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Superconductive Components, Inc. Reports Fourth Quarter Results

CONTACT:
Robert Lentz
(614) 876-2000

COLUMBUS, Ohio -- April 6, 2004 -- Superconductive Components, Inc. (OTCBB: SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non-superconductive products, today announced results for the three months ended December 31, 2003. The loss applicable to common shares was $438,246, or $0.24 per diluted share, for the fourth quarter 2003 versus a net loss applicable to common shares of $317,214, or $0.17 per diluted share, for the fourth quarter 2002.

Total revenue declined to $374,114 for the quarter ended December 31, 2003 from $595,239 for the same period in 2002. Orders were affected by weakness in markets served by the Company, especially in the metals side of the business.

Gross margin was a negative $166,022 for fourth quarter 2003 compared to a negative $65,003 for the same period last year. The 37.1% reduction in net sales was the most significant factor that impacted fourth quarter 2003 gross margin compared to 2002. Both periods were substantially impacted by inventory adjustments of $133,015 and $190,881, respectively, for the fourth quarter of 2003 and 2002.

General and administrative expenses declined to $205,572 for the quarter ended December 31, 2003 from $223,940 a year ago. This was primarily due to a reduction in administrative staff. Some of these savings were offset by $40,875 of one-time expenses incurred during fourth quarter 2003 related to the Company's relocation.

Sales and promotional expenses rose to $58,907 for the fourth quarter 2003 from $53,154 for the same period a year ago. This increase was attributable to a contractual agreement with an experienced sales consultant beginning in the third quarter 2003 to increase the Company's sales and marketing efforts.

Dan Rooney, Chairman, President and Chief Executive Officer, commented, "The disappointing fourth quarter 2003 results were affected by weak market conditions that significantly impacted product sales, and a $133,015 one-time, non-cash inventory adjustment."

Mr. Rooney continued, "Bookings are beginning to improve following a very challenging sales environment throughout 2003. New customers have been identified in the photonics market as a result of our increased sales emphasis and initial orders have been received from several of them. We are particularly encouraged by the increase in bookings for materials we produce for the lithium thin film battery market."

Twelve Month Results

Revenue for 2003 declined 23.3% to $2,268,488 from $2,958,544 for 2002. Product sales declined 25.2% to $2,021,653 in 2003 from $2,704,082 the prior year primarily due to weak conditions in the Company's markets, lower sales in the metals side of the business, and a reduction attributable to a ceramic application for solar cells. Total contract research revenues were $246,835 for 2003 compared to $254,462 in 2002. A Phase II SBIR grant from the National Science Foundation expired in 2002.

Gross margin was $302,656 or 13.3% of total revenue for 2003 compared to $617,815 or 20.9% of total revenue in 2002. This was primarily due to the decline in product revenues. Additionally, the Company recognized inventory write-downs in 2003 and 2002 of $133,015 and $190,881, respectively.

Selling expense increased slightly to $214,691 for 2003 compared to $210,730 the prior year. Higher expense related to a contractual agreement with an experienced sales consultant beginning in the third quarter 2003 was partially offset by lower travel expense.

General and administrative expense declined 10.3% to $778,758 for 2003 from $868,005 in 2002. This was principally due to lower administrative staff and consulting expenses. A portion of these savings were offset by expenses incurred in the initial stages of the Company's facility relocation which totaled $40,875 in 2003.

The net loss applicable to common stock for 2003 was $746,061, or $0.41 per diluted share, compared to a net loss applicable to common stock of $445,177, or $0.24 per diluted share, the prior year.

Third Frontier Funds

The Company received $512,847 in March 2004 from the State of Ohio's Third Frontier Action Fund. This award was previously announced and the funds are to be specifically used to purchase equipment to scale-up production of materials for the lithium thin film battery market. Orders have been placed for this expansion equipment, which is expected to be delivered and installed over the next six months.

About Superconductive Components, Inc.

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 improved bookings, new customers identified in the photonics market due to the Company's increased sales emphasis, receipt of initial orders from several new photonics customers, and an increase in bookings for materials produced for the lithium thin film battery market (paragraph 7), and orders recently placed for expansion equipment, which is expected to be delivered and installed over the next six months (paragraph 13). These forward-looking statements involve numerous risks and uncertainties, including, without limitation: 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, 2003. 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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