Superconductor Technologies Reports First Quarter 2013 Results

Superconductor Technologies Reports First Quarter 2013 Results

 - Establishing a customer pipeline of committed projects and order backlog -

AUSTIN, Texas, May 8, 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 ended March 30, 2013.

"We are executing our strategy to commercialize Conductus® wire by
establishing a diversified customer base with a variety of superconducting
needs," said Jeff Quiram, STI's president and chief executive officer. "STI
entered 2013 positioned to begin pilot production. On April 23^rd, we
announced receipt of purchase orders from several strategic customers that are
qualifying Conductus wire in specific product designs. Since that
announcement, our order backlog has continued to grow. Targeting near-term and
existing applications, we have aligned our 2013 production output to fulfill
purchase orders for customers actively producing superconducting products.
Looking ahead, our current orders and other commitments will consume all of
the wire we can produce at least until the third quarter of 2013."

"Our top priority is to ship Conductus wire to customers to complete product
evaluations. We remain intensely focused on turning up our pilot RCE machine
to produce longer lengths of wire for the existing customer purchase orders
and tests. Most of the pending customer orders are for wire that attains
critical current of 250 amperes (amps) to 400 amps per centimeter-width. In
addition, we continue to focus efforts on producing lengths of wire that
provide a critical current of 500 amps per centimeter-width for our most
demanding present commitment, the cable demonstration project. The remainder
of 2013 will be used to implement our plans to produce Conductus wire on a
commercial scale in 2014," Quiram concluded.

STI's first quarter 2013 net revenues from our wireless business, which is
unrelated to our strategic wire initiative discussed above, were $776,000,
which compare to revenue of $1.1 million in the fourth quarter of 2012 and
$399,000 in the first quarter of 2012. Net loss for the first quarter of 2013
was $2.4 million, or a loss of $0.58 per basic and diluted share, compared to
a net loss of $2.3 million, or a net loss of $0.65 per basic and diluted
share, in the fourth quarter of 2012, and a net loss of $3.0 million, or a
loss of $1.01 per basic and diluted share, in the first quarter of 2012.

As of March 30, 2013, STI had $1.7 million in cash and cash equivalents.
Subsequent to the end of the first quarter of 2013, STI received net proceeds
of $1.95 million from a registered direct offering of common stock and
warrants.

Investor Conference Call

STI will host an investor conference call and simultaneous webcast today, May
8^th, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. The call will be
accessible live by dialing 1-888-549-7750 at least 10 minutes before the start
of the conference. International participants may dial 1-480-629-9770. The
conference ID is 4616129. 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 13^th by dialing 1-800-406-7325 or 1-303-590-3030, and entering pass
code 4616129. 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, 2012 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 30, 2013 March 31, 2012
                                                              
Net revenues:                                                  
Commercial product revenues                      $776,000       $344,000
Government and other contract revenues           --             55,000
                                                              
Total net revenues                               776,000        399,000
                                                              
Costs and expenses:                                            
Cost of commercial product revenues              226,000        844,000
Cost of government and other contract revenue    --             52,000
Research and development                         1,438,000      1,161,000
Selling, general and administrative              1,345,000      1,348,000
                                                              
Total costs and expenses                         3,009,000      3,405,000
                                                              
Loss from operations                             (2,233,000)    (3,006,000)
                                                              
Other Income and Expense                                       
Loss in joint venture investment in Resonant LLC (182,000)      --
Other income                                     6,000          16,000
Interest income                                  1,000          2,000
                                                              
Net loss                                         $ (2,408,000)  $ (2,988,000)
                                                              
Basic and diluted net loss per common share      $ (0.58)       $ (1.01)
                                                              
Basic and diluted weighted average number of     4,152,036      2,964,811
common shares outstanding
                                                              


SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                               
                                                               
                                                  March 30,     December 31,
                                                  2013          2012
                                                  (Unaudited)   (See Note)
ASSETS                                                          
                                                               
Current Assets:                                                 
Cash and cash equivalents                          $1,656,000    $3,634,000
Accounts receivable, net                           342,000       122,000
Inventory, net                                     145,000       51,000
Prepaid expenses and other current assets          228,000       315,000
Total Current Assets                               2,371,000     4,122,000
                                                               
Property and equipment, net of accumulated
depreciation of $19,657,000 and $19,445,000,       6,202,000     6,242,000
respectively
Patents, licenses and purchased technology, net of
accumulated amortization of$2,383,000 and         817,000       889,000
$2,367,000, respectively
Other assets                                       562,000       776,000
Total Assets                                       $9,952,000    $12,029,000
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current Liabilities:                                            
Accounts payable                                   $630,000      $603,000
Accrued expenses                                   609,000       460,000
Total Current Liabilities                          1,239,000     1,063,000
Other long term liabilities                        663,000       674,000
Total Liabilities                                  1,902,000     1,737,000
                                                               
Commitments and contingencies-Notes 5 and 6                     
                                                               
Stockholders' Equity:                                           
Preferred stock, $.001 par value, 2,000,000 shares
authorized, 536,520 and 564,642 shares issued and  1,000         1,000
outstanding, respectively
Common stock, $.001 par value, 250,000,000 shares
authorized, 4,237,457 and 4,193,690 shares issued  4,000         4,000
and outstanding, respectively
Capital in excess of par value                     272,397,000   272,231,000
Accumulated deficit                                (264,352,000) (261,944,000)
Total Stockholders' Equity                         8,050,000     10,292,000
Total Liabilities and Stockholders' Equity         $9,952,000    $12,029,000
                                                               
                                                               
Note – December 31, 2012 balances were derived from audited financial
statements.


SUPERCONDUCTOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                                              
                                                Three Months Ended
                                                March 30, 2013 March 31, 2012
                                                              
CASH FLOWS FROM OPERATING ACTIVITIES:                          
Net loss                                         $ (2,408,000)  $ (2,988,000)
Adjustments to reconcile net loss to net cash                  
used in operating activities:
Depreciation and amortization                    234,000        66,000
Stock-based compensation expense                 166,000        321,000
Write-off of intangibles                         79,000         --
Provision for excess and obsolete inventories    --             92,000
Gain on disposal of property and equipment       (6,000)        (15,000)
Equity (income) loss from Resonant LLC           182,000        --
Changes in assets and liabilities:                             
Accounts receivable                              (220,000)      (119,000)
Inventories                                      (94,000)       161,000
Prepaid expenses and other current assets        87,000         37,000
Patents and licenses                             (23,000)       30,000
Other assets                                     32,000         2,000
Accounts payable, accrued expenses and other     165,000        237,000
current liabilities
Net cash used in operating activities            (1,806,000)    (2,176,000)
                                                              
CASH FLOWS FROM INVESTING ACTIVITIES:                          
Purchases of property and equipment              (178,000)      (966,000)
Net proceeds from the sale of property and       6,000          15,000
equipment
Net cash used in investing activities            (172,000)      (951,000)
                                                              
CASH FLOWS FROM FINANCING ACTIVITIES:                          
Repurchase of common shares for withholding      --             (129,000)
obligations
Net proceeds from the sale of common stock       --             6,621,000
Net cash provided by financing activities        --             6,492,000
                                                              
Net decrease in cash and cash equivalents        (1,978,000)    3,365,000
Cash and cash equivalents at beginning of period 3,634,000      6,165,000
Cash and cash equivalents at end of period       $1,656,000     $9,530,000
                                                              
                                                              

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