Superconductor Technologies Inc. (SCON, Financial) filed Quarterly Report for the period ended 2010-10-02.
Superconductor Technologies Inc. has a market cap of $45 million; its shares were traded at around $1.69 with and P/S ratio of 4.1.
Government contract revenues decreased $1.2 million, or 89%, to $144,000 in the third quarter of 2010 from $1.3 million in the third quarter of 2009. For the first nine months of 2010 government contract revenues decreased to $1.9 million from $2.7 million, a decrease of $851,000, or 31%. This decrease was principally the result of the completion of our SURF contract. This reduced level of government contract revenue will continue as we use more of our limited engineering resources on our commercial projects.
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 $837,000, or 28%, to $2.1 million for the third quarter of 2010 compared to $2.9 million in the third quarter of 2009. For the first nine months of 2010, the cost of commercial product revenues totaled $6.5 million compared with $7.2 million for the first nine months of 2009, a decrease of $722,000 or 10%. The lower costs resulted primarily from lower production as a result of lower sales in the second and third quarters.
We had a gross loss from the sale of our commercial products of $280,000 in the third quarter of 2010 compared to a $38,000 profit in the third quarter of 2009. We experienced a gross loss in the third quarter of 2010 because the reduced level of commercial sales was insufficient to cover our fixed manufacturing overhead costs. The gross profit in the third quarter of 2009 resulted from higher sales that covered 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 margin was also adversely impacted by charges for excess and obsolete inventory of $90,000 and $270,000 in the third quarter and year to date in 2010, respectively, compared to $90,000 and $192,000 in the third quarter and year to date in 2009 respectively. There were no sales of previously written-off inventory in first nine months of 2010 and 2009.
Cash and cash equivalents decreased by $2.1 million from $10.4 million at December 31, 2009 to $8.3 million at October 2, 2010. Cash was used principally in operations and to a lesser extent for the purchase of property and equipment. In addition, in the first nine months of 2010, $573,000 was used to repurchase shares from our employees to satisfy withholding taxes due upon the vesting of their restricted stock awards. We realized a net $5.2 million from the sale of common stock in the third quarter of 2010.
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 $45 million; its shares were traded at around $1.69 with and P/S ratio of 4.1.
Highlight of Business Operations:
Total net revenues decreased by $2.3 million or 54%, to $2.0 million in the third quarter of 2010 from $4.3 million in the third quarter of 2009. Total net revenues decreased by $843,000, or 10%, to $7.8 million in the first nine months of 2010 from $8.6 million in the same period of 2009. Total net revenues consist primarily of commercial product revenues and government contract revenues.Government contract revenues decreased $1.2 million, or 89%, to $144,000 in the third quarter of 2010 from $1.3 million in the third quarter of 2009. For the first nine months of 2010 government contract revenues decreased to $1.9 million from $2.7 million, a decrease of $851,000, or 31%. This decrease was principally the result of the completion of our SURF contract. This reduced level of government contract revenue will continue as we use more of our limited engineering resources on our commercial projects.
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 $837,000, or 28%, to $2.1 million for the third quarter of 2010 compared to $2.9 million in the third quarter of 2009. For the first nine months of 2010, the cost of commercial product revenues totaled $6.5 million compared with $7.2 million for the first nine months of 2009, a decrease of $722,000 or 10%. The lower costs resulted primarily from lower production as a result of lower sales in the second and third quarters.
We had a gross loss from the sale of our commercial products of $280,000 in the third quarter of 2010 compared to a $38,000 profit in the third quarter of 2009. We experienced a gross loss in the third quarter of 2010 because the reduced level of commercial sales was insufficient to cover our fixed manufacturing overhead costs. The gross profit in the third quarter of 2009 resulted from higher sales that covered 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 margin was also adversely impacted by charges for excess and obsolete inventory of $90,000 and $270,000 in the third quarter and year to date in 2010, respectively, compared to $90,000 and $192,000 in the third quarter and year to date in 2009 respectively. There were no sales of previously written-off inventory in first nine months of 2010 and 2009.
Cash and cash equivalents decreased by $2.1 million from $10.4 million at December 31, 2009 to $8.3 million at October 2, 2010. Cash was used principally in operations and to a lesser extent for the purchase of property and equipment. In addition, in the first nine months of 2010, $573,000 was used to repurchase shares from our employees to satisfy withholding taxes due upon the vesting of their restricted stock awards. We realized a net $5.2 million from the sale of common stock in the third quarter of 2010.
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
