Superconductor Technologies Reports Second Quarter 2013 Results
August 13 2013 - 6:30AM
- Demonstrates significant progress in plan to
produce Conductus wire on a commercial scale in 2014 -
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 June 29, 2013.
"In the second quarter, we executed on our priority to ship
Conductus® wire to several industry leading multi-national
companies," said Jeff Quiram, STI's president and chief executive
officer. "While attaining these important goals, we also
experienced a marked improvement in our wire performance, yields
and wire length per run during the quarter."
"As announced on July 23rd, we shipped wire against three
purchase orders to customers for wire qualification purposes. In
addition, in the second quarter we recognized our first, albeit
modest, revenue for Conductus wire. Since that status update, we
have continued to ship Conductus wire to fulfill existing purchase
orders. The extensive customer interest further illustrates the
applicability of our Conductus wire for diverse and large market
applications, such as superconducting fault current limiters,
superconducting high-field magnets, HTS power cables and
superconducting motors and generators."
"To successfully commercialize Conductus wire and create
long-term revenue growth, we are fostering relationships with large
industrial companies with well-established sales channels. We
continue to make technical progress as we ramp up production volume
to fulfill our existing customer orders. In addition, we continue
to make progress toward the 500 Amp current performance required
for the upcoming high power cable project. Our near-term goal is to
establish commercial relationships with one or more of these
customers completing the wire qualification efforts, with the
objective of securing orders for our planned 2014 production,"
Quiram concluded.
STI's second quarter 2013 net revenues of $555,000 were
primarily from wireless products. This compares to revenue of
$776,000 million in the first quarter of 2013 and $596,000 in the
second quarter of 2012. Net loss for the second quarter of 2013 was
$2.4 million, or a loss of $0.54 per basic and diluted share,
compared to a net loss of $2.4 million, or a loss of $0.58 per
basic and diluted share, in the first quarter of 2013, and a net
loss of $3.4 million, or a loss of $1.03 per basic and diluted
share, in the second quarter of 2012.
For the six-month period ending June 29, 2013, total net
revenues were $1.3 million, compared to $1.0 million for the first
half of 2012. The net loss for the first half of 2013 was $4.8
million, or $1.12 per share, compared to $6.4 million, or $2.04 per
share, for the prior year's first half.
As of June 29, 2013, STI had $1.6 million in cash and cash
equivalents. Subsequent to the end of the second quarter of 2013,
STI received net proceeds of $10.9 million from a registered public
offering of common stock and warrants.
Investor Conference Call
STI will host a conference call and simultaneous webcast today,
August 13th, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time.
The call will be accessible live by dialing 1-877-941-0844 at least
10 minutes before the start of the conference. International
participants may dial 1-480-629-9835. The conference ID is 4631191.
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 August 16th by dialing 1-800-406-7325 or
1-303-590-3030, and entering pass code 4631191. A replay will also
be available at the web address above.
About Superconductor Technologies Inc.
(STI)
Superconductor Technologies Inc., headquartered in Austin, TX,
has been a world leader in HTS materials since 1987, developing
more than 100 patents as well as proprietary trade secrets and
manufacturing expertise. For more than a decade, STI has been
providing innovative interference elimination and network
enhancement solutions to the commercial wireless industry. The
company is currently leveraging its key enabling technologies,
including RF filtering, HTS materials and cryogenics to develop
energy efficient, cost-effective and high performance second
generation (2G) HTS wire for existing and emerging power
applications, to develop applications for advanced RF wireless
solutions and innovative adaptive filtering, and for government
R&D. 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; the limited number of
potential customers; 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; overcoming technical challenges in attaining
milestones to develop and manufacture commercial lengths of our HTS
wire; customer acceptance of our HTS wire; fluctuations in product
demand from quarter to quarter; the impact of competitive filter
products, technologies and pricing; manufacturing capacity
constraints and difficulties; our ability to raise sufficient
capital to fund our operations (whether through registered direct
offerings or otherwise), and the impact on our strategic wire
initiative of any inability to raise such funds; the impact of any
such financing activity on the level of our stock price, which may
decline in connection with the sales under registered direct
offerings or otherwise; the dilutive impact of any issuances of
securities to raise capital; and local, regional, and national and
international economic conditions and events and the impact they
may have on us and our customers, such as the current worldwide
recession.
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, 2012 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 Contact Cathy 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 |
|
June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|
|
|
|
|
Net revenues: |
|
|
|
|
Net commercial product
revenues |
$555,000 |
$529,000 |
$1,331,000 |
$873,000 |
Government and other contract
revenues |
-- |
67,000 |
-- |
122,000 |
|
|
|
|
|
Total net
revenues |
555,000 |
596,000 |
1,331,000 |
995,000 |
|
|
|
|
|
Costs and expenses: |
|
|
|
|
Cost of commercial product
revenues |
394,000 |
1,078,000 |
620,000 |
1,922,000 |
Cost of government and other
contract revenue |
-- |
43,000 |
-- |
95,000 |
Research and development |
1,411,000 |
1,314,000 |
2,849,000 |
2,475,000 |
Selling, general and
administrative |
1,130,000 |
1,604,000 |
2,475,000 |
2,952,000 |
|
|
|
|
|
Total costs and
expenses |
2,935,000 |
4,039,000 |
5,944,000 |
7,444,000 |
|
|
|
|
|
Loss from operations |
(2,380,000) |
(3,443,000) |
(4,613,000) |
(6,449,000) |
|
|
|
|
|
Other Income and Expense: |
|
|
|
|
|
|
|
|
|
Loss from investment in
Resonant LLC joint venture |
(56,000) |
-- |
(238,000) |
-- |
Other income |
-- |
21,000 |
6,000 |
37,000 |
Interest Income |
-- |
3,000 |
1,000 |
5,000 |
Net loss |
$ (2,436,000) |
$ (3,419,000) |
$ (4,844,000) |
$ (6,407,000) |
|
|
|
|
|
Basic and diluted loss per common
share |
$ (0.54) |
$ (1.03) |
$ (1.12) |
$ (2.04) |
|
|
|
|
|
Basic and diluted weighted average number of
common shares outstanding |
4,521,731 |
3,325,383 |
4,337,905 |
3,145,097 |
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
|
|
|
June 29, |
December 31, |
|
2013 |
2012 |
|
(Unaudited) |
(See Note) |
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
Cash and cash equivalents |
$1,613,000 |
$3,634,000 |
Accounts receivable,
net |
232,000 |
122,000 |
Inventory, net |
107,000 |
51,000 |
Prepaid expenses and other
current assets |
334,000 |
315,000 |
Total Current Assets |
2,286,000 |
4,122,000 |
|
|
|
Property and equipment, net of
accumulated depreciation of $19,994,000 and $19,445,000,
respectively |
5,868,000 |
6,242,000 |
Patents, licenses and purchased
technology, net of accumulated amortization of $2,400,000 and
$2,367,000, respectively |
806,000 |
889,000 |
Other assets |
504,000 |
776,000 |
Total
Assets |
$9,464,000 |
$12,029,000 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current Liabilities: |
|
|
Accounts payable |
$541,000 |
$603,000 |
Accrued expenses |
687,000 |
460,000 |
Total Current Liabilities |
1,228,000 |
1,063,000 |
Other long term
liabilities |
547,000 |
674,000 |
Total Liabilities |
1,775,000 |
1,737,000 |
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
Preferred stock, $.001 par
value, 2,000,000 shares authorized, 536,520 and 564,642 shares
issued and outstanding, respectively |
1,000 |
1,000 |
Common stock, $.001 par value,
250,000,000 shares authorized, 4,751,284 and 4,193,690 shares
issued and outstanding, respectively |
5,000 |
4,000 |
Capital in excess of par
value |
274,471,000 |
272,231,000 |
Accumulated deficit |
(266,788,000) |
(261,944,000) |
Total Stockholders' Equity |
7,689,000 |
10,292,000 |
Total Liabilities and
Stockholders' Equity |
$9,464,000 |
$12,029,000 |
|
|
|
Note – December 31, 2012 balances
were derived from audited consolidated financial statements. |
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
|
|
Six Months Ended |
|
June 29, 2013 |
June 30, 2012 |
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
Net loss |
$ (4,844,000.00) |
$ (6,407,000.00) |
Adjustments to reconcile net loss to net cash
used for operating activities: |
|
|
Depreciation and
amortization |
589,000 |
130,000 |
Stock-based compensation
expense |
296,000 |
559,000 |
Write-off of intangibles |
87,000 |
87,000 |
Provision for excess and
obsolete inventories |
-- |
182,000 |
Gain on disposal of property
and equipment |
(6,000) |
(37,000) |
Equity loss from Resonant
LLC |
238,000 |
-- |
Changes in assets and
liabilities: |
|
|
Accounts receivable |
(110,000) |
(222,000) |
Inventories |
(56,000) |
276,000 |
Prepaid expenses and other
current assets |
(18,000) |
(89,000) |
Patents and licenses |
(38,000) |
(115,000) |
Other assets |
34,000 |
5,000 |
Accounts payable, accrued
expenses and other current liabilities |
37,000 |
175,000 |
Net cash used in operating
activities |
(3,791,000) |
(5,456,000) |
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
Purchases of property and equipment |
(181,000) |
(1,863,000) |
Net proceeds from sale of property and
equipment |
6,000 |
37,000 |
Net cash used in investing
activities |
(175,000) |
(1,826,000) |
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
Repurchase of common shares for withholding
obligations |
-- |
(134,000) |
Net proceeds from the sale of common
stock |
1,945,000 |
6,621,000 |
Net cash provided by financing
activities |
1,945,000 |
6,487,000 |
|
|
|
Net decrease in cash and cash
equivalents |
(2,021,000) |
(795,000) |
Cash and cash equivalents at beginning of
period |
3,634,000 |
6,165,000 |
Cash and cash equivalents at end of
period |
$1,613,000 |
$5,370,000 |
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