Superconductive Components, Inc. Reports Improved Fourth Quarter Results
March 27 2006 - 10:04AM
PR Newswire (US)
COLUMBUS, Ohio, March 27 /PRNewswire-FirstCall/ -- Superconductive
Components, Inc. (OTC:SCCI) (BULLETIN BOARD: SCCI) , which
manufactures ceramics and metals for advanced applications
including optical systems, thin film batteries, and
superconductors, today announced results for the three months and
twelve months ended December 31, 2005. Fourth quarter 2005
highlights included: - Total revenues more than doubled to
$1,147,377 from $551,087 for the fourth quarter 2004. - Gross
margin on product revenues increased to 24.1% from 13.7% the prior
year. - The loss applicable to common shares declined to $38,810,
or $0.01 per share, versus a loss applicable to common shares of
$213,163, or $0.08 per share, for the fourth quarter 2004. Dan
Rooney, Chairman, President and Chief Executive Officer, commented,
"Our fourth quarter 2005 performance, led by record product
revenues and improved gross profit margin, underscored the
Company's strong finish for 2005. During the year, we added key
customers in the advanced photonic/optical market as a direct
result of achieving ISO 9001:2000 registration in the second
quarter and expanded sales activities in key markets. Additionally,
manufacturers in the emerging thin-film battery market continue to
move from prototype stage toward commercialization of their
products. Further progress is anticipated during 2006, which is
expected to especially benefit 2007 revenues." Mr. Rooney
continued, "We entered 2006 with a solid backlog and sales
momentum. The capital we raised during the second half of 2005
positions us to achieve improved financial results this year."
Fourth Quarter Results Product revenues increased 124% to a record
$1,103,621 for the fourth quarter 2005 from $493,016 the prior
year, principally due to higher sales to existing customers coupled
with customers added during 2005. Contract research revenues were
$43,756 for the fourth quarter 2005 versus $58,071 for the same
period last year. The Company's gross profit increased to $263,940,
or 23.0% of total revenues, for the fourth quarter 2005 from
$69,561, or 12.6% for the same period last year. The fourth quarter
2005 results benefited from higher production levels and improved
operating efficiencies compared to the fourth quarter 2004. General
and administrative expense increased slightly to $226,423 for the
fourth quarter 2005 from $216,399 a year ago, primarily due to
incentive compensation. Selling expense increased to $70,051 for
the fourth quarter 2005 from $51,123 for the same period last year
due to the increase in commissions and incentive compensation
compared to last year. 2005 Results Total revenues increased 59% to
$3,457,182 for the twelve months ended December 31, 2005 from
$2,172,864 for 2004. The Company's growing customer base and
increased sales to existing customers represented the most
significant factors in the year-over-year increase. Product revenue
increased 65% to $3,167,743 for 2005 from $1,915,732 the prior
year. Contract research revenue increased to $289,439 for the year
2005 compared to $257,132 a year ago as a result of two Small
Business Innovation Research awards to determine the feasibility of
the initial production of cost-effective, long length round wires
for very high field magnet applications. Gross profit improved to
$741,310, or 21.4% of total revenues, for 2005 from $226,372, or
10.4% of total revenues for 2004. This increase was due to higher
volume and revenue mix for 2005 compared to the prior year, which
contributed to operating efficiencies. Gross margin on product
revenue improved to 23.5% for 2005 from 12.5% for 2004 as a result
of the increase in sales volume of higher margin products. General
and administrative expenses declined approximately 13% to $770,600
for 2005 from $884,000 last year. This decrease was primarily due
to $80,863 of one-time expenses related to the Company's move to a
new facility in 2004. Selling expense remained relatively flat at
$237,569 for 2005 versus $236,235 for 2004. The loss applicable to
common shares declined to $358,405, or $0.14 per share, for 2005
from a loss of $1,125,007, or $0.51 per share, for 2004. About
Superconductive Components, Inc. SCI Engineered Materials, an
operating unit of Superconductive Components, Inc., 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 further progress by thin-film battery manufacturers that
is anticipated during 2006, which is expected to especially benefit
2007 revenues (paragraph 2), and the Company entered 2006 with a
solid backlog and sales momentum, and the capital raised during the
second half of 2005 positions the Company to achieve improved
performance in 2006 (paragraph 3). 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, 2005.
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 for Superconductive Components, Inc., +1-614-876-2000
Web site: http://www.sciengineeredmaterials.com/
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