Superconductor Technologies Inc. (NASDAQ:SCON) reported financial results for the quarter ended Oct.1, 2016.
“In the third quarter, STI’s HTS wire program focused on demonstrating our market leading critical current performance when using our strengthened wire template,” stated Jeff Quiram, STI’s president and chief executive officer. “We significantly improved our Conductus® wire performance during the quarter, attaining approximately 80% of our goal while maintaining our target properties for mechanical strength. Once the full specification is achieved, we plan to ship wire promptly to key customers to complete existing qualification orders.
“Increasing wire demand continues to foster industry and government support for HTS wire manufacturing. The US Department of Energy has announced it plans to grant funds later this year to accelerate the development of enabling technologies for next generation machines. An industry leading manufacturer of generators and motors and two renowned academic institutions have joined with STI in submitting a proposal to the DOE entitled ‘Process Innovations for HTS Wire Manufacturing’. We continue to be approached by customers pursuing new market opportunities, many of which require a quantity of wire that exceeds our existing annual manufacturing capacity. This ongoing activity, along with new orders for qualification and demonstration projects, gives us confidence that the market opportunity continues to be attractive.
“We are also encouraged by the interest shown in the Advanced Superconductor Manufacturing Institute (ASMI), where STI continues to play an active role. This industry-driven institute is focused on attaining the HTS wire manufacturing performance necessary to address the future requirements for device manufacturers. The goal of ASMI is to enable US industry to catapult ahead in the global marketplace. One key initiative is to achieve a 10-fold increase in HTS wire manufacturing throughput, overcoming the availability barrier that exists today. Recently, several Fortune 500 enterprises have joined these efforts, increasing involvement by recognized industry leaders.”
STI’s third quarter 2016 net revenues were $22,000 compared to $11,000 in the second quarter of 2016 and $91,000 in the third quarter of 2015. Revenue for all periods was primarily from legacy wireless products. Net loss for the third quarter 2016 was $2.9 million, or a loss of $0.93 per basic and diluted share, compared to a net loss of $3.1 million, or a loss of $1.14 per basic and diluted share, in the second quarter of 2016, and a net loss of $2.4 million, or a loss of $2.08 per basic and diluted share, in the third quarter of 2015.
For the nine-month period ending Oct. 1, 2016, total net revenues were $122,000, compared to $217,000 for the same period of 2015. The net loss for the first nine months of 2016 was $8.6 million, or $3.06 per share, compared to $6.2 million, or $5.80 per share.
Please note: share and per share data for both periods is adjusted for the 1-for-15 reverse stock split effective on July 18, 2016.
As of Oct. 1, 2016, STI had $3.4 million in cash and cash equivalents.
Investor Conference Call
STI will host a conference call and simultaneous webcast today, Nov. 10th 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 1-888-461-2011 at least 10 minutes before the start of the conference. International participants may dial 1-719-325-2291. The conference ID is 2729735. 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 November 12th by dialing 1-844-512-2921 or 1-412-317-6671, and entering pass code 2729735. 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.