"Maxwell Technologies (NASDAQ: MXWL) provides R&D services to the U.S. military and other government agencies; it's become the world's leading authority on ultracapacitors," says Timothy Lutts.
In The Cabot Stock of the Month report, he explains, "Ultracapacitors are handy little electronic devices that store and release electric energy more efficiently than batteries; they can be 10 times lighter than batteries and store and distribute energy 10 times more effciently than batteries."
"So what are ultracapacitors good for? Today, Maxwell-the primary American ultracapacitor manufacturer-is focusing its efforts on two fast-growing young industries: wind turbines and hybrid/electric vehicles.
"Because wind speed varies, turbines have trouble maintaining a steady voltage flow. Ultracapacitors store and discharge energy and help send out more level electrical flows.
"Since 2004, Maxwell has sold over two million units-named Boostcaps-to the wind industry, but almost all to one customer, a German turbine company called InterCon.
"Recently, however, Maxwell purchased a license to InterCon's current-leveling patent so it can sell the ultracapacitors to other customers. Companies in the U.S. and China have since started using Maxwell's licensed offering.
"On the transportation side, Maxwell's Boostcaps are currently used in New York City, Chicago and Long Beach, California on public buses, capturing energy from braking and then redistributing it to accelerate the buses.
"The end result is that buses have 90% fewer emissions and are 25% more fuel-efficient because the ultracapacitor accelerates the bus from zero to 30 miles per hour, not the engines.
"Companies in China and Germany are now starting to put Maxwell systems in their buses as well. In fact, on April 22, Maxwell received purchase orders from three of China's leading bus producers for Boostcap ultracapacitor modules.
"On June 17th, Maxwell reached agreement with hybrid bus and truck developer ISE to develop electricity storage systems for future heavy vehicles.
"But the brass ring is clearly the fast-growing mass market for cleaner energy, and the early results are very encouraging.
"On May 5, Maxwell reported its first quarter results; Boostcap revenue was up 43% to $7.7 million while high voltage capacitors and microelectronics products brought in $14.7 million, up 25% from the year before.
"And while the chemical electrolytes of traditional batteries present a serious disposal and safety hazard, capacitors have no disposable parts during the whole operating life of a device."
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