The first six months of 2018 saw revenues of $57.8m, down from $63.7m in the first half of 2017 as the mix of product shifted from high voltage to supercapacitors. Losses grew from $17m to $19m.
"The recent US tariffs on China imports, as well as unclear US tax incentive policy, continue to cause uncertainty for some of our customers and, therefore, affect our high voltage capacitor revenue," said Dr. Franz Fink, Maxwell's President and Chief Executive Officer. "We now believe that the tariffs implemented on July 6 will slightly affect our energy storage revenue in Q3. Despite this, we believe that the long-term fundamentals of our business have not changed. End demand in the markets we serve is growing, we continue to make excellent progress with our dry battery electrode technology development and strategic partnership discussions, and our overall strategy is playing out as intended," he said.
"Although we are facing short-term headwinds, the core energy storage product line is stable and market indicators bode well for mid- to long-term robust demand for our high voltage capacitor products. In Q3, we anticipate 15% sequential top-line revenue growth despite the short-term pressure we are experiencing."
The company is selling 6m shares in a stock market placement worth up to $20m for research and development expenses, capital expenditures, working capital and possible repayment of debt.
"We believe that strengthening our balance sheet is a priority given the current geopolitical uncertainty and its immediate impact on our business," said Fink. "In order to preserve the long-term growth and value of the company for our shareholders, we intend to pursue additional financing, which may include equity financing, debt financing, strategic partnerships or other financing arrangements. We anticipate the need for a minimum of $15 million in incremental capital to bridge the company to a recovery. We are evaluating our financial alternatives, including the amount we may seek to raise, in order to ensure continuity of investment in future growth programs such as dry battery electrode and