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Superconductive Components, Inc. Announces Third Quarter Results

Company Selected for Superconductivity Partnership Initiative

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

COLUMBUS, Ohio -- November 11, 2002 -- Superconductive Components, Inc. (OTCBB: SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non-superconductive products, announced a $4,083 loss applicable to common shares for the three months ended September 30, 2002 versus income applicable to common shares of $22,407 for third quarter 2001. The third quarter 2002 net loss represented $0.00 per diluted share compared with $0.01 last year.

Dan Rooney, President and Chief Executive Officer, commented, "There were several positive achievements during the quarter which reflected our sharpened focus on the Company's strategy to pursue specific market opportunities that best utilize its established strengths and capabilities. On a sequential quarter basis, these included a 20% increase in total revenues over second quarter 2002 as well as improved gross margin, lower general and administrative expenses, and nearly breakeven performance regarding income applicable to common shares.

Mr. Rooney continued, "We are actively involved in activities directly related to the commercialization of lithium thin-film batteries, which is expected to materialize in the first half of 2003. The Company is pursuing plans to be a substantial supplier to customers in this market."

Third Quarter 2002 Results

Total revenues were $863,179 for the three months ended September 30, 2002, which represented the highest amount in the past four quarters; however, they were 3.2% below total revenues of $891,813 for the same period a year ago. Weak economic conditions prevailed throughout the quarter, resulting in uneven product sales patterns. Product sales declined 3.1% to $794,803 for the quarter from $820,044 in third quarter 2001.

Contract research revenues were $68,376 for third quarter 2002 versus $71,769 for the same period last year. Funded research revenues improved during third quarter 2002 due to the commencement of efforts regarding a Phase 1 SBIR grant from the U.S. Department of Energy. This grant is intended to increase the current density for long Bismuth Strontium Calcium Copper Oxide ("BSCCO") high temperature superconducting wires by modifying the packing density in the tubes.

Gross margin was $273,156 for third quarter 2002 compared to $336,194 last year. Expressed as a percentage of total revenues, gross margin was 31.6% for the third quarter 2002 versus 37.7% a year ago, principally due to higher contract research costs and the decline in sales revenue compared to the same period last year. Gross margin improved $49,864 from $223,292 for second quarter 2002.

General and administrative expenses declined $43,725 to $200,983, or 23.3% of total revenues, for third quarter 2002 from $244,708, or 27.4% of total revenues, in 2001. Actions that were taken beginning in second quarter 2002 resulted in reductions in administrative staff as well as professional fees. One-time expenses for consulting services offset a portion of these savings, including a project concerning improved production utilization and lean manufacturing methods.

Sales and promotional expenses increased in absolute dollars as part of the company's increased commitment to marketing and customer service. These expenses were $63,088 for third quarter 2002 compared with $52,249 last year.

Superconductivity Partnership Initiative

During third quarter 2002 the Company was selected to participate in a team led by Oxford Instruments, Superconducting Technology in conjunction with a grant awarded by the U.S. Department of Energy. Oxford Instruments, Superconducting Technology is a division of Oxford Instruments plc, the global market leader in the manufacture of low temperature superconductors. They maintain an active development effort and also provide service support for Magnetic Resonance Imaging ("MRI") systems throughout North and South America.

This grant is intended to put superconducting BSCCO-2212 materials into an MRI machine produced by a global leader in the manufacture and sale of these machines. This three-year program, scheduled to begin in fourth quarter 2002, has long-term potential for use in MRI magnets.

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, 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.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 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 active involvement in activities directly related to the commercialization of lithium thin-film batteries, which is expected to materialize in the first half of 2003, and the Company is pursuing plans to be a substantial supplier to customers in this market (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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