SANTA BARBARA, Calif., May 8, 2008 (PRIME NEWSWIRE) -- Superconductor Technologies Inc. (Nasdaq:SCON) ("STI"), a leading provider of high performance infrastructure products for wireless voice and data applications, reported results for the quarter ended March 29, 2008.
Total net revenues for the first quarter were $3.5 million, compared to $4.9 million in the fourth quarter of 2007 and $4.2 million in the year ago first quarter. Net commercial product revenues for the first quarter of 2008 were $2.0 million, compared to $3.3 million in the fourth quarter of 2007 and $3.5 million in the first quarter of 2007. Government and other contract revenue totaled $1.5 million during the 2008 first quarter, compared to $1.6 million in fourth quarter of 2007 and $649,000 during the year ago period.
"Historically, the capital spending by our commercial customers begins slowly in the new calendar year, and 2008 was no exception," stated Jeff Quiram, STI's president and chief executive officer. "We experienced cautious spending with all of our commercial customers and although first quarter spending was disappointing, the results of the 700 megahertz (MHz) auction in March were encouraging for STI. The interference environment inherent in the 700 MHz spectrum is significantly more challenging than the industry has seen in prior network deployments. Our SuperLink(r) solution is particularly well suited to solve the interference challenges of this new spectrum. We are encouraged that our two largest customers combined purchased the majority of the auctioned spectrum and have both announced plans to use it for cellular services.
"We completed our TD-SCDMA lab trial activities in China during the first week of April and are now preparing to begin field trials in May. We continue to believe that a significant commercial opportunity exists in China beginning in 2009," Quiram added.
Net loss for the first quarter was $2.3 million, as compared to a net loss of $2.2 million in the fourth quarter of 2007 and $2.9 million in the first quarter of 2007. Net loss per diluted share in the first quarter of 2008 and in the fourth quarter of 2007 was $0.17, with a net loss per diluted share of $0.24 in the year ago period.
As of March 29, 2008, STI had $11.7 million in cash and cash equivalents. As of March 29, 2008, STI had a commercial product backlog of $192,000 compared to $352,000 at the end of the fourth quarter of 2007 and $63,000 at the end of the year-ago quarter.
Investor Conference Call
STI will host an investor conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time, May 8, 2008. The call will be accessible live by dialing 800-240-4186 at least 10 minutes before the start of the conference. International participants may dial 303-262-2142. No pass code is required. A telephone replay will be available for two days, until midnight ET on May 12 by dialing 800-405-2236 or 303-590-3000, and entering pass code 11113201#. 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, 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
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 2008. 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 2007. 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
--------------------------
March 31, March 29,
2007 2008
----------- -----------
Net revenues:
Commercial product revenues $ 3,534,000 $ 1,993,000
Government and other contract
revenues 649,000 1,479,000
----------- -----------
Total net revenues 4,183,000 3,472,000
Costs and expenses:
Cost of commercial product revenues 3,902,000 2,019,000
Contract research and development 445,000 1,243,000
Other research and development 913,000 408,000
Selling, general and administrative 1,901,000 2,200,000
----------- -----------
Total costs and expenses 7,161,000 5,870,000
----------- -----------
Loss from operations (2,978,000) (2,398,000)
Interest income 52,000 99,000
Interest expense (11,000) (9,000)
----------- -----------
Net loss $(2,937,000) $(2,308,000)
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Basic and diluted loss per common share $ (0.24) $ (0.17)
=========== ===========
Weighted average number of common
shares outstanding 12,483,367 13,636,083
=========== ===========
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
------ December 31, March 29,
2007 2008
------------- -------------
(See Note) (Unaudited)
Current Assets:
Cash and cash equivalents $ 3,939,000 $ 11,708,000
Accounts receivable, net 2,413,000 1,886,000
Inventory, net 3,415,000 5,380,000
Prepaid expenses and other current
assets 442,000 414,000
------------- -------------
Total Current Assets 10,209,000 19,388,000
Property and equipment, net of
accumulated depreciation of
$19,129,000 and $18,857,000,
respectively 3,961,000 3,711,000
Patents, licenses and purchased
technology, net of accumulated
amortization of $1,722,000 and
$1,805,000, respectively 2,236,000 2,228,000
Other assets 219,000 226,000
------------- -------------
Total Assets $ 16,625,000 $ 25,553,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable $ 1,467,000 $ 2,080,000
Accrued expenses 1,405,000 945,000
Proceeds for shares to be issued 4,000,000 --
Current portion of capitalized lease
obligations and long term debt 45,000 46,000
------------- -------------
Total Current Liabilities 6,917,000 3,071,000
Other long term liabilities 518,000 546,000
------------- -------------
Total Liabilities 7,435,000 3,617,000
Stockholders' Equity:
Preferred stock, $.001 par value,
2,000,000 shares authorized,
611,523 shares issued and
outstanding -- 1,000
Common stock, $.001 par value,
250,000,000 shares authorized,
12,511,414 and 15,612,775 shares
issued and outstanding, respectively 12,000 15,000
Capital in excess of par value 209,163,000 224,213,000
Accumulated deficit (199,985,000) (202,293,000)
------------- -------------
Total Stockholders' Equity 9,190,000 21,936,000
------------- -------------
Total Liabilities and
Stockholders' Equity $ 16,625,000 $ 25,553,000
============= =============
Note - December 31, 2007 balances were derived from audited
financial statements
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
--------------------------
March 31, March 29,
2007 2008
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(2,937,000) $(2,308,000)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 617,000 396,000
Warrants-Options 90,000 118,000
Provision for excess and obsolete
inventories 90,000 --
Changes in assets and liabilities:
Accounts receivable (440,000) 525,000
Inventory 1,292,000 (1,965,000)
Prepaid expenses and other current
assets (405,000) 28,000
Patents, licenses and purchased
technology (36,000) (76,000)
Other assets 6,000 (6,000)
Accounts payable, accrued expenses
and other long-term liabilities (583,000) 208,000
----------- -----------
Net cash used in operating
activities (2,306,000) (3,080,000)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (45,000) (62,000)
Proceeds from sale of PP&E 18,000 --
----------- -----------
Net cash used in investing activities (27,000) (62,000)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term obligations (5,000) --
Proceeds from preferred and common stock -- 10,911,000
----------- -----------
Net cash provided by (used in)
financing activities (5,000) 10,911,000
----------- -----------
Net increase (decrease) in cash and
cash equivalents (2,338,000) 7,769,000
Cash and cash equivalents at
beginning of period 5,487,000 3,939,000
----------- -----------
Cash and cash equivalents at end
of period $ 3,149,000 $11,708,000
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