Superconductor Technologies Reports Second Quarter 2013 Results - Demonstrates significant progress in plan to produce Conductus wire on a commercial scale in 2014 - AUSTIN, Texas, August 13, 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 June 29, 2013. "In the second quarter, we executed on our priority to ship Conductus^® wire to several industry leading multi-national companies," said Jeff Quiram, STI's president and chief executive officer. "While attaining these important goals, we also experienced a marked improvement in our wire performance, yields and wire length per run during the quarter." "As announced on July 23^rd, we shipped wire against three purchase orders to customers for wire qualification purposes. In addition, in the second quarter we recognized our first, albeit modest, revenue for Conductus wire. Since that status update, we have continued to ship Conductus wire to fulfill existing purchase orders. The extensive customer interest further illustrates the applicability of our Conductus wire for diverse and large market applications, such as superconducting fault current limiters, superconducting high-field magnets, HTS power cables and superconducting motors and generators." "To successfully commercialize Conductus wire and create long-term revenue growth, we are fostering relationships with large industrial companies with well-established sales channels. We continue to make technical progress as we ramp up production volume to fulfill our existing customer orders. In addition, we continue to make progress toward the 500 Amp current performance required for the upcoming high power cable project. Our near-term goal is to establish commercial relationships with one or more of these customers completing the wire qualification efforts, with the objective of securing orders for our planned 2014 production," Quiram concluded. STI's second quarter 2013 net revenues of $555,000 were primarily from wireless products. This compares to revenue of $776,000 million in the first quarter of 2013 and $596,000 in the second quarter of 2012. Net loss for the second quarter of 2013 was $2.4 million, or a loss of $0.54 per basic and diluted share, compared to a net loss of $2.4 million, or a loss of $0.58 per basic and diluted share, in the first quarter of 2013, and a net loss of $3.4 million, or a loss of $1.03 per basic and diluted share, in the second quarter of 2012. For the six-month period ending June 29, 2013, total net revenues were $1.3 million, compared to $1.0 million for the first half of 2012. The net loss for the first half of 2013 was $4.8 million, or $1.12 per share, compared to $6.4 million, or $2.04 per share, for the prior year's first half. As of June 29, 2013, STI had $1.6 million in cash and cash equivalents. Subsequent to the end of the second quarter of 2013, STI received net proceeds of $10.9 million from a registered public offering of common stock and warrants. Investor Conference Call STI will host a conference call and simultaneous webcast today, August 13^th, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. The call will be accessible live by dialing 1-877-941-0844 at least 10 minutes before the start of the conference. International participants may dial 1-480-629-9835. The conference ID is 4631191. 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 August 16^th by dialing 1-800-406-7325 or 1-303-590-3030, and entering pass code 4631191. 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 email@example.com – Tables to Follow – SUPERCONDUCTOR TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 29, 2013 June 30, 2012 June 29, 2013 June 30, 2012 Net revenues: Net commercial $555,000 $529,000 $1,331,000 $873,000 product revenues Government and other contract -- 67,000 -- 122,000 revenues Total net revenues 555,000 596,000 1,331,000 995,000 Costs and expenses: Cost of commercial 394,000 1,078,000 620,000 1,922,000 product revenues Cost of government and other contract -- 43,000 -- 95,000 revenue Research and 1,411,000 1,314,000 2,849,000 2,475,000 development Selling, general 1,130,000 1,604,000 2,475,000 2,952,000 and administrative Total costs and 2,935,000 4,039,000 5,944,000 7,444,000 expenses Loss from (2,380,000) (3,443,000) (4,613,000) (6,449,000) operations Other Income and Expense: Loss from investment in (56,000) -- (238,000) -- Resonant LLC joint venture Other income -- 21,000 6,000 37,000 Interest Income -- 3,000 1,000 5,000 Net loss $(2,436,000) $(3,419,000) $(4,844,000) $(6,407,000) Basic and diluted loss per common $(0.54) $(1.03) $(1.12) $(2.04) share Basic and diluted weighted average number of common 4,521,731 3,325,383 4,337,905 3,145,097 shares outstanding SUPERCONDUCTOR TECHNOLOGIES INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 29, December 31, 2013 2012 (Unaudited) (See Note) ASSETS Current Assets: Cash and cash equivalents $1,613,000 $3,634,000 Accounts receivable, net 232,000 122,000 Inventory, net 107,000 51,000 Prepaid expenses and other current assets 334,000 315,000 Total Current Assets 2,286,000 4,122,000 Property and equipment, net of accumulated depreciation of $19,994,000 and $19,445,000, 5,868,000 6,242,000 respectively Patents, licenses and purchased technology, net of accumulated amortizationof $2,400,000 and 806,000 889,000 $2,367,000, respectively Other assets 504,000 776,000 Total Assets $9,464,000 $12,029,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $541,000 $603,000 Accrued expenses 687,000 460,000 Total Current Liabilities 1,228,000 1,063,000 Other long term liabilities 547,000 674,000 Total Liabilities 1,775,000 1,737,000 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, 4,751,284 and 4,193,690 shares issued 5,000 4,000 and outstanding, respectively Capital in excess of par value 274,471,000 272,231,000 Accumulated deficit (266,788,000) (261,944,000) Total Stockholders' Equity 7,689,000 10,292,000 Total Liabilities and Stockholders' Equity $9,464,000 $12,029,000 Note – December 31, 2012 balances were derived from audited consolidated financial statements. SUPERCONDUCTOR TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 29, 2013 June 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(4,844,000.00) $(6,407,000.00) Adjustments to reconcile net loss to net cash used foroperating activities: Depreciation and amortization 589,000 130,000 Stock-based compensation expense 296,000 559,000 Write-off of intangibles 87,000 87,000 Provision for excess and obsolete -- 182,000 inventories Gain on disposal of property and equipment (6,000) (37,000) Equity loss from Resonant LLC 238,000 -- Changes in assets and liabilities: Accounts receivable (110,000) (222,000) Inventories (56,000) 276,000 Prepaid expenses and other current assets (18,000) (89,000) Patents and licenses (38,000) (115,000) Other assets 34,000 5,000 Accounts payable, accrued expenses and 37,000 175,000 other current liabilities Net cash used in operating activities (3,791,000) (5,456,000) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (181,000) (1,863,000) Net proceeds from sale of property and 6,000 37,000 equipment Net cash used in investing activities (175,000) (1,826,000) CASH FLOWS FROM FINANCING ACTIVITIES: Repurchase of common shares for -- (134,000) withholding obligations Net proceeds from the sale of common stock 1,945,000 6,621,000 Net cash provided by financing activities 1,945,000 6,487,000 Net decrease in cash and cash equivalents (2,021,000) (795,000) Cash and cash equivalents at beginning of 3,634,000 6,165,000 period Cash and cash equivalents at end of period $1,613,000 $5,370,000 Superconductor Technologies Inc. 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Superconductor Technologies Reports Second Quarter 2013 Results
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