SCI Engineered Materials, Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. Total revenue was $2,224,756 for the third quarter 2009, the highest quarterly amount this year, compared to $4,008,635 for the same quarter in 2008. This decline was attributable to significantly lower sales to photonics customers, whose end markets include the automotive market, coupled with a substantial reduction in the price of a high value raw material compared to a year ago. Net income applicable to common shares was $8,792, or $0.00 per diluted share, for the third quarter 2009 compared to net income of $198,635, or $0.05 per diluted share, for the same period last year. These results particularly benefited from higher thin-film solar sales and contract research revenues, which increased 330% and 298%, respectively, compared to a year ago. EBITDA was $147,627 for the third quarter 2009 compared to $317,419 for the same period last year. Adjusted EBITDA, excluding non-cash stock based compensation and financing expense, was $197,541 for the third quarter 2009 versus $333,655 a year ago. Total revenue for the nine months ended September 30, 2009 was $5,436,344 compared to $7,240,088 last year. Significantly higher sales of thin-film solar products combined with a significant increase in contract research revenue partially offset the sharp decline in sales of photonics products which were 44% below the same period last year. EBITDA for the first nine months of 2009 was negative $258,578 versus EBITDA of $354,895 last year. Adjusted EBITDA, excluding non-cash stock based compensation and financing expense, was $148,926 for the nine months of 2009 compared to $400,768 in 2008. The net loss applicable to common shares for the first nine months of 2009 was $678,662, or $0.19 per share, compared to net income applicable to common shares of $11,390 or $0.00 per share for the same period in 2008. This was principally due to significantly higher non-cash expenses, including stock based compensation, which totaled $331,117 for the 2009 year-to-date period versus $45,873 for the same period in 2008 and $76,387 of financing expense in 2009 related to the warrant expiration date extension versus $0 in 2008.

SCI Engineered Materials Inc. announced it has been awarded a two-year Phase II Small Business Innovation Research (SBIR) contract concerning 'Homogenous BSCCO-2212 Round Wires for Very High Field Magnet'. This contract enables SCI to continue efforts to develop High Jc performance in BSCCO-2212, which is currently the only superconducting material manufactured in round wire form that works successfully in high magnetic fields over 12 Tesla. This is a requirement for new generation magnets under development for high energy physics experiments. SCI's application was for approximately $650,000. The final amount of this award is subject to the completion of financial negotiations with the U.S. Department of Energy.

SCI Engineered Materials Inc. announced earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported loss applicable to common shares was $374,027, or $0.10 per share, compared to a loss applicable to common shares of $108,878, or $0.03 per share, for the same period last year. The year-over-year increase was primarily due to significantly higher non-cash stock based compensation expense and non-cash finance expense, which totaled $126,300 for the second quarter 2009 versus $15,324 for the same period last year. Total revenue was $1,310,053 compared to $1,517,513 for the same period last year. EBITDA was negative $235,698 compared to EBITDA of $4,996 for the same period last year. Adjusted EBITDA, excluding non-cash stock based compensation and financing expense, was negative $109,398 for the second quarter 2009 versus $20,320 last year. The net loss applicable to common shares for the first half of 2009 was $687,454, or $0.19 per share, compared to a net loss applicable to common shares of $187,245 or $0.05 per share, last year primarily due to significantly higher non-cash stock based compensation and non-cash finance expense, which totaled $357,590 for the first six months of 2009 compared to $29,637 a year ago. Total revenue was similar at $3,211,588 and $3,231,453 compared with the same period a year ago. EBITDA for the first six months was negative $406,205 versus EBITDA of $36,274 last year. Adjusted EBITDA, excluding non-cash stock based compensation and financing expense, was negative $48,615 for the first half of 2009 compared to EBITDA of $65,911 in 2008.