COLUMBUS, OH — (Marketwired) — 05/13/13 — 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 March 31, 2013.
Dan Rooney, Chairman, President and Chief Executive Officer, commented, “SCI is in its best position in more than a decade to benefit from recent investments to increase our manufacturing capabilities and strengthen the company–s presence in multiple markets. However, an inventory adjustment by a major customer combined with ongoing volatility in the solar market contributed to a decrease in total revenue compared to the same period last year and a loss for the quarter. We are responding to these short-term challenges by tightly controlling operating expenses and maintaining close contact with our customers. Our business strategy is sound and we will continue to utilize our core strengths to pursue attractive long-term growth opportunities.”
Total revenue was $1,433,602 for the three months ended March 31, 2013, compared with $1,883,032 for the same period last year. Contract research revenue of $63,732 for the first quarter 2013 was similar to the same period last year.
Backlog was $1.6 million at March 31, 2013 versus $1.8 million at December 31, 2012 and $2.9 million on the same date a year ago. Backlog was impacted by the timing of blanket orders placed by customers and lower backlog related to contract research compared to the same date in 2012.
First quarter 2013 gross profit declined to $173,599 from $315,145 a year ago due to lower revenue and increased pricing pressure. As a result, gross profit margin declined to 12.1% for the first quarter 2013 from 16.7% for the same period last year.
Operating expenses, which include marketing and sales, general and administrative, and R&D, declined 5.3% to $464,654 for the first quarter 2013. Lower R&D and marketing and sales expenses were partially offset by slightly higher general and administrative expense attributable to higher professional fees compared to a year ago.
Loss applicable to common stock was $267,594, or $0.07 per share, for the first quarter 2013 compared with loss applicable to common shares of $195,801, or $0.05 per share, for the same period last year. The year-over-year comparison was primarily impacted by the decline in gross profit versus the same period last year.
First quarter 2013 EBITDA (Earnings before interest, income taxes, depreciation and amortization) was negative $89,953 compared with negative EBITDA of $30,962 for the same period last year. Adjusted EBITDA, which excludes non-cash stock based compensation, was negative $54,518 for the first quarter 2013 versus adjusted EBITDA of $4,134 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 being in the best position in more than a decade to benefit from recent investments to increase manufacturing capabilities and strengthen the company–s presence in multiple markets, responding to the short-term challenges by tightly controlling operating expenses and maintaining close contact with customers, the business strategy is sound and the company will continue to utilize core strengths as it pursues attractive long-term growth opportunities. 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