Liquidmetal (LQMT) Shareholders Hit Exits on 95% Drop in Revs for FY11 (AAPL)
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Here's one for the books.
Following a blockbuster year in 2010, Liquidmetal Technologies (OTCBB: LQMT) saw its revenue drop 95 percent from $20.6 million in 2010 to just $972 thousand in 2011. The initial pop in revs came from a licensing deal with Apple (Nasdaq: AAPL) for certain intellectual property.
According to Liquid Metal's 10-K filing: "On August 5, 2010, we entered into a license transaction with Apple Inc. pursuant to which, for a one time license fee, we granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize our intellectual property in the field of "consumer electronic" products, as defined in the license agreement. As a result, we will not pursue application of our bulk Liquidmetal alloys in the consumer electronics field." Specific points under the agreement, according to Liquid Metal, are: "(i) we contributed substantially all of our 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 us 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 us to complete a statement of work related to the exchange of Liquidmetal intellectual property information."
After Liquidmetal shares popped above $1.80 in 2010, the stock is currently trading just a few pennies above where it was in the earlier part of 2010. Today, shares are down 23 percent following the report.
In other news, Apple appears to have made out like a bandit on this deal, paying Liquidmetal well under $1.00 per "consumer electronics" device for the rights. The developed metal is said to be stronger than titanium or aluminum alloys.
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Following a blockbuster year in 2010, Liquidmetal Technologies (OTCBB: LQMT) saw its revenue drop 95 percent from $20.6 million in 2010 to just $972 thousand in 2011. The initial pop in revs came from a licensing deal with Apple (Nasdaq: AAPL) for certain intellectual property.
According to Liquid Metal's 10-K filing: "On August 5, 2010, we entered into a license transaction with Apple Inc. pursuant to which, for a one time license fee, we granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize our intellectual property in the field of "consumer electronic" products, as defined in the license agreement. As a result, we will not pursue application of our bulk Liquidmetal alloys in the consumer electronics field." Specific points under the agreement, according to Liquid Metal, are: "(i) we contributed substantially all of our 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 us 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 us to complete a statement of work related to the exchange of Liquidmetal intellectual property information."
After Liquidmetal shares popped above $1.80 in 2010, the stock is currently trading just a few pennies above where it was in the earlier part of 2010. Today, shares are down 23 percent following the report.
In other news, Apple appears to have made out like a bandit on this deal, paying Liquidmetal well under $1.00 per "consumer electronics" device for the rights. The developed metal is said to be stronger than titanium or aluminum alloys.
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