SANTA BARBARA, Calif., Aug. 12, 2008 (PRIME NEWSWIRE) -- Superconductor Technologies Inc. (Nasdaq:SCON) ("STI"), a leading provider of advanced wireless solutions, innovative adaptive filtering, and world class cryogenic products for commercial and government applications, reported results for the quarter and six months ended June 28, 2008.
Total net revenues for the second quarter were $2.9 million, compared to $3.5 million in the first quarter of 2008 and $4.7 million in the year ago second quarter. Net commercial product revenues for the second quarter of 2008 were $1.3 million, compared to $2.0 million in the first quarter of 2008 and $3.7 million in the second quarter of 2007. Government and other contract revenue totaled $1.6 million during the 2008 second quarter, compared to $1.5 million in first quarter of 2008 and $1.0 million during the year ago period.
Jeff Quiram, STI's president and chief executive officer, said, "Our second quarter financial results are indicative of the shift in capital spending priorities in the first half of 2008, with the majority of our commercial customers focused on adding capacity to existing sites. We have made detailed preparations so that we can respond rapidly when our customers' spending priorities shift back to performance enhancement projects, a transition that we believe has already begun. We have also been actively engaged with our customers as they develop plans to deploy the new 700 megahertz spectrum they acquired in March. STI is the recognized expert in interference elimination and we are excited to be working on solutions with our customers that will deliver the optimal utilization of this valuable spectrum. Internationally, we are presently completing the final preparatory efforts for the TD-SCDMA field trial in China, which will be completed shortly after the Olympics end later this month."
"We also continue to pursue opportunities to utilize our exceptional expertise and patented technologies in several new areas, most notably our recently announced collaborative effort with the Department of Energy's Los Alamos National Laboratory. This collaboration involves the research and development of high-temperature superconducting (HTS) power distribution applications that save energy and provide higher capacity power lines for the electrical grid," Quiram added.
Net loss for the second quarter was $3.3 million, compared to a net loss of $2.3 million in the first quarter of 2008 and $2.0 million in the second quarter of 2007. Net loss per share was $0.21, compared to a net loss of $0.17 per share in the first quarter of 2008 and a net loss per share of $0.16 in the year ago period.
For the six-month period ending June 28, 2008, total net revenues were $6.4 million, compared to $8.9 million for the first half of 2007. Net commercial product revenues for the first half of 2008 were $3.3 million, compared to $7.2 million in the year ago period. The company recorded $3.1 million in government and other contract revenues for the first half of 2008, compared to $1.7 million for the first half 2007. The net loss for the first half of 2008 was $5.7 million, or $0.38 per share, compared to $4.9 million, or $0.39 per share, for the prior year's first half.
As of June 28, 2008, STI had $13.0 million in cash and cash equivalents. During the quarter, STI received net proceeds of $5.6 million from a registered direct offering. As of June 28, 2008, STI had a commercial product backlog of $12,000 compared to $192,000 at the end of the first quarter of 2008 and $143,000 at the end of the year-ago quarter.
Investor Conference Call
STI will host a conference call at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time, today, August 12th, to discuss its second quarter 2008 financial results. Participating in the call will be Jeff Quiram, president and chief executive officer, Bill Buchanan, corporate controller, and Terry White, vice president of worldwide sales.
To listen to the call live, please dial 800-240-5318 at least 10 minutes before the start of the conference. International participants may dial 303-262-2075. 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 ttp://www.suptech.com. A telephone replay will be available until midnight PT on August 14 by dialing 800-405-2236 or 303-590-3000, and entering pass code 11117517#. 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 application as well as advanced HTS thin film deposition techniques and cooling technologies. Commercially, 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 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 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 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 Six Months Ended
------------------------ ------------------------
June 30, June 28, June 30, June 28,
2007 2008 2007 2008
----------- ----------- ----------- -----------
Net revenues:
Net commercial
product revenues $3,653,000 $1,348,000 $7,187,000 $3,341,000
Government and
other contract
revenues 1,032,000 1,601,000 1,681,000 3,080,000
----------- ----------- ----------- -----------
Total net
revenues 4,685,000 2,949,000 8,868,000 6,421,000
Costs and expenses:
Cost of commercial
product revenues 3,228,000 2,155,000 7,130,000 4,173,000
Contract research
and development 607,000 1,247,000 1,055,000 2,489,000
Other research and
development 813,000 743,000 1,725,000 1,151,000
Selling, general
and
administrative 2,043,000 2,215,000 3,941,000 4,416,000
----------- ----------- ----------- -----------
Total costs and
expenses 6,691,000 6,360,000 13,851,000 12,229,000
----------- ----------- ----------- -----------
Loss from
operations (2,006,000) (3,411,000) (4,983,000) (5,808,000)
Interest income 35,000 70,000 86,000 169,000
Interest expense (11,000) (8,000) (22,000) (17,000)
----------- ----------- ----------- -----------
Net loss $(1,982,000) $(3,349,000) $(4,919,000) $(5,656,000)
=========== =========== =========== ===========
Basic and diluted
loss per common
share $(0.16) $(0.21) $(0.39) $(0.38)
=========== =========== =========== ===========
Weighted average
number of common
shares
outstanding 12,483,367 16,316,072 12,483,367 14,976,078
=========== =========== =========== ===========
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS December 31, June 28,
2007 2008
------------ ------------
(See Note) (Unaudited)
Current Assets:
Cash and cash equivalents $3,939,000 $12,987,000
Accounts receivable, net 2,413,000 1,468,000
Inventory, net 3,415,000 6,215,000
Prepaid expenses and other current assets 442,000 414,000
------------ ------------
Total Current Assets 10,209,000 21,084,000
Property and equipment, net of accumulated
depreciation of $19,129,000 and
$19,246,000, respectively 3,961,000 3,351,000
Patents, licenses and purchased
technology, net of accumulated
amortization of $1,722,000 and
$1,887,000, respectively 2,236,000 2,245,000
Investment in joint venture -- 401,000
Other assets 219,000 229,000
------------ ------------
Total Assets $16,625,000 $27,310,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $1,467,000 $1,213,000
Accrued expenses 1,405,000 1,182,000
Proceeds for shares to be issued 4,000,000 --
Current portion of capitalized lease
obligations and long term debt 45,000 64,000
------------ ------------
Total Current Liabilities 6,917,000 2,459,000
Other long term liabilities 518,000 521,000
------------ ------------
Total Liabilities 7,435,000 2,980,000
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $.001 par value,
2,000,000 shares authorized, 611,523
issued and outstanding -- 1,000
Common stock, $.001 par value, 250,000,000
shares authorized, 12,511,414 and
17,612,775 shares issued and outstanding,
respectively 12,000 18,000
Capital in excess of par value 209,163,000 229,953,000
Accumulated deficit (199,985,000) (205,642,000)
------------ ------------
Total Stockholders' Equity 9,190,000 24,330,000
------------ ------------
Total Liabilities and Stockholders'
Equity $16,625,000 $27,310,000
============ ============
Note - December 31, 2007 balances were derived from audited financial
statements
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
------------------------
June 30, June 28,
2007 2008
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(4,919,000) $(5,656,000)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 1,212,000 871,000
Warrants-Options 176,000 302,000
Provision for excess and obsolete
inventories 160,000 --
Reserve for impairment of note and interest
receivable from Stockholder (583,000) --
Changes in assets and liabilities:
Accounts receivable (666,000) 943,000
Inventory 1,934,000 (2,800,000)
Prepaid expenses and other current assets 676,000 27,000
Patents, licenses and purchased technology (92,000) (175,000)
Other assets (13,000) (8,000)
Accounts payable, accrued expenses and
other long-term liabilities (379,000) (429,000)
----------- -----------
Net cash used in operating activities (2,494,000) (6,925,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of property and
equipment 25,000 --
Investment in joint venture -- (401,000)
Purchases of property and equipment (96,000) (95,000)
----------- -----------
Net cash used in investing activities (71,000) (496,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shares to be issued -- (4,000,000)
Payments on long-term obligations (10,000) --
Proceeds from the sale of common stock -- 20,469,000
----------- -----------
Net cash provided by (used in) financing
activities (10,000) 16,469,000
----------- -----------
Net increase (decrease) in cash and cash
equivalents (2,575,000) 9,048,000
Cash and cash equivalents at beginning of
period 5,487,000 3,939,000
----------- -----------
Cash and cash equivalents at end of period $2,912,000 $12,987,000
=========== ===========