Superconductor Technologies Inc. (SCON, Financial) filed Quarterly Report for the period ended 2010-07-03.
Superconductor Technologies Inc. has a market cap of $53.1 million; its shares were traded at around $2.37 with and P/S ratio of 4.91.
Net commercial product revenues decreased by less than $0.1 million, or 2%, to $1.7 million in the second quarter of 2010 from $1.8 million in the second quarter of 2009. The decrease in the quarter was primarily the result of slightly lower sales volume to our major customer. For the first six months of 2010, net commercial revenue increased to $4.1 million from $2.9 million in the same period of 2009, an increase of $1.2 million, or 40%. The increase in the six month period was the result of higher sales of both our SuperLink and AmpLink products, especially in the first quarter of 2010. The average sales prices for our products were unchanged. Our three largest customers accounted for 98% of our total net commercial product revenues in the first six months of 2010 compared to 96% in the first six months of 2009. These customers generally purchase products through non-binding commitments with minimal lead times. Consequently, our commercial product revenues can fluctuate dramatically from quarter to quarter based on changes in our customers capital spending patterns.
Government contract revenues decreased $223,000, or 26%, to $631,000 in the second quarter of 2010 from $854,000 in the second quarter of 2009. For the first six months of 2010 government contract revenues increased to $1.7 million from $1.4 million, an increase of $0.3 million, or 22%. This increase was a result of an increase in our SURF contract in the first quarter of 2010.
Cost of commercial product revenues includes all direct costs, manufacturing overhead, provision for excess and obsolete inventories and restructuring and impairment charges relating to the manufacturing operations. The cost of commercial product revenue decreased more than $0.4 million, or 19%, to $2.0 million for the second quarter of 2010 compared to $2.4 million in the second quarter of 2009. For the first six months of 2010, the cost of commercial product revenues totaled $4.4 million compared with $4.2 million for the first six months of 2009, an increase of less than $0.2 million, or 3%. The higher costs resulted primarily from higher production as a result of higher sales in the first quarter.
We had a gross loss from the sale of our commercial products of $230,000 in the second quarter of 2010 compared to $664,000 in the second quarter of 2009. We experienced a gross loss in the second quarters of 2010 and 2009 because the reduced level of commercial sales was insufficient to cover our fixed manufacturing overhead costs. We regularly review inventory quantities on hand and provide an allowance for excess and obsolete inventory based on numerous factors including sales backlog, historical inventory usage and forecasted product demand and production requirements for the next twelve months. Our gross margins were also adversely impacted by charges for excess and obsolete inventory of $90,000 and $180,000 in the second quarter and year to date in 2010, respectively, compared to $90,000 and $102,000 in the second quarter and year to date in 2009, respectively. There were no sales of previously written-off inventory in the second quarters or first six months of 2010 and 2009.
As of December 31, 2009, we had net operating loss carryforwards for federal and state income tax purposes of approximately $298.8 million and $169.9 million, respectively, which expire in the years 2010 through 2029. Of these amounts, $80.9 million and $23.5 million, respectively, resulted from the acquisition of Conductus, Inc. Included in the net operating loss carryforwards are deductions related to stock options of approximately $24.1 million and $13.1 million for federal and California income tax purposes, respectively. To the extent net operating loss carryforwards are recognized for accounting purposes, the resulting benefits related to the stock options will be credited to stockholders equity. In addition, we had research and development and other tax credits for federal and state income tax purposes of approximately $3.1 million and $1.4 million, respectively, which expire in the years 2010 through 2029. Of these amounts, $549,000 and $581,000, respectively, resulted from the acquisition of Conductus.
Read the The complete Report
Superconductor Technologies Inc. has a market cap of $53.1 million; its shares were traded at around $2.37 with and P/S ratio of 4.91.
Highlight of Business Operations:
Total net revenues decreased by $0.2 million, or 10%, to $2.4 million in the second quarter of 2010 from $2.6 million in the second quarter of 2009. Total net revenues increased by $1.5 million, or 34%, to $5.8 million in the first six months of 2009 from $4.3 million in the same period of 2009. Total net revenues consist primarily of commercial product revenues and government contract revenues.Net commercial product revenues decreased by less than $0.1 million, or 2%, to $1.7 million in the second quarter of 2010 from $1.8 million in the second quarter of 2009. The decrease in the quarter was primarily the result of slightly lower sales volume to our major customer. For the first six months of 2010, net commercial revenue increased to $4.1 million from $2.9 million in the same period of 2009, an increase of $1.2 million, or 40%. The increase in the six month period was the result of higher sales of both our SuperLink and AmpLink products, especially in the first quarter of 2010. The average sales prices for our products were unchanged. Our three largest customers accounted for 98% of our total net commercial product revenues in the first six months of 2010 compared to 96% in the first six months of 2009. These customers generally purchase products through non-binding commitments with minimal lead times. Consequently, our commercial product revenues can fluctuate dramatically from quarter to quarter based on changes in our customers capital spending patterns.
Government contract revenues decreased $223,000, or 26%, to $631,000 in the second quarter of 2010 from $854,000 in the second quarter of 2009. For the first six months of 2010 government contract revenues increased to $1.7 million from $1.4 million, an increase of $0.3 million, or 22%. This increase was a result of an increase in our SURF contract in the first quarter of 2010.
Cost of commercial product revenues includes all direct costs, manufacturing overhead, provision for excess and obsolete inventories and restructuring and impairment charges relating to the manufacturing operations. The cost of commercial product revenue decreased more than $0.4 million, or 19%, to $2.0 million for the second quarter of 2010 compared to $2.4 million in the second quarter of 2009. For the first six months of 2010, the cost of commercial product revenues totaled $4.4 million compared with $4.2 million for the first six months of 2009, an increase of less than $0.2 million, or 3%. The higher costs resulted primarily from higher production as a result of higher sales in the first quarter.
We had a gross loss from the sale of our commercial products of $230,000 in the second quarter of 2010 compared to $664,000 in the second quarter of 2009. We experienced a gross loss in the second quarters of 2010 and 2009 because the reduced level of commercial sales was insufficient to cover our fixed manufacturing overhead costs. We regularly review inventory quantities on hand and provide an allowance for excess and obsolete inventory based on numerous factors including sales backlog, historical inventory usage and forecasted product demand and production requirements for the next twelve months. Our gross margins were also adversely impacted by charges for excess and obsolete inventory of $90,000 and $180,000 in the second quarter and year to date in 2010, respectively, compared to $90,000 and $102,000 in the second quarter and year to date in 2009, respectively. There were no sales of previously written-off inventory in the second quarters or first six months of 2010 and 2009.
As of December 31, 2009, we had net operating loss carryforwards for federal and state income tax purposes of approximately $298.8 million and $169.9 million, respectively, which expire in the years 2010 through 2029. Of these amounts, $80.9 million and $23.5 million, respectively, resulted from the acquisition of Conductus, Inc. Included in the net operating loss carryforwards are deductions related to stock options of approximately $24.1 million and $13.1 million for federal and California income tax purposes, respectively. To the extent net operating loss carryforwards are recognized for accounting purposes, the resulting benefits related to the stock options will be credited to stockholders equity. In addition, we had research and development and other tax credits for federal and state income tax purposes of approximately $3.1 million and $1.4 million, respectively, which expire in the years 2010 through 2029. Of these amounts, $549,000 and $581,000, respectively, resulted from the acquisition of Conductus.
Read the The complete Report
