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Superconductor Technologies Reports First Quarter 2019 Results

1110 Days ago

AUSTIN, Texas, May 09, 2019 (GLOBE NEWSWIRE) -- Superconductor Technologies Inc. (STI) (Nasdaq: SCON) reported financial results for the three months ended March 30, 2019.

Jeff Quiram, STI’s president and CEO, stated, “We continued to make progress in the first quarter as we ramp our production capability to meet customer expectations. We still expect to start delivering against orders for our Conductus® high performance magnet wire in the second quarter, with a focus on shipments of 10’s of kilometers later this year. Our superconducting magnet customers have forecasted the need for 1000’s of kilometers of wire starting in the next few years.  

“Recently, we announced our project win from the Institute for Plasma Research, India, (IPR) for next generation Tokamak fusion development. This Conductus wire order from the prestigious IPR is another step forward as we continue to see growing interest in high performance superconducting wire optimized for high magnetic field/low temperature applications. Fusion has the promise of delivering environmentally friendly and cost-efficient energy for future generations. We are excited to partner with IPR as they move forward in their fusion development. We also look forward to working with our distribution partner in India, TING Corporation, to expand our customer footprint by providing additional customers with high performance magnet wire that delivers a competitive advantage.”

First Quarter Financial Summary
STI did not record net revenues in the first quarter of 2019, compared to $246,000 in the first quarter of 2018, which came from work done in the first budget period of the company’s ongoing Department of Energy (DOE) Next Generation Electrical Machine project. STI has not yet started the second budget period of the DOE project.

Net loss for the first quarter 2019 was $2.3 million, or a loss of $0.70 per share, compared to a net loss of $2.2 million, or a loss of $1.98 per share for the first quarter of 2018.

Please note: share and per share data for both periods is adjusted for the 1-for-10 reverse stock split effective on July 24, 2018.
As of March 30, 2019, STI had $3.6 million in cash and cash equivalents.

Investor Conference Call
STI will host a conference call and simultaneous webcast today, May 9th, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss its results. To listen to the call live, please dial 1-866-548-4713 at least 10 minutes before the start of the conference. International participants may dial 1-323-794-2093. The conference ID is 7511231.  The call will be webcast and can be accessed from the “Investor Relations” section of the company’s website. A telephone replay will be available until midnight ET on May 13th by dialing 1-844-512-2921 or 1-412-317-6671 and entering pass code 7511231. A replay will also be available at the web address above.

About Superconductor Technologies Inc. (STI)
Superconductor Technologies Inc. is a global leader in superconducting innovation. Its Conductus® superconducting wire platform offers high performance, cost-effective and scalable superconducting wire. With 100 times the current carrying capacity of conventional copper and aluminum, superconducting wire offers zero resistance with extreme high current density. This provides a significant benefit for electric power transmission and also enables much smaller or more powerful magnets for motors, generators, energy storage and medical equipment. Since 1987, STI has led innovation in HTS materials, developing more than 100 patents as well as proprietary trade secrets and manufacturing expertise. For more than 20 years STI utilized its unique HTS manufacturing process for solutions to maximize capacity utilization and coverage for Tier 1 telecommunications operators. Headquartered in Austin, TX, 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; our need to materially grow our revenues from commercial operations and/or to raise additional capital (which financing may not be available on acceptable terms or at all) in the very near future, before cash reserves are depleted (which reserves are expected to be sufficient into the third quarter of 2019), to implement our current business plan and maintain our viability; the performance and use of our equipment to produce wire in accordance with our timetable; overcoming technical challenges in attaining milestones to develop and manufacture commercial lengths of our HTS wire; the possibility of delays in customer evaluation and acceptance of our HTS wire; the limited number of potential customers and customer pressures on the selling prices of our products; 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; the impact of competitive products, technologies and pricing; manufacturing capacity constraints and difficulties; the impact of any financing activity on the level of our stock price; the dilutive impact of any issuances of securities to raise capital; the steps required to maintain the listing of our common stock with a U.S. national securities exchange and the impact on the liquidity and trading price of our common stock if we fail to maintain such listing; the cost and uncertainty from compliance with environmental regulations; and local, regional, and national and international economic conditions and events and the impact they may have on us and our customers.

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, 2018, 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
Moriah Shilton or Kirsten Chapman
LHA      +1-415-433-3777       invest@suptech.com


    Three Months Ended
    March 30, 2019   March 31, 2018
Government contract revenues   $   -     $   246,000  
  Total revenues     -       246,000  
Costs and expenses:        
  Cost of commercial product revenues     870,000       639,000  
  Cost of government contract revenues     6,000       183,000  
  Research and development     625,000       577,000  
  Selling, general and administrative     861,000       1,041,000  
  Total costs and expenses     2,362,000       2,440,000  
Loss from operations     (2,362,000 )     (2,194,000 )
Other Income and Expense:        
  Adjustments to fair value of warrant derivatives     -       33,000  
  Adjustment to warrant exercise price     -       (24,000 )
  Other income     27,000       7,000  
Net loss   $   (2,335,000 )   $   (2,178,000 )
Basic and diluted net loss per common share  






Basic and diluted weighted average number of common        
  shares outstanding     3,328,605       1,102,126  

See accompanying notes to the unaudited condensed consolidated financial statements.

  March 30,   December 31,
  2019   2018
  (Unaudited)   (See Note)
Current Assets:      
  Cash and cash equivalents $    3,589,000      $    5,616,000  
  Inventories, net   98,000       173,000  
  Prepaid expenses and other current assets   10,000       61,000  
  Total Current Assets   3,697,000       5,850,000  
   Property and equipment, net of accumulated depreciation of      
  $12,396,000 and $12,172,000, respectively   785,000       1,009,000  
  Patents, licenses and purchased technology, net of accumulated amortization      
  of  $1,037,000 and $1,026,000, respectively   675,000       686,000  
  Operating lease assets   595,000       -  
  Other assets   69,000       69,000  
  Total Assets $  5,821,000      $  7,614,000  
Current Liabilities:      
  Accounts payable $   367,000      $  313,000  
  Accrued expenses   417,000       539,000  
  Current operating lease liabilities   588,000       -  
  Total Current Liabilities   1,372,000       852,000  
  Long term operating lease liabilities   7,000       -  
  Other long term liabilities   8,000       17,000  
  Total Liabilities   1,387,000       869,000  
Commitments and Contingencies (Notes 5 and 6)      
Stockholders’ Equity:      
  Preferred stock, $.001 par value, 2,000,000 shares authorized,      
328,925 and 330,787 shares issued and outstanding, respectively   -       -  
  Common stock, $.001 par value, 250,000,000 shares authorized,       
3,802,609 and 3,270,609 shares issued and outstanding, respectively   4,000       3,000  
  Capital in excess of par value   326,509,000       326,486,000  
  Accumulated deficit   (322,079,000 )     (319,744,000 )
  Total Stockholders' Equity   4,434,000       6,745,000  
  Total Liabilities and Stockholders' Equity $  5,821,000      $    7,614,000  

Note – December 31, 2018 balances were derived from audited financial statements.



  Three Months Ended
  March 30, 2019   March 31, 2018  
 Net loss $   (2,335,000 )   $   (2,178,000 )  
 Adjustments to reconcile net loss to net cash used in        
  operating activities:        
 Depreciation and amortization   235,000       323,000    
 Stock-based compensation expense   24,000       17,000    
 Adjustments to fair value of warrant derivatives   -       (33,000 )  
 Adjustment to warrant exercise price   -       24,000    
  Changes in assets and liabilities:        
  Accounts receivable   -       (30,000 )  
  Inventories   75,000       (67,000 )  
  Prepaid expenses and other current assets   51,000       68,000    
  Patents and licenses   -       (1,000 )  
  Accounts payable, accrued expenses and other current liabilities   (77,000 )     45,000    
  Net cash used in operating activities   (2,027,000 )     (1,832,000 )  
  Purchases of property and equipment   -       (5,000 )  
  Net cash used in investing activities   -       (5,000 )  
  Net proceeds from the sale of common stock   -       1,700,000    
  Net cash provided by financing activities   -       1,700,000    
Net decrease in cash and cash equivalents   (2,027,000 )     (137,000 )  
Cash and cash equivalents at beginning of period   5,616,000       3,056,000    
Cash and cash equivalents at end of period $   3,589,000     $   2,919,000    

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