maxwell technologies' new wings : small firm learns to soar post-cold war - energy storage devices

For many San Diego defense contractors who have long been accustomed to feeding at a government trough, the transformation to free-market fighters has proved to be an illusory goal. But a once-
A sleepy little company called Maxwell technology is showing how to do a "defensive transition ". After a four-
This year's identity crisis, this year Maxwell reduced sales of government contracts to 30% from 100% in 1992, the first reported sales, profits and job opportunities since the end of the Cold War.
Maxwell's stock has also widened.
Maxwell makes super capacitors-
A device that stores and releases large amounts of electricity. During the U. S.
In 1980 of defense construction, scientists used Maxwell's device to simulate a nuclear explosion and proposed a "Star Wars" satellite defense system and simulation.
News reports from the Pentagon
It is called a rail gun or a super cannon.
But the end of the Cold War made the company's technology useless. -
So many people inside and outside the company think.
Maxwell's low was last year, after writing off worthless defense values, it lost $15 million in sales of $80 million --related assets.
Then in April, Maxwell hired Ken potasner as chief executive.
Potashner is an expert in helping to improve turnover in San Jose
Conner peripheral based on disk drive manufacturer.
Upon arrival, Potashner, 39, told Maxwell's staff to be "high-
Energy storage and discharge applications.
Previous Maxwell managers had similar tasks, but Potashner added accountability and incentives by giving stock options to each employee and a performance bonus to the manager.
Cars, utilities and telecoms companies soon discovered the potential super capacitor market, and Maxwell began to sign partnerships with major companies to develop products.
Among them: $4. 5-
Million reached an agreement with an unnamed "international" carmaker to consider using capacitors in electric vehicles.
Potashner said he could not name the company or other clients who asked for secrecy.
The company then signed $1.
Enter into a million deals with Oregon utility pacificmillion to make prototypes of energy storage devices and sign another sales contract.
1 million capacitors for portable telecom equipment manufacturers. (
Potashner will not reveal the identity of the buyer. )
Analysts predict Maxwell's revenue will exceed $100 million this year, the best since 1992. A $3-
Profits are expected to reach millions, with wages rising from 620 to 500 a year ago.
Wall Street attention: Maxwell's stock closed at $19 on Wednesday. 25 on Nasdaq--
Below the recent peak of $25.
But it rose from $3 to $75. 25 last April.
Frederick Lacey, stock analyst at hag, Stewart & Associates, Newport Beach, said the company's market
"In the past, as long as government contracts came in, there was no incentive to go out and go public.
Why dirty your hands if you have juicy costsplus-5% contract?
"* Difficulties in the laying of San Diego County-
Workers outside the Ministry of Defense have found new jobs, which are reflected in the statistics of the average registrant of employment --
According to the San Diego consortium, which manages $7, and the private industry Commission, the training program here takes 14 to 16 months to get a job.
9 million on-the-job-
Training Grant last year
Of the 4,800 idle defense workers who participated in the San Diego County training program last year, 2,107 found new jobs.