Superconductive Components, Inc. Reports Record Fourth Quarter 2006 and Full- Year Results
March 07 2007 - 8:54AM
PR Newswire (US)
COLUMBUS, Ohio, March 7 /PRNewswire-FirstCall/ -- Superconductive
Components, Inc. (OTC:SCCI) (BULLETIN BOARD: SCCI) , dba SCI
Engineered Materials, a manufacturer of high quality sputtering
targets for select markets in the physical vapor deposition
industry, today announced results for the three months and twelve
months ended December 31, 2006. Fourth quarter 2006 versus fourth
quarter 2005 highlights included: - Total revenues more than
doubled to $3,622,238 from $1,147,377. - Gross profit increased to
$765,724 from $279,364. - Diluted earnings per share of $0.07
versus a loss of $(0.01). - Backlog of $1.4 million and $0.6
million at December 31, 2006 and 2005, respectively. Dan Rooney,
Chairman, President and Chief Executive Officer, commented, "We are
very pleased with the record revenue, improved gross profit, and
net income for the fourth quarter 2006. These results also
contributed to solid improvement for the full year 2006 compared to
2005. Importantly, we ended the year with business momentum and
anticipate realizing further benefits in 2007. Our growth strategy
is focused on select markets where the Company can leverage its
core capabilities. During 2006, we began to develop transparent
conductive oxide materials for the high-growth photovoltaic solar
cell market. By year-end, a prototype application was being tested
and we will continue these efforts during 2007." Mr. Rooney stated,
"We ended 2006 with a solid backlog of more than $1.4 million, and
in January 2007 we received a purchase order for approximately $2
million to manufacture products for an existing customer. These
factors will benefit our performance during the first two quarters
of this year and complement other initiatives to pursue profitable
growth opportunities and markets compatible with the Company's
strengths." Fourth Quarter 2006 Results Revenues increased 216% to
a record $3,622,238 for the fourth quarter 2006 from $1,147,377 a
year ago, led by significantly higher product sales in the
Photonics/Optical market, which included substantial purchases of
commodities that are fully reflected in the Company's selling
prices. Gross profit increased 174% to $765,724 for the fourth
quarter 2006 from $279,364 for the comparable period in 2005.
Higher product sales revenue coupled with improved operating
efficiencies contributed to the year-over-year improvement. For the
fourth quarter 2006, gross profit margin on product sales was 21.1%
versus 24.3% for the same period last year due to substantially
higher purchases of commodities, which have a lower gross margin
than the Company's overall gross margin. General and administrative
expense rose 27% to $261,493 for the fourth quarter 2006 from
$205,261 a year ago, primarily due to increased wages, higher
public relations and legal expenses and the implementation of an
incentive compensation program. Selling expense was $144,447 for
the fourth quarter 2006 compared to $70,051 last year. This
increase was due to additional staff and additional marketing
activities to support higher product sales. Research and
development expenses were $67,533 for the fourth quarter 2006,
representing an 85% increase over the same period last year. The
Company continues to conduct research and development with its
customers. Net income per common share after dividends on preferred
stock increased to $268,620, or $0.07 per diluted share, for the
three months ended December 31, 2006 from a net loss per common
share after dividends on preferred stock of $(38,810), or $0.00,
for the same period in 2005. Year 2006 Results Total revenues
increased 133% to a record $8,045,792 for the twelve months ended
December 31, 2006 compared to $3,457,182 for 2005. The results
benefited from a growing customer base, increased sales to existing
customers, and substantial purchases of commodities that are fully
reflected in the Company's selling prices. Product sales rose 153%
to $8,003,700 for 2006 from $3,167,743 the prior year, principally
due to higher sales to photonics/optical and thin film battery
customers. Gross profit for 2006 rose 94% to $1,788,244 compared to
$919,861 for 2005. Record product sales, increased production
efficiencies and revenue mix contributed to the year-over-year
increase. Gross profit margin on product sales was 22.0% for 2006
versus 23.0% for 2005 due to higher purchases of commodities, which
have a lower gross margin than the Company's overall gross margin.
General and administrative expenses increased approximately 21% to
$928,506 for 2006 from $765,748 the prior year. This increase was
primarily attributable to higher incentive compensation expense
consistent with the Company's improved performance. Selling expense
increased to $354,609 for 2006 from $237,569 for 2005, as a result
of the addition of a marketing manager and expanded activities to
support higher product sales. Research and development expenses
increased 16% to $212,507 for 2006 from $183,403 for 2005 and
included expenses related to the Company's research and development
with its customers. Net income per common share after dividends on
preferred stock increased to $277,083, or $0.07 per diluted share,
for 2006 from a net loss per common share after dividends on
preferred stock of $(358,405), or $(0.13) per share, for 2005.
About Superconductive Components, Inc. Superconductive Components,
Inc., dba SCI Engineered Materials, manufactures ceramics and
metals for advanced applications such as thin film batteries,
superconductors, and advanced optical systems. SCI Engineered
Materials also provides materials for thin film applications used
in photovoltaic, electronic switches, hardness and decorative
coatings. SCI Engineered Materials 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 anticipation of further
benefits in 2007, continuing efforts with transparent conductive
oxide materials during 2007, and benefits from year-end 2006
backlog and a $2 million purchase order received in January 2007
during the first two quarters of 2007. These forward-looking
statements involve numerous risks and uncertainties, including,
without limitation, anticipate sequential quarter growth in revenue
and net income, plans to add more equipment in 2007, gradually
enter additional niche markets, further improvement in the
Company's financial results in 2007 (paragraph 3), 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, 2006. 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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