ANN ARBOR, Mich., June 30 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.(R) (AMEX:API) (the "Company") today reported its fourth quarter and fiscal year 2008 results ended March 31, 2008.
The Company's revenues were approximately flat for fiscal 2008, in line with revised third quarter guidance. Revenues were $23.2 million, a slight decrease of 1.6% from prior year revenues of $23.6 million. This decrease was primarily the result of delays in certain telecommunication and defense product shipments from the latter half of fiscal 2008 to fiscal 2009.
Non-GAAP net loss for fiscal 2008 was $(2,410,000) or $(.11) per diluted share as compared to $(287,000) or $(.02) per diluted share for fiscal 2007. This loss was primarily due to unfavorable product mix due to lower sales to the telecommunications and defense markets. Non-GAAP net income (loss) is considered non-GAAP financial information, and reconciliation between net income (loss) on a GAAP basis and non-GAAP net income (loss) is provided in the attached table.
On an EBITDA basis (GAAP earnings/loss before interest, taxes, depreciation, and amortization), the Company reported negative EBITDA of ($2,815,000) for fiscal 2008. This compares to a positive EBITDA of $40,000 for fiscal 2007. The fiscal 2008 negative EBITDA included $1.8 million of non-recurring expenses associated with the wafer fabrication consolidation and closure of the Dodgeville facility.
Gross Profit was $8.9 million (or 38% of revenue), compared to the prior year of $10.9 million (or 46% of revenue), a reduction of 18%. The Company does not believe this is a trend, and anticipates improved gross margins in fiscal 2009 as a result of the facilities consolidation that has been largely completed in fiscal 2008, the selective elimination of low margin products in the industrial sensing market, increasing revenues from the telecommunication market driven by 40G products, and the ramp up of our T-Ray 4000(TM) sales beginning in fiscal 2009.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "This past year marked a year of transition for API, one from cost reduction and product development the past few years to revenue and profit growth as we enter fiscal 2009. Fiscal 2008 was a year of some successes, unexpected surprises, and delays; but overall making substantial progress in positioning API for growth in our three product platforms. Looking to fiscal 2009, we are expecting to grow revenues 25% to $29 million and report strong revenue and earnings growth starting in our first quarter. We expect that our gross margins will move closer to our strategic goal of 50% in fiscal 2009 as the benefits of our cost reduction programs in our custom optoelectronics product platform and the revenue growth in our HSOR and THz product platforms increase our capacity utilization".
This press release, the financial tables, as well as other supplemental information including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will also be available on our website under the "Investor Relations" link.
The Company will hold a conference call to discuss the results for the fourth quarter and fiscal year ended March 31, 2008 on Monday, June 30, 2008, at 5:00 PM ET. Participants can dial into the conference call at 888-679-8038 (617-213-4850 for international) using the passcode 16220111. 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 50452591.
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 integration of newly acquired businesses, 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 March 31, 2008 March 31, 2007 Current Assets:
Cash and cash equivalents $1,582,000 $3,274,000
Accounts receivable, net of allowance 3,202,000 3,587,000
Inventories, net of allowances 4,131,000 4,439,000
Prepaid expenses and other current assets 195,000 377,000
Total current assets 9,110,000 11,677,000
Equipment & Leasehold Improvements, at cost 10,847,000 10,301,000
Accumulated depreciation (6,090,000) (5,565,000)
Net Equipment and Leasehold Improvements 4,757,000 4,736,000
Goodwill, net of accumulated amortization 4,579,000 4,579,000
Patents, net 538,000 355,000
Intangible assets, net 10,333,000 12,285,000
Deferred tax asset, net of current portion - 1,225,000
Other assets 386,000 385,000 Total assets $29,703,000 $35,242,000 Liabilities and shareholders' equity
Current liabilities
Line of credit $1,300,000 $741,000
Accounts payable and accrued expenses 2,066,000 2,336,000
Compensation and related withholdings 527,000 1,091,000
Current portion of long-term debt-related
parties 900,000 550,000
Current portion of long-term debt 522,000 4,535,000
Total current liabilities 5,315,000 9,253,000
Long term debt, less current portion 3,706,000 3,015,000
Long term debt, less current
portion-related parties 951,000 1,851,000
Total liabilities 9,972,000 14,119,000 Class A redeemable convertible preferred
stock, $.001 par value; 780,000 shares
authorized; 40,000 shares issued and
outstanding; liquidation preference $32,000. - 32,000 Shareholders' equity Class A common stock, $.001 par value,
50,000,000 shares authorized 2008 - 23,977,678
shares issued and outstanding; 2007 -
19,226,006 shares issued and outstanding 24,000 19,000
Additional paid-in capital 52,150,000 43,887,000
Accumulated deficit (32,443,000) (22,815,000)
Total shareholders' equity 19,731,000 21,091,000
Total liabilities and shareholders'
equity $29,703,000 $35,242,000 Consolidated Statement of Operations Three months ended Twelve months ended
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
Net Sales $5,236,000 $6,161,000 $23,215,000 $23,588,000
Cost of Sales 3,451,000 3,508,000 14,340,000 12,693,000
Gross Margin 1,785,000 2,653,000 8,875,000 10,895,000
Other Operating Expenses
Research & Development 1,272,000 1,019,000 4,218,000 4,012,000
General &
Administrative 1,035,000 1,168,000 4,593,000 5,020,000
Amortization 493,000 430,000 1,963,000 1,676,000
Goodwill/Intangible
impairment - 489,000 - 489,000
Wafer Fab Consolidation 224,000 427,000 1,256,000 720,000
Dodgeville Consolidation - - 534,000 -
Sales & Marketing 645,000 667,000 2,312,000 2,174,000
Total Other Operating
Expenses 3,669,000 4,200,000 14,876,000 14,091,000 Net Operating Loss (1,884,000) (1,547,000) (6,001,000) (3,196,000) Other (Income) & Expense
Other (Income)/Expense (49,000) (2,000) (23,000) 5,000
Income tax - deferred 1,225,000 (921,000) 1,225,000 (920,000)
Interest Income (14,000) (49,000) (96,000) (213,000)
Interest
Expense-Related Parties 34,000 56,000 162,000 224,000
Interest Expense -
Warrant discount - 480,000 1,672,000 1,528,000
Interest Expense 59,000 213,000 687,000 826,000
Other (Income) &
Expense 1,255,000 (223,000) 3,627,000 1,450,000 Net Loss $(3,139,000) $(1,324,000) $(9,628,000) $(4,646,000)
Net earnings per share $(0.13) $(0.07) $(0.44) $(0.24)
Diluted earnings per share $(0.13) $(0.07) $(0.44) $(0.24)
Weighted number of shares
outstanding 23,926,000 19,165,000 21,770,000 19,065,000
Anti-diluted weighted
number of shares 24,352,000 22,625,000 22,195,000 22,525,000
Non-GAAP Financial Measures
The Company provides Non-GAAP Net Income (Loss) 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 to GAAP Income Three months ended Twelve months ended
March 31, March 31, March 31, March 31,
2008 2007 2008 2007 Net Income (Loss) $(3,139,000) $(1,324,000) $(9,628,000) $(4,646,000) Add Back:
Interest Expense -
Convertible notes - 126,000 268,000 504,000
Interest expense -
Warrant (Fair Value) - 480,000 1,672,000 1,528,000
Amortization - prepaid
finance expense 70,000 48,000 70,000 148,000
Amortization -
intangibles/patents 493,000 382,000 1,963,000 1,528,000
Goodwill/Intangible
impairment - 489,000 - 489,000
Stock Option Compensation
Expense 28,000 84,000 230,000 361,000
Income Taxes -
deferred 1,225,000 (921,000) 1,225,000 (920,000)
Other Expense - DV
Consolidation - - 534,000 -
Other Expense -
Wafer Fabrication 224,000 427,000 1,256,000 721,000
Subtotal - Add
backs 2,040,000 1,115,000 7,218,000 4,359,000
Non-GAAP Income $(1,099,000) $(209,000) $(2,410,000) $(287,000)
Net earnings per share $(0.05) $(0.01) $(0.11) $(0.02)
Diluted earnings per
share $(0.05) $(0.01) $(0.11) $(0.02) Weighted Number of
shares outstanding 23,926,000 19,165,000 21,770,000 19,065,000
Diluted shares
outstanding 24,352,000 22,625,000 22,195,000 22,525,000
Reconciliation of EBITDA to GAAP income/(loss) Three months ended Twelve months ended
March 31, March 31, March 31, March 31,
2008 2007 2008 2007 Net Income (Loss) $(3,139,000) $(1,324,000) $(9,628,000) $(4,646,000) Add Back:
Net Interest expense
(income) 80,000 221,000 753,000 837,000
Interest expense -
Warrant (Fair Value) - 480,000 1,672,000 1,528,000
Depreciation Expense 272,000 323,000 1,130,000 1,076,000
Income Taxes -
deferred 1,225,000 (921,000) 1,225,000 (920,000)
Goodwill/Intangible
impairment - 489,000 - 489,000
Amortization - prepaid
finance expense 70,000 48,000 70,000 148,000
Amortization 493,000 382,000 1,963,000 1,528,000
Subtotal - Add
backs 2,140,000 1,022,000 6,813,000 4,686,000
EBITDA $(999,000) $(302,000) $(2,815,000) $40,000
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 4000(TM) THz product platforms. More information on Advanced Photonix can be found at http://www.advancedphotonix.com/. DATASOURCE: Advanced Photonix, Inc.
CONTACT: Richard Kurtz, Advanced Photonix, Inc., +1-734-864-5600, or Richard Moyer, Cameron Associates, +1-212-554-5466, for Advanced Photonix, Inc.
Web site: http://www.advancedphotonix.com/ http://investor.advancedphotonix.com/ http://www.earnings.com/
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