Superconductive Components, Inc. Reports Improved Third Quarter Results
October 28 2005 - 11:33AM
PR Newswire (US)
COLUMBUS, Ohio, Oct. 28 /PRNewswire-FirstCall/ -- Superconductive
Components, Inc. (OTC:SCCI) (BULLETIN BOARD: SCCI) , a manufacturer
of ceramics and metals for advanced applications in batteries,
photonic/optical, and high temperature superconductive products,
today announced results for the three months ended September 30,
2005. Total revenues increased 126.5% to $1,021,211 for the three
months ended September 30, 2005 from $450,838 for the same period
in 2004. The loss applicable to common shares was $44,320, or $0.02
per share, for the third quarter of 2005 compared to a loss
applicable to common shares of $262,505, or $0.11 per share, for
the same period last year. Dan Rooney, Chairman, President and
Chief Executive Officer, commented, "Our results for the third
quarter 2005 included the highest quarter of revenue since the
first quarter 2001, improved margins and a substantial reduction in
the net loss compared to the prior year. The significant growth in
revenues was primarily attributable to increased sales to customers
added earlier in 2005 and as well as to existing customers. We
benefited from our expanded sales efforts to the photonic/optical
market and also qualified for new business due to the ISO 9001:2000
registration we received during the second quarter 2005.
Additionally, sales to thin-film battery customers increased
substantially during the third quarter and exceeded sales to those
customers for the entire first half of 2005. Total revenues for the
first nine months of 2005 exceeded revenues for the full-year 2004.
During the third quarter 2005, the company received $1,004,000 of
new orders, which was the highest quarterly amount in the past
three years." Mr. Rooney added, "Earlier this month we successfully
completed a private equity placement. As previously reported, this
was the largest single financing in the company's history and
significantly improved our capital structure and balance sheet. We
plan to increase our presence in the photonic/optical market and
further strengthen our leading position in the manufacture of
materials for the emerging thin-film battery market." Other
Operating Results Product revenues increased 160.5% to $953,494 for
the third quarter 2005 from $366,072 the prior year as a result of
higher sales to existing customers and new Tier 1 automotive
customers. Contract research revenues declined to $67,717 for the
third quarter 2005 from $84,766 the prior year due to lower
revenues related to a Phase II Small Business Innovation Research
award from the Department of Energy. Gross profit increased to
$217,158, or 21.3% of total revenues, for the third quarter 2005
from a negative $27,966 for the third quarter 2004. This resulted
from increased production and improved operating efficiencies
compared to the same period last year. Gross margin on product
revenues rose to 22.8% for the third quarter 2005 from a negative
gross margin for the third quarter a year ago. General and
administrative expense was $171,973 for the third quarter 2005
compared to $174,601 for the same period last year. For the third
quarter 2004, general and administrative expenses included $35,586
of non-cash expenses. Sales and promotional expenses were $56,584
for the third quarter 2005 versus $51,942 for the third quarter
2004. Nine Month Results Total revenues for the nine months ended
September 30, 2005 increased 42.4% to $2,309,805 compared to
$1,621,777 for the same period last year. This was primarily
attributable to increased business from existing customers and the
addition of new customers. Product revenue increased 45.1% to
$2,064,122 for the nine months ended September 30, 2005 compared to
$1,422,716 a year ago. Contract research revenue was $245,683 for
the 2005 year-to-date period compared to $199,061 for the same
period in 2004. Gross profit was $477,370, or 20.7% of total
revenues, for the first nine months of 2005 versus $156,811, or
9.7% of total revenues, a year ago. This increase was due to higher
sales and revenue mix for the 2005 year-to-date period compared to
last year. Gross margin on product revenue improved to 23.1% in
2005 from 12.1% for the same period in 2004. General and
administrative expenses declined 18.5% to $544,177 for the first
nine months of 2005 from $667,601 for the same period last year.
The 2004 year-to-date period included $109,094 of one-time expenses
related to the company's move to a new facility and non-employee
stock warrants. Sales and promotional expenses for the first nine
months of 2005 decreased to $167,518 from $185,112 for the same
period last year primarily due to a decline in expenses related to
trade shows. The loss applicable to common shares was $319,595 for
the first nine months of 2005 compared to a loss of $911,844 for
the same period last year. On a per share basis, the year-to-date
loss applicable to common shares was $0.13 versus $0.43 for 2005
and 2004, respectively. Phase I SBIR Award In June 2005 the company
received a Phase I Small Business Innovation Research award for
approximately $100,000. These activities are intended to develop
superconductor round wire capable of operating above Tesla 12. The
award helps to maintain the company's active involvement in
superconductor programs through this type of research. This Phase 1
activity is expected to continue through the first quarter 2006.
Private Equity Placement On October 14, 2005, the company completed
a private equity financing. This included $1,386,000 in cash for
693,000 shares of the Company's common stock at a price of $2 per
share and five-year warrants to purchase an additional 173,250
shares of common stock at $3 per share. The company also converted
$587,110 of liabilities into 293,555 shares of common stock and
five-year warrants to purchase an additional 73,389 shares of
common stock at $3 per share. About Superconductive Components,
Inc. Superconductive Components, Inc. operates through SCI
Engineered Materials and manufactures ceramics and metals for
advanced applications such as thin film batteries, superconductors,
and advanced optical systems. The Company also provides materials
for thin film applications used in photovoltaics, electronic
switches, hardness and decorative coatings. The Company is a global
materials supplier with clients in more than 40 countries.
Additional information is available at
http://www.sciengineeredmaterials.com/. This press release contains
certain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, which are intended
to be covered by the safe harbors created thereby. Those statements
include, but are not limited to, all statements regarding intent,
beliefs, expectations, projections, forecasts, and plans of the
company and its management, and specifically include statements
regarding activities related to a Phase 1 SBIR which are expected
to continue through the first quarter 2006 (paragraph 14). These
forward-looking statements involve numerous risks and
uncertainties, including, without limitation: the development of
the thin film battery market, the impact of competitive products
and services, the ability to adapt to technological changes, the
availability of capital, and other risks and uncertainties detailed
from time to time in the company's Securities and Exchange
Commission filings, including the company's Annual Report on Form
10- KSB for the year ended December 31, 2004. One or more of these
factors have affected, and could in the future affect, the
company's projections. Therefore, there can be no assurances that
the forward-looking statements included in this press release will
prove to be accurate. In light of the significant uncertainties in
the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by the
company, or any other persons, that the objectives and plans of the
company will be achieved. All forward-looking statements made in
this press release are based on information presently available to
the management of the company. The company assumes no obligation to
update any forward-looking statements. DATASOURCE: Superconductive
Components, Inc. CONTACT: Robert Lentz, +1-614-876-2000, for
Superconductive Components, Inc. Web site:
http://www.sciengineeredmaterials.com/
Copyright