SCI Engineered Materials, Inc. Reports First Quarter 2008 Results
May 05 2008 - 4:15PM
PR Newswire (US)
COLUMBUS, Ohio, May 5 /PRNewswire-FirstCall/ -- SCI Engineered
Materials, Inc. (OTC:SCCI) (BULLETIN BOARD: SCCI) , a manufacturer
of ceramics and metals for advanced applications such as optical,
photonics including solar, thin film batteries, and semiconductors
for select growth markets in the physical vapor deposition
industry, today announced results for the three months ended March
31, 2008. Dan Rooney, Chairman, President and Chief Executive
Officer, said, "Further progress is being achieved in our markets,
as we implement the Company's growth strategy. We continued to make
strategic investments in our business during the first quarter
2008. These included additional investments in equipment and
marketing initiatives in the semiconductor and solar industries as
well as further development of innovative products. There were
encouraging signs from these efforts during the quarter, including
trial orders to new customers in these industries that represented
approximately 20% of first quarter 2008 revenues. Additionally,
requests for quotes increased sharply during the first three months
of this year, especially from international customers. We continue
to anticipate that these initiatives will lead to substantial
orders in the second half of 2008 as we pursue opportunities that
offer substantial long-term growth and profitability for the
Company." First Quarter 2008 Results Total revenues decreased 30%
to $1,713,940 for the first quarter 2008 from $2,454,009 compared
to the first quarter 2007. This decline was primarily due to the
negative impact of lower prices for a high value raw material
versus the same period last year and lower quantity used as
customers improved their efficiency. The Company's backlog was $1.5
million at March 31, 2008 an increase of $0.5 million during the
quarter. Reflecting positive benefits from product mix, gross
profit declined only 6% to $429,025 for the first quarter 2008 from
$458,580 a year ago. The year-over-year difference was almost
entirely attributable to higher depreciation expense related to
investments made to develop new markets. Gross profit margin
increased to 25.0% of total revenues for the first three months of
2008 from 18.7% for the same period in 2007. The Company incurred
higher expenses during the first quarter 2008 to specifically
support its entry as well as expanded presence in key markets
compared to the first quarter 2007. Factors that impacted the
year-over-year comparisons particularly included additional staff
and development costs associated with the rapidly expanding Thin
Film Solar industry. General and administrative expense increased
10% to $260,053, marketing and sales expense increased 30% to
$126,270, and research and development expense increased 54% to
$97,156 for the first quarter 2008 versus the same period in 2007.
Interest expense rose to $26,602 for the first quarter 2008 from
$5,904 the prior year. This was due to the acquisition of
approximately $1.5 million of equipment through purchases and
leases during the twelve months ended March 31, 2008. The net loss
applicable to common shares was $(78,368), or $(0.02) per share,
for the first quarter 2008 versus net income of $61,316, or $0.01
per diluted share, for the same period in 2007. Calculation of the
loss applicable to common shares for the first quarter 2008 was
based on 21% fewer shares compared to the same period a year ago
since all common stock equivalents were anti-dilutive for the first
quarter 2008. About SCI Engineered Materials, Inc. SCI Engineered
Materials, Inc. manufactures ceramics and metals for advanced
applications such as optical, photonics including solar, thin film
batteries, and semiconductors. 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 encouraging signs including trial orders to new customers
that represented approximately 20% of first quarter 2008 revenues
(paragraph two), requests for quotes increased sharply during the
first three months of this year, especially from international
customers paragraph 2), the Company continues to anticipate that
these initiatives will lead to substantial orders in the second
half of 2008 as it continues to pursue opportunities that offer
substantial long-term growth and profitability (paragraph 2).These
forward-looking statements involve numerous risks and
uncertainties, including, without limitation, 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, 2007.
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: SCI Engineered Materials, Inc. CONTACT:
Robert Lentz, +1-614-876-2000, for SCI Engineered Materials, Inc.
Web site: http://www.sciengineeredmaterials.com/
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