Superconductor Technologies Reports Third Quarter 2012 Results

Superconductor Technologies Reports Third Quarter 2012 Results

– Completes strategic milestone for the production of longer lengths of 2G HTS
                                    wire –
 – Customer activities drive full pipeline of requests for Conductus^® wire –

AUSTIN, Texas, Nov. 13, 2012 (GLOBE NEWSWIRE) -- Superconductor Technologies
Inc. (Nasdaq:SCON) ("STI"), a world leader in the development and production
of high temperature superconducting (HTS) materials and associated
technologies, reported results for the three and nine months ended September
29, 2012.

STI's third quarter net revenues were $1.3 million, compared to $596,000 in
the second quarter of 2012 and $479,000 in the third quarter of 2011. Net loss
for the third quarter was $2.3 million, or a loss of $0.06 per share, compared
to a net loss of $3.4 million, or a loss of $0.09 per share, in the second
quarter of 2012 and a net loss of $3.3 million, or a loss of $0.10 per share,
in the third quarter of 2011.

"STI has achieved a strategic production milestone by completing the
acceptance testing of the trio of machines necessary to produce Conductus^®
wire for commercial qualification," said Jeff Quiram, STI's president and
chief executive officer. "Our Advanced Manufacturing Center of Excellence
facility in Austin, TX is now equipped to make HTS wire in the various lengths
our customers require to qualify Conductus wire for use in specific HTS power
devices and applications. We expect to begin producing longer lengths of wire
for technical evaluation and further qualification purposes in early 2013.

"In the third quarter, our customer activities increased significantly,
resulting in a full pipeline of requests for Conductus wire as customers seek
to secure supply in 2013 and beyond. We expect the current demand associated
with those requests will consume all the wire we can produce in the first few
quarters of 2013. In addition, our efforts to deliver the required quantity of
high performance Conductus wire to complete our customer's high power cable
demonstration project continue," Quiram concluded.

In October, STI received and installed its newly designed Reactive
Co-Evaporation Cyclic Deposition and Reaction (RCE) machine and is now in the
process of system turn-up. In early November, STI completed acceptance testing
and shipped its Solution Deposition Planarization (SDP) system to Austin. The
SDP and Ion Beam Assisted Deposition, or IBAD, machine that was installed in
April are designed to work together to produce 1 kilometer lengths of complete
wire template.The completion of the Conductus wire equipment suite positions
STI to produce commercial volumes in 2014.

For the nine-month period ending September 29, 2012, total net revenues were
$2.3 million, compared to $3.2 million for the same period a year ago. The net
loss for the first nine months of 2012 was $8.7 million, or $0.23 per share,
compared to $10.3 million, or $0.33 per share, for the year ago period.

Investor Conference Call

STI will host an investor conference call and simultaneous webcast today,
November 13^th, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. To listen
to the call live, please dial 1-877-941-6010 at least 10 minutes before the
start of the conference. International participants may dial 1-480-629-9644.
The conference ID is 4571521. 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 November 16^th by dialing 1-800-406-7325 or 1-303-590-3030, and entering
pass code 4571521. A replay will also be available at the web address above.

About Superconductor Technologies Inc. (STI)

Superconductor Technologies Inc., 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 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.

The Superconductor Technologies Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3963

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 our equity sales agreement, 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; our ability to fully utilize our equity sales
agreement as a source of future financings and the dilutive impact of any
sales under such agreement, whether due to market conditions, our ability to
satisfy various conditions required to sell shares under the agreement, the
sales agent's performance of its obligations under the agreement or otherwise;
the impact on the level of our stock price, which may decline, in connection
with the sales under the equity sales facility, registered direct offerings or
otherwise; 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, 2011 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 Becky Herrick
LHA +1-415-433-3777 invest@suptech.com

                             – Tables to Follow –

                                      


SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

                     Three Months Ended          Nine Months Ended
                     September 29, October 1,    September 29, October 1,
                      2012          2011          2012          2011
                                                            
Net revenues:                                                
Net commercial        $1,301,000   $470,000     $2,174,000   $3,174,000
product revenues
Government and other  30,000        9,000         152,000       41,000
contract revenues
                                                            
Total net revenues    1,331,000     479,000       2,326,000     3,215,000
                                                            
Costs and expenses:                                          
Cost of commercial    1,021,000     1,093,000     2,943,000     4,027,000
product revenues
Cost of government
and other contract    18,000        9,000         113,000       39,000
revenue
Research and          1,315,000     1,065,000     3,790,000     4,414,000
development
Selling, general and  1,247,000     1,658,000     4,199,000     4,993,000
administrative
                                                            
Total costs and       3,601,000     3,825,000     11,045,000    13,473,000
expenses
                                                            
Loss from operations  (2,270,000)   (3,346,000)   (8,719,000)   (10,258,000)
                                                            
Other Income and                                             
Expense:
Other income          7,000         --            44,000        --
Interest income       1,000         16,000        6,000         20,000
Interest expense      --            1,000         --            (13,000)
                                                            
Net loss              $ (2,262,000) $ (3,329,000) $ (8,669,000) $ (10,251,000)
                                                            
Basic and diluted                                            
loss per common share $(0.06)       $(0.10)       $(0.23)       $(0.33)
                                                            
Weighted average
number of common      39,511,809    32,224,901    38,331,381    31,538,181
shares outstanding



SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                               
                                                  September 29, December 31,
                                                  2012          2011
                                                  (Unaudited)   (See Note)
ASSETS                                                         
                                                               
Current Assets:                                                 
Cash and cash equivalents                          $2,502,000   $6,165,000
Accounts receivable, net                           779,000       61,000
Inventory, net                                     589,000       1,609,000
Prepaid expenses and other current assets          533,000       472,000
Total Current Assets                               4,403,000     8,307,000
                                                               
Property and equipment, net of accumulated
depreciation of $19,353,000 and $19,748,000,       5,599,000     2,871,000
respectively
Patents, licenses and purchased technology, net of
accumulated amortization of$2,401,000 and         921,000       1,409,000
$2,342,000, respectively
Other assets                                       779,000       362,000
Total Assets                                       $11,702,000  $12,949,000
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current Liabilities:                                            
Accounts payable                                   $655,000     $534,000
Accrued expenses                                   624,000       612,000
Total Current Liabilities                          1,279,000     1,146,000
Other long term liabilities                        631,000       628,000
Total Liabilities                                  1,910,000     1,774,000
                                                               
Stockholders' Equity:                                           
Preferred stock, $.001 par value, 2,000,000 shares 1,000         1,000
authorized, 564,642 shares issued and outstanding
Common stock, $.001 par value, 250,000,000 shares
authorized, 40,240,954 and 33,362,281 shares      40,000        33,000
issued and outstanding, respectively
Capital in excess of par value                     269,436,000   262,157,000
Accumulated deficit                                (259,685,000) (251,016,000)
Total Stockholders' Equity                         9,792,000     11,175,000
Total Liabilities and Stockholders' Equity         $11,702,000  $12,949,000

Note – December 31, 2011 balances were derived from audited consolidated
financial statements.



SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                                              
                                                 Nine Months Ended
                                                 September 29, October 1,
                                                  2012          2011
                                                              
CASH FLOWS FROM OPERATING ACTIVITIES:                          
Net loss                                          $(8,669,000) $ (10,251,000)
Adjustments to reconcile net loss to net cash                  
used for operating activities:
Depreciation and amortization                     204,000       634,000
Stock-based compensation expense                  785,000       1,229,000
Write-off of intangibles                          142,000       844,000
Provision for excess and obsolete inventories     270,000       63,000
Gain on disposal of property and equipment        (44,000)      --
Changes in assets and liabilities:                             
Accounts receivable                               (718,000)     22,000
Inventories                                       750,000       (170,000)
Prepaid expenses and other current assets         (61,000)      17,000
Patents and licenses                              (157,000)     (34,000)
Other assets                                      7,000         26,000
Accounts payable, accrued expenses and other      126,000       1,148,000
current liabilities
Net cash used in operating activities             (7,365,000)   (6,472,000)
                                                              
CASH FLOWS FROM INVESTING ACTIVITIES:                          
Purchases of property and equipment               (2,828,000)   (2,040,000)
Net proceeds from sale of property and equipment  44,000        --
Net cash used in investing activities             (2,784,000)   (2,040,000)
                                                              
CASH FLOWS FROM FINANCING ACTIVITIES:                          
Repurchase of common shares for withholding       (135,000)     (303,000)
obligations
Net proceeds from the sale of common stock        6,621,000     12,402,000
Net cash provided by financing activities         6,486,000     12,099,000
                                                              
Net increase (decrease) in cash and cash          (3,663,000)   3,587,000
equivalents
Cash and cash equivalents at beginning of period  6,165,000     6,069,000
Cash and cash equivalents at end of period        $2,502,000   $9,656,000

Superconductor Technologies Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.