Superconductor Technologies Inc. Reports Third Quarter 2009 Results
SANTA BARBARA, Calif., Nov 5, 2009 (GlobeNewswire via COMTEX) -- By Staff
Company: Superconductor Technologies, Inc. (SCON)
Superconductor Technologies Inc. (Nasdaq:SCON) ("STI"), a world leader in the development and production of high temperature superconducting (HTS) materials and associated technologies, reports results for the quarter and nine months ended September 26, 2009.
Total net revenues for the third quarter were $4.3 million, compared to $2.6 million in the second quarter of 2009 and $3.6 million in the year ago third quarter. Net commercial product revenues for the third quarter of 2009 were $3.0 million, compared to $1.8 million in the second quarter of 2009 and $2.7 million in the third quarter of 2008. Government and other contract revenue totaled $1.3 million during the 2009 third quarter, compared to $854,000 for both the second quarter of 2009 and the third quarter of 2008.
"As expected, we increased total net revenues sequentially with growth in both our commercial and government businesses," stated Jeff Quiram, STI's president and chief executive officer. "We are encouraged by the network enhancement projects we are working on for 2010, as capital is redirected to the upcoming 700 MHz data network build out. However, because future carrier spending on legacy networks appears to be modest, we do not expect sequential revenue growth in the fourth quarter."
Net loss for the third quarter was $1.8 million, as compared to a net loss of $4.1 million in the second quarter of 2009 and $3.2 million in the third quarter of 2008. The improvement shown from the 2008 results is primarily due to cost reductions implemented late in 2008 and a favorable fair value adjustment to the outstanding 2005 warrants. Net loss per share was $0.08, compared to a net loss of $0.23 per share in the second quarter of 2009 and a net loss of $0.18 per share in the year ago period.
"We are making progress on our strategy to utilize our technical resources and core competencies to address two attractive and distinct opportunities: 2G HTS Wire and the new long-term evolution (LTE) wireless networks in North America," continued Quiram. "HTS wire offers large scale benefits for energy efficiency in the transmission and generation of electricity. We are working closely with our partners GE Global Research and Los Alamos National Laboratory to launch full-scale production of 2G HTS wire, which would enable STI to enter exciting new markets ranging from medical and electrical devices to energy generation and storage. We have begun construction of a pilot system for adapting STI's low cost, high yield and high volume HTS deposition process for the production of HTS wire at a commercially viable cost."
"In the wireless industry, our activities with a major wireless OEM partner continue as we prepare to conduct LTE technology and market trials for the new 700 MHz data network of a tier-one U.S. wireless operator. These trials are an exciting opportunity to demonstrate the value of the advanced filtering technology of our SuperLink(R) solution that addresses the major interference challenges of the 700 MHz spectrum. The successful completion of these trials should enable STI to participate in the LTE network deployments expected to begin in 2010."
For the nine-month period ending September 26, 2009, total net revenues were $8.6 million, compared to $10.0 million for the first nine months of 2008. Net commercial product revenues for the first nine months of 2009 were $5.9 million, compared to $6.1 million in the year ago period. STI recorded $2.7 million in government and other contract revenues for the first nine months of 2009, compared to $3.9 million for the first nine months of 2008. The net loss for the first nine months of 2009 was $9.5 million, including a $387,000 non-cash charge for the fair value treatment of the 2005 warrants, compared to $8.9 million for the prior year's first nine months. The net loss was $0.50 per share for the first nine months in 2009 improved compared to $0.56 net loss per share for the same period in 2008.
As of September 26, 2009, STI had $15.1 million in working capital, including $12.7 million in cash and cash equivalents. As of quarter end, STI had a commercial product backlog of $95,000 compared to $873,000 at the end of the second quarter of 2009 and $217,000 at the end of the year-ago quarter.
Investor Conference Call
STI will host an investor conference call today at 11:00 a.m. ET / 8:00 a.m. PT, November 5, 2009. The call will be accessible live by dialing 877-941-1848 at least 10 minutes before the start of the conference. International participants may dial 480-629-9722. The conference ID is #4172502. A telephone replay will be available until midnight ET on November 9th by dialing 800-406-7325 or 303-590-3030, and entering pass code 4172502#. The call will also be simultaneously webcast and available on STI's web site at http://www.suptech.com.
About Superconductor Technologies Inc. (STI)
STI, headquartered in Santa Barbara, CA, 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 applications for advanced RF wireless solutions, power efficient HTS materials, innovative adaptive filtering and government R&D. For more information about STI, please visit http://www.suptech.com.
The Superconductor Technologies Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3963
Safe Harbor Statement
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including without limitation, the risk that this offering will not close. 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: fluctuations in product demand from quarter to quarter which can be significant; the need for additional capital depending on unpredictable cash flow; STI's ability to diversify its concentrated customer base; the impact of competitive filter products technologies and pricing; unanticipated decreases in the capital spending of wireless network operators; and manufacturing capacity constraints and difficulties.
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 2008 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.
Contact
For further information please contact Investor Relations, invest@suptech.com, Kirsten Chapman or Cathy Mattison, both of Lippert / Heilshorn & Associates, +1-415-433-3777, for Superconductor Technologies Inc.
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SOURCE: Superconductor Technologies Inc.
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
------------------------ ------------------------
Sept. 26, Sept. 27, Sept. 26, Sept. 27,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Net revenues:
Net commercial
product revenues $ 2,985,000 $ 2,741,000 $ 5,893,000 $ 6,082,000
Government and
other contract
revenues 1,307,000 854,000 2,708,000 3,933,000
----------- ----------- ----------- -----------
Total net
revenues 4,292,000 3,595,000 8,601,000 10,015,000
Costs and expenses:
Cost of com-
mercial product
revenue 2,947,000 3,078,000 7,186,000 7,252,000
Cost of govern-
ment and other
contracts 993,000 709,000 2,227,000 3,198,000
Research and
development 902,000 1,006,000 2,984,000 2,156,000
Selling, general
and adminis-
trative 1,629,000 2,096,000 5,164,000 6,513,000
----------- ----------- ----------- -----------
Total costs
and expenses 6,471,000 6,889,000 17,561,000 19,119,000
----------- ----------- ----------- -----------
Loss from
operations (2,179,000) (3,294,000) (8,960,000) (9,104,000)
Other Income and
Expense
Noncontrolling
interest in
joint venture (30,000) -- (117,000) --
Adjustments to
fair value of
derivatives 393,000 -- (387,000) --
Interest income 4,000 66,000 21,000 235,000
Interest expense (7,000) (7,000) (25,000) (23,000)
----------- ----------- ----------- -----------
Net loss $(1,819,000) $(3,235,000) $(9,468,000) $(8,892,000)
=========== =========== =========== ===========
Basic and diluted
loss per common
share $ (0.08) $ (0.18) $ (0.50) $ (0.56)
=========== =========== =========== ===========
Weighted average
number of common
shares outstanding 21,621,035 17,750,761 19,116,136 15,908,298
=========== =========== =========== ===========
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 26, December 31,
2009 2008
-------------- --------------
(Unaudited) (See Note)
ASSETS
------
Current Assets:
Cash and cash equivalents $ 12,716,000 $ 7,569,000
Accounts receivable, net 1,025,000 355,000
Inventory, net 3,062,000 5,278,000
Prepaid expenses and other current
assets 825,000 416,000
-------------- --------------
Total Current Assets 17,628,000 13,618,000
-------------- --------------
Property and equipment, net of
accumulated depreciation of
$20,833,000 and $19,943,000,
respectively 2,032,000 2,739,000
Patents, licenses and purchased
technology, net of accumulated
amortization of $2,308,000 and
$2,055,000, respectively 2,122,000 2,252,000
Investment in joint venture 412,000 521,000
Other assets 221,000 228,000
-------------- --------------
Total Assets $ 22,415,000 $ 19,358,000
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable $951,000 $707,000
Accrued expenses 1,118,000 578,000
Fair value of warrant derivative 387,000 --
Current portion of capitalized lease
obligations and long term debt 56,000 80,000
-------------- --------------
Total Current Liabilities 2,512,000 1,365,000
Other long term liabilities 519,000 441,000
-------------- --------------
Total Liabilities 3,031,000 1,806,000
-------------- --------------
Stockholders' Equity:
Preferred stock, $.001 par value,
2,000,000 shares authorized, 611,523
shares issued and outstanding 1,000 1,000
Common stock, $.001 par value,
250,000,000 shares authorized,
22,512,033 and 17,869,030 shares
issued and outstanding, respectively 23,000 18,000
Capital in excess of par value 241,514,000 230,219,000
Accumulated deficit (222,154,000) (212,686,000)
-------------- --------------
Total Stockholders' Equity 19,384,000 17,552,000
-------------- --------------
Total Liabilities and Equity $ 22,415,000 $ 19,358,000
============== ==============
NOTE - December 31, 2008 balances were derived from audited financial
statements.
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
-------------------------------
September 26, September 27,
2009 2008
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (9,468,000) $ (8,892,000)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation and amortization 1,143,000 1,313,000
Stock-based compensation expense 843,000 452,000
Provision for excess and obsolete
inventories 192,000 --
Noncontrolling interest in joint
venture 117,000 --
--
Fair value of derivatives 387,000 --
Changes in assets and liabilities:
Accounts receivable (670,000) 1,003,000
Inventory 2,024,000 (1,699,000)
Prepaid expenses and other current
assets (740,000) 75,000
Patents, licenses and purchased
technology (123,000) (252,000)
Other assets 309,000 (24,000)
Accounts payable, accrued expenses
and other long-term liabilities 838,000 (1,006,000)
-------------- --------------
Net cash used in operating
activities (5,148,000) (9,030,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in joint venture 22,000 (521,000)
Purchases of property and equipment (183,000) (126,000)
-------------- --------------
Net cash used in investing
activities (161,000) (647,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shares to be issued -- (4,000,000)
Net proceeds from the sale of common
stock 10,456,000 20,449,000
-------------- --------------
Net cash provided by financing
activities 10,456,000 16,449,000
-------------- --------------
Net increase in cash and cash
equivalents 5,147,000 6,772,000
Cash and cash equivalents at
beginning of period 7,569,000 3,939,000
-------------- --------------
Cash and cash equivalents at end of
period $ 12,716,000 $ 10,711,000
============== ==============
Copyright (C) 2009 GlobeNewswire. All rights reserved
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Company: Superconductor Technologies, Inc. (SCON)
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