Superconductor Technologies Reports First Quarter 2019 Results
May 09 2019 - 6:30AM
Superconductor Technologies Inc. (STI) (Nasdaq: SCON) reported
financial results for the three months ended March 30, 2019.
Jeff Quiram, STI’s president and CEO, stated, “We continued to
make progress in the first quarter as we ramp our production
capability to meet customer expectations. We still expect to start
delivering against orders for our Conductus® high performance
magnet wire in the second quarter, with a focus on shipments of
10’s of kilometers later this year. Our superconducting magnet
customers have forecasted the need for 1000’s of kilometers of wire
starting in the next few years.
“Recently, we announced our project win from the Institute for
Plasma Research, India, (IPR) for next generation Tokamak fusion
development. This Conductus wire order from the prestigious IPR is
another step forward as we continue to see growing interest in high
performance superconducting wire optimized for high magnetic
field/low temperature applications. Fusion has the promise of
delivering environmentally friendly and cost-efficient energy for
future generations. We are excited to partner with IPR as they move
forward in their fusion development. We also look forward to
working with our distribution partner in India, TING Corporation,
to expand our customer footprint by providing additional customers
with high performance magnet wire that delivers a competitive
advantage.”
First Quarter Financial SummarySTI did not
record net revenues in the first quarter of 2019, compared to
$246,000 in the first quarter of 2018, which came from work done in
the first budget period of the company’s ongoing Department of
Energy (DOE) Next Generation Electrical Machine project. STI has
not yet started the second budget period of the DOE project.
Net loss for the first quarter 2019 was $2.3 million, or a loss
of $0.70 per share, compared to a net loss of $2.2 million, or a
loss of $1.98 per share for the first quarter of 2018.
Please note: share and per share data for both periods is
adjusted for the 1-for-10 reverse stock split effective on July 24,
2018.As of March 30, 2019, STI had $3.6 million in cash and cash
equivalents.
Investor Conference CallSTI will host a
conference call and simultaneous webcast today, May 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 1-866-548-4713 at least 10
minutes before the start of the conference. International
participants may dial 1-323-794-2093. The conference ID is
7511231. 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
7511231. 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 third quarter of
2019), 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, 2018, 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 ContactMoriah Shilton or
Kirsten ChapmanLHA
+1-415-433-3777
invest@suptech.com
SUPERCONDUCTOR TECHNOLOGIES
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
Three
Months Ended |
|
|
March 30, 2019 |
|
March 31, 2018 |
|
|
|
|
|
Government contract revenues |
|
$ |
- |
|
|
$ |
246,000 |
|
Total revenues |
|
|
- |
|
|
|
246,000 |
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
Cost of commercial product
revenues |
|
|
870,000 |
|
|
|
639,000 |
|
Cost of government
contract revenues |
|
|
6,000 |
|
|
|
183,000 |
|
Research and
development |
|
|
625,000 |
|
|
|
577,000 |
|
Selling, general and
administrative |
|
|
861,000 |
|
|
|
1,041,000 |
|
|
|
|
|
|
Total costs and
expenses |
|
|
2,362,000 |
|
|
|
2,440,000 |
|
|
|
|
|
|
Loss from operations |
|
|
(2,362,000 |
) |
|
|
(2,194,000 |
) |
|
|
|
|
|
Other Income and Expense: |
|
|
|
|
Adjustments to fair value
of warrant derivatives |
|
|
- |
|
|
|
33,000 |
|
Adjustment to warrant
exercise price |
|
|
- |
|
|
|
(24,000 |
) |
Other income |
|
|
27,000 |
|
|
|
7,000 |
|
|
|
|
|
|
Net loss |
|
$ |
(2,335,000 |
) |
|
$ |
(2,178,000 |
) |
|
|
|
|
|
Basic and diluted net loss per
common share |
|
$ |
(0.70 |
) |
|
$ |
(1.98 |
) |
|
|
|
|
|
Basic and diluted weighted
average number of common |
|
|
|
|
shares outstanding |
|
|
3,328,605 |
|
|
|
1,102,126 |
|
See accompanying notes to the unaudited condensed
consolidated financial statements.
SUPERCONDUCTOR TECHNOLOGIES INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
March 30, |
|
December 31, |
|
2019 |
|
2018 |
|
(Unaudited) |
|
(See Note) |
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
Cash and cash
equivalents |
$ |
3,589,000 |
|
|
$ |
5,616,000 |
|
Inventories, net |
|
98,000 |
|
|
|
173,000 |
|
Prepaid expenses and other
current assets |
|
10,000 |
|
|
|
61,000 |
|
Total Current Assets |
|
3,697,000 |
|
|
|
5,850,000 |
|
|
|
|
|
Property and
equipment, net of accumulated depreciation of |
|
|
|
$12,396,000 and
$12,172,000, respectively |
|
785,000 |
|
|
|
1,009,000 |
|
Patents, licenses and
purchased technology, net of accumulated amortization |
|
|
|
of $1,037,000 and
$1,026,000, respectively |
|
675,000 |
|
|
|
686,000 |
|
Operating lease
assets |
|
595,000 |
|
|
|
- |
|
Other assets |
|
69,000 |
|
|
|
69,000 |
|
Total Assets |
$ |
5,821,000 |
|
|
$ |
7,614,000 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
367,000 |
|
|
$ |
313,000 |
|
Accrued expenses |
|
417,000 |
|
|
|
539,000 |
|
Current operating lease
liabilities |
|
588,000 |
|
|
|
- |
|
Total Current
Liabilities |
|
1,372,000 |
|
|
|
852,000 |
|
Long term operating lease
liabilities |
|
7,000 |
|
|
|
- |
|
Other long term
liabilities |
|
8,000 |
|
|
|
17,000 |
|
Total Liabilities |
|
1,387,000 |
|
|
|
869,000 |
|
|
|
|
|
Commitments and Contingencies
(Notes 5 and 6) |
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
Preferred stock, $.001 par
value, 2,000,000 shares authorized, |
|
|
|
328,925 and 330,787 shares issued and outstanding,
respectively |
|
- |
|
|
|
- |
|
Common stock, $.001 par
value, 250,000,000 shares authorized, |
|
|
|
3,802,609 and 3,270,609 shares issued and outstanding,
respectively |
|
4,000 |
|
|
|
3,000 |
|
Capital in excess of par
value |
|
326,509,000 |
|
|
|
326,486,000 |
|
Accumulated deficit |
|
(322,079,000 |
) |
|
|
(319,744,000 |
) |
Total Stockholders'
Equity |
|
4,434,000 |
|
|
|
6,745,000 |
|
Total Liabilities and
Stockholders' Equity |
$ |
5,821,000 |
|
|
$ |
7,614,000 |
|
Note – December 31, 2018 balances were derived
from audited financial statements.
SUPERCONDUCTOR TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
Three Months Ended |
|
March 30, 2019 |
|
March 31, 2018 |
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net loss |
$ |
(2,335,000 |
) |
|
$ |
(2,178,000 |
) |
|
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
operating activities: |
|
|
|
|
Depreciation and amortization |
|
235,000 |
|
|
|
323,000 |
|
|
Stock-based compensation expense |
|
24,000 |
|
|
|
17,000 |
|
|
Adjustments to fair value of warrant derivatives |
|
- |
|
|
|
(33,000 |
) |
|
Adjustment to warrant exercise price |
|
- |
|
|
|
24,000 |
|
|
Changes in assets and liabilities: |
|
|
|
|
Accounts receivable |
|
- |
|
|
|
(30,000 |
) |
|
Inventories |
|
75,000 |
|
|
|
(67,000 |
) |
|
Prepaid expenses and other current assets |
|
51,000 |
|
|
|
68,000 |
|
|
Patents and licenses |
|
- |
|
|
|
(1,000 |
) |
|
Accounts payable, accrued expenses and other current
liabilities |
|
(77,000 |
) |
|
|
45,000 |
|
|
Net cash used in operating activities |
|
(2,027,000 |
) |
|
|
(1,832,000 |
) |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
Purchases of property and equipment |
|
- |
|
|
|
(5,000 |
) |
|
Net cash used in investing activities |
|
- |
|
|
|
(5,000 |
) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Net proceeds from the sale of common stock |
|
- |
|
|
|
1,700,000 |
|
|
Net cash provided by financing activities |
|
- |
|
|
|
1,700,000 |
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(2,027,000 |
) |
|
|
(137,000 |
) |
|
Cash and cash equivalents at beginning of period |
|
5,616,000 |
|
|
|
3,056,000 |
|
|
Cash and cash equivalents at end of period |
$ |
3,589,000 |
|
|
$ |
2,919,000 |
|
|
|
|
|
|
|
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