SANTA BARBARA, Calif.-Shares of Superconductor Technologies Inc. were down more than 40 percent following the release of the company’s fourth quarter and year-end 2003 financial results, despite the fact that the company announced its first profitable quarter.
STI recorded net revenues of $16.4 million for the fourth quarter, up 135 percent from the year-ago fourth quarter. Net income was $910,000, or 1 cent per share, compared with a net loss of $2.9 million, or 9 cents per share, in the year-ago fourth quarter.
For the year, total net revenues were $49.4 million, a 121 percent increase from 2002. Net loss for the year was $11.3 million, or 18 cents per share, versus a net loss of $21.3 million, or 89 cents per share for 2002.
However, despite the improved earnings, the company said it anticipates lower than previously forecasted revenues and a net loss for the first quarter of this year. The company said it currently expects net revenues of $4 million to $5 million for the quarter, and blamed the low numbers at least partially on carrier consolidation.
“We are a manufacturer of equipment to a relatively small number of customers and are highly sensitive to any changes experienced by our customers,” explained M. Peter Thomas, STI’s president and chief executive officer. “We have in recent weeks experienced the downside of such changes involving in one case a major industry consolidation, and for another important customer, a major reorientation of capital spending to a new project and the accompanying diversion of management attention to this project.”
STI was trading at $2.38 per share at press time Tuesday.
