SANTA BARBARA, Calif., Aug. 3, 2010 (GLOBE NEWSWIRE) -- Superconductor Technologies Inc. (Nasdaq:SCON) ("STI"), a world leader in the development and production of high temperature superconducting (HTS) materials and associated technologies, reported results for the second quarter and six months ended July 3, 2010.

Total net revenues for the second quarter were $2.4 million compared to $3.4 million in the first quarter of 2010 and $2.6 million in the year ago second quarter. Net commercial product revenues for the second quarter of 2010 were $1.7 million, compared to $2.3 million in the first quarter of 2010 and $1.8 million in the second quarter of 2009. Government and other contract revenue totaled $631,000 during the 2010 second quarter, compared to $1.1 million in the first quarter of 2010 and $854,000 in the year ago period.

Jeff Quiram, STI's president and chief executive officer, said, "During the second quarter, our wireless customers continued to invest in performance improvement projects for their existing networks that provided demand for our core products. As expected, government revenues declined as the SURF 2 program nears completion."

"STI's SuperLink ® solution has been integrated into a state-of-the-art OEM long term evolution (LTE) base station. Our OEM partner was selected by a major carrier for live market trials currently planned for this year. We continue to believe there is significant opportunity to include our HTS filters in the LTE networks of the top U.S. wireless carriers when deployment begins in earnest."

"Our 2G HTS wire program for emerging power applications remains on schedule. Building on our success in producing wire in one meter lengths, we are on track to complete the design of our wire deposition machine to produce 50 meter lengths by the end of this year. We are focusing our efforts on three HTS wire designs to address the unique performance requirements for large wind turbine, AC power cable and fault current limiter applications. We expect to begin delivering samples of our wire for testing by our prospective customers before year end," Quiram concluded.

Net loss for the second quarter was $3.1 million, compared to a net loss of $2.5 million in the first quarter of 2010 and $4.1 million in the second quarter of 2009. Net loss per share was $0.14, compared to a net loss of $0.11 per share in the first quarter of 2010 and a net loss per share of $0.23 in the year ago period.  

For the six-month period ending July 3, 2010, total net revenues were $5.8 million, compared to $4.3 million for the first half of 2009. Net commercial product revenues for the first half of 2010 were $4.1 million, compared to $2.9 million in the year ago period. STI generated $1.7 million in government and other contract revenues for the first half of 2010, compared to $1.4 million for the first half 2009. The net loss for the first half of 2010 was $5.6 million, or $0.26 per share, compared to $7.7 million, or $0.43 per share, for the prior year's first half. 

As of July 3, 2010, STI had $5.5 million in cash and cash equivalents. As of July 3, 2010, STI had a commercial product backlog of $679,000 compared to $724,000 at the end of the first quarter of 2010 and $873,000 at the end of the year-ago quarter.

Investor Conference Call

STI will host an investor conference call today at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time. The call will be accessible live by dialing 1-888-549-7750. International participants may dial 1-480-629-9867. All callers are encouraged to provide the following confirmation number 4329580 to access the call more quickly, and may dial into the call 10 to 15 minutes prior to the call start to prevent any delay in joining. A telephone replay will be available until midnight ET on August 5 th by dialing 800-406-7325 or 303-590-3030, and entering pass code 4329580#. The call will also be simultaneously webcast and available on STI's web site at .

About Superconductor Technologies Inc. (STI)

STI, headquartered in Santa Barbara, CA, has been a world leader in HTS materials since 1987, developing more than 100 patents as well as proprietary trade secrets and manufacturing expertise. For more than a decade, STI has been providing innovative interference elimination and network enhancement solutions to the commercial wireless industry. The company is currently leveraging its key enabling technologies, including RF filtering, HTS materials and cryogenics, to develop applications for advanced RF wireless solutions, power efficient HTS materials, innovative adaptive filtering and government R&D. For more information about STI, please visit

The Superconductor Technologies Inc. logo is available at

Safe Harbor Statement 

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including without limitation, the risk that this offering will not close. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: fluctuations in product demand from quarter to quarter which can be significant; the need for additional capital depending on unpredictable cash flow; STI's ability to diversify its concentrated customer base; the impact of competitive filter products technologies and pricing; unanticipated decreases in the capital spending of wireless network operators; and manufacturing capacity constraints and difficulties.

Forward-looking statements can be affected by many other factors, including, those described in the "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of STI's Annual Report on Form 10-K for 2009 and in STI's other public filings. These documents are available online at STI's website,, or through the SEC's website, Forward-looking statements are based on information presently available to senior management, and STI has not assumed any duty to update any forward-looking statements.


For further information please contact Investor Relations,, Kirsten Chapman or Cathy Mattison, of Lippert / Heilshorn & Associates, +1-415-433-3777, for Superconductor Technologies Inc.

- Tables to Follow -
  Three Months Ended Six Months Ended
  July 3, 2010 June 27, 2009 July 3, 2010 June 27, 2009
Net revenues:        
Net commercial product revenues $ 1,738,000 $ 1,777,000 $ 4,072,000 $ 2,908,000
Government and other contract revenues 631,000 854,000 1,712,000 1,400,000
Total net revenues 2,369,000 2,631,000 5,784,000 4,308,000
Costs and expenses:        
Cost of commercial product revenues 1,968,000 2,441,000 4,354,000 4,239,000
Cost of government and other contract revenue 375,000 665,000 1,009,000 1,234,000
Research and development 1,342,000 999,000 2,491,000 2,082,000
Selling, general and administrative 1,932,000 1,812,000 3,715,000 3,535,000
Total costs and expenses 5,617,000 5,917,000 11,569,000 11,090,000
Loss from operations (3,248,000) (3,286,000) (5,785,000) (6,782,000)
Other Income and Expense        
Noncontrolling interest in joint venture -- (37,000) -- (87,000)
Adjustments to fair value of derivatives 127,000 (780,000) 168,000 (780,000)
Interest income 1,000 4,000 2,000 17,000
Interest expense (7,000) (9,000) (14,000) (18,000)
Net loss $(3,127,000) $(4,108,000) $(5,629,000) $(7,650,000)
Basic and diluted loss per common share   $(0.14)   $(0.23)   $(0.26)   $(0.43)
Weighted average number of common shares outstanding 21,870,717 18,170,470 21,839,430 17,904,975
  July 3, 2010 December 31, 2009  
  (Unaudited) (See Note)  
Current Assets:      
Cash and cash equivalents $ 5,532,000  $ 10,365,000  
Accounts receivable, net 590,000 462,000  
Inventory, net 2,560,000 2,644,000  
Prepaid expenses and other current assets 448,000 445,000  
Total Current Assets 9,130,000 13,916,000  
Property and equipment, net of accumulated depreciation of $21,540,000 and $21,076,000, respectively 1,543,000 1,832,000  
Patents, licenses and purchased technology, net of accumulated amortization of $2,436,000 and $2,384,000, respectively 2,261,000 2,163,000  
Other assets 206,000 215,000  
Total Assets $ 13,140,000  $  18,126,000  
Current Liabilities:      
Accounts payable $ 1,126,000  $ 467,000  
Accrued expenses 833,000 671,000  
Fair value of warrant derivative 3,000 171,000  
Current portion of capitalized lease obligations and long term debt 40,000 50,000  
Total Current Liabilities 2,002,000  1,359,000  
Other long term liabilities 583,000 526,000  
Total Liabilities 2,585,000 1,885,000  
Stockholders' Equity:      
Preferred stock, $.001 par value, 2,000,000 shares authorized, 611,523 shares issued and outstanding 1,000 1,000  
Common stock, $.001 par value, 250,000,000 shares authorized, 22,647,011 and 22,512,033 shares issued and outstanding, respectively 23,000 23,000  
Capital in excess of par value 241,825,000 241,882,000  
Accumulated deficit (231,294,000) (225,665,000)  
Total Stockholders' Equity 10,555,000 16,241,000  
Total Liabilities and Equity $ 13,140,000 $  18,126,000  
Note-December 31, 2009 balances were derived from audited financial statements.      
  Six Months Ended
  July 3, 2010   June 27, 2009
Net loss $ (5,629,000)   $ (7,650,000)
Adjustments to reconcile net loss to net cash used in operating activities:      
 Depreciation and amortization 517,000   784,000
 Stock-based compensation expense 516,000   544,000
 Provision for excess and obsolete inventories 180,000   102,000
 Noncontrolling interest in joint venture   --   87,000
 Fair value of derivatives (168,000)   780,000
 Changes in assets and liabilities:      
 Accounts receivable (128,000)   (604,000)
 Inventory (96,000)   911,000
 Prepaid expenses and other current assets (3,000)   (281,000)
 Patents, licenses and purchased technology (151,000)   (65,000)
 Other assets 9,000   7,000
 Accounts payable, accrued expenses and other long-term liabilities 869,000   704,000
 Net cash used in operating activities (4,084,000)   (4,681,000)
Investment in joint venture --   12,000
Purchases of property and equipment (176,000)   (131,000)
 Net cash used in investing activities (176,000)   (119,000)
Repurchase of common shares for withholding obligations (573,000)   --
Net proceeds from the sale of common stock --   10,456,000
 Net cash provided by (used in) financing activities (573,000)   10,456,000
Net increase (decrease) in cash and cash equivalents (4,833,000)   5,656,000
Cash and cash equivalents at beginning of period 10,365,000   7,569,000
Cash and cash equivalents at end of period $ 5,532,000   $ 13,225,000

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