SCI Engineered Materials, Inc. (SCIA) research, news, and more from GeoInvesting

Company description

Wed, 31 Oct 2018 15:11:28 GMT

SCI Engineered Materials, Inc. manufactures and supplies materials for physical vapor deposition thin film applications. The company offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, flat panel displays, photonics, glass, thin film batteries, transparent electronics, and thin film solar products. Its materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. The company serves domestic and multi-national corporations, universities, and research institutions. It distributes its products directly, as well as through independent manufacturers' representatives in the United States; and independent distributors and manufacturers' representatives internationally. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was founded in 1987 and is based in Columbus, Ohio.

Research

Fri, 03 Feb 2023 14:42:35 GMT

SCI Engineered Materials, (SCIA:OTCQB) ($3.94; $17.7M market cap), a global supplier and manufacturer of advanced materials for physical vapor deposition thin film applications announced Q4 2022 results:

Sales of $5.8 million vs $3.2 million in the prior year

EPS of $0.10 vs $0.05 in the prior year

“2022 was an exceptional year for SCI, which included record total revenue, gross profit, and earnings per share. We increased sales volume through our growing portfolio of products and services, benefited from further manufacturing efficiencies, and added customers through focused marketing plans. Our growth strategy also includes research and development investments directed toward the introduction of innovative applications for specific niche markets including aerospace and defense. These initiatives represent positive steps toward achievement of our long-term growth goals."

“Our plans for 2023 include increased sales volume and achievement of additional operating efficiencies. These efforts will benefit our commitment to continuously enhance SCI's performance through those things we can control, while we remain cautiously optimistic regarding issues influencing the global economy."

On November 18, 2021, CEO Jeremy Young, joined us for a fireside chat to introduce himself to the GeoInvesting community.

Research

Mon, 07 Feb 2022 15:07:22 GMT

SCI Engineered Materials, (SCIA:OTCQB), a global supplier and manufacturer of advanced materials for physical vapor deposition thin film applications announced Q4 2021 results:

Sales of $3.2 million vs $3.3 million in the prior year
EPS of $0.05 vs $0.05 in the prior year

“The Company and its customers continue to be impacted by COVID variants, global supply chain issues and semiconductor chip shortages, which are currently expected to continue well into 2022. SCI has achieved record annual results during the past two years despite these factors contributing to uneven quarterly performance. We are encouraged by the volume of orders received during the first month of this year, which have accelerated since year-end as our customers continue to manage their businesses and adapt to changing market conditions. As this year progresses, SCI’s performance will be driven by well-defined and flexible growth plans as we continue to benefit from our improved financial and market positions.”

In our prior coverage on the company, we discussed the difficulty of assessing how near-term performance would play out and that quarter variability in the company’s financials is quite possible. Q2 was a sequentially down quarter from its Q3 2021 and flat year over year. We will keep monitoring the story to see if the company can obtain consistent growth.

For more on the long term potential of the SCIA story, see the replay our Fireside Chat with CEO Jeremy Young we conducted in November 2021.

Research

Wed, 27 Oct 2021 19:52:02 GMT

SCI Engineered Materials, (SCIA:OTCQB) ($4.50; $20.2M market cap), a global supplier and manufacturer of advanced materials for physical vapor deposition thin film applications announced Q3 2021 results:

Sales of $5.2 million vs $1.4 million in the prior year
EPS of $0.15 vs $0.01 in the prior year

“We continue to receive increased orders from customers in multiple markets despite uncertain economic and market conditions. While a substantial portion of the Company's backlog of $6.3 million on June 30, 2021 was shipped during the third quarter, order backlog was $3.6 million on September 30, 2021 versus the same amount a year ago.”

“Volume is anticipated to remain stable for the 2021 fourth quarter, while total revenue is expected to be similar to the fourth quarter of 2020 primarily due to lower raw material pricing.”

Related comments from the 10-Q:

“We anticipate revenue for the fourth quarter of 2021 to be below the 2021 third quarter amount, primarily due to lower raw material pricing. Volume is expected to remain stable during the 2021 fourth quarter compared to the third quarter of 2021.”

While Q4 revenue will be sequentially down and on par with Q4 2020, we are more interested in looking beyond Q4 into 2022 to determine if some of the strategic moves the company has embarked on the last few quarters will result in more consistent profitable growth as opposed to experiencing volatility in its quarterly performance.

In early September we highlighted that shares were hitting new highs and that comments from the Q2 release caught our attention. While we might not always add stocks that we are discussing with you to our model portfolios, we do our best to bring research into your pipeline and show you how we fill ours. Our goal is to make sure we all become better investors. That is why In our October investor forum, Maj discussed SCIA as a company of interest that we would look to interview. One thing we did talk about was the difficulty of assessing how near-term quarterly performances would play out.

You can view and listen to Maj discuss SCIA on slide 16 at 33 min mark.

Research

Tue, 07 Sep 2021 13:08:33 GMT

SCI Engineered Materials, (SCIA:OTCQB) ($4.00; $17.9M market cap), a global supplier and manufacturer of advanced materials for physical vapor deposition thin film applications, announced its Q2 2021 results in late July. While revenues were down, EPS increased as gross margins improved.

Shares closed at a 52 week high on Friday. Comments in the release regarding Q3 has caught our attention:

“The increase in second quarter results benefited from higher gross profit and a refundable credit related to certain employment taxes. Overall business conditions continue to improve, and new customers are being added in additional niche markets. As we move beyond the impacts of COVID-19, the Company is positioned for significant growth in total revenue and profitability in the third quarter of 2021."

We will be reaching out to management for an interview.

Research

Tue, 05 Feb 2019 17:19:21 GMT

SCI Engineered Materials, (SCIA:OTCQB) ($3.00; $12.7M market cap), a global supplier and manufacturer of advanced materials for physical vapor deposition thin film applications announced Q4 2018 results:

Sales of $4.3 million vs $1.5 million in the prior year
EPS of $0.08 vs $0.00 in the prior year
Order backlog was $6.6 million at December 31, 2018, compared to $1.9 million on the same date in 2017.

“Our record results for 2018 were driven by a significant increase in shipments of thin film solar products and solid growth in our photonics business. In response to this sharp rise in demand, we worked diligently to increase our manufacturing output, which benefited gross profit and better positions us to scale our operations going forward. There were four consecutive quarters of profitability during 2018 and we ended the year with exceptional fourth quarter results. Our improved performance also enabled us to further strengthen our balance sheet including a 51% reduction in debt outstanding compared to year-end 2017.”

We will be reaching out to management to set up an interview.

Research

Wed, 31 Oct 2018 15:10:06 GMT

SCI Engineered Materials, (SCIA:OTCQB) ($2.90; $12.2M market cap), a global supplier and manufacturer of advanced materials for physical vapor deposition thin film applications announced Q3 2018 results:

Sales of $2.6 million vs $1.9 million in the prior year
EPS of $0.03 vs loss of $0.01 in prior year
Backlog of $7.5 million vs $1.6 million in the prior year

“Revenue for the first nine months of 2018 exceeded the 2017 full-year amount. Net income for the 2018 year-to-date period would be a record for any annual period in the Company’s history. These results were driven by a significant increase in orders for thin film solar and photonics products. We expect revenue in the fourth quarter of 2018 to be higher compared to the third quarter of 2018. The Company’s revenue for the second half of 2018 is anticipated to be at least 40% above the first half of this year, rather than the previously disclosed increase of 25%, resulting in record net income for 2018."

Research

Thu, 06 Sep 2018 15:44:52 GMT

SCI Engineered Materials, (SCIA:OTCQB) ($2.15; $9.0M market cap) , a global supplier and manufacturer of advanced materials for physical vapor deposition thin film applications has been on our radar with its last two earnings reports which we highlighted in our past emails.

Today, SCIA increased its second half 2018 outlook:

The company expects revenue for the second half of 2018 to be substantially higher, rather than similar, as previously disclosed on August 1, 2018, and also expects record net income for the full-year 2018.

Gerald Blaskie, Vice President and Chief Financial Officer, stated, "Revenue for the second half of 2018 is anticipated to be at least $1.1 million or 25% higher than the first half of this year and could increase further based on forecasts received from our customers. Backlog has continued to increase since June 30, 2018, and includes a few new substantial orders involving relatively low margin business. A majority of those orders are expected to ship before year-end 2018. Additionally, we anticipate second half 2018 net income to be similar to the first half of this year and contribute to record net income for the full-year 2018."

With $0.09 EPS for the first half, company guidance implies $0.18 for full year 2018.

Research

Fri, 04 Aug 2017 14:23:42 GMT

SCIA ($1.04) - In yesterday’s earnings table, we highlighted SCIA’s Q2 results. Shares hit a new 52-week high on the heels of the strong Q2 2017 results. SCIA is now on our radar due to the strong quarter and bullish commentary.

Sales of $1.9 million vs $1.2 million in the prior year
Non GAAP EPS of $0.04 vs a loss of $0.02 in the prior year

Quotes from management:

"During the second quarter and first half of this year we made additional investments in our business while continuing to reduce total debt outstanding. We are positioning SCI for sustained growth through new products and realization of further benefits from changes in our sales and marketing strategy last year."

Additional commentary suggests that a new product lineup could replace the current industry standard.