Superconductor Technologies Reports 2015 First Quarter Results
AUSTIN, Texas, May 12, 2015 (GLOBE NEWSWIRE) -- Superconductor Technologies Inc. (STI) (Nasdaq:SCON), a world leader in the development and production of high temperature superconducting (HTS) materials and associated technologies, reported results for the quarter ended March 28, 2015.
"In the first quarter, we made significant progress fulfilling many qualification requirements for our customers," stated Jeff Quiram, STI's president and chief executive officer. "We improved both the wire performance and the finishing layer process during the quarter. Currently our Conductus® HTS wire is being evaluated and tested for numerous products within three basic categories: power transmission cabling; superconducting fault current limiters (SFCLs); and magnets, which are used in science, nuclear magnetic resonance (NMR) and motor applications. We continue to strive to be responsive to customer requests with our goal being to complete the qualification process that we believe will lead to commercial scale orders. Customer feedback is providing a clear path to move forward. We continue to prioritize our efforts, focusing on customers we believe are the best-positioned to aggressively deploy superconducting devices in the market. Based on our progress this quarter, we remain optimistic that we will be able to meet the required specifications for one or more customers within the coming months."
STI's customer pipeline for qualification and testing continues to grow. During the first quarter, STI shipped Conductus wire to ten customers: seven existing and three new, bringing our total customer count to 34 at quarter end. Of these customers, six are in Stage 1 evaluation, which includes wire characterization and performance testing, and four are in Stage 2, which involves significantly more rigorous testing to simulate devices for commercial deployment. One of the Stage 2 shipments for the first quarter was to a customer that is completing a superconducting cable demonstration project.
"We continue to make progress with our Conductus wire production system. Wire is being produced over the entire deposition area, which is necessary to produce long lengths of wire. Our pilot system remains active and producing high quality Conductus wire that we are shipping to customers for qualification testing. In the second quarter, we expect to begin using the production system to increase capacity for fulfilling existing Stage 2 qualification orders," Quiram added.
STI's first quarter 2015 net revenues were $55,000 compared to $82,000 in the fourth quarter of 2014 and $389,000 in the first quarter of 2014. Revenue for all periods was primarily from legacy wireless products. Net loss for the first quarter 2015 was $1.4 million, or a loss of $0.10 per share, compared to a net loss of $2.8 million, or a loss of $0.22 per share, in the fourth quarter of 2014, and a net loss of $2.9 million, or a loss of $0.25 per share, in the first quarter of 2014. The decline in the net loss between the first quarters of 2014 and 2015 was principally related to the positive change in our warrant derivative liability valuation.
As of March 28, 2015, STI had $5.3 million in cash and cash equivalents. STI expects to spend less than $400,000 on capital equipment for the entirety of 2015 now that the Conductus wire production suite is completed. Capital expenditures for the first quarter were $46,000. In March, STI received net proceeds of $4.6 million from a registered direct offering. In addition, since January 1, 2015 through March 28, 2015, investors have exercised 900,000 warrants, resulting in cash proceeds to the Company of $1.7 million.