STI in Transitional Year, Preparing 2G HTS Wire for Market

Superconductor Technologies, Inc. (STI) reported Q4 2010 revenues of $789,000, a decrease of 60% from the $2.0 million reported in the previous quarter and 64% from the $2.2 million reported in Q4 2009. Net losses for Q4 2010 were reported at $3 million, compared to $3.4 million in Q3 2010 and $3.5 million in Q4 2009. STI share prices declined 12.2%, from $3.20 to $2.81, on the day of the announcment.

For the full year 2010, STI realized net revenues of $8.5 million and a net loss of $12 million, compared to net revenues of $10.8 million and a net loss of $13 million for 2009. Net commercial product revenues for 2010 were $6.5 million, compared to $7.2 million for the prior year.

Superconductor Technologies, Inc. (STI) President and CEO Jeff Quiram said that 2010 was a transitional year for STI as it readies its 2G HTS wire for production: “We believe that the supply of 2G HTS wire will be constrained for the foreseeable future. Our intention is to help fulfill this unmet demand by utilizing our proprietary manufacturing methods to make HTS wire for several existing market applications.

“Presently, we are completing the design of our 2G deposition machine that will adapt our HTS materials deposition process to a reel-to-reel system capable of producing wire in 50 meter lengths. We expect this machine to be on-line in late 2011 or early 2012. We then intend to enhance our system to produce one kilometer wire lengths, at which time we believe we would be prepared to produce wire in sufficient length and quantity to capture a portion of the unmet market demand for

2G HTS wire.”

Source: Superconductor Week (March 31, 2011).