Advanced Photonix, Inc. Reports First Quarter 2011 Results With an Increase in Revenues of 22% and Positive EBITDA of $387,000 Compared to 4th Quarter of Prior Fiscal Year
ANN ARBOR, Mich., Aug. 16 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.® (NYSE Amex: API) (the "Company") today reported its first quarter fiscal 2011 results ending July 2, 2010.
Financial Highlights for the First Quarter compared to the 4th quarter 2010
- Net Sales for the quarter were $6.3 million, an increase of $1.1 million or 22% over the 4th quarter ended March 31, 2010.
- Gross profit margin for Q1 2011 was 47% of sales compared to 46% for the 4th quarter ended March 31, 2010.
- Operating expenses were $3.2 million for the quarter as compared to $3.3 million for the 4th quarter ended March 31, 2010, a decrease of 3%.
- Quarterly net loss was $273,000 or $0.01 per diluted share, as compared to a net loss of $846,000, or $0.03 per diluted share, for the 4th quarter ended March 31, 2010.
- The Non-GAAP net profit for the first quarter of fiscal 2011 was $97,000 or $0.00 per diluted share, as compared to a Non-GAAP net loss of $324,000 or $0.01 per diluted share, for the 4th quarter ended March 31, 2010.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $387,000 for the first quarter of fiscal 2011 as compared to a negative EBITDA of $12,000 from the 4th quarter ended March 31, 2010.
Financial Highlights for the First Quarter compared to the prior year
- The Company's revenues for the quarter ended July 2, 2010 were $6.3 million, an increase of 5% (or $319,000) over revenues of $5.9 million for the quarter ended June 26, 2009.
- Gross Profit for Q1 2011 was $2.9 million compared to Q1 2010 of $3.0 million, or a slight decrease of 3% on 5% increase in revenue volume. Gross profit margins decreased to 47% for Q1 2011 compared to 51% of sales for the comparable prior year period.
- Operating expenses were $3.2 million for the quarter as compared to $3.2 million for the comparable prior year period.
- Quarterly net loss was $273,000 or $0.01 per diluted share, as compared to a net loss of $296,000, or $0.01 per diluted share, for the quarter ended June 26, 2009.
- The Non-GAAP net profit for the first quarter of fiscal 2011 was $97,000 or $0.00 per diluted share, as compared to a Non-GAAP net profit of $315,000 or $0.01 per diluted share, for the comparable prior year period.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $387,000 for the first quarter of fiscal 2011 as compared to positive EBITDA of $554,000 for the comparable prior year period.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "As we stated in our year end conference call, this year would be one of getting us back on a growth path. The first quarter results were in line with the guidance we gave in June of 15% to 20% year over year growth. If we annualize the 1st quarter of $6.3 million that would give us a $24.8 million for FY 2011 or a projected growth rate of 18% over last year. Our second quarter is also strong and we are continuing to see an increase in demand for our HSOR products, a rebounding of our Optosolutions product platform and strong interest with our terahertz product platform, as demonstrated by our recent sale of a system into the art conservation world of the Louvre. We are optimistic about meeting our growth goals and would narrow our guidance range to the high end or 20% for the year."
The Company will hold a conference call to discuss the results for the first quarter Monday, August 16, 2010, at 4:30 PM EDT. Participants can dial into the conference call at 888.713.4218 (617.213.4870 for international) using the passcode 882734227. A question and answer period will take place at the end of the discussion. A press release with the financial results will be announced after the close of the market on the same day.
Participants may pre-register for the call at:
https://www.theconferencingservice.com/prereg/key.process?key=PDEYHUMDA
Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection.
The call will be webcast live by CCBN and can be accessed at Advanced Photonix's web site at http://investor.advancedphotonix.com.
An audio replay of the call will be available shortly thereafter the same day and will remain on-line for two weeks. The replay number is 888-286-8010 (617-801-6888 for international) using passcode 38850634.
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, risks associated with the move of our wafer fabrication facilities, technological obsolescence of existing product lines and technological obstacles which may prevent or slow the development and/or manufacture of new products, 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.
Contact: |
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Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600 |
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Cameron Donahue, Hayden IR (651) 653-1854 |
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CONSOLIDATED BALANCE SHEETS |
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Condensed Consolidated Balance Sheets |
|||
Assets |
July 2, 2010 |
March 31, 2010 |
|
(unaudited) |
|||
Current Assets |
|||
Cash and cash equivalents |
$ 1,431,000 |
$ 1,762,000 |
|
Accounts receivable, net of allowance |
3,407,000 |
2,679,000 |
|
Inventories, net of allowances |
3,805,000 |
3,656,000 |
|
Prepaid expenses and other current assets |
201,000 |
200,000 |
|
Total current assets |
8,844,000 |
8,297,000 |
|
Equipment & Leasehold Improvements, at cost |
11,366,000 |
11,200,000 |
|
Accumulated depreciation |
(8,144,000) |
(7,916,000) |
|
Net Equipment and Leasehold Improvements |
3,222,000 |
3,284,000 |
|
Goodwill, net of accumulated amortization |
4,579,000 |
4,579,000 |
|
Patents, net |
962,000 |
861,000 |
|
Intangible assets, net |
5,839,000 |
6,235,000 |
|
Restricted cash |
500,000 |
500,000 |
|
Other assets |
276,000 |
99,000 |
|
Total assets |
$ 24,222,000 |
$ 23,855,000 |
|
Liabilities and shareholders' equity |
|||
Current liabilities |
|||
Accounts payable and accrued expenses |
$ 3,023,000 |
$ 2,828,000 |
|
Compensation and related withholdings |
539,000 |
530,000 |
|
Current portion of long-term debt-related parties |
1,401,000 |
1,401,000 |
|
Current portion of long-term debt-bank term loan |
434,000 |
434,000 |
|
Current portion of long-term debt-MEDC |
422,000 |
254,000 |
|
Total current liabilities |
5,819,000 |
5,447,000 |
|
Long term debt, less current portion-MEDC |
1,802,000 |
1,970,000 |
|
Long term debt, less current portion - line of credit |
1,394,000 |
1,394,000 |
|
Long term debt, less current portion - bank term loan |
542,000 |
687,000 |
|
Total liabilities |
9,557,000 |
9,498,000 |
|
Shareholders' equity |
|||
Class A common stock, $.001 par value, 100,000,000 shares authorized; July 2, 2010 - 25,537,032 shares issued and outstanding; March 31, 2010 - 24,495,669 shares issued and outstanding |
26,000 |
24,000 |
|
Additional paid-in capital |
50,743,000 |
50,164,000 |
|
Accumulated deficit |
(36,104,000) |
(35,831,000) |
|
Total shareholders' equity |
14,665,000 |
14,357,000 |
|
Total liabilities and shareholders' equity |
$ 24,222,000 |
$ 23,855,000 |
|
Consolidated Statement of Operations (unaudited) |
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Three months ended |
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July 2, 2010 |
June 26, 2009 |
||
Net Sales |
$ 6,253,000 |
$ 5,934,000 |
|
Cost of Sales |
3,335,000 |
2,937,000 |
|
Gross Margin |
2,918,000 |
2,997,000 |
|
Other Operating Expenses |
|||
Research & Development |
1,288,000 |
1,063,000 |
|
General & Administrative |
1,012,000 |
1,173,000 |
|
Amortization |
406,000 |
515,000 |
|
Wafer Fab Consolidation |
- |
40,000 |
|
Sales & Marketing |
473,000 |
451,000 |
|
Total Other Operating Expenses |
3,179,000 |
3,242,000 |
|
Net Operating Income (Loss) |
(261,000) |
(245,000) |
|
Other (Income) & Expense |
|||
Other (Income)/Expense |
2,000 |
10,000 |
|
Change in fair value of warrant liability |
(54,000) |
(39,000) |
|
Interest Income |
(1,000) |
(1,000) |
|
Interest Expense-Related Parties |
15,000 |
14,000 |
|
Interest Expense |
50,000 |
67,000 |
|
Other (Income) & Expense |
12,000 |
51,000 |
|
Net Income (Loss) |
$ (273,000) |
$ (296,000) |
|
Basic and diluted earnings per share |
$ (0.01) |
$ (0.01) |
|
Weighted number of shares outstanding - Basic and diluted |
24,675,000 |
24,135,000 |
|
Non-GAAP Financial Measures
The Company provides Non-GAAP Net Income and 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 and 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 and EBITDA to GAAP net income and loss are set forth in the financial schedule section below.
Reconciliation of Non-GAAP Income (loss) to GAAP Income (loss) |
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Three months ended |
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July 2, 2010 |
June 26, 2009 |
||
Net Income (Loss) |
$ (273,000) |
$ (296,000) |
|
Add Back: |
|||
Change in warrant fair value |
(54,000) |
(39,000) |
|
Amortization - intangibles/patents |
406,000 |
515,000 |
|
Stock Option Compensation Expense |
18,000 |
95,000 |
|
Other Expense - Wafer Fabrication |
- |
40,000 |
|
Subtotal - Add backs |
370,000 |
611,000 |
|
Non-GAAP Income (Loss) |
$ 97,000 |
$ 315,000 |
|
Net earnings per share |
$ 0.00 |
$ 0.01 |
|
Weighted number of shares outstanding - Basic and diluted |
24,675,000 |
24,135,000 |
|
Reconciliation of EBITDA to GAAP income/(loss) |
|||
Three months ended |
|||
July 2, 2010 |
June 26, 2009 |
||
Net Income (Loss) |
$ (273,000) |
$ (296,000) |
|
Add Back: |
|||
Net Interest expense (income) |
64,000 |
80,000 |
|
Change in warrant fair value |
(54,000) |
(39,000) |
|
Depreciation Expense |
244,000 |
294,000 |
|
Amortization |
406,000 |
515,000 |
|
Subtotal - Add backs |
660,000 |
850,000 |
|
EBITDA |
$ 387,000 |
$ 554,000 |
|
Advanced Photonix, Inc.® (NYSE Amex API) is a leading vertically integrated optoelectronic semiconductor manufacturer of optoelectronic solutions, high-speed optical receivers and terahertz instrumentation to a global OEM customer base. Products include patented silicon (Si), indium phosphide (InP) and gallium arsinide (GaAs) based APD, PIN, and FILTRODE® photodetectors; high-speed optical receivers; and the T-Ray™ 4000 THz product platform. More information on Advanced Photonix can be found at http://www.advancedphotonix.com.
SOURCE Advanced Photonix, Inc.
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