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Superconductive Components, Inc. Reports Second Quarter Results

CONTACT:
Robert A. Lentz
(614) 876-2000

COLUMBUS, Ohio -- August 13, 2001 -- Superconductive Components, Inc. (National Quotation Bureau: SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non- superconductive products, reported net revenues increased 28.7% for the three months ended June 30, 2001.

Second quarter 2001 net income was $6,586 versus a net loss of $32,460 a year ago. Net income per diluted share was $0.00 for second quarter 2001 compared with a net loss of $0.05 last year. Weighted average shares outstanding were 30.4% higher than the prior year due to a private sale of common equity and conversion of debt to equity during the second half of 2000. The second quarter 2000 results have been restated to reflect a change in accounting for Series A and B preferred stock and debt forgiveness of subordinated notes payable.

Second Quarter 2001 Results

Revenues rose to $905,071 for second quarter 2001 from $703,369 last year. This significant increase was primarily due to higher product sales. Contract research revenue benefited from $50,000 for a Phase I SBIR grant from the National Science Foundation awarded earlier this year.

Gross margin improved to $333,168, or 36.8% of revenues, for second quarter 2001 compared with $155,862 or 22.2% of revenues for the same period last year. Higher revenues combined with increased utilization of production capacity contributed to the improved gross margin.

General and administrative expenses were $262,360, or 29.0% of revenues, for second quarter 2001 versus $113,316, or 16.1% of revenues, the prior year. This increase is principally due to professional staff additions during the past year and higher costs related to filings with regulatory agencies.

First Half 2001 Results

Revenues increased 31.0% to $1,965,251 for the six months ended June 30, 2001. Gross margin improved to $669,156, or 34.0% of revenues, from $301,682, or 20.1% of revenues, a year ago. General and administrative expenses were $407,612, or 16.1% of revenues, versus $223,211, or 14.7% of revenues, last year. Net income rose to $125,218 compared with a net loss of $81,693 in 2000. Net income per diluted share was $0.06 versus a net loss of $0.10 the prior year.

Capital Expenditures

The Company acquired $124,586 of machinery and equipment during second quarter 2001 compared with $22,114 the prior year to accommodate increased production needs. Property, machinery and equipment increases were $205,776 for the first six months of 2001 versus $38,114 in 2000.

Research Grants

On August 8, 2001 the Company announced it was awarded a $300,000 Phase II SBIR grant from the National Science Foundation. The purpose of this grant is to develop an advanced method to manufacture continuous reacted lengths of High Tc Superconductor: Bismuth Strontium Calcium Copper Oxide ("BSCCO")-2212 Wire. This SBIR program will focus on the development of a cost-effective long length multi-filamentary Bi-2212/Ag alloy round wire. The company is working with Oxford Instruments, Superconducting Technology ("OST"), a division of Oxford Instruments plc, to optimize the superconductive wire fabrication process. OST is the global market leader in the manufacture of low temperature superconductors.

About Superconductive Components, Inc.

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. The Target Materials, Inc. Division of 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 http://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 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 development of a cost-effective long length multi-filamentary Bi-2212/Ag alloy round wire (paragraph eight). These forward-looking statements involve numerous risks and uncertainties, including, without limitation: the Company's ability to generate sales orders during fiscal 2001, the acceptance of the Company's present products and services and its ability to develop new products and services as planned and on budget, 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, 2000. One or more of these factors have affected, and could in the future affect, the Company's business and financial results in future periods and could cause actual results to differ materially from plans and 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.

                       SUPERCONDUCTIVE COMPONENTS, INC.
               Condensed Consolidated Statements of Operations

                            Three Months Ended          Six Months Ended
                                 June 30,                   June 30,
                             2001         2000         2001         2000
                                       (Restated)                (Restated)

    Revenues              $905,071      $703,369   $1,965,251    $1,499,715
    Gross margin           333,168       155,862      669,156       301,682
    General and
      administrative
      expenses             262,360       113,316      407,612       223,211
    Sales and
      promotional
      expenses              60,127        57,855      126,095       132,235
    Income (loss)
      from operations       10,681       (15,309)     135,449       (53,764)
    Net income (loss)        6,568       (32,460)     125,218       (81,693)
    Dividends on
      preferred stock       (9,360)      (30,747)     (18,721)      (51,671)
    Income (loss)
      applicable to
      common shares       $ (5,720)     $(66,135)    $100,641     $(139,220)
    Net income (loss) per
      share-basic
      and diluted            $0.00        $(0.05)       $0.06        $(0.10)

    Weighted average
      shares outstanding:
      Basic and diluted  1,821,858     1,397,398    1,819,963     1,344,030

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