year-over-year quarter-to-quarter revenue increase of better than 35%; $11.9 million in fourth quarter 2012, compared to $8.8 million in fourth quarter FY 2011.  The company reported increased revenue on a quarter-to-quarter basis as well, up from $10.7 million in third quarter FY 2012.

For the third quarter in a row, the company decreased its quarterly Earnings Per Share (EPS) loss attributable to the year-to-date period from $0.04 per share in third quarter to a net loss of $0.02 per share in fourth quarter and a year-end loss of $0.25 per share.

Along with the above financial accomplishments, the company reached several other significant milestones in FY 2012, including, but not limited to the following:

• Completion of $13.5 million (net to the company) equity raise;
• Successful up-listing to the Nasdaq Capital Market;
• Retirement/termination of $8.1 million in short and long-term debt;
• Listing on the Wilshire 5000 Total Market Index;
• Listing on the Russell® Microcap Index;
• Inclusion in the MSCI Global Microcap Indices;
• Negotiation and signing of additional distribution relationship with Future Electronics;
• Industry recognition of its Novum® Technologies, including:
  • Winner Electronics Product Magazine Product of the Year Award;
  • Named one of EDN Top 100 Products of 2012;
  • Finalist Design News Golden Mousetrap Award;
  • Appearance at electronica 2012 trade show;
• Certification of the Vergence® GasPT2 Metering Device by Italian, Polish, UK, and Canadian authorities, along with the first substantial purchase order from its North American Distributor, EMC; and more.

William Clough, president & chief executive officer, stated, “These financial results and the other accomplishments we achieved in 2012 continue to demonstrate the effectiveness of our initiatives, including an enhanced sales channel, the elimination of significant debt, and the continued introduction and commercialization of our new products, including products based upon CUI Global’s proprietary technologies.”

“As our Vergence® Technology; our Novum® Digital Point-of-Load Technology; and our Solus® Technology come to market this year, coupled with the significant reduction in debt we accomplished in 2012, should both combine to put us in a position to see significant growth in revenue.  Our up-listing to the Nasdaq Capital Market in 2012, which has significantly broadened our shareholder base, should also enhance our ability to increase shareholder value in 2013,” 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 and distribution of electro-mechanical products. Their broad power and component product portfolios allow customers to address design challenges across a range of industries and applications. Built on a solid foundation of core operating principals, CUI seeks to maximize value for customers through their engineering, manufacturing, and supply chain capabilities. As an industry leader, CUI continues to invest in the future through new technologies, talented employees, expanded manufacturing capabilities, and a growing global reach.

For more information, please visit www.cuiglobal.com and www.cui.com.

Important Cautions Regarding Forward Looking Statements

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.

CUI Global, Inc. Consolidated Statements of Cash Flows For the Years Ended December 31, 2012 and 2011
				2012		2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) – attributable to common stockholders				$ (2,526,321)		$      (48,763)
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:
	Stock based compensation			1,190,081		227,867
	Non-cash interest expense, including amortization of beneficial conversion value, warrant related debt discounts and intrinsic value of convertible debt and amortization of debt discount and amortization of debt offering costs			73,333		334,747
	Earnings in equity investment			(59,623)		(41,472)
	Bad debt expense			65,763		82,192
	Amortization of technology rights			26,510		245,144
	Amortization of patent costs			664		333
	Amortization of website development			13,718		4,328
	Amortization of intangible, trademark and trade name V-Infinity			109,540		–
	Impairment of intangible, trademark and trade name V-Infinity			278,428		–
	Inventory reserve			10,000		75,995
	Gain on sale of technology rights			–		(143,636)
	Loss on disposal of assets			–		1,563
	Net income – noncontrolling interest in discontinued operations			–		67,872
	Depreciation			579,861		520,959
(Increase) decrease in assets:
	Trade accounts receivable			(1,337,048)		107,902
	Inventory			(1,290,794)		96,535
	Prepaid expenses and other current assets			285,690		(335,302)
	Deposits and other assets			80,856		(29,001)
Increase (decrease) in liabilities:
	Accounts payable			382,852		356,347
	Accrued expenses			(47,919)		(391,289)
	Accrued compensation			59,964		(272,341)
	Unearned revenue			300,786		725
	NET CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES			(1,803,659)		860,705
	NET CASH PROVIDED BY DISCONTINUED OPERATING ACTIVITIES			–		22,141
CASH FLOWS FROM INVESTING ACTIVITIES:
	Investment in patents			–		(6,646)
	Investment in other intangible assets, net			(80,343)		(37,418)
	Proceeds from Notes receivable			46,808		63,506
	Proceeds from sales of technology rights			–		425,000
	Purchase of property and equipment			(685,269)		(422,970)
	NET CASH PROVIDED BY (USED IN) CONTINUING INVESTING ACTIVITIES			(718,804)		21,472
	NET CASH PROVIDED BY DISCONTINUED INVESTING ACTIVITIES			–		195,278
CASH FLOWS FROM FINANCING ACTIVITIES:
	Payments to demand notes payable, net of proceeds			(1,069,452)		(20,879)
	Payments to notes and loans payable, net of proceeds			(4,000,000)		(481,326)
	Proceeds from (payments to) convertible notes payable, related party			(35,000)		35,000
	Payments on notes and loans payable, related party			(3,000,000)		(300,000)
	Proceeds from sales of common stock, and exercise of warrants and options, net of offering costs			13,532,285		50,000
	NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES			5,427,833		(717,205)
	NET CASH (USED IN) DISCONTINUED FINANCING ACTIVITIES			–		(648,218)
EFFECT OF EXCHANGE RATE CHANGES ON CASH				(42,305)		68,779
Cash and cash equivalents at beginning of year				176,775		373,823
Cash and cash equivalents at end of period				3,039,840		176,775
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				$   2,863,065		$    (197,048)