Superconductor Technologies Reports Third Quarter 2013 Results

Superconductor Technologies Reports Third Quarter 2013 Results

 – Grows Conductus wire purchase order backlog and pipeline for qualification
                                  purposes –
– Increases wire output per run and begins taking delivery of commercial scale
                             machine components –

AUSTIN, Texas, Nov. 12, 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 September 28, 2013.

"In the third quarter, we advanced our progress in commercializing our
Conductus^® wire by fully completing our first purchase order, continuing to
ship against other existing orders, and further increasing our order
pipeline," said Jeff Quiram, STI's president and chief executive officer.
"Current shipments of Conductus wire are for qualification testing for our
target superconducting applications, including fault current limiters,
high-field magnets, industrial motors and generators, and power transmission
cables. Our near-term goal is to establish a commercial relationship with one
or more customers that are completing the wire qualification efforts for those
target superconducting applications. Due to the strong market interest in our
wire, customer demand continues to create a backlog of orders for
qualification testing. We expect these current commitments will consume all
the wire we can produce for at least the next three months. Our objective over
the next several months is to secure orders for our planned 2014 production."

"We continue to focus our development efforts on further improving the
performance of our industry leading Conductus wire. We continue to meet or
exceed the performance requirements for all our current purchase orders and
remain committed to attaining even higher performance levels in the future.
During the quarter, we increased the wire output per production run as we
drive toward commercial scale production in 2014. We have begun taking
delivery of various components for our 1 kilometer RCE machine and expect to
have all the equipment we need to assemble it at our Austin facility in the
first quarter of 2014. We remain on track with our plan to exit the second
quarter with significant wire production capacity. We continue to execute
against our plan and expect to achieve positive cash flow from operations in
the second half of 2014," Quiram concluded.

STI's third quarter 2013 net revenues of $229,000, compared to $555,000 in the
second quarter of 2013 and $1.3 million in the third quarter of 2012. Revenue
for all periods was primarily from legacy wireless products. Net loss for the
third quarter of 2013 was $3.5 million, or a loss of $0.42 per basic and
diluted share, compared to a net loss of $2.4 million, or a loss of $0.54 per
basic and diluted share, in the second quarter of 2013, and a net loss of $2.3
million, or a loss of $0.69 per basic and diluted share, in the third quarter
of 2012.

For the nine-month period ending September 28, 2013, total net revenues were
$1.6 million, compared to $2.3 million for the same period a year ago. Revenue
for all periods was primarily from wireless products. The net loss for the
first nine months of 2013 was $8.3 million, or $1.48 per share, compared to a
net loss of $8.7 million, or $2.71 per share, for the year ago period.

As of September 28, 2013, STI had $10.3 million in cash and cash equivalents.

Investor Conference Call

STI will host a conference call and simultaneous webcast today, November
12^th, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. The call will be
accessible live by dialing 1-800-762-8779 at least 10 minutes before the start
of the conference. International participants may dial 1-480-629-9645. The
conference ID is 4645162. 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 November 15^th by dialing 1-800-406-7325 or 1-303-590-3030, and entering
pass code 4645162. 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

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,, 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          Nine Months Ended
                      September 28, September 29, September 28, September 29,
                       2013          2012          2013          2012
Net revenues:                                                 
Net commercial product $229,000    $1,301,000   $1,560,000  $2,174,000
Government and other   --            30,000        --            152,000
contract revenues
Total net revenues     229,000       1,331,000     1,560,000     2,326,000
Costs and expenses:                                           
Cost of commercial     290,000       1,021,000     910,000       2,943,000
product revenues
Cost of government and --            18,000        --            113,000
other contract revenue
Research and           1,875,000     1,315,000     4,724,000     3,790,000
Selling, general and   1,434,000     1,247,000     3,909,000     4,199,000
Total costs and        3,599,000     3,601,000     9,543,000     11,045,000
Loss from operations   (3,370,000)   (2,270,000)   (7,983,000)   (8,719,000)
Other Income and                                              
Loss from investment
in Resonant LLC joint  --            --            (238,000)     --
Adjustments to fair    (85,000)      --            (85,000)      --
value of derivatives
Other income           1,000         7,000         7,000         44,000
Interest income        --            1,000         1,000         6,000
Net loss               $(3,454,000) $(2,262,000) $ (8,298,000) $(8,669,000)
Basic and diluted loss $(0.42)      $(0.69)      $(1.48)      $(2.71)
per common share
Basic and diluted
weighted average       8,176,262     3,292,650     5,612,636     3,194,281
number of common
shares outstanding



                                                  September 28, December 31,
                                                  2013          2012
                                                  (Unaudited)   (See Note)
Current Assets:                                                 
Cash and cash equivalents                          $10,267,000  $3,634,000
Accounts receivable, net                           127,000       122,000
Inventory, net                                     92,000        51,000
Prepaid expenses and other current assets          312,000       315,000
Total Current Assets                               10,798,000    4,122,000
Property and equipment, net of accumulated                      
depreciation of
$20,209,000 and $19,445,000, respectively          5,553,000     6,242,000
Patents, licenses and purchased technology, net of              
accumulated amortization
of$705,000 and $2,367,000, respectively           809,000       889,000
Other assets                                       503,000       776,000
Total Assets                                       $17,663,000 $12,029,000
LIABILITIES AND STOCKHOLDERS' EQUITY                            

Current Liabilities:                                            
Accounts payable                                   $970,000    $603,000
Accrued expenses                                   807,000       460,000
Total Current Liabilities                          1,777,000     1,063,000
Other long term liabilities                        539,000       674,000
Fair value of warrant derivatives                  4,241,000     --
Total Liabilities                                  6,557,000     1,737,000
Stockholders' Equity:                                           
Preferred stock, $.001 par value, 2,000,000 shares              
328,925 and 564,642 shares issued and outstanding, --            1,000
Common stock, $.001 par value, 250,000,000 shares               
11,599,950 and 4,193,690 shares issued and         12,000        4,000
outstanding, respectively
Capital in excess of par value                     281,336,000   272,231,000
Accumulated deficit                                (270,242,000) (261,944,000)
Total Stockholders' Equity                         11,106,000    10,292,000
Total Liabilities and Stockholders' Equity         $17,663,000 $12,029,000
Note – December 31, 2012 balances were derived from audited consolidated
financial statements.


                                                  Nine Months Ended
                                                  September 28, September 29,
                                                   2013          2012
CASH FLOWS FROM OPERATING ACTIVITIES:                           
Net loss                                           $ (8,298,000) $ (8,669,000)
Adjustments to reconcile net loss to net cash used              
operating activities:                                           
Depreciation and amortization                      946,000       204,000
Stock-based compensation expense                   418,000       785,000
Write-off of intangibles                           93,000        142,000
Adjustments to fair value of warrant derivatives   85,000        --
Provision for excess and obsolete inventories      --            270,000
(Gain) loss on disposal of property and equipment  331,000       (44,000)
Loss from investment in Resonant LLC joint venture 238,000       --
Changes in assets and liabilities:                             
Accounts receivable                                (5,000)       (718,000)
Inventories                                        (41,000)      750,000
Prepaid expenses and other current assets          (150,000)     (61,000)
Patents and licenses                               (64,000)      (157,000)
Other assets                                       2,000         7,000
Accounts payable, accrued expenses and other       436,000       126,000
current liabilities
Net cash used in operating activities             (6,009,000)   (7,365,000)
CASH FLOWS FROM INVESTING ACTIVITIES:                           
Purchases of property and equipment                (209,000)     (2,828,000)
Net proceeds from sale of property and equipment   7,000         44,000
Net cash used in investing activities              (202,000)     (2,784,000)
CASH FLOWS FROM FINANCING ACTIVITIES:                           
Repurchase of common shares for withholding        --            (135,000)
Net proceeds from the sale of common stock         12,844,000    6,621,000
Net cash provided by financing activities          12,844,000    6,486,000
Net increase in cash and cash equivalents          6,633,000     (3,663,000)
Cash and cash equivalents at beginning of period   3,634,000     6,165,000
Cash and cash equivalents at end of period         $ 10,267,000 $2,502,000

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