Superconductor Technologies Reports 2017 Second Quarter Results
August 10 2017 - 6:30AM
Superconductor Technologies Inc. (STI) (Nasdaq:SCON) reported
financial results for the quarter ended July 1, 2017.
Jeff Quiram, STI’s president and CEO, stated, “In the second
quarter, we remained focused on commercializing our Conductus® wire
and the advancement of our U.S. Department of Energy (DOE) project.
We shipped wire to multiple customers in the second quarter in
conjunction with our efforts to complete product qualification. We
have been actively engaged with these customers during their
testing process to improve our visibility moving forward. During
this period, our own comprehensive evaluation has identified
additional quality control enhancements to ensure that the
Conductus wire shipped fully meets the expected specifications. We
continue to engage with our industry-leading customers to develop
plans for supplying wire to meet their future demand.”
In June, STI was awarded a corporate agreement with the DOE for
the Next Generation Electric Machines (NGEM) program. The “Process
Innovations for HTS Wire Manufacturing” project has a comprehensive
engineering plan that has now been implemented. In November 2016,
STI was selected as the prime recipient of a $4.5 million award for
this three-year DOE program. STI is collaborating with TECO
Westinghouse Motor Company (TWMC), an industry leader, end user and
device maker with more than 100 years of experience in motor design
and application, and academic partners Massachusetts Institute of
Technology and the University of North Texas.
“We are excited to kick-off the DOE project. Our partners
recognize the immense value of superconducting technology for
high-power electric machines and are committed to
commercialization. This project team brings together the full range
of required expertise, from research and development to the product
manufacturing know-how necessary to achieve expanded availability
of superconducting materials, which will enable the commercial
viability of high power superconducting next-generation electric
machines. Along with our partners, we continue to believe that
STI’s goal of high performance Conductus wire at market-leading
cost can be a game changer for a wide range of applications,”
Quiram concluded.
Second Quarter Financial SummarySTI’s second
quarter 2017 net revenues were $8,000, compared to $1,000 in the
first quarter of 2017 and $11,000 in the second quarter of 2016.
Net loss for the second quarter 2017 was $2.5 million, or a loss of
$0.24 per basic and diluted share, compared to a net loss of $2.6
million, or a loss of $0.26 per basic and diluted share, in the
first quarter of 2017, and a net loss of $3.1 million, or a loss of
$1.14 per basic and diluted share in the second quarter of
2016.
For the six-month period ending July 1, 2017, total net revenues
were $9,000, compared to $100,000 for the first half of 2016. The
net loss for the first half of 2017 was $5.2 million, or $0.50 per
share, compared to $5.7 million, or $2.14 per share.
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 July 1, 2017, STI had $6.5 million in cash and cash
equivalents.
Investor Conference CallSTI will host a
conference call and simultaneous webcast today, August 10th 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 1-888-468-2440 at
least 10 minutes before the start of the conference. International
participants may dial 1-719-457-6931. The conference ID is
6141253. 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 August 14th
by dialing 1-844-512-2921 or 1-412-317-6671, and entering pass code
6141253. 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 |
|
Six Months Ended |
|
July 1, 2017 |
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
8,000 |
|
|
$ |
11,000 |
|
|
$ |
9,000 |
|
|
$ |
100,000 |
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of
revenues |
|
769,000 |
|
|
|
971,000 |
|
|
|
1,631,000 |
|
|
|
1,835,000 |
|
|
Research and
development |
|
678,000 |
|
|
|
701,000 |
|
|
|
1,328,000 |
|
|
|
1,417,000 |
|
|
Selling, general
and administrative |
|
1,124,000 |
|
|
|
1,420,000 |
|
|
|
2,244,000 |
|
|
|
2,583,000 |
|
|
|
|
|
|
|
|
|
|
|
Total costs and
expenses |
|
2,571,000 |
|
|
|
3,092,000 |
|
|
|
5,203,000 |
|
|
|
5,835,000 |
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(2,563,000 |
) |
|
|
(3,081,000 |
) |
|
|
(5,194,000 |
) |
|
|
(5,735,000 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income and
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
fair value of warrant derivatives |
|
11,000 |
|
|
|
- |
|
|
|
8,000 |
|
|
|
21,000 |
|
|
Other income |
|
11,000 |
|
|
|
3,000 |
|
|
|
16,000 |
|
|
|
6,000 |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(2,541,000 |
) |
|
$ |
(3,078,000 |
) |
|
$ |
(5,170,000 |
) |
|
$ |
(5,708,000 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share |
$ (.24) |
|
$ |
(1.14 |
) |
|
$ (.50) |
|
$ |
(2.14 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of common shares outstanding |
|
10,699,353 |
|
|
|
2,711,697 |
|
|
|
10,333,492 |
|
|
|
2,668,799 |
|
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
July 1, |
|
December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
(Unaudited) |
|
(See Note) |
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
Cash and cash
equivalents |
$ |
6,462,000 |
|
|
$ |
10,452,000 |
|
Accounts
receivable, net |
|
- |
|
|
|
8,000 |
|
Inventory,
net |
|
63,000 |
|
|
|
68,000 |
|
Prepaid expenses
and other current assets |
|
212,000 |
|
|
|
109,000 |
|
Total Current
Assets |
|
6,737,000 |
|
|
|
10,637,000 |
|
|
|
|
|
Property and
equipment, net of accumulated depreciation of |
|
|
|
$10,363,000 and
$9,350,000, respectively |
|
2,516,000 |
|
|
|
3,491,000 |
|
Patents,
licenses and purchased technology, net of accumulated
amortization |
|
|
|
of
$963,000 and $948,000, respectively |
|
903,000 |
|
|
|
990,000 |
|
Other
assets |
|
69,000 |
|
|
|
96,000 |
|
Total
Assets |
$ |
10,225,000 |
|
|
$ |
15,214,000 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
195,000 |
|
|
$ |
336,000 |
|
Accrued
expenses |
|
532,000 |
|
|
|
608,000 |
|
Total Current
Liabilities |
|
727,000 |
|
|
|
944,000 |
|
Other long-term
liabilities |
|
169,000 |
|
|
|
172,000 |
|
Total
Liabilities |
|
896,000 |
|
|
|
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, |
|
|
|
10,724,261 and 7,353,714 shares issued and outstanding,
respectively |
|
11,000 |
|
|
|
7,000 |
|
Capital in
excess of par value |
|
316,574,000 |
|
|
|
316,177,000 |
|
Accumulated
deficit |
|
(307,256,000 |
) |
|
|
(302,086,000 |
) |
Total
Stockholders' Equity |
|
9,329,000 |
|
|
|
14,098,000 |
|
Total
Liabilities and Stockholders' Equity |
$ |
10,225,000 |
|
|
$ |
15,214,000 |
|
SUPERCONDUCTOR TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
Six Months Ended |
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net
loss |
$ |
(5,170,000 |
) |
|
$ |
(5,708,000 |
) |
|
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
operating activities: |
|
|
|
|
Depreciation and amortization |
|
1,028,000 |
|
|
|
1,157,000 |
|
|
Stock-based compensation expense |
|
201,000 |
|
|
|
519,000 |
|
|
Adjustments to fair value of warrant derivatives |
|
(8,000 |
) |
|
|
21,000 |
|
|
Changes in assets and liabilities: |
|
|
|
|
Accounts receivable |
|
9,000 |
|
|
|
22,000 |
|
|
Inventories |
|
6,000 |
|
|
|
59,000 |
|
|
Prepaid expenses and other current assets |
|
(103,000 |
) |
|
|
(61,000 |
) |
|
Patents, licenses and purchased technology |
|
71,000 |
|
|
|
(94,000 |
) |
|
Other assets |
|
27,000 |
|
|
|
30,000 |
|
|
Accounts payable, accrued expenses and other current
liabilities |
|
(212,000 |
) |
|
|
3,000 |
|
|
Net
cash used in operating activities |
|
(4,151,000 |
) |
|
|
(4,052,000 |
) |
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
Purchases of property and equipment |
|
(39,000 |
) |
|
|
- |
|
|
Net
cash used in investing activities |
|
(39,000 |
) |
|
|
- |
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Net
proceeds from the exercise of outstanding warrants |
|
200,000 |
|
|
|
- |
|
|
Net
cash provided by financing activities |
|
200,000 |
|
|
|
- |
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents |
|
(3,990,000 |
) |
|
|
(4,052,000 |
) |
|
Cash and
cash equivalents at beginning of period |
|
10,452,000 |
|
|
|
7,469,000 |
|
|
Cash and
cash equivalents at end of period |
$ |
6,462,000 |
|
|
$ |
3,417,000 |
|
|
|
|
|
|
|
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