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[September 2003]
Superconductive Components Reports on Second Quarter
Superconductive Components Inc (Columbus, OH, USA) reported total revenue for the three months ended 30 June 2003 of US$627,765 or 12.4% below the same period last year. Most of the revenue shortfall occurred in product sales, which were especially impacted by the weak US economy.
Gross profit declined to US$205,157 for the second quarter 2003 from US$223,292 a year ago. Gross profit margin improved to 32.7% for Q2 2003 as against 31.2% for Q2 2002. The increase in gross profit margin compared to last year was due to revenue received during the second quarter 2003 from the company's participation in a US Department of Energy Superconductivity Partnership Initiative programme. A portion of these funds will be used for the purchase of machinery and equipment and expenses in future periods.
Chairman and CEO Dan Rooney stated: "During the second quarter we simplified our balance sheet, began to implement plans to improve sales, and remained focused on our long-term strategic growth opportunities. Our top priority is to increase revenue and return to profitability.
"In June 2003, we began to implement plans to expand our sales organization to include additional manufacturers' representatives knowledgeable about our markets. These efforts are expected to contribute to sales growth, position the Company more favorably in its markets, and diversify the customer base for our products."
SCCI manufactures advanced ceramics, optical materials and high temperature superconductive and non-superconductive products. Mr Rooney added that positive developments concerning SCCI's emerging lithium thin film battery market occurred in the quarter that increased confidence regarding the company's outlook for 2004.
ENDS