SUPERCONDUCTIVE COMPONENTS,
INC. REPORTS IMPROVED FIRST QUARTER 2007 RESULTS
Columbus, OH, 3 May 2007:
Superconductive
Components, Inc. (OTC Bulletin Board:
SCCI), dba SCI
Engineered Materials, a manufacturer of high quality sputtering targets for
select markets in the physical vapor deposition industry, today announced
results for the three months ended March 31, 2007. The first quarter 2007
highlights versus the same period last year included:
- Total revenues more than doubled to
approximately $2.5 million.
- Gross profit rose 68% to approximately $0.5
million.
- Net income per diluted share after dividends
on preferred stock was $0.01 versus a net loss of $(0.02).
- Backlog increased fourfold to $3.3 million
at March 31, 2007 compared to the same date in 2006.
Dan Rooney, Chairman, President and Chief
Executive Officer, stated, “Our first quarter performance included strong sales
growth, higher gross profit and profitability. The results benefited from a
significant increase in orders during the first three months of this year and we
ended the quarter with solid backlog. As previously disclosed, we recently
ordered new equipment to increase development activities and also scale our
capacity to manufacture higher volumes of products for the solar and thin film
battery markets. We are pleased with the solid start to the year and look
forward to further progress this year as we focus on sound execution of our
growth strategy.”
Mr. Rooney continued, “During the first quarter
we added resources to complement activities that were initiated during the
fourth quarter of 2006 to develop our presence in niche markets of the
semiconductor industry. We are encouraged by initial indications of interest for
our products in these markets and plan to increase SCI’s marketing and sales
efforts throughout 2007.”
First Quarter 2007 Results
Total revenues increased 104% to $2,454,009 for
the first quarter 2007 from $1,200,623 for the same period last year due to
solid growth in photonics/optical and thin film battery products. A portion of
the revenue increase is related to a high value commodity whose price can
fluctuate over market cycles and is fully reflected in the Company’s selling
prices.
Gross profit rose to $458,580 for the first
quarter 2007 from $272,973 last year. The 68% increase in gross profit and
improved operating efficiencies were partially offset by the higher amount of
commodities purchased during the first quarter 2007, which have a lower gross
profit than the Company’s overall gross margin. As a result, the Company’s gross
profit margin on product revenue was 18.7% for the first quarter 2007 compared
to 21.4% a year ago.
General and administrative expense was $236,596
for the first quarter 2007 versus $212,730 the prior year. Approximately 79% of
the year-over-year increase in general and administrative expense was
attributable to recognition of stock based compensation expense, which was
primarily non-cash. Selling expense was $97,402 for the first quarter 2007
compared to $68,103 a year ago. Key factors contributing to the increase include
additional resources added in the fourth quarter 2006, which are supporting
increased marketing activity and higher product sales.
Research and development expenses increased to
$63,164 for the first quarter 2007 compared to $47,176 the prior year. The
Company conducted additional research and development with key customers during
the first quarter 2007, especially in areas related to its solar and thin film
battery markets.
The Company achieved net income after dividends
on preferred stock of $61,316, or $0.01 per diluted share, for the three months
ended March 31, 2007 versus a net loss of $(53,273), or $(0.02) per share, on a
comparable basis last year. The number of fully diluted shares increased
approximately 23% to 4.2 million from 3.4 million for the same period last year.
The difference represents common stock equivalents, which were anti-dilutive in
the first quarter 2006 due to the net loss.
About Superconductive Components, Inc.
Superconductive Components, Inc., dba SCI
Engineered Materials, manufactures ceramics and metals for advanced applications
such as thin film batteries, superconductors, and advanced optical systems. SCI
Engineered Materials also provides materials for thin film applications used in
photovoltaic, electronic switches, hardness and decorative coatings. SCI
Engineered Materials is a global materials supplier with clients in more than 40
countries. Additional information is available at
http://www.sciengineeredmaterials.com.