Superconductor Technologies Reports 2015 Third Quarter Results
November 10 2015 - 6:30AM
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 Sept. 26, 2015.
"In the third quarter, we continued to be excited by our
customers' plans to commercialize superconducting products that
will revolutionize many industries, including high field magnets
and the electrical power grid," stated Jeff Quiram, STI's president
and chief executive officer. "We expanded our reach within
customers as they assign additional resources to complete projects.
This quarter we increased shipments of Conductus® wire as customers
complete rigorous evaluation testing. We received productive
testing feedback, which we have incorporated in the next round.
Although the qualification process has taken longer than our
initial expectations, we believe we are close to approval with one
or more customers.
"As the forecasted demand for projects in 2016 and beyond far
exceeds our existing manufacturing capacity, our customers are
working with us on plans to ensure they will have a reliable supply
of high performance Conductus wire to commercialize their products.
Our focus applications are superconducting fault current limiters
(SFCL), magnets and power transmission cables. We are prioritizing
customer opportunities that we believe are best positioned to
aggressively deploy superconducting devices in the near term.
"With our partner the Robinson Research Institute, we shipped
wire to two new magnet customers: one during the third quarter and
one in October. Our relationship with the Robinson Institute
continues to grow as we jointly provide a solution to customers
with products that are unique in the industry. Together we have the
ability to provide sub components that reduce the complexity of the
original equipment manufacturers (OEMs) supply chain and shorten
the time required to bring products to market. In October, we
expanded our market reach by entering a distribution agreement with
TING Corporation to supply the India market with Conductus wire.
Since 2013, TING has sold 2G HTS wire to the Indian market for
multiple customers and applications. We look forward to a
successful relationship with TING," Quiram concluded.
Revenue for all periods was primarily from legacy wireless
products. STI's third quarter 2015 net revenues were $91,000,
compared to $71,000 in the second quarter of 2015 and $86,000 in
the third quarter of 2014. Net loss for the third quarter 2015 was
$2.4 million, or a loss of $0.14 per basic and diluted share,
compared to a net loss of $2.4 million, or a loss of $0.14 per
basic and diluted share, in the second quarter of 2015, and a net
loss of $2.4 million, or a loss of $0.19 per basic and diluted
share in the third quarter of 2014.
For the nine-month period ending Sept. 26, 2015, total net
revenues were $217,000, compared to $550,000 for the first
nine-months of 2014. The net loss for the first nine-months of 2015
was $6.2 million, or $0.39 per share, compared to $5.4 million, or
$0.43 per share, which included a one-time gain of $3.5 million
from the company's investment in Resonant Inc., in the second
quarter of 2014.
As of Sept. 26, 2015, STI had $1.2 million in cash and cash
equivalents. On Oct.14, 2015, STI closed a registered public
offering with net proceeds of $8.6 million.
Investor Conference Call
STI will host a conference call and simultaneous webcast today,
November 10th at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time
to discuss its results. Participating in the call will be Jeff
Quiram, president and chief executive officer; and Bill Buchanan,
vice president and chief financial officer. To listen to the call
live, please dial 1-877-876-9176 at least 10 minutes before the
start of the conference. International participants may dial
1-785-424-1667. The conference ID is 396042. 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 14th by
dialing 888-203-1112 or 1-719-457-0820, and entering pass code
396042. A replay will also be available at the web address
above.
About Superconductor Technologies Inc.
(STI)
Superconductor Technologies Inc. is a global leader in
superconducting innovation. Its Conductus® superconducting wire
platform offers high performance, cost-effective and scalable
superconducting wire. With 100 times the current carrying capacity
of conventional copper and aluminum, superconducting wire offers
zero resistance with extreme high current density. This provides a
significant benefit for electric power transmission and also
enables much smaller or more powerful magnets for motors,
generators, energy storage and medical equipment. Since 1987, STI
has led innovation in HTS materials, developing more than 100
patents as well as proprietary trade secrets and manufacturing
expertise. For more than 20 years STI utilized its unique HTS
manufacturing process for solutions to maximize capacity
utilization and coverage for Tier 1 telecommunications operators.
Headquartered in Austin, TX, 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; our need to materially grow
our revenues from commercial operations and/or to raise additional
capital (which financing may not be available on acceptable terms
or at all) in the very near future, before cash reserves are
depleted (which reserves are expected to be sufficient into the
fourth quarter of 2015), to implement our current business plan and
maintain our viability; the performance and use of our equipment to
produce wire in accordance with our timetable; overcoming technical
challenges in attaining milestones to develop and manufacture
commercial lengths of our HTS wire; the possibility of delays in
customer evaluation and acceptance of our HTS wire; the limited
number of potential customers and customer pressures on the selling
prices of our products; 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; the impact of competitive products,
technologies and pricing; manufacturing capacity constraints and
difficulties; the impact of any financing activity on the level of
our stock price; the dilutive impact of any issuances of securities
to raise capital; cost and uncertainty from compliance with
environmental regulations; and local, regional, and national and
international economic conditions and events and the impact they
may have on us and our customers.
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, 2014 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.
– Tables to Follow –
|
SUPERCONDUCTOR
TECHNOLOGIES INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) |
|
|
Three Months Ended |
Nine Months Ended |
|
September 26, 2015 |
September 27, 2014 |
September 26, 2015 |
September 27, 2014 |
|
|
|
|
|
Net revenues |
$ 91,000 |
$ 86,000 |
$ 217,000 |
$ 550,000 |
|
|
|
|
|
Costs and expenses: |
|
|
|
|
Cost of revenues |
794,000 |
390,000 |
2,238,000 |
1,112,000 |
Research and development |
772,000 |
1,531,000 |
3,246,000 |
4,517,000 |
Selling, general and
administrative |
1,411,000 |
1,281,000 |
4,256,000 |
3,995,000 |
|
|
|
|
|
Total costs and expenses |
2,977,000 |
3,202,000 |
9,740,000 |
9,624,000 |
|
|
|
|
|
Loss from operations |
(2,886,000) |
(3,116,000) |
(9,523,000) |
(9,074,000) |
|
|
|
|
|
Other Income and Expense: |
|
|
|
|
|
|
|
|
|
Gain (loss) from investment in
Resonant |
-- |
(323,000) |
-- |
3,142,000 |
Adjustments to fair value of
warrant derivatives |
503,000 |
983,000 |
3,886,000 |
96,000 |
Adjustments to warrant exercise
price |
-- |
-- |
(367,000) |
-- |
Other (expense) income |
10,000 |
44,000 |
(199,000) |
434,000 |
|
|
|
|
|
Net loss |
$ (2,373,000) |
$ (2,412,000) |
$ (6,203,000) |
$ (5,402,000) |
|
|
|
|
|
Basic and diluted loss per common share |
$ (0.14) |
$ (0.19) |
$ (0.39) |
$ (0.43) |
|
|
|
|
|
Basic and diluted weighted average number of
common shares outstanding |
17,147,823 |
12,917,653 |
16,036,651 |
12,615,356 |
|
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
|
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
September 26, |
|
December 31, |
|
2015 |
|
2014 |
|
(Unaudited) |
|
(See Note) |
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ 1,164,000 |
|
$ 1,238,000 |
Accounts receivable, net |
37,000 |
|
86,000 |
Inventory, net |
119,000 |
|
74,000 |
Prepaid expenses and other
current assets |
211,000 |
|
358,000 |
Total Current Assets |
1,531,000 |
|
1,756,000 |
|
|
|
|
Property and equipment, net of
accumulated depreciation of $6,728,000 and $4,908,000,
respectively |
6,113,000 |
|
7,902,000 |
Patents, licenses and purchased
technology, net of accumulated amortization of $851,000
and $794,000, respectively |
887,000 |
|
886,000 |
Other assets |
128,000 |
|
255,000 |
Total Assets |
$ 8,659,000 |
|
$ 10,799,000 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ 475,000 |
|
$ 762,000 |
Accrued expenses |
617,000 |
|
455,000 |
Current portion of derivative
fair value - warrants |
-- |
|
946,000 |
Total Current Liabilities |
1,092,000 |
|
2,163,000 |
Other long-term
liabilities |
1,197,000 |
|
4,634,000 |
Total Liabilities |
2,289,000 |
|
6,797,000 |
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
Preferred stock, $.001 par
value, 2,000,000 shares authorized, 328,925 and 328,925 shares
issued and outstanding, respectively |
-- |
|
-- |
Common stock, $.001 par value,
250,000,000 shares authorized, 18,203,689 and 14,264,041 shares
issued and outstanding, respectively |
18,000 |
|
14,000 |
Capital in excess of par
value |
294,923,000 |
|
286,356,000 |
Accumulated deficit |
(288,571,000) |
|
(282,368,000) |
Total Stockholders' Equity |
6,370,000 |
|
4,002,000 |
Total Liabilities and
Stockholders' Equity |
$ 8,659,000 |
|
$ 10,799,000 |
Note – December 31, 2014 balances were
derived from audited financial statements. |
|
|
|
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
Nine Months Ended |
|
September 26, 2015 |
September 27, 2014 |
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
Net loss |
$ (6,203,000) |
$ (5,402,000) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
Depreciation and
amortization |
1,932,000 |
999,000 |
Stock-based compensation
expense |
1,619,000 |
513,000 |
Adjustments to fair value of
warrant derivatives |
(3,886,000) |
(96,000) |
Adjustments to warrant exercise
price |
367,000 |
-- |
Provision for excess or
obsolete inventory |
58,000 |
-- |
Gain on disposal of property
and equipment |
(1,000) |
(108,000) |
(Gain) loss in investment in
Resonant |
-- |
(3,142,000) |
Changes in assets and
liabilities: |
|
|
Accounts receivable |
49,000 |
(26,000) |
Inventories |
(103,000) |
(10,000) |
Prepaid expenses and other
current assets |
199,000 |
290,000 |
Patents and licenses |
(57,000) |
(54,000) |
Other assets |
127,000 |
58,000 |
Accounts payable, accrued
expenses and other current liabilities |
(318,000) |
(164,000) |
Net cash used in operating
activities |
(6,217,000) |
(7,142,000) |
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
Purchases of property and
equipment |
(141,000) |
(3,520,000) |
Net proceeds from the sale of
property and equipment |
1,000 |
96,000 |
Net cash used in investing
activities |
(140,000) |
(3,424,000) |
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
Net proceeds from the sale of
common stock |
4,596,000 |
-- |
Net proceeds from the exercise
of outstanding warrants |
1,687,000 |
4,085,000 |
Net cash provided by financing
activities |
6,283,000 |
4,085,000 |
|
|
|
Net increase in cash and cash
equivalents |
(74,000) |
(6,481,000) |
Cash and cash equivalents at beginning of
period |
1,238,000 |
7,459,000 |
Cash and cash equivalents at end of
period |
$ 1,164,000 |
$ 978,000 |
|
|
|
Supplemental non-cash financing
disclosure: |
|
|
Warrant liability converted to
capital in excess of par |
$ 669,000 |
$ -- |
CONTACT: Investor Relations Contact
Cathy Mattison or Kirsten Chapman
LHA +1-415-433-3777 invest@suptech.com
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