Superconductor Technologies Reports 2012 Fourth Quarter and Year-End Results

Superconductor Technologies Reports 2012 Fourth Quarter and Year-End Results

    - Wire samples for new superconducting fault current limiter and motor
                         applications shipped in Q4 -

   - Pipeline of customer requests for Conductus^® 2G HTS wire continues to
                                  increase -

      - Positioned to begin pilot production of Conductus wire in 2013 -

AUSTIN, Texas, March 7, 2013 (GLOBE NEWSWIRE) -- 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 quarter and year-ended December 31, 2012.

"2012 has been a watershed year as STI strives to become a leading producer of
second generation (2G) HTS wire," said Jeff Quiram, STI's president and chief
executive officer. "In the past year, we installed a complete suite of
Conductus^® wire manufacturing equipment at our new Advanced Manufacturing
Center of Excellence facility in Austin. Our IBAD system is operational and
has been producing fully compliant material for several quarters. Our new SDP
system is operational and in the last two weeks we produced 50 meters of 10
centimeter wide substrate in a continuous run that met our substrate
performance requirements. This is a significant milestone in our efforts to
produce wider and longer wire substrate, which we will utilize to produce
longer lengths of Conductus wire. We have completed several production runs of
our new 100 meter RCE tool. Our technical team continues to make very
significant progress in turning up this machine, and we believe we will solve
the remaining operational issues in the near future.

"We are now positioned to begin the pilot production of Conductus wire in
2013. Our HTS wire template offers a unique performance advantage that we
intend to exploit. Recent testing in January confirmed that Conductus wire met
the product requirements for several existing low temperature wire
applications. These results continue to demonstrate that Conductus wire is
suitable for a variety of markets with superconducting needs, including
applications that are currently utilizing low temperature wire. In the fourth
quarter, we also shipped Conductus wire samples to several new potential
customers for qualification testing in fault current limiter and
superconducting motor applications.

"In summary, STI is producing 2G HTS wire that exceeds previously published
industry performance metrics. We enter 2013 ready to begin pilot production of
Conductus in lengths of up to 100 meters. Customer interest in our wire
continues to increase. We believe that the current requests already in house
will consume all of the wire we expect to produce through the first few
quarters of 2013. In conjunction with customer efforts to utilize our wire in
their power devices, we are focused on producing longer lengths of wire to
meet those needs. We look forward to fulfilling our customers' demand for
Conductus in 2013 and beyond," Quiram concluded.

In the fourth quarter, net revenues were $1.1 million, compared to net
revenues of $1.3 million in the third quarter of 2012 and $284,000 in the
fourth quarter of 2011. Net loss for the fourth quarter was $2.3 million, or a
net loss of $0.05 per basic and diluted share, compared to a net loss of $2.3
million, or a net loss of $0.06 per basic and diluted share, in the third
quarter of 2012 and a net loss of $3.1 million, or a net loss of $0.10 per
basic and diluted share, in the fourth quarter of 2011.

For the full year 2012, net revenues were $3.5 million, compared to net
revenues of $3.5 million for 2011. The net loss for 2012 was $10.9 million, or
a net loss of $0.28 per basic and diluted share, compared to a net loss of
$13.4 million, or a net loss of $0.42 per basic and diluted share, for 2011.

As of December 31, 2012, STI had $3.6 million in cash and cash equivalents.
During the fourth quarter of 2012, STI received net proceeds of $2.7 million
from registered direct offerings of common stock. STI anticipates that the
Company's independent registered public accounting firm's report on the
consolidated financial statements for the year ended December 31, 2012 to be
included in the company's upcoming 10-K for 2012 will, as it did last year,
include an explanatory paragraph expressing substantial doubt about the
company's ability to continue as a going concern due to a history of past
losses and negative cash flows.

Investor Conference Call

STI will host an investor conference call and simultaneous webcast today,
March 7^th, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. The call will
be accessible live by dialing 1-877-941-6009 at least 10 minutes before the
start of the conference. International participants may dial 1-480-629-9819.
The conference ID is 4600818. The call will be webcast and can be accessed
from the "Investor Relations" section of the company's website at A telephone replay will be available until midnight ET
on March 12^th by dialing 1-800-406-7325 or 1-303-590-3030, and entering pass
code 4600818. 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.'scommon stock is listed on theNASDAQ Capital Marketunder
the ticker symbol "SCON." For more information about STI, please

The Superconductor Technologies Inc. logo is available at

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, 2011 and in STI's other public
filings. These documents are available online at STI's website,, or through the SEC's website, 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

                             – Tables to Follow –


                   Three Months Ended           Year Ended
                   December 31,   December 31,  December 31,   December 31,
                    2012           2011          2012           2011
                   unaudited                    unaudited      audited
Net revenues:                                                
Net commercial      $ 1,063,000 $242,000    $3,237,000    $3,416,000
product revenues
Government and
other contract      70,000         42,000        222,000        83,000
Total net revenues  1,133,000      284,000       3,459,000      3,499,000
Costs and expenses:                                          
Cost of commercial  907,000        1,407,000     3,850,000      5,434,000
product revenue
Cost of government
and other contract  52,000         40,000        165,000        79,000
Research and        1,240,000      911,000       5,030,000      5,325,000
Selling, general    1,241,000      1,329,000     5,440,000      6,322,000
and administrative
Total costs and     3,440,000      3,687,000     14,485,000     17,160,000
Loss from           (2,307,000)    (3,403,000)   (11,026,000)   (13,661,000)
Other Income and                                             
Interest income     --             2,000         6,000          22,000
Other Income        48,000         269,000       92,000         269,000
Interest expense    --             --            --             (13,000)
Net loss            $ (2,259,000)  $ (3,132,000) $ (10,928,000) $ (13,383,000)
Basic and diluted                                            
loss per common     $(0.05)       $(0.10)      $(0.28)       $(0.42)
Weighted average
number of common    41,882,777     33,688,282    39,233,785     31,824,918
shares outstanding


                                                  December 31,  December 31,
                                                  2012          2011
ASSETS                                            Unaudited     
Current Assets:                                                 
Cash and cash equivalents                          $3,634,000   $6,165,000
Accounts receivable, net                           122,000       61,000
Inventory, net                                     51,000        1,609,000
Prepaid expenses and other current assets          315,000       472,000
Total Current Assets                               4,122,000     8,307,000
Property and equipment, net of accumulated
depreciation of $19,445,000 and $19,748,000,       6,242,000     2,871,000
Patents, licenses and purchased technology, net of
accumulated amortization of$2,367,000 and         889,000       1,409,000
$2,342,000, respectively
Other assets                                       776,000       362,000
Total Assets                                       $12,029,000  $12,949,000
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current Liabilities:                                            
Accounts payable                                   $603,000     $534,000
Accrued expenses                                   460,000       612,000
Total Current Liabilities                          1,063,000     1,146,000
Other long term liabilities                        674,000       628,000
Total Liabilities                                  1,737,000     1,774,000
Stockholders' Equity:                                           
Preferred stock, $.001 par value, 2,000,000 shares
authorized, 564,642 and 564,642 issued and         1,000         1,000
outstanding, respectively
Common stock, $.001 par value, 250,000,000 shares
authorized, 50,324,288 and 33,362,281 shares       50,000        33,000
issued and outstanding, respectively
Capital in excess of par value                     272,185,000   262,157,000
Accumulated deficit                                (261,944,000) (251,016,000)
Total Stockholders' Equity                         10,292,000    11,175,000
Total Liabilities and Stockholders' Equity         $12,029,000  $12,949,000


                                 Years Ended December 31,
                                 2012           2011           2010
CASH FLOWS FROM OPERATING         Unaudited                    
Net loss                          $(10,928,000) $ (13,383,000) $ (11,968,000)
Adjustments to reconcile net loss
to net cash used for operating                                
Depreciation and amortization     313,000        805,000        976,000
Stock-based compensation expense  854,000        1,563,000      1,159,000
Provision for excess and obsolete 270,000        717,000        360,000
Fair value of derivatives         --             --             (171,000)
Write off of intangibles          213,000        844,000        --
Gain on disposal of property and  (92,000)       (269,000)      --
Changes in assets and                                         
Accounts receivable               (61,000)       46,000         354,000
Inventories                       1,289,000      (96,000)       54,000
Prepaid expenses and other        159,000        (127,000)      101,000
current assets
Patents and licenses              (199,000)      (66,000)       (215,000)
Other assets                      9,000          (152,000)      5,000
Accounts payable, accrued
expenses and other current        (53,000)       100,000        (40,000)
Net cash used in operating        (8,226,000)    (10,018,000)   (9,385,000)
CASH FLOWS FROM INVESTING                                     
Purchase of property and          (3,588,000)    (2,254,000)    (375,000)
Net proceeds from sale of         92,000         269,000        --
property and equipment
Net cash used in investing        (3,496,000)    (1,985,000)    (375,000)
CASH FLOWS FROM FINANCING                                     
Repurchase of common shares for   (120,000)      (303,000)      (573,000)
withholding obligations
Net proceeds from sale of common  9,311,000      12,402,000     6,037,000
Net cash provided by financing    9,191,000      12,099,000     5,464,000
Net increase (decrease) in cash   (2,531,000)    96,000         (4,296,000)
and cash equivalents
Cash and cash equivalents at      6,165,000      6,069,000      10,365,000
beginning of year
Cash and cash equivalents at end  $3,634,000    $6,165,000    $6,069,000
of year

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