2014

Advanced Photonix, Inc. Reports Improved FY2014 First Quarter Results

ANN ARBOR, Mich., Aug. 12, 2013 /PRNewswire/ -- Advanced Photonix® (NYSE MKT: API) (the Company, we, us or our) today reported improved results for the first quarter ended June 28, 2013.

(Logo:  http://photos.prnewswire.com/prnh/20130304/LA69982LOGO)

Financial Highlights for the First Quarter Ended June 28, 2013

  • Net sales for the quarter were $7.1 million, an increase of $1.1 million or 14% from the first quarter ended June 29, 2012. Sequentially, revenues were up 18% relative to the fourth quarter of fiscal 2013.
  • Gross profit margin for Q1 2014 was 41.4% of sales compared to 36.1% for the first quarter ended June 29, 2012. Cost reduction efforts and a favorable mix helped improve the rate. 
  • Current quarter net loss was $925,000 or $0.03 per diluted share, as compared to a quarterly net loss of $993,000, or $0.03 per diluted share for the quarter ended June 29, 2012.
  • The Non-GAAP net loss for the first quarter of fiscal 2014 was $403,000 or $0.01 per diluted share, as compared to a Non-GAAP loss of $689,000, or $.02 per diluted share, for the first quarter last year.
  • Adjusted EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, amortization and stock compensation), was a negative $68,000 for the first quarter of fiscal 2014 as compared to negative adjusted EBITDA of $456,000 for the quarter ended June 29, 2012.

Operating Expenses

The Company's total operating expenses for the quarter were $3.5 million, up approximately $232,000 from the prior year quarter due primarily to the operating expenses assumed when Advanced Photonix Canada (APC) acquired the net operating assets of Silonex.  Total operating expenses were 48.8% of sales compared to 51.8% for the first quarter last year.

Balance Sheet

The Company finished the quarter with $581,000 in cash compared to $619,000 as of March 31, 2013.  Approximately $922,000 was drawn on the Company's line of credit.  Net working capital as of June 28, 2013 was $4.2 million.

Richard Kurtz, Chairman and Chief Executive Officer, commented, "We are excited to see the top line growing again due to increased telecommunication infrastructure spending and the APC acquisition.  We continue to believe that our fiscal year 2014 revenues will exceed last year's revenues by over 35%.  As I stated in our annual report, we have begun to include our industrial sales as part of the Test and Measurement market. In the past we had combined our telecommunication transmission product sales and communication test and measurement (Comtest) product sales as telecommunication revenue.  Going forward we have split this out so that the telecommunication revenues includes solely the transmission revenues.  We have included the Comtest product sales in the Test and Measurement category along with the previous Industrial sales and our Terahertz nondestructive test and process control sales.  When looked at this way, over 50% of API's revenues come from using optoelectronics to solve our customer's need to test and measure key elements in their applications that can only be done through optical sensing.  We look forward to establishing API as a leader in the test and measurement market."

Conference Call

Participating in the call will be Richard Kurtz (CEO and Director), Rob Risser (COO and Director), and Jeff Anderson (CFO). The live audio webcast will be accessible at http://www.videonewswire.com/event.asp?id=95345 and will last approximately one hour. The conference call will end with a question and answer period. To access the conference call dial 800.860.2442 (412.858.4600 for international and 866.605.3852 for Canada).

Alternatively, an archived version of the conference call will be available shortly following the conclusion of the live call in the Investors section of API's website at www.advancedphotonix.com.

Forward-looking Statements:

The information contained herein includes forward looking statements that are based on assumptions that management believes to be reasonable but are subject to inherent uncertainties and risks including, but not limited to, unforeseen technological obstacles which may prevent or slow the development and/or manufacture of new products; potential problems with the integration of the acquired company and its technology and possible inability to achieve expected synergies; obstacles to successfully combining product offerings and lack of customer acceptance of such offerings; limited (or slower than anticipated) customer acceptance of new products which have been and are being developed by the Company; and a decline in the general demand for optoelectronic products; and the risk factors listed from time to time in the Company's' Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and any subsequent SEC filings. The Company assumes no obligation to update forward-looking statements contained in this release to reflect new information or future events or developments.

CONDENSED CONSOLIDATED BALANCE SHEET


ASSETS

June 28, 2013

March 31, 2013

Current assets



Cash and cash equivalents

$             581,000

$             619,000

Receivables, net

4,988,000

4,988,000

Inventories

4,355,000

3,905,000

Prepaid expenses and other current assets

758,000

795,000

   Total current assets

10,682,000

10,307,000

Equipment and leasehold improvements, net

3,245,000

3,415,000

Goodwill

4,579,000

4,579,000

Net intangible assets, including patents

3,500,000

3,686,000

Other assets

218,000

229,000

    Total assets

$        22,224,000

$        22,216,000




LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities



Accounts payable and accrued expenses

$          3,248,000

$          3,127,000

Accrued compensation

696,000

729,000

Current portion of long-term debt – bank term loan

333,000

333,000

Current portion of long-term debt – bank line of credit

922,000

--

Current portion of long-term debt – PFG

714,000

714,000

Current portion of long-term debt – MEDC/MSF

558,000

553,000

Current portion of capital lease

8,000

--

   Total current liabilities

6,479,000

5,456,000

Long term debt, less current portion – bank term loan

250,000

334,000

Long term debt, net of debt discount and current portion – PFG

1,191,000

1,322,000

Long term debt, less current portion – MEDC/MSF

236,000

377,000

Long-term debt, capital lease

41,000

--

Warrant liability

488,000

292,000

    Total liabilities

8,685,000

7,781,000




Shareholders' equity



Class A common stock, $.001 par value, 100,000,000 shares authorized; June 28, 2013 – 31,197,547 shares issued and outstanding; March 31, 2013 – 31,158,347 shares issued and outstanding

31,000

31,000

Additional paid-in capital

58,645,000

58,616,000

Accumulated deficit

(45,137,000)

(44,212,000)

   Total shareholders' equity

13,539,000

14,435,000

Total liabilities and shareholders' equity

$        22,224,000

$        22,216,000

 

CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)



Three months ended


June 29, 2012


June 28, 2013

Sales, net

$ 6,216,000


$ 7,078,000

Cost of products sold

3,972,000


4,151,000

Gross profit

2,244,000


2,927,000





Operating expenses




Research, development and engineering

1,371,000


1,492,000

Sales and marketing

505,000


587,000

General and administrative

1,053,000


1,124,000

Amortization

292,000


250,000

   Total operating expenses

3,221,000


3,453,000

Loss from operations

(977,000)


(526,000)





Other income (expense)




Net interest expense

(33,000)


(160,000)

Change in fair value of warrant liability

17,000


(196,000)

Other income (expense)

--


(43,000)

   Total other income (expense)

(16,000)


(399,000)

Loss before benefit from income taxes

(993,000)


(925,000)





Benefit for income taxes

--


--





Net loss

$ (993,000)


$ (925,000)





Basic and diluted loss per share

$ (0.03)


$ (0.03)





Weighted average common shares outstanding

31,161,000


31,198,000


Non-GAAP Financial Measures

The Company provides Non-GAAP Net Income, EBITDA and adjusted EBITDA as supplemental financial information regarding the Company's operational performance. These Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Non-GAAP Net Income, EBITDA and adjusted EBITDA should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from similar measures used by other companies. Reconciliation of Non-GAAP Net Income, EBITDA and adjusted EBITDA to GAAP net income and loss are set forth in the financial schedule section below.


RECONCILIATION OF NON-GAAP LOSS TO GAAP LOSS



June 29, 2012


June 28, 2013

Net loss

$     (993,000)


$    (925,000)

Adjustments:




Change in warrant fair value

(17,000)


196,000

Amortization - intangibles/patents

292,000


250,000

Acquisition related expenses

--


--

Non-cash interest expense

--


47,000

Stock option compensation expense

29,000


29,000

   Subtotal

304,000


522,000

Non-GAAP loss

$       (689,000)


$     (403,000)





Basic and diluted loss per share

$             (0.02)


$           (0.01)





Weighted average common shares outstanding

31,161,000


31,198,000

 

RECONCILIATION OF EBITDA AND ADJUSTED EBITDA TO GAAP LOSS



June 29, 2012


June 28, 2013

Net loss

$       (993,000)


$        (925,000)

Adjustments:




Net interest expense (income)

33,000


160,000

Warrant fair value adjustment

(17,000)


196,000

Depreciation expense

200,000


222,000

Amortization

292,000


250,000

   Subtotal

508,000


828,000

EBITDA

$        (485,000)


$          (97,000)

Stock compensation

29,000


29,000

    Adjusted EBITDA

$        (456,000)


$          (68,000)

About Advanced Photonix, Inc.

Advanced Photonix, Inc. ® (NYSE MKT: API) is a leading test and measurement supplier with a broad offering of optoelectronic products to a global customer base. We provide optoelectronic solutions, high-speed optical receivers and terahertz instrumentation to support test and measurement, transmission, military, medical and homeland security markets. With our patented technology and state-of-the-art manufacturing we offer industry leading performance, exceptional quality, and high value added products to our OEM customer base. For more information visit us on the web at www.advancedphotonix.com.

CONTACT: Torrey Hills Capital
Jim Macdonald
(858) 456-7300
jim@sdthc.com

RELATED LINKS: http://www.advancedphotonix.com

SOURCE Advanced Photonix, Inc.



RELATED LINKS
http://www.advancedphotonix.com

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