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Superconductive Components, Inc. Reports Third Quarter Results

CONTACT:
Robert Lentz
(614) 876-2000

COLUMBUS, Ohio -- November 12, 2004 -- Superconductive Components, Inc. (OTCBB: SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non-superconductive products, today announced results for the three months and nine months ended September 30, 2004.

Dan Rooney, Chairman, President and Chief Executive Officer, commented, "We are disappointed in our results for the third quarter. Initial signs of improvement weakened during the quarter resulting in the decline in product sales while contract research revenues were also below the same period last year. Product orders improved in the final month of the quarter and should contribute to higher sales from current levels in the first quarter of 2005. Specific measures have been implemented to reduce future costs. Sales and marketing continue to receive added emphasis to increase the Company's market penetration and expand our customer base."

Mr. Rooney continued, "We recently received the final shipment of equipment purchased with funds received from the company's portion of the State of Ohio's Third Frontier Action Fund award. All of this equipment is to be used for the production of materials for lithium thin film batteries and all of the equipment is expected to be operational by the end of the first quarter 2005. Commercial production of these batteries is taking longer to achieve than anticipated earlier this year, but the long term outlook remains positive."

Total revenues declined 25.9% to $450,838 for the third quarter 2004 from $608,730 for the same period last year. Product revenues declined 25.2% to $366,072 for the third quarter 2004 from $489,710 the prior year due to a slowdown in orders, especially during the second half of this year's third quarter. Contract research revenue declined to $84,766 for the third quarter 2004 from $119,020 a year ago due to a change in the focus of the primary company awarded a grant from the U.S. Department of Energy Superconductivity Partnership Initiative. The Company's participation in this program ended in September 2004. The Company continues work on a Phase II Small Business Innovation Research grant to develop an advanced method to manufacture continuous reacted lengths of High Tc Superconductor Bismuth Strontium Calcium Copper Oxide - 2212 Wire.

The loss applicable to common shares was $262,505, or $0.11 per diluted share, for the third quarter 2004 versus a net loss applicable to common shares of $110,887, or $0.06 per diluted share, for the same period last year.

Gross margin was a negative $27,966 for the three months ended September 30, 2004 compared to gross margin of $114,303 for the same period a year ago. This is directly attributable to the lower third quarter 2004 sales compared to a year ago.

General and administrative expenses increased $17,730 to $174,601 for the third quarter 2004 from $156,871 for the same period last year as a result of rent expense, which nearly doubled versus a year ago following the Company's move to its new facility in the first quarter 2004.

Sales and promotional expenses declined to $51,942 for the third quarter 2004 from $58,210 for the same period a year ago due to a temporary reduction in staff. The Company plans to further increase its marketing efforts and contact with customers through the addition of manufacturers' representatives.

Nine Month Results

Total revenues for the nine months ended September 30, 2004 were $1,621,777, or 14.4% below the 2003 year-to-date period. Product revenue was $1,422,716 for the quarter ended September 30, 2004 compared to $1,676,863 last year. Two key factors that impacted the Company's revenues included weak market conditions throughout most of this year and a decline in product shipments related to the Company's move to a new facility in the first quarter 2004. Gross margin declined to $156,811 for the first nine months of 2004 from $468,678 a year ago due to lower product shipments and product mix. General and administrative expenses were $667,601 for the 2004 year-to-date period versus $573,186 for the same period a year ago. Sales and promotional expenses rose to $185,112 for the first nine months of 2004 from $155,784 for the same period last year due to the addition of a sales manager in the first quarter 2004.

The 2004 year-to-date results include $210,948 of non-cash expenses for the conversion of convertible promissory notes ($ 175,362) and non-employee stock warrants granted as compensation for consulting services ($35,586) during the second quarter 2004.

Investor Loan

In November of 2004 a director agreed to loan the Company up to $200,000 for working capital. The loan is due on November 1, 2005 and may be repaid earlier. This loan is secured by the Company's assets and the director has the option to convert the loan balance to equity at any time before the repayment date at the same price and terms as any equity financing of the Company equal to or in excess of $200,000.

About Superconductive Components, Inc.

Superconductive Components, Inc. operates through SCI Engineered Materials and manufactures advanced ceramics such as superconductors, ferroelectric and optical materials for use in wire, cable, batteries, wireless and fiber optics systems. The Company also provides materials for thin film applications used in photovoltaics, electronic switches, hardness and decorative coatings. The company is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the company and its management, and specifically include statements regarding product orders beginning to improve which should translate into higher sales from current levels in the first quarter of 2005, specific measures implemented to reduce future costs, and added emphasis on sales and marketing to increase the company's market penetration and expand its customer base (paragraph 2), all equipment purchased with funds from State of Ohio's Third Frontier Action Fund award to be operational by the end of the first quarter 2005, and commercial production of lithium thin film batteries is taking longer to achieve than anticipated earlier this year, but the long term outlook remains positive (paragraph 3), a loan to the Company for up to $200,000 for working capital (paragraph 11). These forward-looking statements involve numerous risks and uncertainties, including, without limitation: the development of the thin film battery market, the impact of competitive products and services, the ability to adapt to technological changes, the availability of capital, and other risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-KSB for the year ended December 31, 2003. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

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