Superconductor Technologies Reports 2017 First Quarter Results
May 11 2017 - 7:05AM
Superconductor Technologies Inc. (STI) (Nasdaq:SCON) reported
financial results for the quarter ended April 1, 2017.
Jeff Quiram, STI’s president and CEO, stated, “During the first
quarter, our Conductus® HTS wire attained the performance for which
we have been striving. In March, we began shipments of Conductus to
key customers that incorporated the combined improvements in both
mechanical and critical current capacity performance. We continue
to engage with our customers as they complete qualification of our
wire for their applications. Currently, our efforts are focused on
preparing for commercial production of Conductus wire.
“Additionally, we are making good progress in our contract
negotiations with the U.S. Department of Energy (DOE) for the Next
Generation Electric Machines (NGEM) program. We anticipate work on
our project should begin in the third quarter. Under the NGEM
program, we will further evaluate several techniques that we
believe will greatly improve the performance of Conductus wire
while reducing the overall manufacturing costs. The DOE’s stated
program goal is to bring about the rapid development of enabling
technology used to manufacture superconducting industrial motors,
allowing next generation motors to be highly efficient and have a
much smaller footprint.
“As our commercialization efforts proceed, new applications
continue to emerge in the electrical power industry with the
potential to use disruptive Second Generation (2G) HTS
superconducting technology. In general, these emerging applications
intend to create large-scale, low-carbon energy that create value
primarily by lowering the cost of energy generation. We are excited
about these longer-term projects as many industry experts now
believe that 2G HTS materials utilizing Rare Earth,
Barium-Copper-Oxide (ReBCO) compounds will play a critical role,
allowing magnetic field performance to more than double that of the
conventional superconductor wire utilized today, such as Niobium
Titanium (Nb-Ti) and Niobium Tin (Nb3Sn). STI’s proprietary RCE-CDR
wire fabrication process delivers superior infield magnetic
performance that is ideal for many of these applications and offers
capabilities not matched by many competitive superconducting wire
providers. We continue to believe we are well positioned to address
the demanding technical performance necessary to address these
near- and longer-term market opportunities,” Quiram concluded.
First Quarter HighlightsSTI’s first quarter
2017 net revenues were $1,000, compared to $89,000 in the first
quarter of 2016 and $9,000 in the fourth quarter of 2016. Revenue
for all periods was primarily from legacy wireless products. Net
loss for the first quarter 2017 was $2.6 million, or a loss of
$0.26 per basic and diluted share, compared to a net loss of $2.6
million, or a loss of $1.00 per basic and diluted share, in the
first quarter of 2016, and a net loss of $2.5 million, or a loss of
$0.61 per basic and diluted share in the fourth quarter of
2016.
Please note: share and per share data for both periods is
adjusted for the 1-for-15 reverse stock split effective on July 18,
2016.
As of April 1, 2017, STI had $8.4 million in cash and cash
equivalents.
Investor Conference CallSTI will host a
conference call and simultaneous webcast today, May 11th at 11:00
a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss its results.
To listen to the call live, please dial 1-888-283-6901 at least 10
minutes before the start of the conference. International
participants may dial 1-719-325-2171. The conference ID is
6128150. 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 May 13th by
dialing 1-844-512-2921 or 1-412-317-6671, and entering pass code
6128150. 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 first quarter of
2017), 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; the steps required to maintain the listing of our
common stock with a U.S. national securities exchange and the
impact on the liquidity and trading price of our common stock if we
fail to maintain such listing; the 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, 2016 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.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited) |
|
|
|
Three Months Ended |
|
|
April 1, 2017 |
|
April 2, 2016 |
|
|
|
|
|
Revenues |
|
$ |
1,000 |
|
|
$ |
89,000 |
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
Cost of
revenues |
|
|
862,000 |
|
|
|
864,000 |
|
Research and
development |
|
|
650,000 |
|
|
|
716,000 |
|
Selling, general
and administrative |
|
|
1,120,000 |
|
|
|
1,163,000 |
|
|
|
|
|
|
Total costs and expenses |
|
|
2,632,000 |
|
|
|
2,743,000 |
|
|
|
|
|
|
Loss from
operations |
|
|
(2,631,000 |
) |
|
|
(2,654,000 |
) |
|
|
|
|
|
Other Income and
Expense: |
|
|
|
|
Adjustments to
fair value of warrant derivatives |
|
|
(3,000 |
) |
|
|
21,000 |
|
Other
income |
|
|
5,000 |
|
|
|
3,000 |
|
|
|
|
|
|
Net loss |
|
$ |
(2,629,000 |
) |
|
$ |
(2,630,000 |
) |
Basic and diluted net
loss per common share |
|
$ |
(0.26 |
) |
|
$ |
(1.00 |
) |
|
|
|
|
|
Basic and diluted
weighted average number of common |
|
|
|
|
shares
outstanding |
|
|
9,967,932 |
|
|
|
2,626,824 |
|
SUPERCONDUCTOR TECHNOLOGIES INC. |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
April 1, |
|
December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
(Unaudited) |
|
(See Note) |
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
Cash and cash
equivalents |
$ |
8,414,000 |
|
|
$ |
10,452,000 |
|
Accounts
receivable, net |
|
- |
|
|
|
8,000 |
|
Inventories,
net |
|
53,000 |
|
|
|
68,000 |
|
Prepaid expenses
and other current assets |
|
19,000 |
|
|
|
109,000 |
|
Total Current Assets |
|
8,486,000 |
|
|
|
10,637,000 |
|
|
|
|
|
Property and
equipment, net of accumulated depreciation of |
|
|
|
$9,912,000 and $9,350,000, respectively |
|
2,929,000 |
|
|
|
3,491,000 |
|
Patents,
licenses and purchased technology, net of accumulated
amortization |
|
|
|
of
$954,000 and $948,000, respectively |
|
1,024,000 |
|
|
|
990,000 |
|
Other
assets |
|
69,000 |
|
|
|
96,000 |
|
Total Assets |
$ |
12,508,000 |
|
|
$ |
15,214,000 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
349,000 |
|
|
$ |
336,000 |
|
Accrued
expenses |
|
410,000 |
|
|
|
608,000 |
|
Total Current Liabilities |
|
759,000 |
|
|
|
944,000 |
|
Other long term
liabilities |
|
177,000 |
|
|
|
172,000 |
|
Total Liabilities |
|
936,000 |
|
|
|
1,116,000 |
|
|
|
|
|
|
|
|
|
Stockholders’
Equity: |
|
|
|
Preferred stock,
$.001 par value, 2,000,000 shares authorized, |
|
|
|
328,925
and 333,767 shares issued and outstanding, respectively |
|
- |
|
|
|
- |
|
Common stock,
$.001 par value, 250,000,000 shares authorized, |
|
|
|
10,590,928 and 7,353,714 shares issued and outstanding,
respectively |
|
10,000 |
|
|
|
7,000 |
|
Capital in
excess of par value |
|
316,277,000 |
|
|
|
316,177,000 |
|
Accumulated
deficit |
|
(304,715,000 |
) |
|
|
(302,086,000 |
) |
Total
Stockholders' Equity |
|
11,572,000 |
|
|
|
14,098,000 |
|
Total
Liabilities and Stockholders' Equity |
$ |
12,508,000 |
|
|
$ |
15,214,000 |
|
Note – December 31, 2016 balances were derived
from audited financial statements.
|
SUPERCONDUCTOR TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
|
Three Months Ended |
|
|
|
April 1, 2017 |
|
April 2, 2016 |
|
|
|
|
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net
loss |
$ |
(2,629,000 |
) |
|
$ |
(2,630,000 |
) |
|
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
operating activities: |
|
|
|
|
Depreciation and amortization |
|
568,000 |
|
|
|
580,000 |
|
|
Stock-based compensation expense |
|
103,000 |
|
|
|
261,000 |
|
|
Adjustments to fair value of warrant derivatives |
|
3,000 |
|
|
|
21,000 |
|
|
Changes in assets and liabilities: |
|
|
|
|
Accounts
receivable |
|
9,000 |
|
|
|
(32,000 |
) |
|
Inventories |
|
15,000 |
|
|
|
(43,000 |
) |
|
Prepaid
expenses and other current assets |
|
90,000 |
|
|
|
(61,000 |
) |
|
Patents
and licenses |
|
(41,000 |
) |
|
|
(50,000 |
) |
|
Other
assets |
|
27,000 |
|
|
|
126,000 |
|
|
Accounts
payable, accrued expenses and other current liabilities |
|
(183,000 |
) |
|
|
(67,000 |
) |
|
Net cash
used in operating activities |
|
(2,038,000 |
) |
|
|
(1,895,000 |
) |
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
Purchases of property and equipment |
|
- |
|
|
|
- |
|
|
Net proceeds from the sale of property and equipment |
|
- |
|
|
|
- |
|
|
Net cash used in investing activities |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Net proceeds from the sale of common stock |
|
- |
|
|
|
- |
|
|
Net proceeds from the exercise of outstanding warrants |
|
- |
|
|
|
- |
|
|
Net cash provided by financing activities |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
|
(2,038,000 |
) |
|
|
(1,895,000 |
) |
|
Cash and
cash equivalents at beginning of period |
|
10,452,000 |
|
|
|
7,469,000 |
|
|
Cash and
cash equivalents at end of period |
$ |
8,414,000 |
|
|
$ |
5,574,000 |
|
|
|
|
|
|
|
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