SCI Engineered Materials, Inc. Reports First Quarter 2016 Results
(firmenpresse) - COLUMBUS, OH -- (Marketwired) -- 05/03/16 -- SCI Engineered Materials, Inc. ("SCI") (OTCQX: SCIA), a global supplier and manufacturer of advanced materials for physical vapor deposition 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, 2016.
Dan Rooney, President and Chief Executive Officer, said, "Our results for the three months ended March 31, 2016, do not reflect bookings that improved 21% sequentially and are expected to improve results in the second half of this year. Year-to-date bookings for thin film solar products are approximately $800,000 which is similar to the amount for the entire year 2015. Several new customers are conducting extensive product testing and qualification activities that we expect to result in additional orders. We believe thin film solar growth opportunities for SCI are increasing as the number of companies deploying these products continues to grow as momentum builds. As they scale their manufacturing capacity, bookings may continue to be choppy."
Mr. Rooney continued, "During the first quarter some of our thin film solar and photonics customers closely monitored inventories and adjusted their order deliveries based on business fluctuations and macroeconomic issues which impacted results. We are adapting to these factors while remaining focused on our long-term market opportunities. Consistent with our strategy to diversify our products and increase market presence, we have ongoing internally funded research and development initiatives focused on accelerating time to market for thin film solar, photonics, thin film battery and transparent electronic products. We believe these investments in new applications will accelerate sales as customers adopt our products and expand their operations."
Total revenue
Total revenue for the three months ended March 31, 2016, decreased 50% to $1,374,812 from $2,727,807 for the first quarter of 2015. First quarter 2016 revenue decreased primarily due to a 51% decrease year-over-year in the price of a commodity material which is expected to remain stable at the current level during the remainder of this year. First quarter 2016 revenue was also impacted by lower sales volume of photonics products due to a major customer''s inventory adjustments, and lower sales volume of thin film solar products that are expected to increase during the second half of 2016.
Order backlog was $2.2 million at March 31, 2016 compared to $1.9 million at year-end 2015.
Gross profit
First quarter 2016 gross profit decreased to $295,442 from $669,405 for the same period last year. Gross profit margin decreased to 21.5% for the first quarter 2016 from 24.5% a year ago due to product mix. These year-over-year decreases were attributable to lower revenue and product mix.
Operating expense
Operating expense (including selling and administrative expense, marketing and sales expense and research and development expense) decreased 6% to $515,396 for the first three months of 2016 compared to $550,651 a year ago. Lower research and development expense due to sponsored research concluded early in the first quarter of 2016 and lower travel expenses were the key factors related to the year-over-year decrease.
We continue to invest in development of new products in all of our markets including transparent conductive oxide systems for the thin film solar market.
Loss Applicable to Common Shares
The loss applicable to common shares was $236,927 or $0.06 per share for the three months ended March 31, 2016, compared to income applicable to common shares of $96,478 or $0.02 per share for the same period last year due to lower revenue and gross profit.
EBITDA
EBITDA (earnings before interest, income taxes, depreciation and amortization) for the first quarter 2016 was negative $106,130 versus EBITDA of $231,681 a year ago. Adjusted EBITDA, which excludes non-cash stock based compensation, was negative $52,558 for the first quarter 2016 compared to adjusted EBITDA of $283,833 last year.
Cash and Total Debt Outstanding
Cash used in operating activities was $26,365 for the first three months of 2016 versus cash provided by operating activities of $799,314 for the same period last year. Cash on hand was $874,117 at March 31, 2015, compared to $997,170 at year-end 2015.
Total debt outstanding decreased more than 9% to $842,789 at March 31, 2016, compared to $930,032 at December 31, 2015. During the first quarter 2016 the Company incurred a new capital lease obligation of approximately $145,000 that is anticipated to commence during the second quarter 2016 upon receipt and installation of the equipment.
About SCI Engineered Materials, Inc.
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 expectation that increased bookings will benefit results in second half of 2016, optimism that current extensive product testing and qualification activities will result in additional orders, growth opportunities for SCI as product deployment and momentum increases, investments in new applications will accelerate sales. 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, 2015. 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.
The Science of Engineered Materials™
Contact:
Robert Lentz
(614) 876-2000
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Datum: 03.05.2016 - 14:12 Uhr
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