Superconductor Technologies Reports 2017 Third Quarter Results
November 09 2017 - 6:30AM
– Successfully completed third party validation
test for target application –– Shipped Conductus wire to target
customers –– Attained NEW record current carrying
performance –
Superconductor Technologies Inc. (STI) (Nasdaq:SCON) reported
financial results for the quarter ended September 30, 2017.
“In the third quarter, we attained the required specification
for a key customer’s application for our Conductus® HTS wire,”
stated Jeff Quiram, STI’s president and CEO. “The Robinson Research
Institute, an internationally recognized expert in the development
of innovative superconducting products, confirmed our results
through its independent testing. We have now shipped this improved
wire to several customers with near-term wire demand forecasts.
“The forecasted demand for 2G HTS wire continues to increase,
especially for wire optimized for applications including fault
current limiters, utility scale generators, transmission cables,
fusion energy, ultra-high-performance magnets for science, electric
aircraft and next generation energy storage devices. Customers
continue to recognize the value of high-performance HTS wire as the
gap from low-performance wire options widens. High performance wire
enables these customers to deliver end products that offer reduced
size, weight, and greatly improved overall efficiency. As a result,
our discussions with industry leaders have never been more active.
This interest was highlighted at the EUCAS conference in Geneva in
September, where customer discussions revolved around developing a
plan to supply wire for their projects. We believe the current and
near future initiatives being pursued underscore the fact that
potential demand for Conductus wire is greater than ever.
“During the quarter, we made progress on our ‘Process
Innovations for HTS Wire Manufacturing’ project, which is part of
the Next Generation Electric Machines program with the U.S.
Department of Energy. At this time, we have demonstrated a 40%
improvement in critical current capacity above the baseline set at
the beginning of the project. We are excited to be working on
this program with TECO-Westinghouse Motor Company, an industry
leading manufacturer of electric generators and motors, and our
highly respected academic partners, Massachusetts Institute of
Technology and University of North Texas,” Quiram concluded.
Third Quarter Financial SummarySTI’s third
quarter 2017 net revenues were $130,000, compared to $11,000 in the
second quarter of 2017 and $22,000 in the third quarter of 2016.
Net loss for the third quarter 2017 was $2.5 million, or a loss of
$0.23 per basic and diluted share, compared to a net loss of $2.5
million, or a loss of $0.24 per basic and diluted share, in the
second quarter of 2017, and a net loss of $2.9 million, or a loss
of $0.93 per basic and diluted share in the third quarter of
2016.
For the nine-month period ending Sept. 30, 2017, total net
revenues were $139,000, compared to $122,000 for the same period of
2016. The net loss for the first nine months of 2017 was $7.7
million, or $0.73 per share, compared to $8.6 million, or $3.06 per
share.
As of Sept. 30, 2017, STI had $4.7 million in cash and cash
equivalents.
Investor Conference CallSTI will host a
conference call and simultaneous webcast today, November 9th 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 1-877-719-9799 at
least 10 minutes before the start of the conference. International
participants may dial 1-719-457-6931. The conference ID is
9276722. 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 November
13th by dialing 1-844-512-2921 or 1-412-317-6671, and entering pass
code 9276722. 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 |
|
|
Nine Months Ended |
|
|
September 30, 2017 |
|
October 1, 2016 |
|
September 30, 2017 |
|
October 1, 2016 |
|
|
|
|
|
|
|
|
|
|
Commercial product
revenues |
$ |
- |
|
|
$ |
22,000 |
|
|
$ |
9,000 |
|
|
$ |
122,000 |
|
|
Government contract
revenues |
|
130,000 |
|
|
|
- |
|
|
|
130,000 |
|
|
|
- |
|
|
Total
revenues |
|
130,000 |
|
|
|
22,000 |
|
|
|
139,000 |
|
|
|
122,000 |
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of
commercial product revenues |
|
790,000 |
|
|
|
962,000 |
|
|
|
2,421,000 |
|
|
|
2,796,000 |
|
|
Cost of
government contract revenues |
|
85,000 |
|
|
|
- |
|
|
|
96,000 |
|
|
|
- |
|
|
Research
and development |
|
766,000 |
|
|
|
676,000 |
|
|
|
2,094,000 |
|
|
|
2,093,000 |
|
|
Selling,
general and administrative |
|
1,063,000 |
|
|
|
1,231,000 |
|
|
|
3,296,000 |
|
|
|
3,814,000 |
|
|
|
|
|
|
|
|
|
|
|
Total
costs and expenses |
|
2,704,000 |
|
|
|
2,869,000 |
|
|
|
7,907,000 |
|
|
|
8,703,000 |
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(2,574,000 |
) |
|
|
(2,847,000 |
) |
|
|
(7,768,000 |
) |
|
|
(8,581,000 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income and
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to fair value of warrant derivatives |
|
59,000 |
|
|
|
18,000 |
|
|
|
67,000 |
|
|
|
38,000 |
|
|
Adjustments to warrant exercise price |
|
- |
|
|
|
(47,000 |
) |
|
|
- |
|
|
|
(47,000 |
) |
|
Other
income |
|
11,000 |
|
|
|
2,000 |
|
|
|
27,000 |
|
|
|
8,000 |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(2,504,000 |
) |
|
$ |
(2,874,000 |
) |
|
$ |
(7,674,000 |
) |
|
$ |
(8,582,000 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share |
$ |
(0.23 |
) |
|
$ |
(0.93 |
) |
|
$ |
(0.73 |
) |
|
$ |
(3.06 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of common shares outstanding |
|
10,714,927 |
|
|
|
3,085,403 |
|
|
|
10,460,637 |
|
|
|
2,806,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPERCONDUCTOR TECHNOLOGIES
INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
September 30, |
|
December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
(Unaudited) |
|
(See Note) |
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
Cash and
cash equivalents |
$ |
4,682,000 |
|
|
$ |
10,452,000 |
|
Accounts
receivable, net |
|
87,000 |
|
|
|
8,000 |
|
Inventory, net |
|
47,000 |
|
|
|
68,000 |
|
Prepaid
expenses and other current assets |
|
164,000 |
|
|
|
109,000 |
|
Total
Current Assets |
|
4,980,000 |
|
|
|
10,637,000 |
|
|
|
|
|
Property
and equipment, net of accumulated depreciation of |
|
|
|
$10,800,000 and $9,350,000, respectively |
|
2,162,000 |
|
|
|
3,491,000 |
|
Patents,
licenses and purchased technology, net of accumulated
amortization |
|
|
|
of
$973,000 and $948,000, respectively |
|
776,000 |
|
|
|
990,000 |
|
Other
assets |
|
69,000 |
|
|
|
96,000 |
|
Total
Assets |
$ |
7,987,000 |
|
|
$ |
15,214,000 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
350,000 |
|
|
$ |
336,000 |
|
Accrued
expenses |
|
601,000 |
|
|
|
608,000 |
|
Total
Current Liabilities |
|
951,000 |
|
|
|
944,000 |
|
Other
long-term liabilities |
|
112,000 |
|
|
|
172,000 |
|
Total
Liabilities |
|
1,063,000 |
|
|
|
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, |
|
|
|
10,759,261 and 7,353,714 shares issued and outstanding,
respectively |
|
11,000 |
|
|
|
7,000 |
|
Capital
in excess of par value |
|
316,673,000 |
|
|
|
316,177,000 |
|
Accumulated deficit |
|
(309,760,000 |
) |
|
|
(302,086,000 |
) |
Total
Stockholders' Equity |
|
6,924,000 |
|
|
|
14,098,000 |
|
Total
Liabilities and Stockholders' Equity |
$ |
7,987,000 |
|
|
$ |
15,214,000 |
|
SUPERCONDUCTOR TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
Nine Months Ended |
|
September 30, 2017 |
|
October 1, 2016 |
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
Net
loss |
$ |
(7,674,000 |
) |
|
$ |
(8,582,000 |
) |
Adjustments to reconcile net loss to net cash used in |
|
|
|
operating
activities: |
|
|
|
Depreciation and amortization |
|
1,474,000 |
|
|
|
1,736,000 |
|
Stock-based compensation expense |
|
300,000 |
|
|
|
776,000 |
|
Adjustments to fair value of warrant derivatives |
|
(67,000 |
) |
|
|
(38,000 |
) |
Adjustments to warrant exercise price |
|
- |
|
|
|
47,000 |
|
Changes
in assets and liabilities: |
|
|
|
Accounts
receivable |
|
(78,000 |
) |
|
|
32,000 |
|
Inventories |
|
22,000 |
|
|
|
56,000 |
|
Prepaid
expenses and other current assets |
|
(55,000 |
) |
|
|
(2,000 |
) |
Patents,
licenses and purchased technology |
|
189,000 |
|
|
|
(130,000 |
) |
Other
assets |
|
27,000 |
|
|
|
30,000 |
|
Accounts
payable, accrued expenses and other current liabilities |
|
13,000 |
|
|
|
101,000 |
|
Net cash
used in operating activities |
|
(5,849,000 |
) |
|
|
(5,974,000 |
) |
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
Purchases
of property and equipment |
|
(121,000 |
) |
|
|
- |
|
Net cash
used in investing activities |
|
(121,000 |
) |
|
|
- |
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
Net
proceeds from the sale of common and preferred stock |
|
- |
|
|
|
1,900,000 |
|
Net
proceeds from the exercise of outstanding warrants |
|
200,000 |
|
|
|
- |
|
Net cash
provided by financing activities |
|
200,000 |
|
|
|
1,900,000 |
|
|
|
|
|
Net
decrease in cash and cash equivalents |
|
(5,770,000 |
) |
|
|
(4,074,000 |
) |
Cash and
cash equivalents at beginning of period |
|
10,452,000 |
|
|
|
7,469,000 |
|
Cash and
cash equivalents at end of period |
$ |
4,682,000 |
|
|
$ |
3,395,000 |
|
|
|
|
|
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