Superconductor Technologies Reports Third Quarter 2013 Results
November 12 2013 - 6:30AM
– Grows Conductus wire purchase order
backlog and pipeline for qualification purposes – – Increases wire
output per run and begins taking delivery of commercial scale
machine components –
AUSTIN, Texas, Nov. 12, 2013 (GLOBE NEWSWIRE)
-- Superconductor Technologies Inc. (STI)
(Nasdaq:SCON), a world leader in the development and production of
high temperature superconducting (HTS) materials and associated
technologies, reported results for the quarter ended September 28,
2013.
"In the third quarter, we advanced our progress in
commercializing our Conductus® wire by fully completing our first
purchase order, continuing to ship against other existing orders,
and further increasing our order pipeline," said Jeff Quiram, STI's
president and chief executive officer. "Current shipments of
Conductus wire are for qualification testing for our target
superconducting applications, including fault current limiters,
high-field magnets, industrial motors and generators, and power
transmission cables. Our near-term goal is to establish a
commercial relationship with one or more customers that are
completing the wire qualification efforts for those target
superconducting applications. Due to the strong market interest in
our wire, customer demand continues to create a backlog of orders
for qualification testing. We expect these current commitments will
consume all the wire we can produce for at least the next three
months. Our objective over the next several months is to secure
orders for our planned 2014 production."
"We continue to focus our development efforts on further
improving the performance of our industry leading Conductus wire.
We continue to meet or exceed the performance requirements for all
our current purchase orders and remain committed to attaining even
higher performance levels in the future. During the quarter, we
increased the wire output per production run as we drive toward
commercial scale production in 2014. We have begun taking delivery
of various components for our 1 kilometer RCE machine and expect to
have all the equipment we need to assemble it at our Austin
facility in the first quarter of 2014. We remain on track with our
plan to exit the second quarter with significant wire production
capacity. We continue to execute against our plan and expect to
achieve positive cash flow from operations in the second half of
2014," Quiram concluded.
STI's third quarter 2013 net revenues of $229,000, compared to
$555,000 in the second quarter of 2013 and $1.3 million in the
third quarter of 2012. Revenue for all periods was primarily from
legacy wireless products. Net loss for the third quarter of 2013
was $3.5 million, or a loss of $0.42 per basic and diluted share,
compared to a net loss of $2.4 million, or a loss of $0.54 per
basic and diluted share, in the second quarter of 2013, and a net
loss of $2.3 million, or a loss of $0.69 per basic and diluted
share, in the third quarter of 2012.
For the nine-month period ending September 28, 2013, total net
revenues were $1.6 million, compared to $2.3 million for the same
period a year ago. Revenue for all periods was primarily from
wireless products. The net loss for the first nine months of 2013
was $8.3 million, or $1.48 per share, compared to a net loss of
$8.7 million, or $2.71 per share, for the year ago period.
As of September 28, 2013, STI had $10.3 million in cash and cash
equivalents.
Investor Conference Call
STI will host a conference call and simultaneous webcast today,
November 12th, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time.
The call will be accessible live by dialing 1-800-762-8779 at least
10 minutes before the start of the conference. International
participants may dial 1-480-629-9645. The conference ID is 4645162.
The call will be 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 November 15th by dialing 1-800-406-7325 or
1-303-590-3030, and entering pass code 4645162. A replay will also
be available at the web address above.
About Superconductor Technologies Inc.
(STI)
Superconductor Technologies Inc., headquartered in Austin, TX,
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
energy efficient, cost-effective and high performance second
generation (2G) HTS wire for existing and emerging power
applications, to develop applications for advanced RF wireless
solutions and innovative adaptive filtering, and for government
R&D. Superconductor Technologies Inc.'s common stock is
listed on the NASDAQ Capital Market under the ticker
symbol "SCON." For more information about STI, please
visit http://www.suptech.com.
Safe Harbor
Statement
Statements in this press release regarding our business that are
not historical facts are "forward-looking statements" that involve
risks and uncertainties. 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, but are not limited to: our
limited cash and a history of losses; the limited number of
potential customers; the limited number of suppliers for some of
our components and our HTS wire; there being no significant backlog
from quarter to quarter; our market being characterized by rapidly
advancing technology; overcoming technical challenges in attaining
milestones to develop and manufacture commercial lengths of our HTS
wire; customer acceptance of our HTS wire; fluctuations in product
demand from quarter to quarter; the impact of competitive filter
products, technologies and pricing; manufacturing capacity
constraints and difficulties; our ability to raise sufficient
capital to fund our operations (whether through registered direct
offerings or otherwise), and the impact on our strategic wire
initiative of any inability to raise such funds; the impact of any
such financing activity on the level of our stock price, which may
decline in connection with the sales under registered direct
offerings or otherwise; the dilutive impact of any issuances of
securities to raise capital; and local, regional, and national and
international economic conditions and events and the impact they
may have on us and our customers, such as the current worldwide
recession.
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 the year ended December 31, 2012 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.
Investor Relations Contact
Cathy Mattison or Kirsten Chapman
LHA +1-415-433-3777 invest@suptech.com
– Tables to Follow –
SUPERCONDUCTOR
TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
September 28, 2013 |
September 29, 2012 |
September 28, 2013 |
September 29, 2012 |
|
|
|
|
|
Net revenues: |
|
|
|
|
Net commercial product
revenues |
$ 229,000 |
$ 1,301,000 |
$ 1,560,000 |
$ 2,174,000 |
Government and other contract
revenues |
-- |
30,000 |
-- |
152,000 |
|
|
|
|
|
Total net revenues |
229,000 |
1,331,000 |
1,560,000 |
2,326,000 |
|
|
|
|
|
Costs and expenses: |
|
|
|
|
Cost of commercial product
revenues |
290,000 |
1,021,000 |
910,000 |
2,943,000 |
Cost of government and other
contract revenue |
-- |
18,000 |
-- |
113,000 |
Research and development |
1,875,000 |
1,315,000 |
4,724,000 |
3,790,000 |
Selling, general and
administrative |
1,434,000 |
1,247,000 |
3,909,000 |
4,199,000 |
|
|
|
|
|
Total costs and
expenses |
3,599,000 |
3,601,000 |
9,543,000 |
11,045,000 |
|
|
|
|
|
Loss from operations |
(3,370,000) |
(2,270,000) |
(7,983,000) |
(8,719,000) |
|
|
|
|
|
Other Income and Expense: |
|
|
|
|
|
|
|
|
|
Loss from investment in
Resonant LLC joint venture |
-- |
-- |
(238,000) |
-- |
Adjustments to fair value of
derivatives |
(85,000) |
-- |
(85,000) |
-- |
Other income |
1,000 |
7,000 |
7,000 |
44,000 |
Interest income |
-- |
1,000 |
1,000 |
6,000 |
|
|
|
|
|
Net
loss |
$ (3,454,000) |
$ (2,262,000) |
$ (8,298,000) |
$ (8,669,000) |
|
|
|
|
|
Basic and diluted loss per common
share |
$ (0.42) |
$ (0.69) |
$ (1.48) |
$ (2.71) |
|
|
|
|
|
Basic and diluted weighted average number of
common shares outstanding |
8,176,262 |
3,292,650 |
5,612,636 |
3,194,281 |
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
September 28, |
December 31, |
|
2013 |
2012 |
|
(Unaudited) |
(See Note) |
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
Cash and cash equivalents |
$ 10,267,000 |
$ 3,634,000 |
Accounts receivable, net |
127,000 |
122,000 |
Inventory, net |
92,000 |
51,000 |
Prepaid expenses and other
current assets |
312,000 |
315,000 |
Total Current Assets |
10,798,000 |
4,122,000 |
|
|
|
Property and equipment, net of
accumulated depreciation of |
|
|
$20,209,000 and $19,445,000,
respectively |
5,553,000 |
6,242,000 |
Patents, licenses and purchased
technology, net of accumulated amortization |
|
|
of $705,000 and $2,367,000,
respectively |
809,000 |
889,000 |
Other assets |
503,000 |
776,000 |
Total
Assets |
$ 17,663,000 |
$ 12,029,000 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 970,000 |
$ 603,000 |
Accrued expenses |
807,000 |
460,000 |
Total Current Liabilities |
1,777,000 |
1,063,000 |
Other long term
liabilities |
539,000 |
674,000 |
Fair value of warrant
derivatives |
4,241,000 |
-- |
Total Liabilities |
6,557,000 |
1,737,000 |
|
|
|
Stockholders' Equity: |
|
|
Preferred stock, $.001 par
value, 2,000,000 shares authorized, |
|
|
328,925 and 564,642 shares issued and
outstanding, respectively |
-- |
1,000 |
Common stock, $.001 par value,
250,000,000 shares authorized, |
|
|
11,599,950 and 4,193,690 shares issued
and outstanding, respectively |
12,000 |
4,000 |
Capital in excess of par
value |
281,336,000 |
272,231,000 |
Accumulated deficit |
(270,242,000) |
(261,944,000) |
Total Stockholders' Equity |
11,106,000 |
10,292,000 |
Total Liabilities and
Stockholders' Equity |
$ 17,663,000 |
$ 12,029,000 |
|
|
|
Note – December 31,
2012 balances were derived from audited consolidated financial
statements. |
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
Nine Months Ended |
|
September 28, 2013 |
September 29, 2012 |
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
Net loss |
$ (8,298,000) |
$ (8,669,000) |
Adjustments to reconcile net loss to net cash
used for |
|
|
operating activities: |
|
|
Depreciation and
amortization |
946,000 |
204,000 |
Stock-based compensation
expense |
418,000 |
785,000 |
Write-off of intangibles |
93,000 |
142,000 |
Adjustments to fair value of
warrant derivatives |
85,000 |
-- |
Provision for excess and
obsolete inventories |
-- |
270,000 |
(Gain) loss on disposal of
property and equipment |
331,000 |
(44,000) |
Loss from investment in
Resonant LLC joint venture |
238,000 |
-- |
Changes in assets and liabilities: |
|
|
Accounts receivable |
(5,000) |
(718,000) |
Inventories |
(41,000) |
750,000 |
Prepaid expenses and other
current assets |
(150,000) |
(61,000) |
Patents and licenses |
(64,000) |
(157,000) |
Other assets |
2,000 |
7,000 |
Accounts payable, accrued
expenses and other current liabilities |
436,000 |
126,000 |
Net cash used in operating
activities |
(6,009,000) |
(7,365,000) |
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
Purchases of property and equipment |
(209,000) |
(2,828,000) |
Net proceeds from sale of property and
equipment |
7,000 |
44,000 |
Net cash used in investing
activities |
(202,000) |
(2,784,000) |
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
Repurchase of common shares for withholding
obligations |
-- |
(135,000) |
Net proceeds from the sale of common
stock |
12,844,000 |
6,621,000 |
Net cash provided by financing
activities |
12,844,000 |
6,486,000 |
|
|
|
Net increase in cash and cash
equivalents |
6,633,000 |
(3,663,000) |
Cash and cash equivalents at beginning of
period |
3,634,000 |
6,165,000 |
Cash and cash equivalents at end of
period |
$ 10,267,000 |
$ 2,502,000 |
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