Superconductor Technologies Reports 2014 First Quarter Results
May 08 2014 - 6:30AM
Achieves Record Critical Current
Performance and Demonstrates High Yield on Pilot Machine
Adds New Customers and Increases
Conductus Wire Shipments
Superconductor Technologies Inc. (STI) (Nasdaq:SCON), a world
leader in the development and production of high temperature
superconducting (HTS) materials and associated technologies,
reported results for the first quarter ended March 29, 2014.
"In the first quarter of 2014, we made significant progress in
our effort to commercialize Conductus® wire," said Jeff Quiram,
STI's president and chief executive officer. "We achieved a minimum
current of 500 Amps per centimeter (A/cm) width at 77K across 100%
of the design capacity of our pilot production manufacturing
system. Wire performance of this magnitude enables device
manufacturers to optimize their product design by reducing the
requisite number of wires per device while also maximizing
performance. We expect that our demonstrated high performance/high
yield combination will allow STI to produce large quantities of
wire from a cost leadership position.
"The substantial increase in high performance Conductus wire
throughput from our pilot equipment has allowed STI to continue to
accelerate wire shipments. During the first quarter of 2014, we
shipped nine orders: six for Stage 1 customers conducting
performance evaluation and three for Stage 2 customers testing
simulated devices for commercial deployment. We continue to
prioritize our shipments based on the near-term size of the
opportunity. This quarter we shipped to five new customers and our
purchase order commitments continued to grow. Our current
commitments and in-house orders are expected to consume all of the
wire produced for the next quarter. We expect our new 1km Reactive
Co-Evaporation Cyclic Deposition and Reaction (RCE-CDR) machine to
be operational shortly and we plan to have commercial quantities of
Conductus wire available in the third quarter. We plan to ramp this
machine to its full annual capacity of 750km by the end of
2014.
"Superconducting materials clearly offer solutions to problems
that conventional products cannot address, thus creating a large
market opportunity. We believe that the demonstrated critical
current performance and scalable output of STI's superconducting
wire positions us well, and we are excited about our future as a
supplier to the electrical device industry," concluded Quiram.
On May 6, 2014 STI was issued US Patent No. 8,716,187 pertaining
to optimized compositions of Rare Earth barium copper oxide (ReBCO)
thin film superconductors using the RCE-CDR process. This patent
further strengthen STI's IP portfolio on the RCE-CDR process for
manufacturing of high performing, economical and commercially
scalable ReBCO thin films.
STI's first quarter 2014 net revenues were $389,000, compared to
$150,000 in the fourth quarter of 2013 and $776,000 in the first
quarter of 2013. Revenue for all periods was primarily from legacy
wireless products. Net loss for the first quarter 2014 was $2.9
million, or a loss of $0.25 per basic and diluted share, compared
to a net loss of $3.9 million, or a loss of $0.34 per basic and
diluted share, in the fourth quarter of 2013, and a net loss of
$2.4 million, or a loss of $0.58 per basic and diluted share, in
the first quarter of 2013.
As of March 29, 2014, STI had $7.8 million in cash and cash
equivalents, which included cash proceeds to the company of $3.8
million resulting from the exercise of 1.5 million outstanding
warrants during the first quarter of 2014.
Investor Conference Call
STI will host a conference call and simultaneous webcast today,
May 8th at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time to
discuss its results. Participating in the call will be Jeff Quiram,
president and chief executive officer; and Bill Buchanan, vice
president and chief financial officer. To listen to the call live,
please dial 1-888-549-7750 at least 10 minutes before the start of
the conference. International participants may dial 1-480-629-9866.
The conference ID is 4680003. The call will be webcast and can be
accessed from the "Investor Relations" section of the company's
website at http://www.suptech.com. A telephone replay will be
available until midnight ET on May 13th by dialing 1-800-406-7325
or 1-303-590-3030, and entering pass code 4680003. A replay will
also be available at the web address above.
About Superconductor Technologies Inc.
(STI)
Superconductor Technologies Inc., headquartered in Austin, TX,
has been a world leader in HTS materials since 1987, developing
more than 100 patents as well as proprietary trade secrets and
manufacturing expertise. For more than a decade, STI has been
providing innovative interference elimination and network
enhancement solutions to the commercial wireless industry. The
company is currently leveraging its key enabling technologies,
including RF filtering, HTS materials and cryogenics to develop
energy efficient, cost-effective and high performance second
generation (2G) HTS wire for existing and emerging power
applications, to develop applications for advanced RF wireless
solutions and innovative adaptive filtering, and for government
R&D. Superconductor Technologies Inc.'s common stock is listed
on the NASDAQ Capital Market under the ticker symbol "SCON." For
more information about STI, please visit
http://www.suptech.com.
Safe Harbor
Statement
Statements in this press release regarding our business that are
not historical facts are "forward-looking statements" that involve
risks and uncertainties. Forward-looking statements are not
guarantees of future performance and are inherently subject to
uncertainties and other factors, which could cause actual results
to differ materially from the forward-looking statements. These
factors and uncertainties include, but are not limited to: our
limited cash and a history of losses; the limited number of
potential customers; the limited number of suppliers for some of
our components and our HTS wire; there being no significant backlog
from quarter to quarter; our market being characterized by rapidly
advancing technology; overcoming technical challenges in attaining
milestones to develop and manufacture commercial lengths of our HTS
wire; customer acceptance of our HTS wire; fluctuations in product
demand from quarter to quarter; the impact of competitive filter
products, technologies and pricing; manufacturing capacity
constraints and difficulties; our ability to raise sufficient
capital to fund our operations (whether through registered direct
offerings or otherwise), and the impact on our strategic wire
initiative of any inability to raise such funds; the impact of any
such financing activity on the level of our stock price, which may
decline in connection with the sales under registered direct
offerings or otherwise; the dilutive impact of any issuances of
securities to raise capital; and local, regional, and national and
international economic conditions and events and the impact they
may have on us and our customers, such as the current worldwide
recession.
Forward-looking statements can be affected by many other
factors, including, those described in the "Business" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of STI's Annual Report on Form 10-K
for the year ended December 31, 2013 and in STI's other public
filings. These documents are available online at STI's website,
www.suptech.com, or through the SEC's website, www.sec.gov.
Forward-looking statements are based on information presently
available to senior management, and STI has not assumed any duty to
update any forward-looking statements.
Investor Relations
Contact |
Cathy Mattison or Kirsten Chapman |
LHA +1-415-433-3777 invest@suptech.com |
– Tables to Follow –
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
Three Months
Ended |
|
March 29, 2014 |
March 30, 2013 |
|
|
|
Net revenues |
$ 389,000 |
$ 776,000 |
|
|
|
Costs and expenses: |
|
|
Cost of revenues |
370,000 |
226,000 |
Research and development |
1,470,000 |
1,438,000 |
Selling, general and administrative |
1,348,000 |
1,345,000 |
|
|
|
Total costs and
expenses |
3,188,000 |
3,009,000 |
|
|
|
Loss from operations |
(2,799,000) |
(2,233,000) |
|
|
|
Other Income and Expense: |
|
|
Loss from joint venture investment in
Resonant LLC |
-- |
(182,000) |
Adjustments to fair value of warrant
derivatives |
(232,000) |
-- |
Other income |
96,000 |
6,000 |
Interest income |
-- |
1,000 |
|
|
|
Net loss |
$ (2,935,000) |
$ (2,408,000) |
|
|
|
Basic and diluted net loss per common
share |
$
(0.25) |
$
(0.58) |
|
|
|
Basic and diluted weighted average number of
common shares outstanding |
11,880,889 |
4,152,036 |
|
SUPERCONDUCTOR TECHNOLOGIES
INC. |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
March 29, |
December 31, |
|
2014 |
2013 |
|
(Unaudited) |
(See Note) |
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
Cash and cash equivalents |
$ 7,768,000 |
$ 7,459,000 |
Accounts receivable, net |
308,000 |
6,000 |
Inventory, net |
79,000 |
76,000 |
Prepaid expenses and other current
assets |
328,000 |
437,000 |
Total Current Assets |
8,483,000 |
7,978,000 |
|
|
|
|
|
|
Property and equipment, net of
accumulated depreciation of $11,938,000 and $11,626,000,
respectively |
6,658,000 |
5,473,000 |
Patents, licenses and purchased
technology, net of accumulated amortization of $740,000 and
$722,000, respectively |
890,000 |
888,000 |
Other assets |
469,000 |
501,000 |
Total Assets |
$ 16,500,000 |
$ 14,840,000 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 1,089,000 |
$ 703,000 |
Accrued expenses |
709,000 |
637,000 |
Total Current Liabilities |
1,798,000 |
1,340,000 |
Other long term liabilities |
6,393,000 |
6,194,000 |
Total Liabilities |
8,191,000 |
7,534,000 |
|
|
|
|
|
|
Stockholders' Equity: |
|
|
Preferred stock, $.001 par value,
2,000,000 shares authorized, 328,925 and 328,925 shares issued and
outstanding, respectively |
-- |
-- |
Common stock, $.001 par value,
250,000,000 shares authorized, 13,119,348 and 11,634,950 shares
issued and outstanding, respectively |
13,000 |
12,000 |
Capital in excess of par value |
285,348,000 |
281,411,000 |
Accumulated deficit |
(277,052,000) |
(274,117,000) |
Total Stockholders' Equity |
8,309,000 |
7,306,000 |
Total Liabilities and
Stockholders' Equity |
$
16,500,000 |
$ 14,840,000 |
|
Note – December 31, 2013 balances
were derived from the audited consolidated financial
statements. |
|
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited)
|
|
Three Months
Ended |
|
March 29, 2014 |
March 30, 2013 |
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
Net loss |
$ (2,935,000) |
$ (2,408,000) |
Adjustments to reconcile net loss to net
cash used in operating activities: |
|
|
Depreciation and amortization |
330,000 |
234,000 |
Stock-based compensation expense |
187,000 |
166,000 |
Write-off of intangibles |
-- |
79,000 |
Adjustments to fair value of warrant
derivatives |
232,000 |
-- |
Gain on disposal of property and
equipment |
(96,000) |
(6,000) |
Loss from joint venture investment in
Resonant LLC |
-- |
182,000 |
Changes in assets and liabilities: |
|
|
Accounts receivable |
(302,000) |
(220,000) |
Inventories |
(3,000) |
(94,000) |
Prepaid expenses and other current
assets |
108,000 |
87,000 |
Patents and licenses |
(20,000) |
(23,000) |
Other assets |
32,000 |
32,000 |
Accounts payable, accrued expenses and
other current liabilities |
426,000 |
165,000 |
Net cash used in operating
activities |
(2,041,000) |
(1,806,000) |
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
Purchases of property and equipment |
(1,497,000) |
(178,000) |
Net proceeds from the sale of property
and equipment |
96,000 |
6,000 |
Net cash used in investing
activities |
(1,401,000) |
(172,000) |
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
Net proceeds from the exercise of
outstanding warrants |
3,751,000 |
-- |
Net cash provided by financing
activities |
3,751,000 |
-- |
|
|
|
Net (decrease) increase in cash and cash
equivalents |
309,000 |
(1,978,000) |
Cash and cash equivalents at beginning of
period |
7,459,000 |
3,634,000 |
Cash and cash equivalents at end of
period |
$ 7,768,000 |
$ 1,656,000 |
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