Liquidmetal ® Technologies Inc. (OTCBB: LQMT ) today reported its financial results for the three months ended September 30, 2010. For the Third Quarter, the Company reported revenue of $17.3 million achieving a 686% increase over the prior quarter. The increase in revenue was primarily attributable to the recognition of a portion of a license fee for its technology. The Company closed out the quarter with $12.9 million of income from operations.

Mr. Tom Steipp, President and C.E.O., commented, “Our Third Quarter results mark a significant change in the competitive posture for Liquidmetal Technologies. The license agreement that was signed is a validation of our technology and has produced an upsurge in both partnership and prototyping opportunities. We believe that this opens the door for a new phase in our evolution and technological maturity. We have seen partnership interest from alloy suppliers, injection molding machine makers, and contract manufacturers. In addition, we have had renewed interest from customers in the Medical, Aerospace, and Sporting Goods markets. We hope to capitalize on this renewed interest in our solutions and look forward to further advancing our technology, business model, and profits in the years to come.”

This press release may contain “forward-looking statements” that involve risks and uncertainties, including statements regarding our plans, future events, objectives, expectations, forecasts, or assumptions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and in some cases, words such as "believe," "estimate," "project," "expect," “intend,” “may," "anticipate," "plans," "seeks," and similar expressions identify forward-looking statements. These statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the anticipated outcomes or result, and undue reliance should not be placed on these statements. These risks and uncertainties may include: our limited operating history in developing and manufacturing products from bulk amorphous alloys; the adoption of our alloys by customers; the commercial success of our customer’s products; our ability to identify, develop, and commercialize new applications for our alloys; competition with suppliers of incumbent materials; the development of new materials that render our alloys obsolete; the ability to manage our anticipated growth; our limited direct experience in manufacturing bulk alloy products; scaling-up our manufacturing facilities; protecting our intellectual property; problems associated with manufacturing and selling our alloys outside of the United States; and other risks and uncertainties discussed in filings made with the Securities and Exchange Commission (including risks described in subsequent reports on Form 10-Q, Form 10-K, Form 8-K, and other filings). Liquidmetal Technologies disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Liquidmetal Technologies, Inc.
Consolidated Statements of Operations Data
(In thousands, except per share data)
  For the three months ended   For the nine months ended
  9/30/2010       9/30/2009     9/30/2010       9/30/2009  
(Unaudited) (Unaudited)
Revenue $ 17,309 $ 4,209 $ 22,213 $ 11,320
Cost of sales   1,604     2,909     5,376     6,945  
Gross profit 15,705 1,300 16,837 4,375
Operating expenses
Selling, general and administrative expenses 2,444 1,341 5,088 4,286
Research and development expenses   331     349     804     897  
Total operating expenses   2,775     1,690     5,892     5,183  
Income (loss) from operations 12,930 (390 ) 10,945 (808 )
Loss from extinguishment of debt - - - (1,471 )
Change in value of warrants, (loss) gain (27,199 ) 2,015 (24,361 ) 8,138
Change in value of conversion feature, gain 15 474 444 1,434
Other income 18 - 81 -
Interest expense   (2,504 )   (1,055 )   (5,053 )   (4,760 )
Net (loss) income before income taxes (16,740 ) 1,044 (17,944 ) 2,533
Income taxes - (75 ) - (120 )
Net (loss) income (16,740 ) 969 (17,944 ) 2,413
Net loss attributable to noncontrolling interest   114     39     250     59  
Net (loss) income attributable to Liquidmetal Technologies, Inc. $ (16,626 ) $ 1,008   $ (17,694 ) $ 2,472  
Net (loss) income per share - basic and diluted:
Net (loss) income attributable to Liquidmetal Technologies, Inc. - basic $ (0.23 ) $ 0.02   $ (0.31 ) $ 0.05  
Net (loss) income attributable to Liquidmetal Technologies, Inc. - diluted $ (0.23 ) $ 0.01   $ (0.31 ) $ 0.01  
Weighted average common shares - basic   72,928     46,595     56,329     45,610  
Weighted average common shares - diluted   72,928     192,404     56,329     191,418  

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