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[August 2008]
Bookings Strengthened But Costs Up For SCI Engineered Materials
SCI Engineered Materials Inc (Columbus, OH, USA), a manufacturer of ceramics and metals for advanced applications such as photonics, solar, thin film batteries and semiconductors for select growth markets in the physical vapour deposition industry, has announced its financial results for the three months ended 30 June 2008.Dan Rooney, Chairman, President and CEO, said: “Our second quarter results reflect increased expenses as we continue to aggressively pursue opportunities in the Semiconductor and Thin Film Solar markets, and a decline in gross profit due to lower revenues attributable to a high value raw material. Although our total revenues were not what we had hoped for, bookings strengthened significantly during the second quarter. Backlog increased 80% to $2.7 million at June 30, 2008 compared to March 31, 2008, positioning us for improved performance during the second half of this year.
“We are receiving positive feedback from customers in the Thin Film Solar and Semiconductor industries concerning prototype and development products manufactured for them. The next milestone will be market orders for those products, which are anticipated to be received beginning later this year. The Company will be an exhibitor at the upcoming 23rd European Photovoltaic Solar Energy Conference and Exhibition in Valencia, Spain September 1-5, 2008. We continue to implement our marketing strategy in Asia, Europe and North America to increase the Company’s industry visibility and to respond to growing market opportunities.”
SCI revenues were US$1.518 million for the second quarter 2008 compared to US$3.404 million for the same period last year. The year-over-year decline was due to lower costs for a high value raw material compared to the second quarter 2007 coupled with lower sales to a large customer as previously disclosed. This customer began placing additional orders late in the second quarter 2008. Backlog was US$2.7 million at 30 June 2008 compared to US$1.5 million at 31 March 2008 and US$2.0 million at 30 June 2007.
Gross profit margin increased to 28.9% of total revenues for the second quarter 2008 from 15.1% a year ago. Favourable product mix in the second quarter 2008 significantly mitigated the gross profit impact of the decline in revenues compared to the second quarter last year. Gross profit was US$437,847 for the three months ended 30 June 2008 versus US$513,168 for the same period in 2007.
www.sciengineeredmaterials.com
ENDS