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[March 2007]
Superconductive Components Reports Record Fourth Quarter 2006 and Full-Year Results
Superconductive Components Inc (Columbus, OH, USA), a manufacturer of high quality sputtering targets for select markets in the physical vapour deposition industry, has announced results for the three months and twelve months ended 31 December 2006. Fourth quarter 2006 versus fourth quarter 2005 highlights included:-- Total revenues more than doubled to US$3,622,238 from $1,147,377
-- Gross profit increased to US$765,724 from US$279,364
-- Diluted earnings per share of US$0.07 versus a loss of US$(0.01)
-- Backlog of US$1.4 million and US$0.6 million at 31 December 2006 and 2005, respectivelyDan Rooney, Chairman, President and CEO, commented: "We are very pleased with the record revenue, improved gross profit, and net income for the fourth quarter 2006. These results also contributed to solid improvement for the full year 2006 compared to 2005. Importantly, we ended the year with business momentum and anticipate realizing further benefits in 2007. Our growth strategy is focused on select markets where the Company can leverage its core capabilities. During 2006, we began to develop transparent conductive oxide materials for the high-growth photovoltaic solar cell market. By year-end, a prototype application was being tested and we will continue these efforts during 2007.
"We ended 2006 with a solid backlog of more than $1.4 million, and in January 2007 we received a purchase order for approximately $2 million to manufacture products for an existing customer. These factors will benefit our performance during the first two quarters of this year and complement other initiatives to pursue profitable growth opportunities and markets compatible with the Company's strengths."
Total annual revenues increased 133% to a record US$8,045,792 for the twelve months ended 31 December 2006 compared to US$3,457,182 for 2005. The results benefited from a growing customer base, increased sales to existing customers and substantial purchases of commodities that are fully reflected in the company's selling prices. Product sales rose 153% to US$8,003,700 for 2006 from US$3,167,743 the prior year, principally due to higher sales to photonics/optical and thin film battery customers.
Gross profit for 2006 rose 94% to US$1,788,244 compared to US$919,861 for 2005. Record product sales, increased production efficiencies and revenue mix contributed to the year-over-year increase. Gross profit margin on product sales was 22.0% for 2006 versus 23.0% for 2005 due to higher purchases of commodities, which have a lower gross margin than the company's overall gross margin.
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