Superconductive Components, Inc. Announces First Quarter Results
COLUMBUS, Ohio -- May 10, 2002 -- Superconductive Components, Inc. (OTCBB: SCCI) a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non-superconductive products, reported a 26.1% decline in revenues to $783,379 for the three months ended March 31, 2002. As a result, the Company had a loss applicable to common shares of $85,575, or $0.05 per diluted share, versus income applicable to common shares of $106,362, or $0.06 per diluted share, for the same period last year.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $(1,929) for first quarter 2002 versus $180,584 a year ago.
Dan Rooney, President and Chief Executive Officer, commented "Results for the three months ended March 31, 2002 reflect a substantial slowdown in production orders during the quarter as well as a sharp drop in contract research revenue compared to last year. Our emphasis on marketing has increased and we are positioning the company to respond more effectively to new sales opportunities. We anticipate that business conditions will stabilize during the second quarter and begin to improve during the remainder of this year."
First quarter 2002 revenues were affected by a decline of 19.7% and 59.4%, respectively, in sales revenues and contract research revenues. First quarter 2001 revenues benefited from the sale of materials and two contract research programs that did not continue into this year.
Gross margin was $186,370, or 23.8% of revenues, for first quarter 2002 versus $335,988, or 31.7% of revenues, last year. The sale of materials at relatively high margins during first quarter 2001 combined with breakeven results for contract research activities this year impacted the quarter-over-quarter comparison.
General and administrative expenses were $212,607 for first quarter 2002 compared with $145,252 a year ago. Expenses increased due to staff additions since first quarter 2001 and a decrease in funding for contract research. Selling expense declined to $41,513 for the first quarter 2002 versus $65,968 a year ago due to reduced staff and lower commission expense.
Superconductive Components, Inc. manufactures advanced ceramics such as superconductors, ferroelectric and optical materials for use in wire, cable, sensors, batteries, wireless and fiber optics systems. Additionally, the Company manufactures thin film materials for photovoltaics, flat panel displays, 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 www.superconductivecomp.com.
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 may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the company and its management, and include statements in this press release regarding increased emphasis on marketing positioning the company to respond more effectively to new sales opportunities, and the anticipation that business conditions will stabilize during the second quarter and begin to improve during the remainder of this year (paragraph 3). These forward looking statements involve numerous risks and uncertainties, including all of the other risks and uncertainties inherent in the Company's business as detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2001. One or more of these factors have affected, and could in the future affect the Company's businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company, or any other person should not regard the inclusion of such information as a representation, 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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