Superconductor Technologies, Inc. (NASDAQ: SCON) is having an incredibly strong day in the market today after the company announced its financial results. Of course, the results were positive, leading to excitement among investors. Today, we’ll talk about:
- The company’s performance;
- what we’re seeing from SCON stock as a result; and
- what we’ll be watching for ahead.
SCON Reports Financial Results
As mentioned above, Superconductor Technologies is flying in the market toay after reporting its results for the fourth quarter. Here’s what we saw from the report:
- Revenue – During the fourth quarter, SCON said that it did not record any net revenues. However, for the full year, revenue came in at $1.6 million. Well ahead the $446,000 reported in the same period one year ago.
- Losses – For the fourth quarter, the company generated a net loss of $2.3 million or $0.70 per share. The quarterly loss one year ago came in at $1.73 per share. For the full year, net losses came to $8.1 million, or $4.03 per share. In the same period one year ago, the company reported net losses of $9.5 million or $9.06 per share.
In a statement, Jeff Quiram, President and CEO at SCON, had the following to offer:
In March of 2018, we announced we were focusing our Conductus® wire development efforts on applications that operate at low temperature in the presence of a high magnetic field, in large part due to the emerging industry trends and the attractive revenue potential forecast by several key customers. One year later, I am pleased to report we have made significant progress to address these opportunities.
Our Conductus wire is an enabling technology that is now optimized for superconducting magnet applications, including next generation electrical machines (NGEM) that aligned with the Department of Energy (DOE) project we were awarded along with our partners TECO Westinghouse Motor Company (TECO), Massachusetts Institute of Technology (M.I.T.), and the University of North Texas (UNT). In the last few months, we have transitioned our efforts from improving our best in class wire performance to ramping production volume and increasing piece lengths to meet customer requirements. Our customers have recommended that we focus on production ramp up in 2019, as their demand has changed from wire qualifying quantities to requirements for kilometers in the near term, with 10’s of kilometers later this year. We anticipate starting deliveries of kilometers in the second quarter. We believe that we remain well positioned to capitalize on significant demand from several customers.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Superconductor Technologies, the news proved to be positive.
The financial report showed that 2018 was a stronger year financially than 2017. Moreover, the company has made compelling progress on various key initiatives.
So, it’s not surprising to see that excited investors are pushing the stock up in the market today. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:05), SCON is trading at $2.38 per share after a gain of $0.71 per share or 42.51% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SCON. In particular, we’re interested in following the story surrounding the company’s continued work to bring its products to market, generating a return of value for investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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