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Superconductive Components, Inc. Reports Second Quarter Results

Two Financings Completed Interim Phase II SBIR Contract Awarded to Company

CONTACT:
Robert Lentz
(614) 876-2000

COLUMBUS, Ohio -- August 15, 2003 -- Superconductive Components, Inc. (OTCBB: SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non-superconductive products, reported results for the three months ended June 30, 2003.

Dan Rooney, Chairman and Chief Executive Officer, stated, "During the second quarter we simplified our balance sheet, began to implement plans to improve sales, and remained focused on our long-term strategic growth opportunities. Our top priority is to increase revenue and return to profitability. In June 2003, we began to implement plans to expand our sales organization to include additional manufacturers' representatives knowledgeable about our markets. These efforts are expected to contribute to sales growth, position the Company more favorably in its markets, and diversify the customer base for our products."

Mr. Rooney added, "Positive developments concerning the emerging lithium thin film battery market occurred in the quarter that increased our confidence regarding the company's outlook for 2004."

Second Quarter Results

Total revenue for the three months ended June 30, 2003 was $627,765 or 12.4% below the same period last year. Most of the revenue shortfall occurred in product sales, which were especially impacted by the weak U.S. economy.

Gross profit declined to $205,157 for the second quarter 2003 from $223,292 a year ago. Gross profit margin improved to 32.7% for the three months ended June 30, 2003 versus 31.2% the prior year. The increase in gross profit margin compared to last year was due to revenue received during the second quarter 2003 from the Company's participation in a U.S. Department of Energy Superconductivity Partnership Initiative program. A portion of these funds will be used for the purchase of machinery and equipment and expensed in future periods.

General and administrative expenses were $237,245 for the second quarter 2003 compared to $230,475 a year ago. Sales and promotional expenses declined to $49,318 for the second quarter from $52,975 for the second quarter 2002. Internal research and development expense, which is expensed as incurred, rose to $57,737 for the second quarter 2003 from $5,592 the prior year.

Other expense, net was $4,654 for the second quarter 2003 compared to other income, net of $33,801 a year ago. The prior year amount included $39,083 of insurance proceeds.

The loss applicable to common shares was $92,945, or $0.05 per diluted share, versus a net loss applicable to common shares of $38,305, or $0.02 per diluted share, last year.

Two Financings Completed

On June 30, 2003, the company completed two private financing transactions, which included the issuance of convertible promissory notes for $600,000 of cash and redemption of the company's entire $129,770 obligation on its Series A redeemable convertible preferred stock. Four present shareholders of the company, including three adult children of Edward R. and Ingeborg V. Funk, the founders of the company, and Windcom Investments SA (Lugano, Switzerland) invested $600,000 of new money in the company. The holders of the Series A preferred stock, two adult children of Edward R. Funk, agreed to the redemption of the Series A preferred stock in exchange for convertible promissory notes in the aggregate amount of $129,770, which represented the face amount of the preferred plus accrued and unpaid dividends and interest. The company used $100,000 of the note proceeds to pay off its bank line of credit which terminated on June 30, 2003.

Interim Phase II SBIR Contract

On July 11, 2003, the company announced it was awarded an interim contract for approximately $105,000 from the U.S. Department of Energy for a Phase II Small Business Innovation Research program. This program is intended to determine the feasibility of producing cost effective, kilometer length Bismuth Strontium Calcium Copper Oxide 2212 wires for very high field magnets. The complete Phase II SBIR program is valued at approximately $600,000 and the amount to be awarded is expected to be determined by the U.S. Department of Energy before the end of September 2003.

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.

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 implementation of plans to improve sales, position the Company more favorably in its markets and diversify the customer base (paragraph two), positive developments concerning the emerging lithium thin film battery market have increased the Company's confidence regarding the company's outlook for 2004 (paragraph three), and a U.S. Department of Energy Phase II Small Business Innovation Research program intended to determine the feasibility of producing cost effective, kilometer length Bismuth Strontium Calcium Copper Oxide 2212 wires for very high field magnets (paragraph ten). These forward-looking statements involve numerous risks and uncertainties, including, without limitation: the availability of a new leased facility and the ability to move to such facility at the anticipated cost, 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, 2002. 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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