Superconductor Technologies Reports 2015 Fourth Quarter and Year-End Results
March 23 2016 - 6:30AM
Superconductor Technologies Inc. (STI) (Nasdaq:SCON) reported
financial results for the quarter and year ended December 31, 2015.
“In 2015, we increased the number of purchase orders for
qualification of our Conductus® wire and conducted extensive
life-cycle testing with multiple customers as part of the product
certification process,” stated Jeff Quiram, STI’s president and
chief executive officer. “Attaining customer approval for large
scale deployment remains our highest priority. We have repeatedly
achieved market leading, critical current performance that meets
our customers’ specifications. Our efforts remain focused on
completing the previously identified mechanical stress tests for
our target applications. During recent life cycle testing with key
customers, we have determined that we must improve the mechanical
strength of our Conductus wire prior to adding the final finishing
layers of silver and copper. We are aggressively pursuing the
resolution of this final performance criterion.”
“We continue to target large market segments including
superconducting fault current limiters (SFCLs), magnets, power
transmission cables, motors, and NMR and MRI machines, and the
forecasted demand still far exceeds our installed capacity. We
remain focused on customers that we believe will have the shortest
path to market.”
2015 Highlights
- Increased number of customers receiving Conductus wire to
37.
- Qualified Conductus wire for use in the Robinson Research
Institute’s proprietary Roebel cable, which is used in high-field
magnets, transformers, utility-scale generators and other large
motor applications.
- Shipped wire to two magnet customers through its
relationship with the Robinson Research Institute.
- Received validation from the Paul Scherrer Institut (PSI) that
Conductus wire met the critical current (Ic) objective of 500 Amps
on a four millimeter width operating in a high magnetic field of 12
Tesla (T) in a low temperature at 4.2 Kelvin (K). This represents a
34% improvement, and is critical for high field magnet
applications.
- Obtained greater than 900 Amps at 77 K in self field on 12
millimeter wide wire. This is important as it demonstrates the
capability of STI’s production machine for SFCL applications.
- Entered agreement with TING Corporation to supply the India
market with Conductus wire.
Fourth Quarter HighlightsRevenue for all
periods was primarily from legacy wireless products. STI’s fourth
quarter 2015 net revenues were $27,000, compared to $91,000 in the
third quarter of 2015 and $82,000 in the fourth quarter of 2014.
Net loss for the fourth quarter 2015 was $2.4 million, or a loss of
$0.08 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
third quarter of 2015, and a net loss of $2.8 million, or a loss of
$0.22 per basic and diluted share in the fourth quarter of
2014.
For the full year 2015, total net revenues were $244,000,
compared to $632,000 for 2014. The net loss for 2015 was $8.6
million, or $0.44 per share, compared to $8.3 million, or $0.64 per
share, which included a one-time gain of $3.5 million in the second
quarter of 2014 from the company’s investment in Resonant Inc., for
2014. As of December 31, 2015, STI had $7.5 million in cash
and cash equivalents.
Investor Conference CallSTI will host a
conference call and simultaneous webcast today, March 23rd 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
1-877-876-9177 at least 10 minutes before the start of the
conference. International participants may dial 1-785-424-1666. The
conference ID is 8483403. The call will be webcast and can be
accessed from the “Investor Relations” section of the company’s
Website. A telephone replay will be available until midnight
ET on March 27th by dialing 1-888-203-1112 or 1-719-457-0820, and
entering pass code 8483403. 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
2016), 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.
Investor Relations ContactCathy Mattison or
Kirsten Chapman LHA
+1-415-433-3777
invest@suptech.com
– Tables to Follow –
SUPERCONDUCTOR TECHNOLOGIES INC. |
CONSOLIDATED STATEMENT OF OPERATIONS |
|
|
Three Months
Ended |
|
Year Ended |
|
December 31,2015 |
|
December 31,2014 |
|
December 31,2015 |
|
December 31,2014 |
|
|
unaudited |
|
|
unaudited |
|
audited |
|
|
|
|
|
|
|
|
Net revenues |
$ |
27,000 |
|
|
$ |
82,000 |
|
|
$ |
244,000 |
|
|
$ |
632,000 |
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of commercial product
revenue |
|
766,000 |
|
|
|
446,000 |
|
|
|
3,004,000 |
|
|
|
1,558,000 |
|
Research and development |
|
879,000 |
|
|
|
1,475,000 |
|
|
|
4,125,000 |
|
|
|
5,992,000 |
|
Selling, general and
administrative |
|
1,581,000 |
|
|
|
1,394,000 |
|
|
|
5,838,000 |
|
|
|
5,389,000 |
|
Total costs and expenses |
|
3,226,000 |
|
|
|
3,315,000 |
|
|
|
12,967,000 |
|
|
|
12,939,000 |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(3,199,000 |
) |
|
|
(3,233,000 |
) |
|
|
(12,723,000 |
) |
|
|
(12,307,000 |
) |
|
|
|
|
|
|
|
|
Other Income and
Expense |
|
|
|
|
|
|
|
Gain from investment in Resonant
LLC |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,142,000 |
|
Adjustments to fair value of
warrant derivatives |
|
966,000 |
|
|
|
384,000 |
|
|
|
4,852,000 |
|
|
|
480,000 |
|
Adjustment to warrant exercise
price |
|
(170,000 |
) |
|
|
- |
|
|
|
(537,000 |
) |
|
|
- |
|
Other income |
|
1,000 |
|
|
|
1,000 |
|
|
|
13,000 |
|
|
|
434,000 |
|
Other expense |
|
- |
|
|
|
- |
|
|
|
(207,000 |
) |
|
|
- |
|
Net loss |
$ |
(2,402,000 |
) |
|
$ |
(2,848,000 |
) |
|
$ |
(8,602,000 |
) |
|
$ |
(8,251,000 |
) |
|
|
|
|
|
|
|
|
Basic and diluted loss
per common share |
$ |
(0.08 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.64 |
) |
|
|
|
|
|
|
|
|
Weighted average number of
common |
|
|
|
|
|
|
|
shares issued and outstanding |
|
29,388,932 |
|
|
|
13,020,081 |
|
|
|
19,706,292 |
|
|
|
12,793,929 |
|
SUPERCONDUCTOR TECHNOLOGIES INC. |
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
December 31, |
|
December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
|
ASSETS |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
$ |
7,469,000 |
|
|
$ |
1,238,000 |
|
|
Accounts receivable, net |
|
38,000 |
|
|
|
86,000 |
|
|
Inventory, net |
|
121,000 |
|
|
|
74,000 |
|
|
Prepaid expenses and other current
assets |
|
122,000 |
|
|
|
358,000 |
|
|
Total Current Assets |
|
7,750,000 |
|
|
|
1,756,000 |
|
|
|
|
|
|
|
Property and equipment, net of
accumulated depreciation of |
|
|
|
|
$7,290,000 and $4,908,000,
respectively |
|
5,551,000 |
|
|
|
7,902,000 |
|
|
Patents, licenses and purchased
technology, net of accumulated |
|
|
|
|
amortization of $869,000 and
$795,000, respectively |
|
938,000 |
|
|
|
886,000 |
|
|
Other assets |
|
126,000 |
|
|
|
255,000 |
|
|
Total Assets |
$ |
14,365,000 |
|
|
$ |
10,799,000 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current Liabilities: |
|
|
|
|
Accounts payable |
$ |
432,000 |
|
|
$ |
762,000 |
|
|
Accrued expenses |
|
418,000 |
|
|
|
455,000 |
|
|
Current portion of derivative fair
value - warrants |
|
- |
|
|
|
946,000 |
|
|
Total Current Liabilities |
|
850,000 |
|
|
|
2,163,000 |
|
|
|
|
|
|
|
Other long term liabilities |
|
393,000 |
|
|
|
4,634,000 |
|
|
Total Liabilities |
|
1,243,000 |
|
|
|
6,797,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
Preferred stock, $.001 par value,
2,000,000 shares authorized, |
|
|
|
|
330,873 and 328,925 issued and
outstanding, respectively |
|
- |
|
|
|
- |
|
|
Common stock, $.001 par value,
250,000,000 shares authorized, |
|
|
|
|
39,608,218 and 14,264,141 shares
issued and outstanding, respectively |
|
39,000 |
|
|
|
14,000 |
|
|
Capital in excess of par value |
|
304,053,000 |
|
|
|
286,356,000 |
|
|
Accumulated deficit |
|
(290,970,000 |
) |
|
|
(282,368,000 |
) |
|
Total Stockholders' Equity |
|
13,122,000 |
|
|
|
4,002,000 |
|
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity |
$ |
14,365,000 |
|
|
$ |
10,799,000 |
|
|
|
|
|
|
|
SUPERCONDUCTOR TECHNOLOGIES INC. |
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
|
Years Ended
December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
Net
loss |
$ |
(8,602,000 |
) |
|
$ |
(8,251,000 |
) |
|
Adjustments
to reconcile net loss to net cash used in |
|
|
|
|
operating
activities: |
|
|
|
|
Depreciation and
amortization |
|
2,458,000 |
|
|
|
1,332,000 |
|
|
Stock-based
compensation expense |
|
2,199,000 |
|
|
|
862,000 |
|
|
Provision for excess
and obsolete inventories |
|
58,000 |
|
|
|
- |
|
|
Adjustments to fair
value of warrant derivatives |
|
(4,852,000 |
) |
|
|
(480,000 |
) |
|
Adjustments to warrant
exercise price |
|
537,000 |
|
|
|
- |
|
|
(Gain) loss on disposal
of property and equipment |
|
(1,000 |
) |
|
|
(114,000 |
) |
|
(Gain) loss from
investment in Resonant LLC joint venture |
|
- |
|
|
|
(3,142,000 |
) |
|
Changes in assets and
liabilities: |
|
|
|
|
Accounts
receivable |
|
45,000 |
|
|
|
(80,000 |
) |
|
Inventory |
|
(105,000 |
) |
|
|
2,000 |
|
|
Prepaid expenses and
other current assets |
|
236,000 |
|
|
|
79,000 |
|
|
Patents and
licenses |
|
(128,000 |
) |
|
|
(70,000 |
) |
|
Other assets |
|
128,000 |
|
|
|
62,000 |
|
|
Accounts payable,
accrued expenses and other liabilities |
|
(440,000 |
) |
|
|
(225,000 |
) |
|
Net cash used in
operating activities |
|
(8,467,000 |
) |
|
|
(10,025,000 |
) |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
Net proceeds from sale
of Resonant Shares |
|
- |
|
|
|
3,327,000 |
|
|
Purchase of property
and equipment |
|
(141,000 |
) |
|
|
(3,704,000 |
) |
|
Net proceeds from sale
of property and equipment |
|
1,000 |
|
|
|
96,000 |
|
|
Net cash used in
investing activities |
|
(140,000 |
) |
|
|
(281,000 |
) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
Repurchase
of common shares for withholding obligations |
|
(26,000 |
) |
|
|
- |
|
|
Net
proceeds from sale of common stock |
|
13,177,000 |
|
|
|
- |
|
|
Net
proceeds from sale of warrants |
|
1,687,000 |
|
|
|
4,085,000 |
|
|
Net cash provided by
financing activities |
|
14,838,000 |
|
|
|
4,085,000 |
|
|
Net
increase (decrease) in cash and cash equivalents |
|
6,231,000 |
|
|
|
(6,221,000 |
) |
|
Cash and
cash equivalents at beginning of year |
|
1,238,000 |
|
|
|
7,459,000 |
|
|
Cash and
cash equivalents at end of year |
$ |
7,469,000 |
|
|
$ |
1,238,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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