Superconductor Technologies Reports 2014 Second Quarter Results

Superconductor Technologies Reports 2014 Second Quarter Results

 - Attains pilot production target of 500A/cm, in a run yielding 100% of the
                          systems design capacity -

 - Completes initial installation of source chamber and process controls for
                              1km RCE machine -

 - Recognizes one-time gain of $3.5 million from its investment in Resonant -

AUSTIN, Texas, Aug. 7, 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 second quarter ended June 28, 2014.

Jeff Quiram, STI's president and chief executive officer, stated, "We
accomplished a significant milestone in the second quarter by completing a
full pilot production run of Conductus^® wire that achieved, on a pilot scale,
our commercialization performance target of a minimum current of 500 Amps per
centimeter (A/cm) width at 77k. Our ability to increase the performance of
Conductus wire from 350A/cm to 500A/cm in pilot runs in the span of less than
six months is very encouraging. In addition, to support our wire program we
completed the installation and calibration of characterization equipment that
enables us to test Conductus wire performance up to 1,000 Amps on 1 kilometer
lengths. This important production tool greatly improves our efficiency,
capacity and quality, allowing us to meet accepted standard testing specified
by our customers.

"In the second quarter and the third quarter through August 1^st, we shipped
11 orders: six for Stage 1 customers conducting performance evaluation and
five for Stage 2 customers testing simulated devices for commercial
deployment. Five of the 11 shipments were to new customers as we continue to
grow our customer base. During the same period, we received five new orders
and project commitments for evaluation and qualification testing as customer
interest remains strong. Year-to-date, we have shipped 20 Conductus wire
orders. Our current customers are evaluating Conductus wire for multiple
applications such as superconducting fault current limiters, high performance
magnets, power cables and nuclear magnetic resonance equipment.

"Operationally, we are focused on the transition from our pilot equipment to
our 1 kilometer production equipment that is designed to produce 750
kilometers of Conductus wire annually. Our IBAD and SDP machines are
production ready, with SDP now scaled to run at widths of 100mm. The RCE 1
kilometer production equipment is made up of three components: the source
chamber, the vacuum deposition chamber and the process control software that
runs the entire system. The source chamber is installed, functioning and being
used to test portions of our software system, which is operational and being
calibrated. As recently disclosed, the delivery of the last component, the
vacuum deposition chamber, has been delayed from our original plan. We are
working closely with our supplier to complete the assembly as quickly as
possible. The supplier expects it to be ready in late August. While we are
disappointed with the delay by our supplier, we still expect commercial volume
production to begin in the fourth quarter and the ramp to full capacity in
early 2015."

STI's second quarter 2014 net revenues were $75,000 compared to $389,000 in
the first quarter of 2014 and $555,000 in the second quarter of 2013. Revenue
for all periods was primarily from legacy wireless products. In the second
quarter 2014, STI recognized a one-time gain of $3.5 million from its
investment in Resonant Inc. Net loss for the second quarter 2014 was $55,000,
or a loss of $0.00 per basic and diluted share, compared to a net loss of $2.9
million, or a loss of $0.25 per basic and diluted share, in the first quarter
of 2014, and a net loss of $2.4 million, or a loss of $0.54 per basic and
diluted share, in the second quarter of 2013.

For the six-month period ending June 28, 2014, total net revenues were
$464,000, compared to $1.3 million for the first half of 2013. Including the
aforementioned one-time gain of $3.5 million, the net loss for the first half
of 2014 was $3.0 million, or $0.24 per share, compared to $4.8 million, or
$1.12 per share, for the prior year's first half.

Investor Conference Call

STI will host a conference call and simultaneous webcast today, Aug. 7^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 1-888-329-8862 at least 10 minutes before
the start of the conference. International participants may dial
1-719-457-2697. The conference ID is 8538692. 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 August 12^th by dialing 1-888-203-1112 or 1-719-457-0820, and entering pass
code 8538692. 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:
the ability of our suppliers, who we do not control, to produce and deliver
equipment on a timely basis; our ability to incorporate and fully assemble new
equipment effectively and on time into our production processes; our ability
to calibrate and use new equipment to produce wire in accordance with our
timetable; 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          Six Months Ended
                      June 28, 2014 June 29, 2013 June 28, 2014 June 29, 2013
Net revenues          $75,000      $555,000     $464,000    $1,331,000
Costs and expenses:                                           
Cost of commercial    352,000       394,000       722,000       620,000
product revenues
Research and          1,515,000     1,411,000     2,986,000     2,849,000
Selling, general and  1,366,000     1,130,000     2,714,000     2,475,000
Total costs and       3,233,000     2,935,000     6,422,000     5,944,000
Loss from operations   (3,158,000)   (2,380,000)   (5,958,000)   (4,613,000)
Other Income and                                              
Gain (loss) from      3,465,000     (56,000)      3,465,000     (238,000)
investment in Resonant
Adjustments to fair
value of warrant       (656,000)     --            (888,000)     --
Other income          293,000       --            390,000       6,000
Interest income       1,000         --            1,000         1,000
Net loss              $(55,000)    $(2,436,000) $(2,990,000) $(4,844,000)
Basic and diluted loss $(0.00)      $(0.54)      $(0.24)      $(1.12)
per common share
Basic and diluted
weighted average       13,026,636    4,521,731     12,463,364    4,337,905
number of common
shares outstanding


                                                  June 28,      December 31,
                                                  2014          2013
                                                  (Unaudited)   (See Note)
Current Assets:                                                 
Cash and cash equivalents                         $3,605,000  $7,459,000
Accounts receivable, net                          278,000       6,000
Inventory, net                                    67,000        76,000
Resonant securities                               3,650,000     --
Prepaid expenses and other current assets         198,000       437,000
Total Current Assets                              7,798,000     7,978,000
Property and equipment, net of accumulated                     
depreciation of
$6,505,000 and $11,626,000, respectively          7,744,000     5,473,000
Patents, licenses and purchased technology, net                
of accumulated amortization
of$758,000 and $722,000, respectively            894,000       888,000
Other assets                                      258,000       501,000
Total Assets                                      $16,694,000  $14,840,000
LIABILITIES AND STOCKHOLDERS' EQUITY                            

Current Liabilities:                                            
Accounts payable                                  $694,000     $703,000
Accrued expenses                                  430,000       637,000
Total Current Liabilities                         1,124,000     1,340,000
Other long term liabilities                       7,147,000     6,194,000
Total Liabilities                                 8,271,000     7,534,000
Stockholders' Equity:                                           
Preferred stock, $.001 par value, 2,000,000                    
shares authorized,
328,925 and 328,925 shares issued and outstanding, --            --
Common stock, $.001 par value, 250,000,000 shares              
13,119,348 and 11,634,950 shares issued and        13,000        12,000
outstanding, respectively
Capital in excess of par value                    285,517,000   281,411,000
Accumulated deficit                               (277,107,000) (274,117,000)
Total Stockholders' Equity                        8,423,000     7,306,000
Total Liabilities and Stockholders' Equity        $16,694,000  $14,840,000

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


                                                  Six Months Ended
                                                  June 28, 2014 June 29, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:                           
Net loss                                           $(2,990,000) $ (4,844,000)
Adjustments to reconcile net loss to net cash used              
operating activities:                                          
Depreciation and amortization                     665,000       589,000
Stock-based compensation expense                  356,000       296,000
Write-off of intangibles                          --            87,000
Adjustment to fair value of warrant derivatives   888,000       --
Gain on disposal of property and equipment        (102,000)     (6,000)
(Gain) loss in investment in Resonant             (3,465,000)   238,000
Changes in assets and liabilities:                             
Accounts receivable                               (272,000)     (110,000)
Inventories                                       9,000         (56,000)
Prepaid expenses and other current assets         238,000       (18,000)
Patents and licenses                              (42,000)      (38,000)
Other assets                                      55,000        34,000
Accounts payable, accrued expenses and other      (136,000)     37,000
current liabilities
Net cash used in operating activities             (4,796,000)   (3,791,000)
CASH FLOWS FROM INVESTING ACTIVITIES:                           
Purchases of property and equipment                (2,905,000)   (181,000)
Net proceeds from sale of property and equipment   96,000        6,000
Net cash used in investing activities             (2,809,000)   (175,000)
CASH FLOWS FROM FINANCING ACTIVITIES:                           
Net proceeds from the sale of common stock         3,751,000     1,945,000
Net cash provided by financing activities         3,751,000     1,945,000
Net decrease in cash and cash equivalents          (3,854,000)   (2,021,000)
Cash and cash equivalents at beginning of period   7,459,000     3,634,000
Cash and cash equivalents at end of period         $3,605,000   $1,613,000

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