Investor Relations

  

Earnings Releases

Superconductive Components, Inc. Reports Year 2001 Results

CONTACT:
Robert A. Lentz
(614) 876-2000

COLUMBUS, Ohio -- April 3, 2002 -- Superconductive Components, Inc. (OTCBB:SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non-superconductive products, reported income applicable to common shares of $8,821 for the twelve months ended December 31, 2001 versus a net loss of $226,190 the prior year.

Net income per diluted common share was $0.00 for the year 2001 compared with a net loss of $0.15 a year ago. Weighted average shares outstanding were 23.9% higher for 2001 versus 2000 due to a private sale of common equity and conversion of debt to equity during the second half of 2000.

Dan Rooney, President and Chief Executive Officer, stated "Our business was affected by the slowdown that occurred in the national economy in 2001, especially during the fourth quarter. These conditions continued during first quarter 2002; however, we are beginning to see signs of stabilization and the order book is improving. We are positioning the company to maximize our capabilities and market potential beginning in 2002."

Revenue for 2001 improved 14.3% to $3,663,488 from $3,205,163 in 2000. Product revenue benefited from increased sales to existing customers, expansion into new markets, and continued growth in the ceramic sputtering target business. These gains were partially offset by a 21.0% decline in contract research revenues versus the prior year.

Gross margin improved to $1,199,998, or 32.8% of revenue, for 2001 compared with $771,745 or 24.1% of total revenue last year. Higher sales and better utilization of production capacity were the principal factors that contributed to the improved gross margin for 2001 versus 2000.

General and administrative expenses rose to $898,622 for 2001 from $560,653 a year ago. This was due to expansion of the company's infrastructure, the reassignment of sales personnel, and higher professional fees. Sales and promotional expenses declined to $233,570 for 2001 compared with $309,969 in 2000. During 2001 the company reduced staff and reassigned certain personnel to general and administrative expenses. Net interest expense declined to $17,460 for 2001 from $57,901 the prior year.

Fourth Quarter 2001

Revenues declined 11.5% to $806,424 for the three months ended December 31, 2001 from $910,771 in 2000. Gross margin for fourth quarter 2001 was $194,648, or 24.1% of revenues, compared with $284,203, or 31.2% of revenues, the prior year.

General and administrative expenses rose to $246,302 for fourth quarter 2001 versus $208,635 for the same period last year. Sales and promotional expenses declined to $55,226 for fourth quarter 2001 from $90,838 a year ago. The Company had a net loss applicable to common shares of $114,227, or $0.07 per diluted share, for the three months ended December 31, 2001, compared with a net loss of $32,448, or $0.01 per diluted share, a year ago.

Superconductive Components, Inc. manufactures advanced ceramics such as superconductors, ferroelectric and optical materials for use in wire, cable, sensors, batteries, wireless and fiber optics systems. The Target Materials, Inc. Division of the Company manufactures thin film materials for photovoltaics, flat panel displays, electronic switches, hardness and decorative coatings. The Company is a global materials supplier with clients in more than 40 countries. Additional information is available at www.superconductivecomp.com.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the company and its management, and include statements in this press release regarding the business being affected by the slowdown that occurred in the national economy in 2001, especially during fourth quarter 2001, continuation of those conditions during first quarter 2002, signs of stabilization and the improving order book for second quarter 2002, and efforts to position the company to maximize its capabilities and market potential beginning in 2002 (paragraph 3). These forward looking statements involve numerous risks and uncertainties, including all of the other risks and uncertainties inherent in the Company's business as detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2001. One or more of these factors have affected, and could in the future affect the Company's businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company, or any other person should not regard the inclusion of such information as a representation, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

###