Superconductive Components, Inc. Reports Record First Quarter Revenues
May 08 2006 - 5:30PM
PR Newswire (US)
COLUMBUS, Ohio, May 8 /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 ended
March 31, 2006. First quarter 2006 highlights included: - Total
revenue increased 109% to $1,200,623 from $575,059 for the first
quarter 2005. - Gross profit rose to $272,973 from $156,854 for the
same period last year. - Loss applicable to common shares was
$53,273 versus a loss of $145,213 for the first quarter 2005. Dan
Rooney, Chairman, President and Chief Executive Officer, commented,
"We are pleased to have achieved record revenue for the first
quarter 2006, which also marked the third consecutive quarter of $1
million or more of sales revenue. The sales improvement coupled
with higher gross profit contributed to positive cash flow from
operations for the first quarter 2006, our first in two years. We
ended the first quarter 2006 with solid backlog and positive signs
attributable to improving conditions in our markets and
specifically from our customers." First Quarter 2006 Results
Product revenues increased 138% to a record $1,158,531 for the
first quarter 2006 from $486,626 the prior year. Most of the
year-over-year increase was due to higher sales to the Company's
expanding customer base. Contract research revenue was $42,092 for
the first quarter 2006 versus $88,433 for the same period last
year. The Company's gross profit was $272,973, or 22.7% of total
revenue, for the first quarter 2006 versus $156,854, or 27.3% of
total revenue, for the same period last year. Gross profit for the
first quarter 2006 increased 74% versus the prior year. Positive
contributions from higher production levels and improved operating
efficiencies during the first quarter 2006 were offset by a change
in product mix versus the first quarter 2005. General and
administrative expense increased to $212,730 for the first quarter
2006 from $186,019 a year ago, primarily due to implementation of
an incentive compensation program. Research and development
expenses were $47,176 for the first quarter 2006 versus $42,068 for
the same period in 2005, principally due to higher wages. A Phase I
Small Business Innovation Research ("SBIR") grant to determine the
feasibility of cost effective, long length BSCCO 2212 round wires
for very high field magnets was completed during the first quarter
2006. The Company has applied for a Phase II SBIR for this project
based on the Phase I findings. Selling expense rose to $68,103 for
the first quarter 2006 from $52,522 for the same period last year,
primarily due to incentive compensation. Interest expense declined
to $2,024 for the first quarter 2006 from $15,522 for the same
period last year due to a $1.4 million private equity financing and
a $0.6 million conversion of liabilities to common equity during
the second half of 2005. The loss applicable to common shares was
$53,273, or $0.02 per share, compared to $145,213, or $0.06 per
share, for the same period last year. There were 3,425,915 weighted
average shares outstanding for the first quarter 2006 compared to
2,439,360 on that same period last year. 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 solid backlog and positive signs attributable to
improving conditions in the Company's markets and specifically from
its customers. 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, +1-614-876-2000, for Superconductive Components, Inc.
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