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Superconductive Components, Inc. Reports
Second Quarter Results
Columbus, OH, August 1: Superconductive Components, Inc. (SCCI),
which manufactures ceramics and metals for advanced applications including
optical systems, thin film batteries, and superconductors, today announced
results for the three months ended June 30, 2006.
Second quarter 2006 versus 2005 highlights included:
- Total revenue increased to $1,158,434 from $713,535
- Gross profit rose to $280,540 from $207,234
- Backlog of $2.0 million at quarter-end
Dan Rooney, Chairman, President and Chief Executive Officer, stated, "The 62%
increase in second quarter revenues was entirely attributable to growth in
product revenues. Gross profit margin improved on a sequential quarter basis to
24.2% of revenues from 22.7% for the first quarter 2006. Bookings were strong
throughout the quarter and backlog was $2.0 million at June 30, 2006. We
continue to implement our growth strategy in the photonics, optical coatings and
thin film battery markets and anticipate improved performance in the third
quarter of 2006."
Second Quarter 2006 Results
Total revenue rose to $1,158,434 for the second quarter 2006 from $713,535 the
prior year. There was no contract research revenue in the most recent quarter
versus $89,533 for the second quarter 2005.
Gross profit was $280,540, or 24.2% of total revenue, for the second quarter
2006 versus $207,234, or 29.0% of total revenue, for the same period last year.
The mix of higher value product with lower gross margin coupled with no contract
research activity contributed to the decline in gross profit margin for the
second quarter 2006 compared to a year ago.
General and administrative expenses increased to $232,524 for the second quarter
2006 from $189,725 a year ago, primarily attributable to the Company's incentive
compensation program as well as higher professional fees.
Research and development ("R&D") expenses declined to $39,216 for the second
quarter 2006 versus $58,268 for the same period in 2005 due to a change in the
Company's focus from R&D to manufacturing of Photonics products and a re-class
of labor to cost of goods sold.
Sales and promotional expenses rose to $65,993 for the second quarter 2006 from
$58,412 for the prior year due to incentive compensation related to the increase
in revenues.
Interest expense declined to $3,482 for the second quarter 2006 from $24,687 for
the same period last year. This was due to the Company's completion of a private
equity financing that also included conversion of liabilities to common equity
during the second half of 2005.
The loss applicable to common shares was $48,500, or $0.01 per share, for the
second quarter 2006 compared to a loss applicable to common shares of $130,062,
or $0.05 per share, for the same period last year. Average weighted shares
outstanding were 3,425,915 and 2,439,360 for the second quarter of 2006 and
2005, respectively.
Six Month 2006 Results
Total revenue increased to a record $2,359,057 for the six months ended June 30,
2006 from $1,288,594 for the same period in 2005, an increase of 83%. The return
of a major customer following ISO 9001:2000 certification plus the addition of
new customers during the past year were the key factors in the year-over-year
increase in revenue. There was $42,092 of contract research revenue in the first
half of 2006 compared to $177,966 the prior year.
Gross profit increased 52% to $553,513 for the first six months of 2006 from
$364,088 for the same period in 2005. Gross profit margin was 23.5% for 2006
versus 28.3% for the first half of 2005 due to product mix, which included
higher value product with lower gross margins, and the lower amount of contract
research revenue compared to the same period last year.
General and administrative expenses were $445,254 for the first half of 2006
compared to $375,744 last year. This increase was due to the Company's incentive
compensation program as well as higher professional fees.
Research and development expenses declined to $86,392 for the first six months
of 2006 from $100,336 a year ago due to a change in the Company's focus from R&D
to manufacturing of Photonics products and a re-class of labor to cost of goods
sold.
Sales and promotional expenses were $134,096 for the first half of 2006 versus
$110,934 for the same period in 2005 primarily due to incentive compensation
related to the increase in revenues.
Interest expense declined to $5,506 for the six months ended June 30, 2006 from
$40,209 the prior year.
The loss applicable to common shares was $101,773, or $0.03 per share, for the
first half of 2006 versus a loss applicable to common shares of $275,275, or
$0.11 per share, for the same period a year ago.
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