Superconductor Technologies Reports 2013 Fourth Quarter and Year-End Results

Superconductor Technologies Reports 2013 Fourth Quarter and Year-End Results

       Achieves Goals That Further HTS Wire's Path to Commercialization

  Generates $3.7 Million in Cash Through Warrant Exercises Jan. 1^st to Mar.

AUSTIN, Texas, March 27, 2014 (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, 2013.

"During 2013, we set the stage to produce Conductus® wire on a commercial
scale in 2014 and beyond," said Jeff Quiram, STI's president and chief
executive officer. "In the first three months of 2014, we continued to
experience an increase in customer demand for Conductus wire for product
qualification. Recently, we shipped hundreds of meters of Conductus wire that
performed at currents as high as 450 Amps per centimeter (A/cm). We believe we
are close to successfully completing the testing process with several valuable
customers. Our goal is to continue to secure additional purchase orders and
enter into new business agreements that consume all the additional capacity of
Conductus wire as we ramp supply in the second half of 2014. Global forecasted
demand from our customers for superconductor wire continues to grow and exceed
our planned production capacity.

"Our fully loaded RCE-CDR pilot equipment produced Conductus wire with over
90% of the output performing at an average of 350A/cm and with high uniformity
across its length and width. By achieving this important manufacturing
milestone, we have demonstrated, on a pilot level, the high performance, yield
and scalability of our production process. In January, we began the
fabrication of sub-assemblies for our first 1 kilometer (km) RCE-CDR machine.
The system is scheduled to be production ready late in the second quarter of
2014 and achieve commercial production levels in 2014.The project costs are in
line with our expectations. We are on track to have 750km in annual production
volume when our first 1km RCE-CDR machine is running at full capacity."

STI's fourth quarter 2013 net revenues was $150,000, compared to $229,000 in
the third quarter of 2013 and $1.1 million in the fourth quarter of 2012.
Revenue for all periods was primarily from legacy wireless products. Net loss
for the fourth quarter of 2013 was $3.9 million, or a loss of $0.34 per basic
and diluted share, compared to a net loss of $3.5 million, or a loss of $0.42
per basic and diluted share, in the third quarter of 2013, and a net loss of
$2.3 million, or a loss of $0.65 per basic and diluted share, in the fourth
quarter of 2012.

For the full year 2013, total net revenues were $1.7 million, compared to $3.5
million for 2012. Revenue for all periods was primarily from legacy wireless
products. The net loss for 2013 was $12.2 million, or $1.71 per share,
compared to a net loss of $10.9 million, or $3.34 per share, for 2012.

As of December 31, 2013, STI had $7.5 million in cash and cash equivalents.
Since January 1, 2014 through March 21, 2014, investors have exercised 1.4
million warrants, resulting in cash proceeds to the company of $3.7 million.

"We are extremely pleased with the confidence in STI demonstrated by our
investors through their increased investment. This additional cash enables us
to focus on the execution and growth of our Conductus wire initiative,"
concluded Quiram.

Investor Conference Call

STI will host a conference call and simultaneous webcast today, March 27^th at
11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss its results.
Participating in the call will be Jeff Quiram, president and chief executive
officer; and Bill Buchanan, vice president and chief financial officer. To
listen to the call live, please dial 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 4671851. 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 April 1^st by dialing 1-800-406-7325 or 1-303-590-3030, and entering pass
code 4671851. 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

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
LHA +1-415-433-3777

                             – Tables to Follow –

                Three Months Ended            Year Ended
                December 31,   December 31,   December 31,    December 31,
                 2013           2012           2013            2012
                unaudited                     unaudited       audited
Net revenues:                                               
Net commercial   $150,000     $1,063,000   $1,710,000    $3,237,000
product revenues
Government and
other contract   --             70,000         --              222,000
Total net        150,000        1,133,000      1,710,000       3,459,000
Costs and                                                   
Cost of
commercial       141,000        907,000        1,051,000       3,850,000
product revenue
Cost of
government and   --             52,000         --              165,000
other contract
Research and     1,349,000      1,240,000      6,073,000       5,030,000
Selling, general
and              1,159,000      1,241,000      5,068,000       5,440,000
Total costs and  2,649,000      3,440,000      12,192,000      14,485,000
Loss from        (2,499,000)    (2,307,000)    (10,482,000)    (11,026,000)
Other Income and                                            
Loss from
investment in    --             --             (238,000)       --
Resonant LLC
Adjustments to
fair value of    (1,466,000)                  (1,551,000)     --
Interest income  --             --             --              6,000
Other income     132,000        48,000         140,000         92,000
Other expense    (42,000)       --             (42,000)        --
Net loss         $(3,875,000) $(2,259,000) $(12,173,000) $(10,928,000)
Basic and
diluted loss per $(0.34)      $(0.65)      $(1.71)       $(3.34)
common share
Weighted average
number of common 11,527,366     3,490,231      7,123,817       3,269,482
shares issued
and outstanding

                                                  December 31,  December 31,
                                                  2013          2012
Current Assets:                                                 
Cash and cash equivalents                          $7,459,000  $3,634,000
Accounts receivable, net                           6,000         122,000
Inventory, net                                     76,000        51,000
Prepaid expenses and other current assets          437,000       315,000
Total Current Assets                               7,978,000     4,122,000
Property and equipment, net of accumulated
depreciation of $11,626,000 and $19,445,000,       5,473,000     6,242,000
Patents, licenses and purchased technology, net of
accumulated amortization of$722,000 and           888,000       889,000
$2,367,000, respectively
Other assets                                       501,000       776,000
Total Assets                                       $14,840,000 $12,029,000
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current Liabilities:                                            
Accounts payable                                   $703,000    $603,000
Accrued expenses                                   637,000       460,000
Total Current Liabilities                          1,340,000     1,063,000
Other long term liabilities                        6,194,000     674,000
Total Liabilities                                  7,534,000     1,737,000
Commitments and contingencies(Notes 7 and 8)                   
Stockholders' Equity:                                           
Preferred stock, $.001 par value, 2,000,000 shares
authorized, 328,925 and 564,642 issued and         --            1,000
outstanding, respectively
Common stock, $.001 par value, 250,000,000 shares
authorized, 11,634,950 and 4,193,690 shares issued 12,000        4,000
and outstanding, respectively
Capital in excess of par value                     281,411,000   272,231,000
Accumulated deficit                                (274,117,000) (261,944,000)
Total Stockholders' Equity                         7,306,000     10,292,000
Total Liabilities and Stockholders' Equity         $14,840,000 $12,029,000

                              Years Ended December 31,
                              2013            2012            2011
CASH FLOWS FROM OPERATING                                    
Net loss                       $(12,173,000) $(10,928,000) $(13,383,000)
Adjustments to reconcile net
loss to net cash used for                                    
operating activities:
Depreciation and amortization  1,276,000       313,000         805,000
Stock-based compensation       492,000         854,000         1,563,000
Provision for excess and       --              270,000         717,000
obsolete inventories
Write off of intangibles       93,000          213,000         844,000
Adjustment to fair value of    1,551,000       --              --
warrant derivatives
(Gain) loss on disposal of     239,000         (92,000)        (269,000)
property and equipment
Loss from investment in        238,000         --              --
Resonant LLC joint venture
Changes in assets and                                        
Accounts receivable            116,000         (61,000)        46,000
Inventories                    (25,000)        1,289,000       (96,000)
Prepaid expenses and other     (122,000)       159,000         (127,000)
current assets
Patents and licenses           (160,000)       (199,000)       (66,000)
Other assets                   (148,000)       9,000           (152,000)
Accounts payable, accrued      324,000         (53,000)        100,000
expenses and other liabilities
Net cash used in operating     (8,299,000)     (8,226,000)     (10,018,000)
CASH FLOWS FROM INVESTING                                    
Purchase of property and       (818,000)       (3,588,000)     (2,254,000)
Net proceeds from sale of      98,000          92,000          269,000
property and equipment
Net cash used in investing     (720,000)       (3,496,000)     (1,985,000)
CASH FLOWS FROM FINANCING                                    
Repurchase of common shares    --              (120,000)       (303,000)
for withholding obligations
Net proceeds from sale of      12,844,000      9,311,000       12,402,000
common stock
Net cash provided by financing 12,844,000      9,191,000       12,099,000
Net increase (decrease) in     3,825,000       (2,531,000)     96,000
cash and cash equivalents
Cash and cash equivalents at   3,634,000       6,165,000       6,069,000
beginning of year
Cash and cash equivalents at   $7,459,000    $3,634,000    $6,165,000
end of year

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