Record Quarterly Revenues of $7.8 million, up 47% sequentially; EPS Improves to $.01 GAAP and $.04 Non-GAAP per diluted share
ANN ARBOR, Mich., Aug. 11 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.(R) (AMEX:API) (the "Company") today reported its first quarter fiscal 2009 results ending June 27, 2008.
Financial Highlights for the First Quarter Ended June 27, 2008 -- Net sales for the quarter were $7.8 million, an increase of $2.5
million, or 47%, compared to revenues of $5.3 million for the prior
quarter ended March 31, 2008. The increase was broad based across the
company's markets, lead by the telecommunication market. This reflects
the beginning production ramp-up of the Company's 40Gbps client side
receivers driven by the carriers' current capacity expansion of the
long haul transport portion of their infrastructure.
-- Net sales of $7.8 million reflects an increase of $1.7 million, or 26%,
compared to net sales of $6.1 million in the quarter ended June 29,
2007, primarily as a result of increased sales in the 40Gbps
telecommunications and military markets, offset by lower demand in the
medical market.
-- Gross profit margin for Q1 2009 was 48% of sales compared to 34% for
the prior quarter ended March 31, 2008 and 40% for the quarter ended
June 29, 2007. This improvement in gross profit margin was due
primarily to increased military and telecommunication revenues, along
with lower costs resulting from the Wisconsin facilities consolidation.
-- Operating income was $239,000, or 3% of sales, as compared to an
operating loss of $1.9 million, or 36%, for the quarter ended March 31,
2008 and an operating loss of $1.1 million, or 18%, for the quarter
ending June 29, 2007.
-- Net income was $147,000, or $.01 per diluted share, for the quarter, as
compared to a net loss of $3.1 million, or $.13 per diluted share, for
the prior quarter ended March 31, 2008, and a net loss of $1.9 million,
or $0.10 per diluted share, for the quarter ended June 29, 2007.
-- The Non-GAAP net income for the first quarter of fiscal 2009 was
$869,000, or $0.04 per diluted share, as compared to a Non-GAAP net
loss of $1.1 million, or $.05 per diluted share, for the quarter ended
March 31, 2008 and net loss of $264,000, or $0.01 per diluted share,
for the comparable quarter ended June 29, 2007.
-- On an EBITDA basis (which is defined as GAAP earnings before interest,
taxes, depreciation, and amortization), the Company reported positive
EBITDA of $1,035,000 for the first quarter of fiscal 2009 as compared
to negative EBITDA of $1.0 million for the quarter ended March 31, 2008
and negative EBITDA of $339,000 for the comparable quarter ended June
29, 2007. Richard Kurtz, Chairman and Chief Executive Officer, commented, "We are pleased with the results of the first quarter which exceeded our planned revenue and earnings targets. Our high-speed optical receiver 40G products are starting to meet our growth projections, and we expect this to continue on an accelerated basis for the next several years. Our Optosolutions product platform provided strong revenue from the military and industrial markets that helped to offset the decline in our medical revenues. Our industry leading, fourth generation T-Ray(TM) 4000 has been enthusiastically received by the worldwide R&D laboratory market and one of our goals in fiscal 2009 is to focus intently on furthering industrial OEM deployment. We continue to be cautiously optimistic with our growth projections. We believe the growth in broadband applications and non-destructive testing markets will drive growth in our business now and in the foreseeable future. We are cautious due to the overall health of the economy and expect to continue to see fluctuations in customer spending in any given quarter due primarily to their new product introduction patterns. Even with this backdrop, we are increasing our previously announced revenue growth guidance from 25% to 30% for fiscal 2009." The Company will hold a conference call to discuss the results for the first quarter ended June 27, 2008 on Monday, August 11, 2008, at 5:00 PM EDT. Participants can dial into the conference call at 888-713-4216 (617-213-4868 for international) using the pass code 43918096. The call will be webcast live by CCBN and can be accessed at Advanced Photonix's web site at http://investor.advancedphotonix.com/ or at http://www.earnings.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 pass code 15736689.
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.
Condensed Consolidated Balance Sheets Assets June 27, 2008 March 31, 2008
Current Assets
Cash and cash equivalents $1,473,000 $82,000
Restricted cash 500,000 1,500,000
Accounts receivable, net of allowance 4,348,000 3,202,000
Inventories, net of allowances 4,401,000 4,131,000
Prepaid expenses and other current assets 303,000 195,000
Total current assets 11,025,000 9,110,000
Equipment & Leasehold Improvements, at cost 11,054,000 10,847,000
Accumulated depreciation (6,359,000) (6,090,000)
Net Equipment and Leasehold Improvements 4,695,000 4,757,000
Goodwill, net of accumulated amortization 4,579,000 4,579,000
Patents, net 568,000 538,000
Intangible assets, net 9,808,000 10,333,000
Other assets 388,000 386,000 Total assets $31,063,000 $29,703,000 Liabilities and shareholders' equity
Current liabilities
Line of credit $1,300,000 $1,300,000
Accounts payable and accrued expenses 2,799,000 2,066,000
Compensation and related withholdings 1,088,000 527,000
Current portion of long-term debt-related
parties 1,851,000 900,000
Current portion of long-term debt-capital
lease obligations 460,000 460,000
Current portion of long-term debt 468,000 62,000
Total current liabilities 7,966,000 5,315,000
Long term debt, less current portion 1,843,000 2,249,000
Long term debt, less current portion -
capital lease obligations 1,342,000 1,457,000
Long term debt, less current
portion-related parties - 951,000
Total liabilities 11,151,000 9,972,000 Shareholders' equity
Class A common stock, $.001 par value,
50,000,000 shares authorized;
June 27, 2008 - 24,007,978 shares issued and
outstanding; March 31, 2008 - 23,977,678
shares issued and outstanding 24,000 24,000
Additional paid-in capital 52,184,000 52,150,000
Accumulated deficit (32,296,000) (32,443,000)
Total shareholders' equity 19,912,000 19,731,000 Total liabilities and shareholders' equity $31,063,000 $29,703,000 Consolidated Statement of Operations (unaudited) Three months ended
June 27, 2008 June 29, 2007
Net Sales $7,770,000 $6,145,000
Cost of Sales 4,014,000 3,675,000
Gross Margin 3,756,000 2,470,000 Other Operating Expenses
Research & Development 1,128,000 896,000
General & Administrative 1,083,000 1,171,000
Amortization 526,000 490,000
Wafer Fab Consolidation 160,000 343,000
Sales & Marketing 620,000 646,000
Total Other Operating Expenses 3,517,000 3,546,000 Net Operating Income (Loss) 239,000 (1,076,000) Other (Income) & Expense
Other (Income)/Expense - (6,000)
Interest Income (16,000) (21,000)
Interest Expense-Related Parties 27,000 57,000
Interest Expense - Warrant discount - 567,000
Interest Expense 81,000 233,000
Other (Income) & Expense 92,000 830,000 Net Income (Loss) $147,000 $(1,906,000)
Net earnings per share $0.01 $(0.10)
Diluted earnings per share $0.01 $(0.10) Weighted number of shares outstanding 24,010,000 19,258,000
Anti-diluted weighted number of shares 24,370,000 19,258,000
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
June 27, 2008 June 29, 2007
Net Income (Loss) $147,000 $(1,906,000) Add Back:
Interest Expense - Convertible notes - 157,000
Interest expense - Warrant (fair value) - 567,000
Amortization -
intangibles/patents 528,000 490,000
Stock Option Compensation Expense 34,000 85,000
Other Expense - Wafer Fabrication 160,000 343,000
Subtotal - Add backs 722,000 1,642,000
Non-GAAP Income (Loss) $869,000 $(264,000) Net earnings per share $0.04 $(0.01)
Diluted earnings per share $0.04 $(0.01) Weighted Number of shares outstanding 24,010,000 19,258,000
Diluted shares outstanding 24,370,000 19,258,000 Reconciliation of EBITDA to GAAP income/(loss) Three months ended
June 27, 2008 June 29, 2007
Net Income (Loss) $147,000 $(1,906,000) Add Back:
Net Interest expense (income) 92,000 270,000
Interest expense - Warrant (fair value) - 567,000
Depreciation Expense 268,000 240,000
Amortization 528,000 490,000
Subtotal - Add backs 888,000 1,567,000
EBITDA $1,035,000 $(339,000)
Advanced Photonix, Inc.(R) (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(R) photodetectors; high-speed optical receivers; and the T-Ray(TM) 2000 and QA1000 THz product platforms. More information on Advanced Photonix can be found at http://www.advancedphotonix.com/.
Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Richard Moyer, Cameron Associates (212) 554-5466
DATASOURCE: Advanced Photonix, Inc.
CONTACT: Richard Kurtz, Advanced Photonix, Inc., +1-734-864-5600; Richard Moyer, Cameron Associates, +1-212-554-5466 Web site: http://www.advancedphotonix.com/
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