Amerigon Inc. (
Q3 2010 Earnings Call
October 27, 2010 11:30 am ET
Jill Bertotti - Allen & Caron
Dan Coker - President and CEO
Barry Steele - CFO
Bud Marx - Chairman
Rick Hoss - Roth Capital Partners
Steve Dyer - Craig-Hallum
Tyson Bauer - Wealth Monitors
Matt Mishan - KeyBanc
Walter Ramsley - Walrus Partners
Steve Dyer - Craig-Hallum
Previous Statements by ARGN
» Amerigon Incorporated Q2 2010 Earnings Call Transcript
» Amerigon Inc. Q1 2010 Earnings Call Transcript
» Amerigon Incorporated Q4 2008 Earnings Call Transcript
» Amerigon Incorporated Q3 2008 Earnings Call Transcript.
Welcome to the Amerigon 2010 Third Quarter and Nine Months Results Conference Call. During today’s presentation all parties will be in a listen-only mode. Following the presentation the conference will be opened for questions. (Operator instructions). This conference is being recorded today Wednesday, October 27, 2010.
I would now like to turn the conference over to Jill Bertotti of Allen & Caron. Please go ahead.
Good morning and thank you for joining us today for the Amerigon Incorporated third quarter and nine month results conference call. Before we start today’s call there are a few items I would like to cover with you. First, in addition to disseminating through peer newswire this morning’s news release announcing Amerigon’s results, an email copy of the release was also sent to a number of conference call participants. If any of you need a copy of the news release, you may download a copy from either the Amerigon website at www.amerigon.com, or the Allen & Caron website at www.allencaron.com. Additionally, a replay of this conference call will be available via a link provided on the event page of the Investor Section of Amerigon’s website.
Finally, I have been asked to make the following statements. Certain matters discussed on this conference call are forward-looking statements that involve risks and uncertainties and actual results maybe different. Important factors that could cause the company’s actual results to differ materially from its expectations on this call are risks that sales may not significantly increase; additional financing, if necessary may not be available; new competitors may arise; and adverse conditions in the automotive industry may negatively affect its results. The liquidity and trading price of its common stock maybe negatively affected by these and other factors. Please also refer to Amerigon’s Securities and Exchange Commission filings and reports, including but not limited to Form 10-Q for the period ending September 30, 2010 and its Form 10-K for the year ended December 31, 2009.
On the call today from Amerigon we have Dan Coker, President and CEO; Barry Steele, Chief Financial Officer and Bud Marx Chairman. Management will provide a review of the results, after which there will be a question-and-answer period.
I would now like to turn the call over to you, Dan.
Thank you for joining us again for our third quarter earning results for 2010. We had a pretty eventful quarter for us. We broke a pretty big revenue record for us. For the first time we have achieved $30 million of revenue in a single quarter and we are all very pleased with that. That shows a lot of hard work and a lot of people’s part to get us to that scale and also clearly put us in a position to be better than $100 million in revenue for the full year 2010. We are quite excited about that breaking a $100 million in revenue is a goal that we have had for while and we look like we are in a position to achieve that for 2010, we are pretty pleased.
We had a pretty exciting period in the third quarter. The market continues to show slow signs of growth worldwide. The US market is beginning to come back probably a little lower than all of us. We prefer, but the number for this year look like the North American side will be somewhere in the 11.5% range and next year it looks like it’s going to be a little bit stronger than that. All functions are based upon economic activity stabilizing, which right now it’s not a pretty good bet.
We are going to follow the same pattern we have had in the past. We are going to speak to Barry, he is going to give us a few of the details, we’ll speak to Bud who will talk to us little bit about the advanced development team’s activity and then we’ll open the floor for questions.
With that comment, I would like to introduce Barry Steele, our CFO. Barry?
The 2010 third quarter for Amerigon saw a $30.5 million in product revenue. That’s about $12 million or 65% increase from the prior year’s $18.4 million and sequentially it’s about $1.7 million increase or about 6%. This is primarily driven by new product program launches. We have launched a number of new programs since last year. We also see better production levels in the industry, in the automotive industry, in North America for example our growth; the production growth was about 26% since third quarter last year. We also saw our first quarter with about 250,000 in revenue on our new heat and cool mattress.
Our gross margin for the third quarter was 29%. That compares to 25% for the prior year and 30% for the prior quarter, the second quarter of this year. The increase over the prior years primarily driven by product mix, better improved products mix and lower material costs primarily thermometric (inaudible) as well as it increased slightly from the prior quarter is represented by product mix. We also have a little bit slighter increased costs due to some exposure to the Japanese yen and some of the purchase of components and certain programs. So given the strength in the yen over the quarter that we did not have had, there were some decrease in our margin from that.