SANTA BARBARA, Calif., Aug. 3, 2010 (GLOBE NEWSWIRE) -- Superconductor Technologies Inc. (Nasdaq:SCON) ("STI"), a world leader in the development and production of high temperature superconducting (HTS) materials and associated technologies, reported results for the second quarter and six months ended July 3, 2010.
Total net revenues for the second quarter were $2.4 million compared to $3.4 million in the first quarter of 2010 and $2.6 million in the year ago second quarter. Net commercial product revenues for the second quarter of 2010 were $1.7 million, compared to $2.3 million in the first quarter of 2010 and $1.8 million in the second quarter of 2009. Government and other contract revenue totaled $631,000 during the 2010 second quarter, compared to $1.1 million in the first quarter of 2010 and $854,000 in the year ago period.
Jeff Quiram, STI's president and chief executive officer, said, "During the second quarter, our wireless customers continued to invest in performance improvement projects for their existing networks that provided demand for our core products. As expected, government revenues declined as the SURF 2 program nears completion."
"STI's SuperLink® solution has been integrated into a state-of-the-art OEM long term evolution (LTE) base station. Our OEM partner was selected by a major carrier for live market trials currently planned for this year. We continue to believe there is significant opportunity to include our HTS filters in the LTE networks of the top U.S. wireless carriers when deployment begins in earnest."
"Our 2G HTS wire program for emerging power applications remains on schedule. Building on our success in producing wire in one meter lengths, we are on track to complete the design of our wire deposition machine to produce 50 meter lengths by the end of this year. We are focusing our efforts on three HTS wire designs to address the unique performance requirements for large wind turbine, AC power cable and fault current limiter applications. We expect to begin delivering samples of our wire for testing by our prospective customers before year end," Quiram concluded.
Net loss for the second quarter was $3.1 million, compared to a net loss of $2.5 million in the first quarter of 2010 and $4.1 million in the second quarter of 2009. Net loss per share was $0.14, compared to a net loss of $0.11 per share in the first quarter of 2010 and a net loss per share of $0.23 in the year ago period.
For the six-month period ending July 3, 2010, total net revenues were $5.8 million, compared to $4.3 million for the first half of 2009. Net commercial product revenues for the first half of 2010 were $4.1 million, compared to $2.9 million in the year ago period. STI generated $1.7 million in government and other contract revenues for the first half of 2010, compared to $1.4 million for the first half 2009. The net loss for the first half of 2010 was $5.6 million, or $0.26 per share, compared to $7.7 million, or $0.43 per share, for the prior year's first half.
As of July 3, 2010, STI had $5.5 million in cash and cash equivalents. As of July 3, 2010, STI had a commercial product backlog of $679,000 compared to $724,000 at the end of the first quarter of 2010 and $873,000 at the end of the year-ago quarter.
Investor Conference Call
STI will host an investor conference call today at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time. The call will be accessible live by dialing 1-888-549-7750. International participants may dial 1-480-629-9867. All callers are encouraged to provide the following confirmation number 4329580 to access the call more quickly, and may dial into the call 10 to 15 minutes prior to the call start to prevent any delay in joining. A telephone replay will be available until midnight ET on August 5th by dialing 800-406-7325 or 303-590-3030, and entering pass code 4329580#. The call will also be simultaneously webcast and available on STI's web site at http://www.suptech.com.
About Superconductor Technologies Inc. (STI)
STI, headquartered in Santa Barbara, CA, has been a world leader in HTS materials since 1987, developing more than 100 patents as well as proprietary trade secrets and manufacturing expertise. For more than a decade, STI has been providing innovative interference elimination and network enhancement solutions to the commercial wireless industry. The company is currently leveraging its key enabling technologies, including RF filtering, HTS materials and cryogenics, to develop applications for advanced RF wireless solutions, power efficient HTS materials, innovative adaptive filtering and government R&D. For more information about STI, please visit http://www.suptech.com/">http://www.suptech.com.
The Superconductor Technologies Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3963
Safe Harbor Statement
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including without limitation, the risk that this offering will not close. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: fluctuations in product demand from quarter to quarter which can be significant; the need for additional capital depending on unpredictable cash flow; STI's ability to diversify its concentrated customer base; the impact of competitive filter products technologies and pricing; unanticipated decreases in the capital spending of wireless network operators; and manufacturing capacity constraints and difficulties.
Forward-looking statements can be affected by many other factors, including, those described in the "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of STI's Annual Report on Form 10-K for 2009 and in STI's other public filings. These documents are available online at STI's website, www.suptech.com, or through the SEC's website, www.sec.gov. Forward-looking statements are based on information presently available to senior management, and STI has not assumed any duty to update any forward-looking statements.
Contact
For further information please contact Investor Relations, invest@suptech.com, Kirsten Chapman or Cathy Mattison, of Lippert / Heilshorn & Associates, +1-415-433-3777, for Superconductor Technologies Inc.
- Tables to Follow -
| SUPERCONDUCTOR TECHNOLOGIES INC. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| July 3, 2010 | June 27, 2009 | July 3, 2010 | June 27, 2009 | |
| Net revenues: | ||||
| Net commercial product revenues | $ 1,738,000 | $ 1,777,000 | $ 4,072,000 | $ 2,908,000 |
| Government and other contract revenues | 631,000 | 854,000 | 1,712,000 | 1,400,000 |
| Total net revenues | 2,369,000 | 2,631,000 | 5,784,000 | 4,308,000 |
| Costs and expenses: | ||||
| Cost of commercial product revenues | 1,968,000 | 2,441,000 | 4,354,000 | 4,239,000 |
| Cost of government and other contract revenue | 375,000 | 665,000 | 1,009,000 | 1,234,000 |
| Research and development | 1,342,000 | 999,000 | 2,491,000 | 2,082,000 |
| Selling, general and administrative | 1,932,000 | 1,812,000 | 3,715,000 | 3,535,000 |
| Total costs and expenses | 5,617,000 | 5,917,000 | 11,569,000 | 11,090,000 |
| Loss from operations | (3,248,000) | (3,286,000) | (5,785,000) | (6,782,000) |
| Other Income and Expense | ||||
| Noncontrolling interest in joint venture | -- | (37,000) | -- | (87,000) |
| Adjustments to fair value of derivatives | 127,000 | (780,000) | 168,000 | (780,000) |
| Interest income | 1,000 | 4,000 | 2,000 | 17,000 |
| Interest expense | (7,000) | (9,000) | (14,000) | (18,000) |
| Net loss | $(3,127,000) | $(4,108,000) | $(5,629,000) | $(7,650,000) |
| Basic and diluted loss per common share |
$(0.14) |
$(0.23) |
$(0.26) |
$(0.43) |
|
Weighted average number of common shares outstanding |
21,870,717 | 18,170,470 | 21,839,430 | 17,904,975 |
| SUPERCONDUCTOR TECHNOLOGIES INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
|
July 3, 2010 |
December 31, 2009 | ||||||
| (Unaudited) | (See Note) | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ 5,532,000 | $ 10,365,000 | |||||
| Accounts receivable, net | 590,000 | 462,000 | |||||
| Inventory, net | 2,560,000 | 2,644,000 | |||||
| Prepaid expenses and other current assets | 448,000 | 445,000 | |||||
| Total Current Assets | 9,130,000 | 13,916,000 | |||||
| Property and equipment, net of accumulated depreciation of $21,540,000 and $21,076,000, respectively | 1,543,000 | 1,832,000 | |||||
| Patents, licenses and purchased technology, net of accumulated amortization of $2,436,000 and $2,384,000, respectively | 2,261,000 | 2,163,000 | |||||
| Other assets | 206,000 | 215,000 | |||||
| Total Assets | $ 13,140,000 | $ 18,126,000 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ 1,126,000 | $ 467,000 | |||||
| Accrued expenses | 833,000 | 671,000 | |||||
| Fair value of warrant derivative | 3,000 | 171,000 | |||||
| Current portion of capitalized lease obligations and long term debt | 40,000 | 50,000 | |||||
| Total Current Liabilities | 2,002,000 | 1,359,000 | |||||
| Other long term liabilities | 583,000 | 526,000 | |||||
| Total Liabilities | 2,585,000 | 1,885,000 | |||||
| Stockholders' Equity: | |||||||
| Preferred stock, $.001 par value, 2,000,000 shares authorized, 611,523 shares issued and outstanding | 1,000 | 1,000 | |||||
| Common stock, $.001 par value, 250,000,000 shares authorized, 22,647,011 and 22,512,033 shares issued and outstanding, respectively | 23,000 | 23,000 | |||||
| Capital in excess of par value | 241,825,000 | 241,882,000 | |||||
| Accumulated deficit | (231,294,000) | (225,665,000) | |||||
| Total Stockholders' Equity | 10,555,000 | 16,241,000 | |||||
| Total Liabilities and Equity | $ 13,140,000 | $ 18,126,000 | |||||
| Note-December 31, 2009 balances were derived from audited financial statements. | |||||||
|
SUPERCONDUCTOR TECHNOLOGIES INC. |
|||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| (Unaudited) | |||
| Six Months Ended | |||
| July 3, 2010 | June 27, 2009 | ||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net loss | $ (5,629,000) | $ (7,650,000) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||
| Depreciation and amortization | 517,000 | 784,000 | |
| Stock-based compensation expense | 516,000 | 544,000 | |
| Provision for excess and obsolete inventories | 180,000 | 102,000 | |
|
Noncontrolling interest in joint venture |
-- | 87,000 | |
| Fair value of derivatives | (168,000) | 780,000 | |
| Changes in assets and liabilities: | |||
| Accounts receivable | (128,000) | (604,000) | |
| Inventory | (96,000) | 911,000 | |
| Prepaid expenses and other current assets | (3,000) | (281,000) | |
| Patents, licenses and purchased technology | (151,000) | (65,000) | |
| Other assets | 9,000 | 7,000 | |
| Accounts payable, accrued expenses and other long-term liabilities | 869,000 | 704,000 | |
| Net cash used in operating activities | (4,084,000) | (4,681,000) | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Investment in joint venture | -- | 12,000 | |
| Purchases of property and equipment | (176,000) | (131,000) | |
| Net cash used in investing activities | (176,000) | (119,000) | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Repurchase of common shares for withholding obligations | (573,000) | -- | |
| Net proceeds from the sale of common stock | -- | 10,456,000 | |
| Net cash provided by (used in) financing activities | (573,000) | 10,456,000 | |
| Net increase (decrease) in cash and cash equivalents | (4,833,000) | 5,656,000 | |
| Cash and cash equivalents at beginning of period | 10,365,000 | 7,569,000 | |
| Cash and cash equivalents at end of period | $ 5,532,000 | $ 13,225,000 | |