- Net Commercial Product Revenues Increased 19 Percent Versus Last Year's
Quarter -
SANTA BARBARA, Calif., May 4 /PRNewswire-FirstCall/ -- Superconductor
Technologies Inc. (Nasdaq: SCON) ("STI"), a leading provider of high
performance infrastructure products for wireless voice and data
applications, today announced results for the quarter ended April 1, 2006.
Total net revenues for the first quarter were $4.8 million, an increase
of 11 percent compared to $4.4 million in the year ago first quarter. Net
commercial product revenues for the first quarter of 2006 increased 19
percent to $4.5 million compared to $3.8 million in the first quarter of
2005. Government and other contract revenue totaled $342,000 during the
2006 first quarter compared to $571,000 during the year ago period.
Net loss for the first quarter was $3.2 million. This compares to a net
loss of $5.5 million in the first quarter of 2005, which included special
charges of approximately $700,000 in connection with restructuring and
other activities. Net loss per diluted share was $0.26, compared to a net
loss of $0.51 per diluted share in the same quarter of 2005.
"Building upon our fourth quarter success of expanding our customer
base, we drove first quarter commercial revenues up 19 percent compared to
a year ago. Additionally, we trimmed our operating expenses by 17 percent,
further streamlining our administrative activities during the same period,"
said Jeff Quiram, STI's president and chief executive officer. "We also
completed successful trials for our SuperLink(R) and AmpLink(TM) solutions
in the first quarter with a new customer. The completion of these trials is
additional proof we are successfully implementing our strategy to diversify
our customer base and broaden the exposure of our solutions to new markets
within our existing customer base."
As of April 1, 2006, STI had $14.5 million in working capital,
including $9.3 million in cash and cash equivalents. During the first
quarter, STI also completed a one-for-ten reverse stock split and regained
compliance with Nasdaq's minimum price requirement for continued listing on
the Nasdaq Capital Market. There were approximately 12.5 million shares of
common stock outstanding as of April 1, 2006.
Quiram continued, "We also are continuing to strengthen our senior
management team and hired Adam Shelton as Vice President of Product
Management and Marketing. Adam is responsible for solution creation,
product delivery and marketing, and will lead STI's mission to provide
comprehensive solutions to our customers as they aggressively enhance their
network capabilities."
Investor Conference Call
STI will host an investor conference call today at 1:30 p.m. Pacific
Time, May 4, 2006. The call will be accessible live by dialing
800-257-1836. A replay will be available until May 8 by dialing
800-405-2236, pass code 11059297#. The call will also be simultaneously
webcast and available on STI's web site at http://www.suptech.com.
Superconductor Technologies to Present at AeA Micro Cap Financial
Conference
STI will present on Wednesday, May 10, 2006 at the AeA Micro Cap
Financial Conference in Monterey, CA. Speaking from management will be Jeff
Quiram, president and chief executive officer, and Adam Shelton, vice
president of product management and marketing.
The event will be webcast live on the company's web site at
http://www.suptech.com. For those unable to listen to the live broadcast, a replay
will be available approximately one hour after the presentation ends and is
accessible for 90 days.
About Superconductor Technologies Inc. (STI)
Superconductor Technologies Inc., headquartered in Santa Barbara, CA,
is a leading provider of high performance infrastructure products for
wireless voice and data applications. STI's SuperLink(R) solution increases
capacity utilization, lowers dropped and blocked calls, extends coverage,
and enables faster wireless data rates. Its AmpLink(TM) solution enhances
the performance of wireless base stations by improving receiver sensitivity
and geographic coverage.
SuperLink and AmpLink are trademarks of Superconductor Technologies
Inc. in the United States and in other countries. For information about
STI, please visit http://www.suptech.com.
Safe Harbor Statement
The press release contains forward-looking statements made in reliance
upon the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to,
STI's views on future fundraising plans, profitability, revenues, market
growth, capital requirements and new product introductions and any other
statements identified by phrases such as "thinks," "anticipates,"
"believes," "estimates," "expects," "intends," "plans," "goals" or similar
words. 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. For example, the financial results reported in this press
release are based on certain assumptions and estimates made by management
and are subject to adjustment prior to the filing of the Company's
Quarterly Report on Form 10-Q with the SEC. Other factors and uncertainties
include: fluctuations in product demand from quarter to quarter which can
be significant; 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 Risk Factors and the MD&A sections of its
2005 Annual Report on Form 10-K and most recent Form 10-Q. These documents
are available online at STI's website, http://www.suptech.com, or through the
SEC's website, http://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, Kirsten
Chapman, invest@suptech.com, or Moriah Shilton, both of Lippert / Heilshorn
& Associates, +1-415-433-3777, for Superconductor Technologies Inc.
- Tables to Follow -
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
April 2, 2005 April 1, 2006
Net revenues:
Commercial product revenues $3,768,000 $4,490,000
Government and other contract revenues 571,000 342,000
Sub license royalties 15,000 8,000
Total net revenues 4,354,000 4,840,000
Costs and expenses:
Cost of commercial product revenues 4,199,000 3,858,000
Contract research and development 683,000 304,000
Other research and development 1,161,000 1,301,000
Selling, general and administrative 3,782,000 2,717,000
Restructuring expenses 84,000 --
Total costs and expenses 9,909,000 8,180,000
Loss from operations (5,555,000) (3,340,000)
Interest income 57,000 127,000
Interest expense (39,000) (13,000)
Net loss $(5,537,000) $(3,226,000)
Basic and diluted loss per common share $(0.51) $(0.26)
Weighted average number of common shares
outstanding 10,771,102 12,483,367
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
ASSETS December 31, April 1,
2005 2006
Current Assets: (See Note)
Cash and cash equivalents $13,018,000 $9,294,000
Accounts receivable, net 2,166,000 1,535,000
Inventory, net 5,364,000 6,932,000
Prepaid expenses and other current assets 723,000 571,000
Total Current Assets 21,271,000 18,332,000
Property and equipment, net of
accumulated depreciation of
$17,295,000 and $17,064,000,
respectively 7,803,000 7,330,000
Patents, licenses and purchased
technology, net of accumulated
amortization of $1,065,000 and
$1,146,000, respectively 2,514,000 2,445,000
Goodwill 20,107,000 20,107,000
Other assets 350,000 313,000
Total Assets $52,045,000 $48,527,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Line of credit $0 $0
Accounts payable 2,036,000 2,231,000
Accrued expenses 1,998,000 1,582,000
Current portion of capitalized lease
obligations and long-term debt 19,000 19,000
Total Current Liabilities 4,053,000 3,832,000
Capitalized lease obligations and
long-term debt 14,000 9,000
Other long-term liabilities 721,000 606,000
Total Liabilities 4,788,000 4,447,000
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $.001 par value,
2,000,000 shares authorized, none issued
and outstanding -- --
Common stock, $.001 par value, 250,000,000
shares authorized, 12,483,367 shares
issued and outstanding 125,000 12,000
Capital in excess of par value 208,432,000 208,594,000
Notes receivable from stockholder (65,000) (65,000)
Accumulated deficit (161,235,000) (164,461,000)
Total Stockholders' Equity 47,257,000 44,080,000
Total Liabilities and Stockholders'
Equity $52,045,000 $48,527,000
Note -- December 31, 2005 balances were derived from audited financial
statements
SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Three Months Ended
April 2, 2005 April 1, 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(5,537,000) $(3,226,000)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 741,000 713,000
Warrants/Options 51,000
Provision for excess and obsolete
inventories 90,000 90,000
Forgiveness of note receivable 150,000 --
Changes in assets and liabilities:
Accounts receivable 207,000 631,000
Inventory 318,000 (1,658,000)
Prepaid expenses and other current
assets 80,000 152,000
Patents, licenses and purchased
technology (43,000) (13,000)
Other assets (23,000) 38,000
Accounts payable, accrued expenses and
other long-term liabilities (181,000) (339,000)
Net cash used in operating activities (4,198,000) (3,561,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (33,000) (159,000)
Net cash used in investing activities (33,000) (159,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term borrowings 662,000 --
Payments on short-term borrowings (938,000) --
Payments on long-term obligations (18,000) (4,000)
Proceeds from exercise of stock options
and warrants -- --
Payment of common stock issuance costs (797,000) --
Net cash used in financing activities (1,091,000) (4,000)
Net decrease in cash and cash equivalents (5,322,000) (3,724,000)
Cash and cash equivalents at beginning
of period 12,802,000 13,018,000
Cash and cash equivalents at end of
period $7,480,000 $9,294,000
SOURCE Superconductor Technologies Inc.
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Related links:
http://www.suptech.com
CONTACT:
Kirsten Chapman, invest@suptech.com, or
Moriah Shilton, both of Lippert / Heilshorn & Associates,
+1-415-433-3777, for Superconductor Technologies Inc.
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