Superconductor Technologies Reports Second Quarter 2013 Results

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 invest@suptech.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

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