Year end revenues up 28% Year over Year; Company Reports Non-GAAP Net Income of $550,000 or $0.02 Per Share
ANN ARBOR, Mich., June 29 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.(R) (NYSE Amex: API) (the 'Company') today reported its fourth quarter and year end fiscal 2009 results ending March 31, 2009.
Financial Highlights for the Fourth Quarter and Fiscal Year Ended March 31, 2009
- Net Sales for the quarter were $6.1 million, an increase of $875,000, 16.7% over the fourth quarter ended March 31, 2008. The increase was led by military sales (up 79%).
- Net sales for the fiscal year were $29.7 million, an increase of 28% over the prior year. The increase was broad based across the Company's markets, led by the military, telecommunications and industrial/non destructive testing markets.
- Gross profit margin for Q4 2009 was 38% of sales compared to 34% for the quarter ended March 31, 2008. This improvement in gross profit margin was due primarily to higher revenues and product mix.
- Gross profit margin for the year to date was 44% compared to 38% for the prior year.
- The operating loss for the quarter narrowed to $1.4 million as compared to an operating loss of $1.9 million for the quarter ended March 31, 2008.
- Operating loss year to date was $1.7 million compared to an operating loss of $6.0 million for the prior year.
- Quarterly net loss was $1.5 million or $0.06 per diluted share, as compared to a net loss of $3.1 million, or $0.13 per diluted share, for the quarter ended March 31, 2008.
- Net loss for the year was $2.0 million or $0.08 per diluted share, as compared to $9.6 million, or $0.44 per diluted share for the prior year period.
- The Non-GAAP net loss for the fourth quarter of fiscal 2009 was $884,000 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 fourth quarter last year. The Company reported full-year Non-GAAP net income of $550,000, or $0.02 per diluted share, as compared to a Non-GAAP loss of $2.4 million, or $0.11 per diluted share, for the comparable prior year period.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a negative $603,000 for the fourth quarter of fiscal 2009 as compared to a negative EBITDA of $1 million for the quarter ended March 31, 2008. For the year to date, the Company reported positive EBITDA of $1.6 million as compared to a negative EBITDA of $2.8 million for the comparable prior-year period.
Richard Kurtz, Chairman and Chief Executive Officer, commented, 'We are pleased with the results of our fiscal year, especially considering these tough economic times. We are particularly proud to have reported significant revenue growth, non-GAAP earnings of $0.02 per share, an improvement of $0.13 per share, and growth in EBITDA of $4.4 million. In these uncertain and difficult times, we are fortunate to have three product platforms that are all contributing to help meet our growth targets. As our platform revenue mix changes next year, we expect to see ongoing improvement in revenues and EBITDA growth. The start of our fiscal year will be slower mainly due to the macroeconomic environment, but the growth of our HSOR and the stability of our other product platforms will support our growth plans and we remain cautiously optimistic that we can continue to grow despite the generally adverse economic conditions.'
Operating Expenses
The Company's total operating expenses for the quarter were $3.8 million, essentially flat compared to the $3.7 million reported for the fourth quarter last year. As a percent of revenue, total operating expenses were 61.4% compared to 70.0% for the fourth quarter last year, demonstrating operating leverage inherent in the Company's business model. For the year, total operating expenses were $14.6 million, or 49.2% of revenue, compared to $14.9 million, or 64.1% of revenue last year.
Balance Sheet
The Company completed the year with $2.6 million in cash compared to $1.6 million as of March 31, 2008. Working capital as of March 31, 2009 was $4.1 million and the Company reported a current ratio of 1.7 to 1.
The Company will hold a conference call to discuss the results for the fourth quarter and fiscal year ended March 31, 2009 on Monday, June 29, 2009, at 4:30 PM EST. Participants can dial into the conference call at 888.679.8035 (617.213.4848) for international) using the passcode 35004386. A question and answer period will take place at the end of the discussion.
Participants may pre-register for the call at http://phx.corporate-ir.net/playerlink.zhtml?c=99458&s=wm&e=2285796
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/ or at www.earnings.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, 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 March 31, 2009 March 31, 2008
Current Assets:
Cash and cash equivalents $2,572,000 $1,582,000
Accounts receivable, net of
allowance 3,284,000 3,202,000
Inventories, net of allowances 3,669,000 4,131,000
Prepaid expenses and other current
Assets 252,000 195,000
Total current assets 9,777,000 9,110,000
Equipment & Leasehold Improvements,
at cost 11,470,000 10,847,000
Accumulated depreciation (7,148,000) (6,090,000)
Net Equipment and Leasehold
Improvements 4,322,000 4,757,000
Goodwill, net of accumulated
amortization 4,579,000 4,579,000
Patents, net 705,000 538,000
Intangible assets, net 8,270,000 10,333,000
Deferred tax asset, net of current
portion - -
Other assets 388,000 386,000
Total assets $28,041,000 $29,703,000
Liabilities and shareholders' equity
Current liabilities
Line of credit $- $1,300,000
Accounts payable and accrued expenses 2,485,000 2,066,000
Compensation and related withholdings 1,037,000 527,000
Current portion of long-term
debt-related parties 1,401,000 900,000
Current portion of long-term debt 787,000 522,000
Total current liabilities 5,710,000 5,315,000
Long term debt, less current portion 2,992,000 3,706,000
Long term debt, bank line of credit 1,394,000 -
Long term debt, less current
portion-related parties - 951,000
Total liabilities 10,096,000 9,972,000
Shareholders' equity
Class A common stock, $.001 par value,
50,000,000 shares authorized 2009 -
24,089,726 shares issued and
outstanding; 2008 - 23,977,678
shares issued and outstanding 24,000 24,000
Additional paid-in capital 52,400,000 52,150,000
Accumulated deficit (34,479,000) (32,443,000)
Total shareholders' equity 17,945,000 19,731,000
Total liabilities and shareholders'
equity $28,041,000 $29,703,000
Consolidated Statement of Operations
Three months ended Twelve months ended
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
Net Sales $6,111,000 $5,236,000 $29,675,000 $23,215,000
Cost of Sales 3,778,000 3,451,000 16,744,000 14,340,000
Gross Margin 2,333,000 1,785,000 12,931,000 8,875,000
Other Operating Expenses
Research & Development 1,355,000 1,272,000 4,676,000 4,218,000
General &
Administrative 1,119,000 1,035,000 4,871,000 4,593,000
Amortization 520,000 493,000 2,081,000 1,963,000
Goodwill/Intangible
impairment - - - -
Wafer Fab Consolidation 35,000 224,000 300,000 1,256,000
Dodgeville Consolidation - - - 534,000
Sales & Marketing 724,000 645,000 2,659,000 2,312,000
Total Other
Operating Expenses 3,753,000 3,669,000 14,587,000 14,876,000
Net Operating Loss (1,420,000) (1,884,000) (1,656,000) (6,001,000)
Other (Income) & Expense
Other (Income)/Expense - (49,000) 2,000 (23,000)
Income tax - deferred - 1,225,000 - 1,225,000
Interest Income (3,000) (14,000) (28,000) (96,000)
Interest
Expense-Related
Parties 17,000 34,000 94,000 162,000
Interest Expense -
Warrant discount - - - 1,672,000
Interest Expense 63,000 59,000 311,000 687,000
Other (Income)
& Expense 77,000 1,255,000 379,000 3,627,000
Net Loss $(1,497,000) $(3,139,000) $(2,035,000) $(9,628,000)
Net earnings per share $(0.06) $(0.13) $(0.08) $(0.44)
Diluted earnings
per share $(0.06) $(0.13) $(0.08) $(0.44)
Weighted number of
shares outstanding 24,121,000 23,926,000 24,074,000 21,770,000
Anti-diluted weighted
number of shares 24,177,000 24,352,000 24,130,000 22,195,000
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 to GAAP Income
Three months ended Twelve months ended
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
Net Income (Loss) $(1,497,000) $(3,139,000) $(2,035,000) $(9,628,000)
Add Back:
Interest Expense
- Convertible notes - - - 268,000
Interest expense
- Warrant (Fair Value) - - - 1,672,000
Amortization -
prepaid finance
expense - 70,000 - 70,000
Amortization -
intangibles/patents 520,000 493,000 2,081,000 1,963,000
Stock Option
Compensation Expense 58,000 28,000 204,000 230,000
Income Taxes - deferred - 1,225,000 - 1,225,000
Other Expense -
DV Consolidation - - - 534,000
Other Expense -
Wafer Fabrication 35,000 224,000 300,000 1,256,000
Subtotal - Add
backs 613,000 2,040,000 2,585,000 7,218,000
Non-GAAP Income $(884,000) $(1,099,000) $550,000 $(2,410,000)
Net earnings per share $(0.04) $(0.05) $0.02 $(0.11)
Diluted earnings per
share $(0.04) $(0.05) $0.02 $(0.11)
Weighted Number of
shares outstanding 24,121,000 23,926,000 24,074,000 21,770,000
Diluted shares
outstanding 24,177,000 24,352,000 24,130,000 22,195,000
Reconciliation of EBITDA to GAAP income/(loss)
Three months ended Twelve months ended
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
Net Income (Loss) $(1,497,000) $(3,139,000) $2,035,000) $(9,628,000)
Add Back:
Net Interest
expense (income) 78,000 80,000 377,000 753,000
Interest expense -
Warrant (Fair Value) - - - 1,672,000
Depreciation
Expense 296,000 272,000 1,157,000 1,130,000
Income Taxes -
deferred - 1,225,000 - 1,225,000
Amortization -
prepaid finance
expense - 70,000 - 70,000
Amortization 520,000 493,000 2,081,000 1,963,000
Subtotal -
Add backs 894,000 2,140,000 3,615,000 6,813,000
EBITDA $(603,000) $(999,000) $1,580,000 $(2,815,000)
Advanced Photonix, Inc.(R) (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(R) photodetectors; high-speed optical receivers; and the T-Ray(TM) 4000 THz product platform. More information on Advanced Photonix can be found at http://www.advancedphotonix.com.
Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Cameron Donahue, Hayden IR (651) 653-1854
SOURCE Advanced Photonix, Inc.
