Southwall Announces 2011 First Quarter Results

Southwall Technologies Inc. (NASDAQ:SWTX) announcedfirst quarter 2011 revenue of $14.5 million, an increase of 39% from first quarter 2010 revenues of $10.5 million. The year over year increase primarily reflects increasing demand for higher energy efficiency products across our key markets.

Gross profit for first quarter 2011 was $6.1 million, an increase of 30% from first quarter 2010 gross profit of $4.7 million. The year over year increase is primarily due to the increase in sales volume, improved production efficiencies and higher manufacturing volume resulting in more effective absorption of fixed manufacturing costs.

Operating income for the film segment increased to $3.4 million in the first quarter 2011 as compared to $1.9 million in the first quarter 2010. This increase was offset by an operating loss of $1.2 million attributed to Southwall's continued investment in the development of Southwall Insulating Glass.

First quarter 2011 net income before the preferred dividend increased to $1.6 million, or $0.23 per fully diluted share, as compared to the first quarter 2010 of $1.3 million, or $0.19 per fully diluted share.

During the first quarter, Southwall Technologies increased its ownership in Southwall Insulating Glass, LLC from 80% to 90%.

"Our re-listing on NASDAQ in March represents a key milestone for the company and validation of the hard work and dedication of our employees," said Dennis Capovilla, President and Chief Executive Officer. "We remain on track in executing our growth strategy and continue to invest in our film and glass businesses. We believe this will accelerate customer adoption of our energy-saving products and position us for long-term growth."