Liquidmetal Technologies reports Q112 revenue of $0.2 million

Liquidmetal Technologies Inc. (LQMT) today announced its financial results for the three months ended March 31, 2012.

The Company reported revenues of $0.2 million and closed out the first quarter with an operating loss of $1.0 million.

Tom Steipp, President and CEO, said in the press release, “We are excited about the progress of the program as customers test and evaluate the commercial parts that we shipped to them last quarter. We understand that this is a detailed process as they look to replace complex machined parts. We look forward to having them move into full production in the coming months.”

Source: Liquidmetal Technologies Inc.

MacDailyNews Note: From Liquidmetal’s Form 10-Q posted today, May 15, 2012:

On August 5, 2010, the Company entered into a license transaction with Apple Inc. (“Apple”) pursuant to which (i) the Company contributed substantially all of its intellectual property assets to a newly organized special-purpose, wholly-owned subsidiary, called Crucible Intellectual Property, LLC (“CIP”), (ii) CIP granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize such intellectual property in the field of consumer electronic products, as defined in the license agreement, in exchange for a license fee, and (iii) CIP granted back to the Company a perpetual, worldwide, fully-paid, exclusive license to commercialize such intellectual property in all other fields of use. Additionally, in connection with the license transaction, Apple required the Company to complete a statement of work related to the exchange of Liquidmetal intellectual property information. The Company recognized a portion of the one-time license fee upon receipt of the initial payment and completion of the foregoing requirements under the license transaction. The remaining portion of the one-time license fee was recognized at the completion of the required statement of work.

Under the agreements relating to the license transaction with Apple, the Company was obligated to contribute all intellectual property that it developed through February 2012 to CIP. In addition, the Company is obligated to refrain from encumbering any assets subject to the Apple security interest through August 2012 and is obligated to refrain from granting any security in its interest in CIP at any time. The Company is also obligated to maintain certain limited liability company formalities with respect to CIP at all times after the closing of the license transaction. If the Company is unable to comply with these obligations, Apple may be entitled to foreclose on such assets. The Company is in compliance with these obligations as of March 31, 2012.

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23 Comments

    1. If you don’t understand the company and what’s going on, why comment?

      Better to remain silent and be thought a fool than to speak out and remove all doubt. – Proverbs 17:28

  1. Perhaps… Revenues (royalties) don’t kick in until Apple starts selling the new products for which they bought a perpetual license.

    Just sayin.

  2. …granted to Apple a FULLY-PAID license… Company recognized (past-tense) a PORTION of the one-time license fee with Apple’s initial payment… and the REMAINING PORTION of the one-time license fee was recognized (past-tense) at completion of the SOW. LiquidMetal has booked all of the license fee income it is going to book from Apple, and the perpetual IP license to Apple is tucked away where a bankruptcy or restructure cannot touch it

  3. If LQMT is getting any additional money from Apple it is not going to show up until the last quarter this year, first quarter next year. if Apple is using Liquid Metal you hear about from until Tim Cook says so on stage.

  4. If LQMT is getting any additional money from Apple it is not going to show up until the last quarter this year, first quarter next year. if Apple is using Liquid Metal you won’t hear about it until Tim Cook says so on stage.

  5. Wow that’s a powerful piece I love the part where both company’s set up a separate entity probably at Apples request to put ALL the patents in and then the ones either company uses the other will not know about. In other words it looks like Apple set this up as a true barrier for anybody even liquid metal to know what they are going to do. Fascinating really to finally get a look in to see how the hide their secrets , they minimize outside eyes ability to pry. If I’m reading this right and I’m not an expert. Notice how all ideas etc are put into that entity and then liquid metal can use other ideas in the entity that apple says liquid metal can use after they approve it. Very interesting price because it looks to give Apple all the control it needs of the products meanwhile covering up anybody knowing outside of apple how they are going to use it. It’s like apple paid 10 million or whatever to have right at all future creations within the alloted timeframe. Thank you MDN for showing this

  6. And after reading the poster before me who I agree with completely –may just maybe this is a great way for Apple to get use of the company before they buy it and if it’s in bankruptcy they will be really cheap or better yet set up the entity before the company goes under that way being all to have all the best pieces already locked away when they do. I worked for Novell right until the end and I say if LQMT is going under this is a way protect themselves greatly if they do. We all know that they didn’t pay that money for only a sim ejector chip. Now if they POSSIBLY have a way to blend lqmt into their existing material like into the unibody construction they use it can strengthen the whole product line. We may have answers in a few weeks but this is very cool.

  7. As i read this “If the Company is unable to comply with these obligations, Apple may be entitled to foreclose on such assets. The Company is in compliance with these obligations as of March 31, 2012.” Apple basically had their smarter finance people look at the viability of this company as a going concern and decided they could simply use the tech enology all they want through August for a small upfront fee, and if this company runs out of money before then, just foreclose on the assets (patents) and just take them for future use. No need to buy them. It is up to Liquidmetal to develop other sources of revenue to maintain its existence and the cost of said existence. Apple is simply waiting on their option to play out.

  8. I see this notice as a more credible sign that upcoming devices will be using LM tech.

    What I read here is that Apple is sure enough about LM that they created a new company (CIP) to hold, own, manage and protect the assets.

    If their gamble/foresight pans out, and LM turns out to be a true technological breakthrough, this could be huge, and similar to owning broad legal patent rights over the use of plastic or aluminum.

    They have also ensured that anyone wanting to use this technology in the future would have to pay Apple. (Somehow I doubt we’ll see Droid phones using this.)

    As for the posted losses, it’s normal for any company to lose money at first while tooling up for delivery of a product. IE: first you pay for the R&D, then pay to build an assembly plant, then pay to fabricate the parts, then you pay to assemble the devices (iPhone5 maybe?) … then, much later, the profit rolls in as those devices are sold in stores.

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