Advanced Photonix, Inc. Reports Second Quarter 2011 Results With an Increase in Revenues of 29%
ANN ARBOR, Mich., Nov. 15, 2010 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.® (NYSE Amex: API) (the "Company"), a leading vertically integrated optoelectronic semiconductor manufacturer of optoelectronic solutions, high-speed optical receivers and terahertz instrumentation, announced today that its second quarter 2011 revenue increased by 29% and EBITDA improved by $675,000 compared to the prior year's second quarter results.
"The second quarter continued to fuel our strong return to growth. Year-to-date results are ahead of the raised guidance we gave in August of 20% year over year growth. Based on the performance of the first half and the outlook for the second half we are raising our annual guidance to the low end of a 25% increase in sales for the year," said Chairman and Chief Executive Officer, Richard (Rick) Kurtz. "We expect a strong second half of the year based on: the increase in demand for our HSOR products; a rebounding of our Optosolutions product platform; and the increased interest in our terahertz product platform, as demonstrated by the recently announced contracts to assist the Department of Homeland Security with the detection of concealed threats through the utilization of the technology in our T-Ray® 4000."
The Company also filed today a universal shelf registration statement on Form S-3 with the SEC. When declared effective by the SEC, the shelf registration statement will allow the Company to sell up to $7 million of various securities. The Company has no commitment to sell any of its securities under this registration statement, and the terms of any future sale or issuance of securities under this registration statement will be set forth in a prospectus supplement that will be filed with the SEC in connection with any such sales or issuance.
Financial Highlights for the Second Quarter compared to the Prior Year
- The Company's revenues increased 29% (or $1.6 million) over revenues for the quarter to approximately $7.0 million compared to $5.4 million for the second quarter ended September 25, 2009. Year to date revenues are up $1.9 million (or 17%) to $13.3 million over the first six months of fiscal year 2010.
- Gross Profit for Q2 2011 increased $838,000 (or 41%) to $2.9 million compared to $2.1 million for Q2 2010 on a 29% increase in revenue volume. Gross profit margins increased slightly to 42% of sales for Q2 2011 compared to 38% of sales for the comparable prior year period. Year to date gross profit was $5.8 million (44% of revenue) compared to $5.1 million (45% of revenue) for the first six months of fiscal year 2010.
- Operating expenses were $3.1 million for the quarter, the same as the comparable prior year period. Year to date operating expenses for both fiscal year 2011 and 2010 were the same at $6.3 million.
- Quarterly net loss was $398,000 or $0.02 per diluted share, as compared to a net loss of $1.2 million, or $0.05 per diluted share, for the prior year quarter ended September 25, 2009. For the six months ended October 1, 2010, the net loss was $671,000 or $0.03 per diluted share, compared to a net loss of $1.5 million or $0.06 per diluted share, for the comparable prior year six-month period.
- The Non-GAAP net profit for the second quarter of fiscal 2011 was $209,000 or $0.01 per diluted share, compared to Non-GAAP net loss of $452,000 or $0.02 per diluted share, for the comparable prior year period. Year to date Non-GAAP net profit was $307,000 or $0.01 per diluted share, compared to Non-GAAP net loss of $137,000 ($0.01 per diluted share) for the prior year six-month period ended September 25, 2009.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization) was a positive $455,000 for the second quarter of fiscal year 2011, compared to negative EBITDA of $220,000 for the comparable prior year period. For the six months ended October 1, 2010, EBITDA was $842,000 compared to prior year to date EBITDA of $334,000.
Financial Highlights for the Second Quarter compared to the First Quarter 2011
- Net Sales for the quarter were approximately $7.0 million, an increase of $746,000 or 11% over the first quarter ended July 2, 2010. Revenue was down in only one of our five markets.
- Gross profit margin for Q2 2011 was 42% of sales compared to 47% for the first quarter ended July 2, 2010.
- Operating expenses were $3.1 million for the quarter, compared to $3.2 million for the 1st quarter ended July 2, 2010.
- Quarterly net loss was $398,000 or $0.02 per diluted share, compared to a net loss of $273,000, or $0.01 per diluted share, for the first quarter ended July 2, 2010.
- The Non-GAAP net profit for the quarter was $209,000 or $0.01 per diluted share, compared to Non-GAAP net profit of $97,000 or $0.00 per diluted share, for the first quarter ended July 2, 2010.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $455,000 for the second quarter of fiscal 2011, as compared to a positive EBITDA of $387,000 for the first quarter ended July 2, 2010.
The Company will hold a web cast live conference call to discuss the results for the second quarter Monday, November 15, 2010, at 4:30 PM EST. The call may be accessed at http://investor.advancedphotonix.com. Participants can dial into the conference call at 888.713.4216 (617.213.4868 for international) using the pass code 26340149. A question and answer period will take place at the end of the discussion.
Pre-registrants can obtain a pin number to use when dialing into the live call that will enable quick connection, bypassing the operator. Participants may pre-register at: https://cossprereg.btci.com/prereg/key.process?key=PM8U9DVKB
An audio replay of the call will be available shortly thereafter and will remain on-line until November 30, 2010. The replay number is 888-286-8010 (617-801-6888 for international) using pass code 56440815.
Contact: |
|
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600 |
|
CONSOLIDATED BALANCE SHEETS |
|||
Assets |
October 1, 2010 |
March 31, 2010 |
|
(unaudited) |
|||
Current Assets |
|||
Cash and cash equivalents |
$ 1,511,000 |
$ 1,762,000 |
|
Accounts receivable, net of allowance |
3,415,000 |
2,679,000 |
|
Inventories, net of allowances |
4,433,000 |
3,656,000 |
|
Prepaid expenses and other current assets |
259,000 |
200,000 |
|
Total current assets |
9,618,000 |
8,297,000 |
|
Equipment & Leasehold Improvements, at cost |
11,633,000 |
11,200,000 |
|
Accumulated depreciation |
(8,375,000) |
(7,916,000) |
|
Net Equipment and Leasehold Improvements |
3,258,000 |
3,284,000 |
|
Goodwill, net of accumulated amortization |
4,579,000 |
4,579,000 |
|
Patents, net |
994,000 |
861,000 |
|
Intangible assets, net |
5,443,000 |
6,235,000 |
|
Restricted cash |
500,000 |
500,000 |
|
Other assets |
276,000 |
99,000 |
|
Total assets |
$ 24,668,000 |
$ 23,855,000 |
|
Liabilities and shareholders' equity |
|||
Current liabilities |
|||
Accounts payable and accrued expenses |
$ 3,765,000 |
$ 2,828,000 |
|
Compensation and related withholdings |
731,000 |
530,000 |
|
Current portion of long-term debt-related parties |
450,000 |
1,401,000 |
|
Current portion of long-term debt-bank term loan |
434,000 |
434,000 |
|
Current portion of long-term debt-line of credit |
1,394,000 |
-- |
|
Current portion of long-term debt-MEDC |
524,000 |
254,000 |
|
Total current liabilities |
7,298,000 |
5,447,000 |
|
Long term debt, less current portion – related parties |
951,000 |
-- |
|
Long term debt, less current portion-MEDC |
1,662,000 |
1,970,000 |
|
Long term debt, less current portion - line of credit |
-- |
1,394,000 |
|
Long term debt, less current portion - bank term loan |
434,000 |
687,000 |
|
Total liabilities |
10,345,000 |
9,498,000 |
|
Shareholders' equity |
|||
Class A common stock, $.001 par value, 100,000,000 shares authorized; October 1, 2010 - 25,690,876 shares issued and outstanding; March 31, 2010 - 24,495,669 shares issued and outstanding |
26,000 |
24,000 |
|
Additional paid-in capital |
50,799,000 |
50,164,000 |
|
Accumulated deficit |
(36,502,000) |
(35,831,000) |
|
Total shareholders' equity |
14,323,000 |
14,357,000 |
|
Total liabilities and shareholders' equity |
$ 24,668,000 |
$ 23,855,000 |
|
Consolidated Statement of Operations (unaudited) |
|||||
Three months ended |
Six months ended |
||||
October 1, 2010 |
September 25, 2009 |
October 1, 2010 |
September 25, 2009 |
||
Net Sales |
$ 6,999,000 |
$ 5,424,000 |
$ 13,252,000 |
$ 11,358,000 |
|
Cost of Sales |
4,097,000 |
3,360,000 |
7,432,000 |
6,297,000 |
|
Gross Margin |
2,902,000 |
2,064,000 |
5,820,000 |
5,061,000 |
|
Other Operating Expenses |
|||||
Research & Development |
1,303,000 |
1,167,000 |
2,591,000 |
2,230,000 |
|
General & Administrative |
952,000 |
981,000 |
1,964,000 |
2,154,000 |
|
Amortization |
408,000 |
518,000 |
814,000 |
1,033,000 |
|
Wafer Fab Consolidation |
- |
- |
- |
40,000 |
|
Sales & Marketing |
424,000 |
418,000 |
897,000 |
869,000 |
|
Total Other Operating Expenses |
3,087,000 |
3,084,000 |
6,266,000 |
6,326,000 |
|
Net Operating Income (Loss) |
(185,000) |
(1,020,000) |
(446,000) |
(1,265,000) |
|
Other (Income) & Expense |
|||||
Other (Income)/Expense |
- |
(2,000) |
2,000 |
8,000 |
|
Change in fair value of warrant liability |
143,000 |
92,000 |
89,000 |
53,000 |
|
Interest Income |
(1,000) |
(2,000) |
(2,000) |
(3,000) |
|
Interest Expense-Related Parties |
15,000 |
15,000 |
30,000 |
29,000 |
|
Interest Expense |
56,000 |
69,000 |
106,000 |
136,000 |
|
Other (Income) & Expense |
213,000 |
172,000 |
225,000 |
223,000 |
|
Net Income (Loss) |
$ (398,000) |
$ (1,192,000) |
$ (671,000) |
$ (1,488,000) |
|
Basic and diluted earnings per share |
$ (0.02) |
$ (0.05) |
$ (0.03) |
$ (0.06) |
|
Weighted number of shares outstanding - Basic and diluted |
25,659,000 |
24,343,000 |
25,164,000 |
24,241,000 |
|
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) |
|||||
Three months ended |
Six months ended |
||||
October 1, 2010 |
September 25, 2009 |
October 1, 2010 |
September 25, 2009 |
||
Net Income (Loss) |
$ (398,000) |
$ (1,192,000) |
$ (671,000) |
$ (1,488,000) |
|
Add Back: |
|||||
Change in warrant fair value |
143,000 |
92,000 |
89,000 |
53,000 |
|
Amortization - intangibles/patents |
408,000 |
518,000 |
815,000 |
1,033,000 |
|
Stock Option Compensation Expense |
56,000 |
130,000 |
74,000 |
225,000 |
|
Other Expense - Wafer Fabrication |
- |
- |
- |
40,000 |
|
Subtotal - Add backs |
607,000 |
740,000 |
978,000 |
1,351,000 |
|
Non-GAAP Income (Loss) |
$ 209,000 |
$ (452,000) |
$ 307,000 |
$ (137,000) |
|
Net earnings per share |
$ 0.01 |
$ (0.02) |
$ 0.01 |
$ (0.01) |
|
Weighted number of shares outstanding - Basic and diluted |
25,659,000 |
24,343,000 |
25,164,000 |
24,241,000 |
|
Reconciliation of EBITDA to GAAP income/(loss) |
|||||
Three months ended |
Six months ended |
||||
October 1, 2010 |
September 25, 2009 |
October 1, 2010 |
September 25, 2009 |
||
Net Income (Loss) |
$ (398,000) |
$ (1,192,000) |
$ (671,000) |
$ (1,488,000) |
|
Add Back: |
|||||
Net Interest expense (income) |
70,000 |
83,000 |
134,000 |
163,000 |
|
Change in warrant fair value |
143,000 |
92,000 |
89,000 |
53,000 |
|
Depreciation Expense |
232,000 |
279,000 |
475,000 |
573,000 |
|
Amortization |
408,000 |
518,000 |
815,000 |
1,033,000 |
|
Subtotal - Add backs |
853,000 |
972,000 |
1,513,000 |
1,822,000 |
|
EBITDA |
$ 455,000 |
$ (220,000) |
$ 842,000 |
$ 334,000 |
|
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.
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. API-G
SOURCE Advanced Photonix, Inc.
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