Superconductor Technologies Inc. Reports Third Quarter 2000 Results; Commercial Product Revenue Increases 137%.Business & Technology Editors SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif.--(BUSINESS WIRE)--Oct. 25, 2000 Superconductor A material that has little resistance to the flow of electricity. Traditional superconductors operate at absolute zero (-459.67 degrees Fahrenheit or -273.15 degrees Celsius). Experiments in the 1980s raised the temperature to -321 degrees Fahrenheit. Technologies Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : SCON SCON Server CONsolidation SCON Serial Port Control Register (Intel 8051 Microcontroller) SCON Scheme Contracted-Out Number (UK) SCON Student Consultant (University of New Mexico) ) ("STI STI systolic time intervals. "), a leading developer and manufacturer of superconducting su·per·con·duct·ing adj. Having, exhibiting, or capable of superconductivity: "a revolutionary superconducting magnetic propulsion system" Colin Nickerson. products for wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. and wireless Internet access See how to access the Internet. , today announced operating results for the third quarter and for the nine months ended September 30, 2000. For the third quarter of 2000, commercial product revenues increased by 137 percent to $1.6 million from $659,000 reported for the 1999 third quarter. For the first nine months of 2000, commercial product revenues increased 214 percent to $4.2 million from $1.3 million for the comparable period a year ago. Government contract revenues in the 2000 third quarter were $1.0 million as compared to $1.4 million in the year ago third quarter. For the first nine months of 2000, government contract revenues were $3.3 million as compared to $3.7 million in the first nine months of 1999. Total revenues for the third quarter were $2.3 million compared to $2.0 million in the year ago third quarter and $6.2 million compared to $5.0 million in the first nine months of 2000 and 1999, respectively. The net loss for the third quarter was $4.1 million as compared to a net loss of $2.9 million in the year ago third quarter and $11.9 million compared to $7.9 million in the first nine months of 2000 and 1999, respectively. Net loss available to common shareholder per diluted share for the third quarter was $.23 per share compared to $.43 per share in the year ago third quarter and $.87 per share compared to $1.15 per share in the first nine months of 2000 and 1999, respectively. During the third quarter of 2000, STI raised $37.5 million in a private equity investment by RGC RGC Royal Government of Cambodia RGC Retinal Ganglion Cell RGC Responsible Gambling Council RGC Rio Grande City (Texas) RGC Routing Group Connector (Microsoft) International Investors LDC LDC See: Less developed countries LDC See less developed country (LDC). with Chase Securities Inc. acting as financial advisor and placement agent in the transaction. M. Peter Thomas Peter Thomas may refer to:
"The markets for our products continue to grow. In September, we received a $7.8 million purchase order for SuperFilter(R) Systems from United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Cellular Corporation (AMEX AMEX See: American Stock Exchange : USM USM abbr. 1. United States Mail 2. United States Mint USM n abbr (= United States Mint) → US-Münzanstalt (= United States Mail) → US-Postbehörde ), the nation's fifth largest cellular service provider, to be deployed over the next nine quarters. U.S. Cellular's aggressive implementation of SuperFilter(R) Systems further validates our technology as a critical element for current and future generation wireless networks. Our total backlog is now $8.8 million, of which $1.0 million is shippable in the fourth quarter of 2000, with more shippable orders still expected before quarter end. "During the last quarter, we also continued our focus on development of new products, based on our rich heritage of research and technology, to meet the evolving needs of our customers and the wireless market. In the third quarter, we also announced our new SuperFilter PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. family of products at the PCIA PCIA Personal Communications Industry Association PCIA Personal Care Ingredients Asia PCIA Parent-Child Interaction Assessment (structured direct observation procedure) PCIA Professional Concepts Insurance Agency, Inc. show in Chicago. The PCS product family is another important step in our product strategy of serving all major mobile wireless markets, capitalizing on the demanding spectrum robustness needed for upcoming 3G (broadband) networks." STI's SuperFilter(R) system utilizes high-temperature superconducting technology, along with proprietary cryogenic cooling, to create a front-end filter and amplifier system utilized in wireless base stations to enhance their performance. These enhancements include extending the range of the base station, lowering dropped calls Dropped call is the common term for a wireless mobile phone call that is terminated unexpectedly as a result of technical reasons. Areas where users experience a large number of dropped calls are commonly referred to as dead zones. , enabling otherwise difficult handoffs, improving call quality and, in general, improving customer service and cell site traffic for the wireless service provider. Superconductor Technologies Inc. (NASDAQ: SCON) is a leading developer and manufacturer of superconducting products for wireless communications and wireless Internet access. The Company has additional applications in government communications and cryogenic markets. With headquarters in Santa Barbara, CA, Superconductor Technologies Inc. ("STI") designs and manufactures systems for high-performance wireless applications. Additional information on STI may be obtained by visiting the Company's web site at http://www.suptech.com. The press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made in reliance upon the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements include, but are not limited to, the Company's views on future commercial revenues, market growth, capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. and new product introductions, and are generally identified by phrases such as "anticipates", "believes", "estimates", "expects", "intends", "plans", and similar words. Forward-looking statements 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 the Company's ability to expand its operations to meet anticipated benefits for its customers; the anticipated growth of the Company's target markets; and its ability to achieve profitability. The Company refers interested persons to it most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its other SEC filings for a description of additional uncertainties and factors that may affect forward-looking statements. Forward-looking statements are based on information presently available to senior management, and the Company has not assumed any duty to update its forward-looking statements. SuperFilter(R) is a registered trademark of Superconductor Technologies Inc. All other marks are properties of their respective owners.
-- Statistical Tables Follow --
SUPERCONDUCTOR TECHNOLOGIES INC.
STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
October 2, September 30, October 2, September 30,
1999 2000 1999 2000
Net revenues:
Commercial product
revenues $659,000 $1,561,000 $1,325,000 $4,166,000
Government contract
revenues 1,381,000 1,040,000 3,674,000 3,308,000
Less commercial
product sales
discount (70,000) (316,000) (70,000) (1,294,000)
Sub license
royalties -- -- 10,000 10,000
------------ ------------ ------------ ------------
Total net
revenues 1,970,000 2,285,000 4,939,000 6,190,000
Costs and expenses:
Cost of commercial
product
revenues 1,953,000 2,625,000 4,655,000 6,770,000
Contract research and
development 897,000 913,000 2,425,000 2,676,000
Other research and
development 392,000 749,000 1,324,000 1,873,000
Selling, general and
administrative 1,542,000 2,053,000 4,223,000 5,946,000
Other non-cash warrant
charges and unusual
item -- -- -- 609,000
------------ ------------ ------------ ------------
Total costs and
expenses 4,784,000 6,340,000 12,627,000 17,874,000
Loss from
operations (2,814,000) (4,055,000) (7,688,000) (11,684,000)
Interest income 12,000 41,000 13,000 215,000
Interest expense (59,000) (67,000) (213,000) (453,000)
------------ ------------ ------------ ------------
Net loss $(2,861,000) $(4,081,000) $(7,888,000) $(11,922,000)
Less:
Redeemable preferred
stock
dividends (264,000) -- (634,000) --
Deemed distribution
attributable to the
Inducement to convert
preferred (241,000) -- (366,000) (1,548,000)
stock
------------ ------------ ------------ ------------
Net loss available to
common $(3,366,000) $(4,081,000) $(8,888,000) $(13,470,000)
stockholders
============ ============ ============ ============
Basic and diluted
loss per
common share $(0.43) $(0.23) $(1.15) $(0.87)
Weighted average number of
common shares
outstanding 7,750,749 17,692,751 7,741,425 15,525,933
SUPERCONDUCTOR TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEET
December 31, 1999 September 30, 2000
(Unaudited)
Cash and cash equivalents $66,000 $39,031,000
Total current assets $4,853,000 $45,567,000
Total assets $11,085,000 $52,251,000
Long term debt $961,000 $805,000
Total liabilities $5,616,000 $6,383,000
Total stockholders' equity $(11,656,000) $45,868,000
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