Extra September, 2002

Date of Issue: September 2, 2002

Superconductivity Web21
Superconductivity

Published by International Superconductivity Technology Center
5-34-3, Shimbashi, Minato-ku, Tokyo 105-0004, Japan
Tel: 03-3431-4002, Fax: 03-3431-4044

What’s New in the World of Superconductivity (July)
Power Applications
American Superconductor (July 9, 2002)
American Superconductor Corporation and GE Industrial Systems (a business of the General
Electric Company) have announced the sale of a D-VAR voltage regulation system to BC Hydro, oneof Canada’s largest utilities. The system will be used to moderate voltage problems in Fort St. James,British Columbia, located at the end of a 70 kilometer, 66 kV radial transmission line. At the moment,
the line sometimes experiences voltage sags of up to 20% during periods of peak load. Faults and theuse of large motors in a nearby lumber mill complicate the line’s voltage problems. The new D-VAR
system is expected to begin operation by the end of November 2002 and will be used to regulate thevoltage to within BC Hydro’s specifications, enabling a significant improvement in power reliability.
News Source:“American Superconductor and GE Receive Third Order for New Voltage Regulation System”
American Superconductor Corporation Press Release (July 9, 2002)
http://www.amsuper.com/press.htm
Intermagnetics General Corporation (July 18, 2002)
Intermagnetics General Corporation (IMGC) reported that fourth-quarter net income increased
32 percent to $3.4 million, or $0.20 per diluted share, from $2.6 million, or $0.15 per diluted share, ayear earlier.
Glenn H. Epstein, chairman and CEO said that the close of fiscal 2002 marks a uniquemilestone year for Intermagnetics. He stated, “We have again exceeded our long-term target of 15
percent annual earnings growth and met our forecasted growth of 17 percent”. He added, “Wecompleted key divestitures that allow us to focus on areas of future growth. Additionally, we reached orexceeded targets for operating performance, continued to generate positive operating cash flow andmade significant investments in new product and business development.”
In regards to continued investments in core businesses and energy technology, Epstein said,“ Our ongoing commitment to research and development seeks to continually improve our coreproducts. It is one reason our largest segment, MRI, is the prime driver in our increased earnings andrevenues.” Epstein added, “Our innovative, high-field-strength MRI magnets have helped our largest
customer, Philips Medical Systems, remain at the forefront in developing and marketing magnetic
resonance imaging systems. The MRI sector, excluding the results of the divested LTS wire business,turned in a 31 percent increase in revenue for the fourth quarter, yielding a 40 percent increase for theyear.”News Source:“Intermagnetics Reports Q4 Net Income Up 31 Percent to $3.4 Million” (Intermagnetics GeneralCorporation Press Release, July 18, 2002)
http://www.igc.com
IGC-SuperPower (July 18, 2002)
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Date of Issue: September 2, 2002

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IGC-SuperPower, a subsidiary of Intermagnetics General Corporation, presented a report at theAnnual DOE Technical Peer Review stating that it had made substantial progress towards theproduction of devices designed to provide efficient, reliable, and environmentally responsible solutionsfor the transmission and distribution of electric power. SuperPower is presently developing
manufacturing capabilities for the production of commercial, second-generation high-temperature
superconductors and is collaborating with Waukesha Electric systems to develop a 5/10 MVA HTStransformer that will be used to power Waukesha’s main manufacturing facility in Wisconsin.
SuperPower is on-target to achieve their 2002 calendar goal of the production of a 100 amp-meter
HTS tape in longer than one-meter lengths, as well as their 2003 target of a 1000 amp-meter tape inlonger than 10-meter lengths. At the moment, they have produced meter-long second-generation HTS
tapes with an end-to-end performance of 90 amps (at the temperature of liquid nitrogen), as well as a30-cm segment with a performance of 110 amps. SuperPower is collaborating with the Los Alamosand Argonne National Laboratories to scale-up their manufacturing capabilities. In addition,
SuperPower is nearing completion of its portion of the work on the Waukesha transformer and plans toship the HTS coil assemblies before September. The company made a major breakthrough bydeveloping an electrical insulation system that can operate at both cryogenic temperatures and highvoltages. The final assembly of the transformer will be completed at Waukesha, followed by extensive
testing until the end of 2002; the transformer should be operational by 2003.
News Source:“Intermagnetics' Superpower Subsidiary Reports Substantial Progress Toward HTS Production Goals”
IGC-SuperPower Press Release (July 18, 2002)
http://www.igc.com
American Superconductor Corporation (July 19, 2002)
American Superconductor Corporation commented on a status report made by Pirelli Energy
Cables and Systems at the US Department of Energy Peer Review in Washington, D.C., regarding thehigh-temperature superconductor cable demonstration project being undertaken at Detroit Edison’sFrisbie substation. After extensive testing of the three HTS cables that have been installed, Pirelli
concluded that thermal leaks in the cryostats of two of the cables are significant enough to prevent thecables from being energized. The demonstration project will be continued using the one remaining
cable that has been determined to have minimal thermal leakage after further tests are performed toensure that the leaks are stable. Pirelli hopes to energize this cable by the end of the year. Greg Yurek,
chief executive officer of American Superconductor, remained positive, commenting that “Based on
the learning from this project and from other HTS cable projects being conducted around the world,and on the excellent performance of our HTS wires, we are confident that HTS cables will continue themarch to full commercialization.” Previous demonstrations of cable cryostats by Pirelli have beensuccessful, and at least three other cable manufacturers have also successfully demonstrated HTS
cables during the last year. Other recent studies have also confirmed the benefits of installing HTScables in the power grid. A report by RAND (a nonprofit institution in the USA that helps improve policy
and decision-making through research and analysis) concluded that “ . . . major investments in thepower grid in the U.S. will be necessary to meet the need for reliable and affordable electric powerand . . . HTS cables could play a significant role in meeting this need.”News Source:
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Date of Issue: September 2, 2002

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Tel: 03-3431-4002, Fax: 03-3431-4044“American Superconductor Provides Update on Detroit Edison andother HTS Cable Demonstrations and on New HTS Cable Market Study”
American Superconductor Corporation Press Release (July 19, 2002)
http://www.amsuper.com/press.htm
American Superconductor Corporation (July 24, 2002)
American Superconductor Corporation (AMSC) reported results for the first quarter 2003, which
ended June 30, 2002:
Net revenues were $2.9 million compared with $1.7 million for the first quarter of fiscal 2002.
However, the net loss for the first quarter of fiscal 2003 was $10.8 million, or $0.53 per share,compared with a net loss of $9.0 million or $0.44 per share for the first quarter of fiscal 2002. The$11.2 million operating loss for the first quarter of fiscal 2003 was relatively unchanged compared to
the first quarter of 2002. Primary uses of cash during the quarter included: funding the $10.8 million
net loss for the quarter; $7.6 million to reduce the fiscal-year-end accounts payable and accrued
expense liabilities resulting from equipment purchases and restructuring and other one-time charges
incurred during the fourth quarter of fiscal 2002; and $4.8 million in capital expenditures in the firstquarter, primarily for the Company’s new HTS wire manufacturing plant.
Greg Yurek, chief executive officer of American Superconductor stated, “As of June 30, 2002,
we have about $7.3 million in revenue backlog for the last nine months of the fiscal year. The additionof the $2.9 million recognized as revenue in our first quarter brings our revenue commitments for thefiscal year to $10.2 million, compared with our guidance of a total of $20 million to $28 million inrevenue for the full fiscal year.” Yurek added that the backlog as of June 30, 2002 included orders
received during the quarter for the Company’s new Dynamic-VAR, or D-VAR™ product.
Yurek explained, “Our plan is to end the fiscal year with about $35 million in cash, cash
equivalents and long-term investments on our balance sheet with no long-term debt. We believe weare on track to achieve this goal with no additional cash investments into our company and nomonetization of property or equipment assets. He added, “We believe our existing capital resources
will be sufficient to fund our operations until fiscal 2005, at which time we expect to reachcorporate-wide profitability.”News Source:“American Superconductor Reports Fiscal 2003 First Quarter Results” (American Superconductor
Press Release, July 24, 2002)
http://www.amsuper.com/press.htm

Material
Superconductive Components, Inc. (July 1, 2002)
Superconductive Components, Inc., has announced a corporate restructuring of the company:
two previously separate divisions, Target Materials, Inc. and SCI Division, have been combined to form
SCI Engineered Materials. The change is expected to better align the company’s strengths with its
growth opportunities by streamlining the organization and placing greater emphasis on key
commercial markets. Daniel Rooney, President and Chief Executive Officer, stated that “Our strategy
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Date of Issue: September 2, 2002

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is to develop and provide engineered materials for a variety of applications in the advanced ceramics,
optical materials, and high-temperature superconductive and non-superconductive markets. We willcontinue to utilize our core competencies for multi-component oxides, and the fabrication of ceramic
and metal sputtering targets.”
News Source:“Superconductive Components, Inc. Announces New Corporate Structure”
Superconductive Components, Inc. Press Release (July 1, 2002)
http://www.investquest.com/iq/s/scci/ne/news/sccinewprescfo.htm

SensorOxford Instruments (July 1 and 3, 2002)
Oxford Instruments has signed an agreement with Cambridge University to create a newlaboratory, bringing together the UK’s two top superconducting detector groups in what is expected tobe a 20-year collaboration. The new facility will be located at the Cavendish Laboratory in Cambridge
University and will conduct research on a new generation of analytical techniques for the physical andbiological sciences. The team will develop advanced superconducting detectors and opticalcomponents for the entire electromagnetic spectrum, including instruments to study the very earliest
moments of the Big Bang, find galaxies beyond the edge of the currently observable universe, enable
the creation of a new generation of x-ray astronomy satellites, and provide sub-cellular images of DNA
and other biological materials. Dr. Stafford Withington of Cambridge University’s Astrophysics Group,
who will head the new laboratory, commented that “ . . . we will be in an exciting position to support theactivities of many different international organizations. For example, submillimetre-wave and THz
superconducting electronics for the Particle Physics and Astronomy Research Council, optical andx-ray superconducting detectors for the European Space Agency and the European SouthernObservatory.” Oxford Instruments plans to license its intellectual property to the laboratory and endow
the university with a donation of equipment, complementing the infrastructure provided by a recent£3.5m government grant to the University. In return, Oxford Instruments will receive a royalty from any
future commercial developments arising from the use of its intellectual property within the new facility.
News Source:“Oxford Instruments sign collaboration agreement with Cambridge University”“Superconducting cameras to photograph the Big Bang”
Oxford Instruments plc. Press Releases (July 1 and 3, 2002)
http://www.oxford-instruments.com/OIGNWP507.htm
http://www.oxford-instruments.com/SCNNWP509.htm

Communication
Conductus (July 11, 2002)
Conductus is now expecting second quarter revenues to be below previous guidance andanalyst estimates: unaudited total revenues of approximately US $ 1.6 to $ 1.7 million for the second
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Date of Issue: September 2, 2002

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quarter ending June 30, 2002, are now expected, compared to prior estimates of US $ 2.0 to $ 2.4
million. The Company’s revenues for the quarter ending March 31, 2002, were US $ 2.0 million. The
uncertainties of the general economy and the challenging environment in the wirelesstelecommunications sector are thought to be causing delays in the purchasing decisions of Conductus’
customers. The final second quarter financial results will be announced on August 6, 2002.
News Source:“Conductus Announces Second Quarter Revenue Expectations”
Conductus Press Release(July 11, 2002)
http://www.conductus.com/pressReleases/press94.html
Superconductor Technologies Inc. (July 24, 2002)
Superconductor Technologies Inc. (SCON) ("STI") announced financial results for the quarterand six months ended June 29, 2002:
Total net revenues for the second quarter 2002 were $6.1 million, an increase of 44 percent
versus $4.2 million for the second quarter ended June 30, 2001, and an increase of 31 percent overthe first quarter of 2002. Net commercial product revenues for the second quarter 2002 were $5.3
million, an increase of 81 percent compared to $2.9 million in the year ago period, and an increase of42 percent over the first quarter 2002. The total net loss for the quarter ended June 29, 2002 was $6.0
million versus a loss of $3.5 million for the quarter ended June 30, 2001.
Thomas, STI's president and CEO stated, "Financial results for the second quarter continued tobenefit from strong commercial sales of our SuperFilter products to two major customers.” He added,“Our total net revenues were slightly below plan primarily as a result of a delay in a government
contract, which has now slipped into the second half of 2002. In a difficult wireless sector, we still
have the benefit of reasonable visibility and backlog for much of 2002, based on existing supply
contracts. However, as we announced on July 15 we have modestly lowered our guidance for the fullyear, as previously anticipated domestic and international orders have been pushed out.”
Based primarily on its expected lower sales volumes, STI now expects to achieve positive grossproduct margins in the fourth quarter of 2002. Moreover, the company estimates that it can achieve
quarterly breakeven operating results based upon total quarterly net revenues in the range of $11
million to $12 million.
Thomas concluded that demand for STI's HTS solutions is growing as network capacity is strained andinterference becomes increasingly problematic. Looking ahead, he remained confident that ultimately
STI will deliver profitable and sustainable growth as industry spending normalizes and accelerates
News Source:“Superconductor Technologies Inc. Reports Second Quarter 2002 Results” (SuperconductorTechnologies Inc Press Release; July 24, 2002)
http://www.suptech.comSuperconductor Technologies Inc. (July 30)
The Deloitte & Touche“Technology Fast 50” program has named Superconductor
Technologies Inc. as one of the top fifty fastest growing technology companies in the Los Angeles area.
The program based its present rankings on the percentage of growth in fiscal year revenues over a
five-year period (1997 – 2001). Superconductor Technology Inc. experienced a 49% growth inExtra September, 2002

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Date of Issue: September 2, 2002

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Tel: 03-3431-4002, Fax: 03-3431-4044

revenues between 1997 and 2001, mainly as a result of the commercialization of theirhigh-temperature superconductor technology and the introduction of their SuperLink ™ Solutions forthe wireless industry. In 1997, 98% of Superconductor Technology’s revenues came fromgovernment contracts. By 2001, revenues for commercial products accounted for 61% (US$ 12.4million) of their overall earnings, and company officials expect this figure to approach 80% in fiscal
2002. Furthermore, Superconductor Technologies expects to achieve a growth in revenues of morethan 75% for fiscal 2002, compared to the previous fiscal year.
News Source:“Superconductor Technologies Inc. Named One of Los Angeles Area’s Fastest Growing Technology
Companies in Deloitte and Touche ‘Fast 50’ Program”
Superconductor Technologies Inc. Press Release (July 30, 2002)
http://www.suptech.com

High Energy Physics
German Science Council (July 15, 2002)
A working group established by the German Science Council, at the request of the German
Federal Ministry of Education and Research, has assessed nine large-scale science facilities
proposed by various institutions. A sub-panel of experts, including external specialists from Europeand abroad, examined the plans for each facility. The Science Council then placed the assessments ofeach facility in the context of the national and international development of the concerned research
fields and considered the overall importance of each facility in terms of science policy. One of thefacilities included in the Science Council’s assessment was the TeV-Energy Superconducting Linear
Accelerator (TESLA), which is being developed under the supervision of the Deutsches
Elektronen-Synchrotron (DESY) in conjunction with partners from around the world. The facility ispredicted to cost a total of Euro 3.45 billion and will provide answers to fundamental questions in thearea of elementary particle physics and cosmology. The Science Council classified this facility in its
second category: projects that when implemented will provide important new research infrastructures,but for which certain questions require clarification before support can be offered. Consequently, theScience Council has asked the Federal Government to revise and resubmit the proposal for thisfacility.
News Source:“German Science Council releases views on nine large-scale facilities for basic scientific research”
German Science Council Press Release (July 15, 2002)
http://www.eurekalert.org/pub_releases/2002-07/wc-gsc071502.php
For further information, http://www.wissenschaftsrat.de(Akihiko Tsutai, International Affairs Department, ISTEC)
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