Loading ...Strong first half gross profit margins despite recession’s impact
ANN ARBOR, Mich., Nov 09, 2009 /PRNewswire-FirstCall via COMTEX News Network/ — Advanced Photonix, Inc.(R) (NYSE Amex: API) (the "Company") today reported its second quarter fiscal 2010 results ending September 25, 2009.
Financial Highlights for the Second Quarter Ended September 25, 2009
-- Net sales for the quarter were $5.4 million, a decrease of $.5 million,
or 8%, compared to revenues for the first quarter ended June 26, 2009.
The decrease was broad based across four of its five markets.
-- Gross profit margin for the first six months was 45% compared to 46% for
the prior year six month period, despite a 29% drop in revenue compared
to the record revenues in the first half of last year. Strong gross
margins reflect the results of company-wide cost reduction initiatives
and prior years' facilities consolidation activities.
-- GAAP net loss for the quarter was $1,192,000, or $.05 per diluted share,
as compared to a GAAP net loss of $326,000, or $.01 per diluted share
for the quarter ended September 26, 2008. GAAP net loss year to date was
$1,488,000 or $.06 per diluted share, as compared to a net loss of
$179,000, or $.01 per diluted share, for the prior year period.
-- The Non-GAAP net loss for the second quarter of fiscal 2010 was
$452,000, or $0.02 per diluted share, as compared to a Non-GAAP net
income of $306,000, or $.01 per diluted share, for the comparable
quarter ended September 26, 2008. The Company reported year to date
Non-GAAP net loss of $137,000, or $0.01 per diluted share, as compared
to a Non-GAAP income of $1,173,000, or $0.05 per diluted share, for the
comparable prior year period.
-- On an EBITDA basis (which is defined as GAAP earnings before interest,
taxes, depreciation, and amortization), the Company reported EBITDA of a
negative $220,000 for the second quarter of fiscal 2010 as compared to
positive EBITDA of $557,000 for the quarter ended September 26, 2008.
For the year to date, the Company reported positive EBITDA of $334,000
as compared to positive EBITDA of $1,592,000 for the comparable prior
year period.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "As we previously stated, the first half of the year was negatively impacted by the recessionary environment and this quarter was in line with our expectations. We have taken the necessary cost reduction steps to minimize the impact of the revenue shortfall in the first half of the year and anticipate second half revenue to show a return to growth driven mainly by our HSOR and Terahertz product platforms. While we do not anticipate top line revenue to meet 2009 numbers, predominantly due to the industrial product market being closely tied to the overall economy, we do expect the second half of the year to show growth over the first six months and with the reduced cost structure, a return to GAAP profitability. We continue to invest in our product platforms that position us for additional future growth as the overall economy improves."
The Company will hold a conference call to discuss the results for the second quarter ended September 25, 2009 on Monday, November 9, 2009, at 4:30 PM EST. Participants can dial into the conference call at 888-713-4217 (617-213-4869 for international) using the pass code 82275901. 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 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 37880498.
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.
CONSOLIDATED BALANCE SHEETS
Assets September 25, 2009 March 31, 2009
Current Assets
Cash and cash equivalents $1,642,000 $2,072,000
Restricted cash 500,000 500,000
Accounts receivable, net 3,199,000 3,284,000
Inventories, net 3,782,000 3,669,000
Prepaid expenses and other
current assets 348,000 252,000
------- -------
Total current assets 9,471,000 9,777,000
Equipment & Leasehold
Improvements, at cost 11,297,000 11,470,000
Accumulated depreciation (7,455,000) (7,148,000)
----------- -----------
Net Equipment and Leasehold
Improvements 3,842,000 4,322,000
Goodwill 4,579,000 4,579,000
Patents, net 779,000 705,000
Intangible assets, net 7,253,000 8,270,000
Other assets 388,000 388,000
------- -------
Total assets $26,312,000 $28,041,000
=========== ===========
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued
expenses 2,308,000 2,484,000
Compensation and related
withholdings 911,000 1,037,000
Current portion of long-term
debt - fair value of warrant
liability 22,000 -
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 789,000 353,000
------- -------
Total current liabilities 5,865,000 5,709,000
Long term debt, less current portion - MEDC 1,435,000 1,871,000
Long-term fair value warrant
liability less current portion 325,000 -
Long term debt, less current
portion - line of credit 1,394,000 1,394,000
Long term debt, less current
portion - bank term loan 904,000 1,121,000
------- ---------
Total liabilities 9,923,000 10,095,000
Shareholders' equity
Class A common stock, $.001 par
value, 50,000,000 shares
authorized; September 25, 2009 -
24,433,978, shares issued and
outstanding; March 31, 2009 -
24,089,726 shares issued and
outstanding 24,000 24,000
Additional paid-in capital 50,006,000 52,400,000
Accumulated deficit (33,641,000) (34,478,000)
------------ ------------
Total shareholders' equity 16,389,000 17,946,000
Total liabilities and
shareholders' equity $26,312,000 $28,041,000
=========== ===========
Condensed Consolidated Statement of Operations
----------------------------------------------
Three months ended Six months ended
------------------ ----------------
September September September September
25, 26, 25, 26,
2009 2008 2009 2008
Net Sales $5,424,000 $8,188,000 $11,358,000 $15,958,000
Cost of Sales 3,360,000 4,624,000 6,297,000 8,638,000
--------- --------- --------- ---------
Gross Margin 2,064,000 3,564,000 5,061,000 7,320,000
Other Operating
Expenses
Research
& Development 1,167,000 1,081,000 2,230,000 2,209,000
General &
Administrative 981,000 1,432,000 2,154,000 2,515,000
Amortization 518,000 518,000 1,033,000 1,044,000
Wafer Fab
Consolidation -- 48,000 40,000 208,000
Sales & Marketing 418,000 710,000 869,000 1,330,000
------- ------- ------- ---------
Total Other Operating
Expenses 3,084,000 3,789,000 6,326,000 7,306,000
Net Operating Income
(Loss) (1,020,000) (225,000) (1,265,000) 14,000
Other (Income) & Expense
Other (Income)
/Expense (2,000) 2,000 8,000 2,000
Change in fair value
of warrant liability 92,000 -- 53,000 --
Interest Income (2,000) (12,000) (3,000) (28,000)
Interest Expense
-Related Parties 15,000 28,000 29,000 55,000
Interest Expense 69,000 83,000 136,000 164,000
------ ------ ------- -------
Other (Income) & Expense 172,000 101,000 223,000 193,000
Net Income (Loss) $(1,192,000) $(326,000) $(1,488,000) $(179,000)
Net income (loss)
per share $(0.05) $(0.01) $(0.06) $(0.01)
Diluted income (loss)
per share $(0.05) $(0.01) $(0.06) $(0.01)
Weighted number of
shares outstanding 24,343,000 24,060,000 24,241,000 24,035,000
Anti-diluted weighted
number of shares 24,343,000 24,060,000 24,241,000 24,035,000
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
------------------ ----------------
September September September September
25, 26, 25, 26,
2009 2008 2009 2008
Net Income (Loss) $(1,192,000) $(326,000) $(1,488,000) $(179,000)
Add Back:
Change in warrant
fair value
liability 92,000 -- 53,000 --
Amortization -
intangibles/patents 518,000 518,000 1,033,000 1,044,000
Stock Option
Compensation
Expense 130,000 66,000 225,000 100,000
Other Expense -
Wafer Fabrication -- 48,000 40,000 208,000
Subtotal -
Add backs 740,000 632,000 1,351,000 1,352,000
Non-GAAP Income (Loss) $(452,000) $306,000 $(137,000) $1,173,000
Net earnings
per share $(0.02) $0.01 $(0.01) $0.05
Diluted earnings
per share $(0.02) $0.01 $(0.01) $0.05
Weighted Number of
shares outstanding 24,343,000 24,060,000 24,241,000 24,035,000
Diluted shares
outstanding 24,343,000 24,060,000 24,241,000 24,035,000
Reconciliation of EBITDA to GAAP income/(loss)
Three months ended Six months ended
------------------ ----------------
September September September September
25, 26, 25, 26,
2009 2008 2009 2008
Net Income (Loss) $(1,192,000) $(326,000) $(1,488,000) $(179,000)
Add Back:
Net Interest
expense (income) 83,000 99,000 163,000 191,000
Change in warrant
fair value liability 92,000 - 53,000 -
Depreciation Expense 279,000 267,000 573,000 536,000
Amortization 518,000 517,000 1,033,000 1,044,000
Subtotal - Add backs 972,000 883,000 1,822,000 1,771,000
EBITDA $(220,000) $557,000 $334,000 $1,592,000
About Advanced Photonix, Inc.
Advanced Photonix, Inc. (R) (NYSE Amex: API) is a leading supplier with a broad offering of optoelectronic products to a global customer base. We provide optoelectronic solutions, high-speed optical receivers and terahertz instrumentation for telecom, homeland security, military, medical and industrial 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.
