COLUMBUS, OH — (Marketwired) — 11/04/13 — SCI Engineered Materials, Inc. (“SCI”) (OTCQB: SCIA), a global supplier and manufacturer of advanced materials for PVD thin film applications that works closely with end users and OEMs to develop innovative, customized solutions, today reported its financial results for the three months ended September 30, 2013.
Dan Rooney, Chairman, President and Chief Executive Officer, stated, “Our third quarter results reflect solid performance in SCI–s core market which includes key customers in the photonics industry. Third party forecasts indicate the thin film solar market has bottomed out which further supports our belief this will be a strong long-term growth market for SCI. We are proceeding with internally financed investments to develop innovative products for customers in the solar and glass industries and new products for transparent electronics. Recently, there have been encouraging signs from several customers indicating their requirements remain strong through at least early-2014. Our $3.4 million backlog at quarter-end represents a 36% increase versus the same date a year ago and the highest quarter-end backlog in more than three years. SCI–s expanding product portfolio is well-positioned to meet the growth needs of our target markets. Near term, we anticipate total revenue will increase for the third consecutive quarter.”
Third quarter 2013 total revenue of $1,810,044 was the highest quarterly amount this year. For the same period in 2012, total revenue was $1,982,403. The year-over-year difference was attributable to no third quarter sales to a customer who was acquired earlier this year and the Company–s contract research was completed in the second quarter of 2013.
Gross profit was $416,836 for the third quarter 2013 compared to $562,176 a year ago. This decrease was principally due to lower total revenue and change in product mix. As a percentage of total revenue, gross profit was 23.0%, representing the highest quarterly amount in 2013, compared to 28.4% for the third quarter 2012.
Operating expense (marketing and sales, general and administrative, and R&D expenses) was $469,179 for the third quarter 2013 compared to $449,497 the prior year. Higher internally funded research and development expense to develop new products for the solar and glass industries and innovative transparent electronics applications was partially offset by lower marketing and sales expense compared to the third quarter 2012.
There was a loss of $76,322, or $0.02 per share, for the third quarter 2013 versus income of $84,711, or $0.02 per share, for the third quarter 2012.
EBITDA (Earnings before interest, income taxes, depreciation and amortization) was $81,754 for the third quarter 2013 versus $258,257 for the same period in 2012. Adjusted EBITDA, which excludes non-cash stock based compensation, was $113,110 for the three months ended September 30, 2013, versus $289,673 a year ago.
SCI Engineered Materials is a global supplier and manufacturer of advanced materials for PVD thin film applications that works closely with end users and OEMs to develop innovative, customized solutions. Additional information is available at .
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 are not limited to, all statements regarding intent, beliefs, expectations, projections, customer guidance, forecasts, and plans of the Company and its management, and specifically include statements concerning SCI–s belief that thin film solar will be a strong long-term growth market, several customers– indications that their requirements remain strong through into 2014, SCI–s expanding product portfolio is well-positioned to meet the growth needs of SCI–s target markets, the Company–s anticipation that total revenue will increase for the third consecutive quarter during the final three months of 2013. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the Company–s Securities and Exchange Commission filings, including the Company–s Annual Report on Form 10-K for the year ended December 31, 2012. One or more of these factors have affected, and could in the future affect, the Company–s projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, 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.
Contact:
Robert Lentz
(614) 876-2000