SCI Engineered Materials moves to profit in Q3 2012

Nov 7, 2012 - SCI Engineered Materials Inc (OTC:SCIA), a US firm making ceramics and metals for photonics and thin films, on Tuesday posted a third-quarter net profit of USD 84,700 (EUR 66,400) against a USD-390,600 loss a year earlier.

Chairman, president and chief executive Dan Rooney said that performance benefited from higher operating efficiencies and lower operating costs and added that visibility into next quarter's results was limited because of uncertain market conditions. In the third quarter, the company generated less revenue than expected from the sale of solar products as thin film solar firms continued to face intense competition. In response to the difficult market environment, SCI is stepping up marketing and sales efforts in a bid to expand its customer base, Rooney said.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were USD 258,300, versus a loss of USD 73,500 in the third quarter of 2011.

Gross margin rose to 28.4% from 14.1% on an increase in volume, better product mix and reduced production costs.

Revenue declined slightly to USD 1.98 million from USD 2.09 million due to a decrease in planned contract research revenue, while product revenue remained generally unchanged at USD 1.93 million.

In the first nine months of 2012, net loss shrank to USD 106,500 from USD 671,800. Revenue fell 5% to USD 6.57 million.

(USD 1.0 = EUR 0.784)

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