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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