SANTA BARBARA, Calif., March 13, 2008 (PRIME NEWSWIRE) -- Superconductor Technologies Inc. (Nasdaq:SCON) ("STI"), a leading provider of high performance infrastructure products for wireless voice and data applications, announced results for the quarter and twelve months ended December 31, 2007.
Total net revenues for the fourth quarter were $4.9 million, compared to $4.1 million in the third quarter of 2007 and $5.3 million in fourth quarter of 2006. Net commercial product revenues for the fourth quarter of 2007 were $3.3 million, compared to $2.3 million in the third quarter of 2007 and $4.3 million in the fourth quarter of 2006. Government and other contract revenue totaled $1.6 million during the 2007 fourth quarter, compared to $1.8 million in third quarter of 2007 and $1.0 million during the year ago period.
"Although our total net revenues declined in 2007, we were able to diversify our customer base to include four of the major North American wireless carriers," said Jeff Quiram, STI's president and chief executive officer. "We look to build on these relationships in 2008, with many industry analysts projecting greater wireless telecom capital spending. In particular, we are engaged in active discussions to help plan potential 700 megahertz (MHz) network deployments for some of the auction participants. Internationally, we are excited about our new BSTI joint venture in the rapidly growing market in China. BSTI has recently placed its first orders to purchase our SuperLink(r) interference filters, which will be used in the lab and field trials that BSTI personnel are conducting for China's new TD-SCDMA 3-G network."
Net loss for the fourth quarter was $2.2 million, compared to a net loss of $2.0 million in the third quarter of 2007 and $1.6 million in the fourth quarter of 2006. Net loss per diluted share was $0.17, compared to a net loss of $0.16 per diluted share in the third quarter of 2007 and a net loss per diluted share of $0.13 in the year ago period.
For the full year of 2007, total net revenues were $17.9 million, compared to $21.1 million for 2006. Net commercial product revenues for 2007 were $12.8 million, compared to $17.7 million for the prior year. STI recorded $5.1 million in government and other contract revenues for 2007, compared to $3.4 million for 2006. The net loss for 2007 was $9.1 million, as compared to a net loss of $29.6 million for 2006, which included a non-cash goodwill impairment charge of $20.1 million. The net loss for 2007 was $0.73 per diluted share, compared to $2.37 per diluted share for 2006, including the charge to goodwill.
As of December 31, 2007, STI had $3.9 million in cash and cash equivalents. STI anticipates the auditor's opinion in its upcoming 10-K for 2007 will include an explanatory paragraph expressing concern about the company's ability to continue as a going concern due to past losses and negative cash flows. As of December 31, 2007, STI had commercial product backlog of $352,000 compared to $647,000 at the end of the third quarter of 2007 and $75,000 at the end of the year-ago fourth quarter. In January 2008, STI received the remaining $11 million of the $15 million BaoLi investment in STI.
Investor Conference Call
STI will host an investor conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time, March 13, 2008. The call will be accessible live by dialing 800-240-5318 at least 10 minutes before the start of the conference. International participants may dial 303-262-2130. No pass code is required. The call is also being webcast and can be accessed from the "Investor Relations" section of the company's website at http://www.suptech.com. A telephone replay will be available until midnight ET on March 17 by dialing 800-405-2236 or 303-590-3000, and entering pass code 11109219#. A replay will also be available at the web address above.
About Superconductor Technologies Inc. (STI)
STI, headquartered in Santa Barbara, CA, is a leading provider of high performance infrastructure products for wireless voice and data applications. STI's SuperLink(r) solution increases capacity utilization, lowers dropped and blocked calls, extends coverage, and enables faster wireless data rates. Its AmpLink(tm) solution enhances the performance of wireless base stations by improving receiver sensitivity and geographic coverage.
For information about STI, please visit http://www.suptech.com.
The Superconductor Technologies Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3963
About BaoLi Superconductor Technology Co. Ltd. (BSTI)
BaoLi Superconductor Technology Co Ltd (BSTI) is a joint venture based in China between Superconductor Technologies Inc. and Hunchun BaoLi Communication Co. Ltd. (BAOLI). BSTI was formed to manufacture and market STI's SuperLink(r) interference elimination solution for the China market. BSTI is currently focused on conducting lab and field trials for China's TD-SCDMA 3-G network.
Safe Harbor Statement
The press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, STI's views on future fundraising plans, profitability, revenues, market growth, capital requirements and new product introductions and any other statements identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," "goals" or similar words. 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. For example, the financial results reported in this press release are based on certain assumptions and estimates made by management and are subject to adjustment prior to the filing of the Company's Annual Report on Form 10-K for 2007. Other 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 the MD&A sections of its Annual Report on Form 10-K for 2006 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.
SUPERCONDUCTOR TECHNOLOGIES INC.
--------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
ASSETS December 31, December 31,
------ 2006 2007
-------------- --------------
Current Assets:
Cash and cash equivalents $5,487,000 $3,939,000
Accounts receivable, net 1,535,000 2,413,000
Inventory, net 5,978,000 3,415,000
Prepaid expenses and other
current assets 507,000 442,000
-------------- --------------
Total Current Assets 13,507,000 10,209,000
Property and equipment,
net of accumulated
depreciation of
$18,599,000 and $19,129,000,
respectively 5,770,000 3,961,000
Patents, licenses and
purchased technology, net
of accumulated amortization
of $1,391,000 and $1,722,000,
respectively 2,221,000 2,236,000
Other assets 406,000 219,000
-------------- --------------
Total Assets $21,904,000 $16,625,000
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable $1,725,000 $1,467,000
Accrued expenses 1,610,000 1,405,000
Proceeds for shares to be
issued -- 4,000,000
-------------- --------------
Current portion of capitalized
lease obligations and long
term debt 14,000 45,000
-------------- --------------
Total Current Liabilities 3,349,000 6,917,000
Other long term liabilities 604,000 518,000
-------------- --------------
Total Liabilities 3,953,000 7,435,000
Stockholders' Equity:
Preferred stock, $.001 par
value, 2,000,000 shares
authorized, none issued and
outstanding -- --
Common stock, $.001 par value,
250,000,000 shares
authorized, 12,483,367 and
12,511,414 shares issued
and outstanding, respectively 12,000 12,000
Capital in excess of par value 208,825,000 209,163,000
Notes receivable from
stockholder and board member (27,000) --
Accumulated deficit (190,859,000) (199,985,000)
-------------- --------------
Total Stockholders' Equity 17,951,000 9,190,000
-------------- --------------
Total Liabilities and
Stockholders' Equity $21,904,000 $16,625,000
============== ==============
SUPERCONDUCTOR TECHNOLOGIES INC.
--------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
For the Year Ended December 31
------------------------------
2005 2006 2007
------------ ------------- -------------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $(14,213,000) $(29,624,000) $(9,126,000)
Adjustments to
reconcile net loss
to net cash used for
operating activities:
Depreciation and
amortization 3,225,000 2,600,000 2,333,000
Warrants and options
charges 25,000 280,000 339,000
Provision for excess
and obsolete
inventories 984,000 360,000 160,000
Forgiveness of note
receivable from
former CEO 150,000 -- --
Reserve for impairment
of note and interest
receivable from
stockholder 924,000 38,000 (583,000)
Write off Goodwill -- 20,107,000 --
Gain on disposal
of property and
equipment (138,000) -- --
Changes in assets
and liabilities:
Accounts receivable (732,000) 631,000 (877,000)
Inventory 2,979,000 (974,000) 2,403,000
Prepaid expenses
and other current
assets 112,000 115,000 574,000
Patents and licenses (154,000) (217,000) (169,000)
Other assets (23,000) 128,000 16,000
Accounts payable
and accrued expenses (2,543,000) (727,000) (465,000)
------------ ------------- -------------
Net cash used in
operating activities (9,404,000) (7,283,000) (5,395,000)
CASH FLOWS FROM
INVESTING ACTIVITIES:
Proceeds from the
sale of property
and equipment 216,000 -- 26,000
Purchase of property
and equipment (261,000) (229,000) (191,000)
------------ ------------- -------------
Net cash used in
investing activities (45,000) (229,000) (165,000)
CASH FLOW FROM
FINANCING ACTIVITIES:
Proceeds from
Shares to be issued -- -- 4,000,000
Proceeds from
short-term borrowings 662,000 -- --
Payments on
short-term borrowings (1,600,000) -- --
Payments on
long-term obligations (43,000) (19,000) (14,000)
Gross proceeds from
sale of common stock
and exercise of
warrants and options 12,500,000 -- 26,000
Payment of common
stock issuance costs (1,854,000) -- --
------------ ------------- -------------
Net cash provided
by (used in)
financing activities 9,665,000 (19,000) 4,012,000
------------ ------------- -------------
Net increase
(decrease) in cash
and cash equivalents 216,000 (7,531,000) (1,548,000)
Cash and cash
equivalents at
beginning of year 12,802,000 13,018,000 5,487,000
------------ ------------- -------------
Cash and cash
equivalents at
end of year $13,018,000 $5,487,000 $3,939,000
============ ============= =============
SUPERCONDUCTOR TECHNOLOGIES INC.
--------------------------------
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
----------------------------------------------
(Unaudited)
Three Months Ended Year Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2006 2007 2006 2007
------------ ------------ ------------ ------------
Unaudited Audited Unaudited
Net revenues:
Net commercial
product
revenues $4,287,000 $3,324,000 $17,697,000 $12,787,000
Government and
other contract
revenues 1,020,000 1,590,000 3,361,000 5,115,000
Sub license
royalties -- -- 20,000 --
------------ ------------ ------------ ------------
Total net
revenues 5,307,000 4,914,000 21,078,000 17,902,000
Costs and
expenses:
Cost of commer-
cial product
revenues 4,186,000 3,117,000 15,922,000 12,944,000
Contract
research and
development 749,000 887,000 2,407,000 2,906,000
Other research
and develop-
ment 790,000 921,000 3,488,000 3,172,000
Selling,
general and
administrative 1,255,000 2,207,000 9,086,000 8,123,000
Restructuring
expense and
impairment
charges 38,000 -- 38,000 --
Goodwill
impairment
charge -- -- 20,107,000 --
------------ ------------ ------------ ------------
Total costs
and expenses 7,018,000 7,132,000 51,048,000 27,145,000
------------ ------------ ------------ ------------
Loss from
operations (1,711,000) (2,218,000) (29,970,000) (9,243,000)
Interest income 74,000 41,000 391,000 156,000
Interest expense (10,000) (9,000) (45,000) (39,000)
------------ ------------ ------------ ------------
Net loss $(1,647,000) $(2,186,000) $(29,624,000) $(9,126,000)
============ ============ ============ ============
Basic and
diluted loss
per common
share $(0.13) $(0.17) $(2.37) $(0.73)
============ ============ ============ ============
Weighted average
number of common
shares
outstanding 12,483,367 12,500,134 12,483,367 12,487,593
============ ============ ============ ============