Superconductor Technologies Reports 2014 First Quarter Results

Superconductor Technologies Reports 2014 First Quarter Results

 Achieves Record Critical Current Performance and Demonstrates High Yield on
                                Pilot Machine

          Adds New Customers and Increases Conductus Wire Shipments

AUSTIN, Texas, May 8, 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 first quarter ended March 29, 2014.

"In the first quarter of 2014, we made significant progress in our effort to
commercialize Conductus^® wire," said Jeff Quiram, STI's president and chief
executive officer. "We achieved a minimum current of 500 Amps per centimeter
(A/cm) width at 77K across 100% of the design capacity of our pilot production
manufacturing system. Wire performance of this magnitude enables device
manufacturers to optimize their product design by reducing the requisite
number of wires per device while also maximizing performance. We expect that
our demonstrated high performance/high yield combination will allow STI to
produce large quantities of wire from a cost leadership position.

"The substantial increase in high performance Conductus wire throughput from
our pilot equipment has allowed STI to continue to accelerate wire shipments.
During the first quarter of 2014, we shipped nine orders: six for Stage 1
customers conducting performance evaluation and three for Stage 2 customers
testing simulated devices for commercial deployment. We continue to prioritize
our shipments based on the near-term size of the opportunity. This quarter we
shipped to five new customers and our purchase order commitments continued to
grow. Our current commitments and in-house orders are expected to consume all
of the wire produced for the next quarter. We expect our new 1km Reactive
Co-Evaporation Cyclic Deposition and Reaction (RCE-CDR) machine to be
operational shortly and we plan to have commercial quantities of Conductus
wire available in the third quarter. We plan to ramp this machine to its full
annual capacity of 750km by the end of 2014.

"Superconducting materials clearly offer solutions to problems that
conventional products cannot address, thus creating a large market
opportunity. We believe that the demonstrated critical current performance and
scalable output of STI's superconducting wire positions us well, and we are
excited about our future as a supplier to the electrical device industry,"
concluded Quiram.

On May 6, 2014 STI was issued US Patent No. 8,716,187 pertaining to optimized
compositions of Rare Earth barium copper oxide (ReBCO) thin film
superconductors using the RCE-CDR process. This patent further strengthen
STI's IP portfolio on the RCE-CDR process for manufacturing of high
performing, economical and commercially scalable ReBCO thin films.

STI's first quarter 2014 net revenues were $389,000, compared to $150,000 in
the fourth quarter of 2013 and $776,000 in the first quarter of 2013. Revenue
for all periods was primarily from legacy wireless products. Net loss for the
first quarter 2014 was $2.9 million, or a loss of $0.25 per basic and diluted
share, compared to a net loss of $3.9 million, or a loss of $0.34 per basic
and diluted share, in the fourth quarter of 2013, and a net loss of $2.4
million, or a loss of $0.58 per basic and diluted share, in the first quarter
of 2013.

As of March 29, 2014, STI had $7.8 million in cash and cash equivalents, which
included cash proceeds to the company of $3.8 million resulting from the
exercise of 1.5 million outstanding warrants during the first quarter of 2014.

Investor Conference Call

STI will host a conference call and simultaneous webcast today, May 8^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 1-888-549-7750 at least 10 minutes before
the start of the conference. International participants may dial
1-480-629-9866. The conference ID is 4680003. 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 May 13^th by dialing 1-800-406-7325 or 1-303-590-3030, and entering pass
code 4680003. 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, 2013 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
                                                March 29, 2014 March 30, 2013
Net revenues                                    $389,000      $776,000
Costs and expenses:                                            
Cost of revenues                                 370,000        226,000
Research and development                         1,470,000      1,438,000
Selling, general and administrative              1,348,000      1,345,000
Total costs and expenses                         3,188,000      3,009,000
Loss from operations                             (2,799,000)    (2,233,000)
Other Income and Expense:                                      
Loss from joint venture investment in Resonant   --             (182,000)
Adjustments to fair value of warrant derivatives (232,000)      --
Other income                                     96,000         6,000
Interest income                                  --             1,000
Net loss                                         $(2,935,000)  $(2,408,000)
Basic and diluted net loss per common share                    
                                                 $ (0.25)       $ (0.58)
Basic and diluted weighted average number of     11,880,889     4,152,036
common shares outstanding

                                                 March 29,      December 31,
                                                 2014           2013
                                                 (Unaudited)    (See Note)
Current Assets:                                                 
Cash and cash equivalents                         $7,768,000   $ 7,459,000
Accounts receivable, net                          308,000        6,000
Inventory, net                                    79,000         76,000
Prepaid expenses and other current assets         328,000        437,000
Total Current Assets                              8,483,000      7,978,000
Property and equipment, net of accumulated
depreciation of $11,938,000 and $11,626,000,      6,658,000      5,473,000
Patents, licenses and purchased technology, net
of accumulated amortization of$740,000 and       890,000        888,000
$722,000, respectively
Other assets                                      469,000        501,000
Total Assets                                      $16,500,000  $ 14,840,000
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current Liabilities:                                            
Accounts payable                                  $1,089,000   $ 703,000
Accrued expenses                                  709,000        637,000
Total Current Liabilities                         1,798,000      1,340,000
Other long term liabilities                       6,393,000      6,194,000
Total Liabilities                                 8,191,000      7,534,000
Stockholders' Equity:                                           
Preferred stock, $.001 par value, 2,000,000
shares authorized, 328,925 and 328,925 shares     --             --
issued and outstanding, respectively
Common stock, $.001 par value, 250,000,000 shares
authorized, 13,119,348 and 11,634,950 shares      13,000         12,000
issued and outstanding, respectively
Capital in excess of par value                    285,348,000    281,411,000
Accumulated deficit                               (277,052,000)  (274,117,000)
Total Stockholders' Equity                        8,309,000      7,306,000
Total Liabilities and Stockholders' Equity        $ 16,500,000 $14,840,000

Note – December 31, 2013 balances were derived from the audited consolidated
financial statements.


                                                Three Months Ended
                                                March 29, 2014 March 30, 2013
Net loss                                         $(2,935,000)  $(2,408,000)
Adjustments to reconcile net loss to net cash                  
used in operating activities:
Depreciation and amortization                    330,000        234,000
Stock-based compensation expense                 187,000        166,000
Write-off of intangibles                         --             79,000
Adjustments to fair value of warrant derivatives 232,000        --
Gain on disposal of property and equipment       (96,000)       (6,000)
Loss from joint venture investment in Resonant   --             182,000
Changes in assets and liabilities:                             
Accounts receivable                              (302,000)      (220,000)
Inventories                                      (3,000)        (94,000)
Prepaid expenses and other current assets        108,000        87,000
Patents and licenses                             (20,000)       (23,000)
Other assets                                     32,000         32,000
Accounts payable, accrued expenses and other     426,000        165,000
current liabilities
Net cash used in operating activities            (2,041,000)    (1,806,000)
Purchases of property and equipment              (1,497,000)    (178,000)
Net proceeds from the sale of property and       96,000        6,000
Net cash used in investing activities            (1,401,000)    (172,000)
Net proceeds from the exercise of outstanding    3,751,000      --
Net cash provided by financing activities        3,751,000      --
Net (decrease) increase in cash and cash         309,000        (1,978,000)
Cash and cash equivalents at beginning of period 7,459,000      3,634,000
Cash and cash equivalents at end of period       $ 7,768,000  $1,656,000

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