I'm still learning about CDTS here's today's news from them:
Wednesday June 7, 8:45 am Eastern Time
Company Press Release
SOURCE: Conductus, Inc.
Conductus Delivers Advanced Superconducting Wireless Filter System
Multiband Subsystem for Government Communications System
SUNNYVALE, Calif., June 7 /PRNewswire/ -- Conductus, Inc. (Nasdaq: CDTS - news), a leading manufacturer of superconducting wireless systems, announced today that it has delivered a state-of-the-art superconductor-enhanced, multichannel wireless receiver front end to Communication Solutions, Inc. of Baltimore, Maryland. The Conductus front end is to be integrated into a high-performance system that will serve as a demonstration platform used to quantify the benefits of superconductor filter technology in a number of government communications applications. Conductus believes this system to be the most complex wireless front-end subsystem based on superconductor technology ever built.
This system provides superior performance by using a combination of ten superconducting filters and ten cryogenically-cooled, low-noise amplifiers. The Conductus unit also includes a broad range of switching and gain-setting capabilities that are controllable through its companion receiver designed and built by Communication Solutions. The combined units constitute a complete multichannel receiver system that incorporates superconducting technology as part of the overall system design. As a result, the system performance exceeds that of existing communications receivers and takes optimal advantage of the benefits offered by Conductus technology.
The Conductus technology in the system is an extension of the front-end technology embodied in the commercial ClearSite© product for wireless base stations but is expanded to a variety of communications bands of interest to government customers. The system was designed to support a range of applications by including multiple frequency bands and the capability to switch between them at will.
``We are pleased to have completed work on this state-of-the-art communications receiver,'' stated Charles Shalvoy, President and CEO of Conductus. ``We believe that the superior technology embodied in this multichannel receiver system has resulted in a system with unprecedented performance. We continue to see good potential for our products in the government sector that complements our efforts in the commercial sector. Standard products for government customers similar to the unit we just delivered could be a significant growth opportunity for us in the future.''
Communication Solutions, Inc., founded in 1991 and based in Baltimore, Maryland, designs and manufactures advanced equipment for specialized communications applications. Their products include microwave receivers, downconverters, data forwarders, and other sophisticated instruments for multiple communications applications.
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here's some info from the May 12 10Q:
---OVERVIEW
We develop, manufacture and market electronic components and systems based on superconductors for applications in the worldwide telecommunications markets. As of March 31, 2000, we had accumulated losses of approximately $54,042,000 and we expect to incur significant additional losses during the remainder of 2000. We, alone or with collaborative partners, must successfully develop, manufacture, introduce and market our potential products in order to achieve profitability. We do not expect to recognize meaningful product sales until we successfully develop and commercialize superconductive components, systems and subsystems that address significant market needs.
-----RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
Total revenues consist primarily of contract revenue and, to a lesser extent, product sales. Our total revenues decreased by 74% to $339,000 for the quarter ended March 31, 2000 from $1,314,000 in the comparable period of 1999. The decrease in total revenues from the prior year is primarily due to decreases in revenues from government contracts and government product sales, which resulted from the completion of several contracts and delays in the anticipated start date of new contracts in 2000.
Revenue under U.S. government research and development contracts represented approximately 74% of total revenue for the quarter ended March 31, 2000 compared to 70% in the comparable period of 1999. Contract revenues decreased by 73% to $251,000 for the quarter ended March 31, 2000 from $917,000 in the comparable period of 1999. This decrease in revenue is primarily attributable to the completion of contracts related to our core wireless business in 1999. We have submitted several proposals related to prospective contracts associated with this core business and we expect to continue to submit proposals as additional and appropriate programs become available. We believe we will be able to participate in several of the contracts for which proposals have been submitted and anticipate that government contract revenues will increase; however, we cannot assure you that we will receive the level of awards we anticipate or any awards at all. Additionally, the recognition of revenue and receipt of payment pursuant to these contracts and awards are subject to numerous risks.
Product revenues decreased by 78% to $88,000 from $397,000 in the comparable period of 1999. The decrease in product revenues was primarily the result of a reduction in sales of the Company's commercial and government wireless telecommunications products. We have several field trials in process for our products that may result in sales; however, there can be no assurance that the customers will purchase the products.
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LIQUIDITY AND CAPITAL RESOURCES
We have financed our operations since inception primarily through:
- $13,251,000 in net proceeds from our initial public offering of common stock in August 1993.
- $9,892,000 in net proceeds from our follow-on public offering of common stock in June 1996,
- $49,565,000 raised in private placement financings, including net proceeds of $14,906,000 raised in December 1999 and $13,670,000 in January 2000.
- $46,136,000 from U.S. government contracts,
- $1,171,000 in outstanding borrowings under various lease and bank loan arrangements, and
- $4,231,000 in interest income.
As of March 31, 2000 our aggregate cash and cash equivalents totaled $26,718,000. Additionally, we have a bank line of credit under which we may borrow up to a maximum of $2,000,000 based on a limitation of 80% of certain eligible receivables. As of March 31, 2000, there are no amounts outstanding under the bank line of credit facility.
Net cash used in operations was $1,466,000 during the quarter ended March 31, 2000. Net cash used in operations was primarily the result of the net loss of $2,358,000 partially offset by the effect of non-cash depreciation and amortization charges of $198,000 during the quarter and the reduction of accounts receivable. We anticipate that we will incur significant additional net losses during 2000 and anticipate that our accounts receivable and inventories may increase during 2000. As a result, we anticipate the use of additional cash in operating activities during the remainder of 2000. |
