Company Reports 1st Quarter Non-GAAP Net Income of $315,000 or $.01 Per Share With Gross Profit margin improving to 51%
ANN ARBOR, Mich., Aug. 10 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.(R) (NYSE Amex: API) (the "Company") today reported its first quarter fiscal 2010 results ending June 26, 2009.
Financial Highlights for the First Quarter compared to the 4th quarter 2009
- Net Sales for the quarter were $5.9 million, a decrease of $177,000 or 3% over the 4th quarter ended March 31, 2009.
- Gross profit margin for Q1 2010 was 51% of sales compared to 38% for the 4th quarter ended March 31, 2009.
- Operating expenses were $3.2 million for the quarter as compared to $3.8 million for the 4th quarter ended March 31, 2009, a decrease of 16%.
- Quarterly net loss was $296,000 or $0.01 per diluted share, as compared to a net loss of $1,497,000, or $0.06 per diluted share, for the 4th quarter ended March 31, 2009.
- The Non-GAAP net profit for the first quarter of fiscal 2010 was $315,000 or $0.01 per diluted share, as compared to a Non-GAAP net loss of $884,000 or $.04 per diluted share, for the 4th quarter ended March 31, 2009.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $554,000 for the first quarter of fiscal 2010 as compared to a negative EBITDA of $603,000 from the 4th quarter ended March 31, 2009.
Financial Highlights for the First Quarter compared to the prior year
- The Company's revenues for the quarter ended June 26, 2009 were $5.9 million, a decrease of 24% (or $1.8 million) over revenues of $7.8 million for the quarter ended June 27, 2008.
- Gross Profit for Q1 2010 was $3.0 million compared to Q1 2009 of $3.8 million, or a decrease of 20% on 24% drop in revenue volume. Gross profit margins increased to 51% for Q1 2010 compared to 48% of sales for the comparable prior year period.
- Operating expenses were $3.2 million for the quarter as compared to $3.5 million for the comparable prior year period, a decrease of 8%.
- Quarterly net loss was $296,000 or $0.01 per diluted share, as compared to a net income of $147,000, or $0.01 per diluted share, for the quarter ended June 27, 2008.
- The Non-GAAP net profit for the first quarter of fiscal 2010 was $315,000 or $0.01 per diluted share, as compared to a Non-GAAP net profit of $869,000 or $.04 per diluted share, for the comparable prior year period.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $554,000 for the first quarter of fiscal 2010 as compared to positive EBITDA of $1,035,000 for the comparable prior year period.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "As we stated in our year end conference call, the first half of the year would be a slow start with a drop in revenues from the prior year due primarily to the current economic conditions. The first quarter results were in line with this guidance. The good news is we have been able to improve our EBITDA and Non-GAAP profit over the 4th quarter of fiscal 2009, despite a revenue drop. This reflects the initial payoff from our long term strategy over the past several years of investing in our high value added products targeted at growth markets and the streamlining of our operations through facility consolidation. In addition, our recent cost reduction initiatives in response to the recession have helped control our operating expenses. While we have instituted cost cuts this year, we are committed to continuing to make the strategic investments necessary to enable growth as the economic conditions improve. We remain cautiously optimistic, that our reduced cost structure and gross margin improvements have positioned API for long term profitability as revenue growth returns and the economic conditions improve."
The Company will hold a conference call to discuss the results for the first quarter Monday, August 10, 2009, at 4:30 PM EDT. Participants can dial into the conference call at 888.286.8010 (617.801.6888) for international) using the passcode 49162606. 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=2358461.
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 June 26, 2009 June 27, 2008
Current Assets
Cash and cash equivalents $1,760,000 $1,473,000
Restricted cash 500,000 500,000
Accounts receivable, net
of allowance 3,881,000 4,348,000
Inventories, net of allowances 3,834,000 4,401,000
Prepaid expenses and other current assets 370,000 303,000
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Total current assets 10,345,000 11,025,000
Equipment & Leasehold
Improvements, at cost 11,381,000 11,054,000
Accumulated depreciation (7,272,000) (6,359,000)
---------- ----------
Net Equipment and Leasehold Improvements 4,109,000 4,695,000
Goodwill, net of accumulated
amortization 4,579,000 4,579,000
Patents, net 773,000 568,000
Intangible assets, net 7,762,000 9,808,000
Other assets 388,000 388,000
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Total assets $27,956,000 $31,063,000
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Liabilities and shareholders' equity
Current liabilities
Line of credit $- $1,300,000
Accounts payable and accrued expenses 2,406,000 2,799,000
Compensation and related withholdings 1,378,000 1,088,000
Current portion of long term debt-fair
value of warrant liability 46,000 -
Current portion of long-term
debt-related parties 1,401,000 1,851,000
Current portion of long-term
debt-bank term loan 434,000 -
Current portion of long-term
debt-capital lease obligations - 460,000
Current portion of long-term debt 570,000 468,000
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Total current liabilities 6,235,000 7,966,000
Long term debt, less current portion 1,654,000 1,843,000
Long term debt, less current portion -
capital lease obligations - 1,342,000
Long-term fair value warrant liability
less current portion 209,000 -
Long term debt, less current portion -
line of credit 1,394,000 -
Long term debt, less current portion -
bank term loan 1,013,000 -
--------- ---
Total liabilities 10,505,000 11,151,000
Shareholders' equity
Class A common stock, $.001 par value,
50,000,000 shares authorized; June 26,
2009 - 24,284,726 shares issued and
outstanding; June 27, 2008 - 24,089,726
shares issued and outstanding 24,000 24,000
Additional paid-in capital 49,875,000 52,184,000
Accumulated deficit (32,448,000) (32,296,000)
----------- -----------
Total shareholders' equity 17,451,000 19,912,000
Total liabilities and shareholders'
equity $27,956,000 $31,063,000
=========== ===========
Consolidated Statement of Operations (unaudited)
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Three months ended
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June 26, 2009 June 27, 2008
Net Sales $5,934,000 $7,770,000
Cost of Sales 2,937,000 4,014,000
--------- ---------
Gross Margin 2,997,000 3,756,000
Other Operating Expenses
Research & Development 1,063,000 1,126,000
General & Administrative 1,173,000 1,083,000
Amortization 515,000 528,000
Wafer Fab Consolidation 40,000 160,000
Sales & Marketing 451,000 620,000
------- -------
Total Other Operating Expenses 3,242,000 3,517,000
Net Operating Income (Loss) (245,000) 239,000
Other (Income) & Expense
Other (Income)/Expense 10,000 -
Change in fair value of warrant
liability (39,000) -
Interest Income (1,000) (16,000)
Interest Expense-Related Parties 14,000 27,000
Interest Expense-Warrant discount - -
Interest Expense 67,000 81,000
------ ------
Other (Income) & Expense 90,000 92,000
Net Income (Loss) $(296,000) $147,000
Net earnings (loss) per share $(0.01) $0.01
Diluted earnings (loss) per share $(0.01) $0.01
Weighted number of shares outstanding 24,135,000 24,010,000
Anti-diluted weighted number of shares 24,135,000 24,370,000
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 26, 2009 June 27, 2008
Net Income (Loss) $(296,000) $147,000
Add Back:
Interest Expense -Convertible Notes - -
Income - change in warrant fair value (39,000) -
Amortization - intangibles/patents 515,000 528,000
Stock Option Compensation Expense 95,000 34,000
Other Expense - Wafer Fabrication 40,000 160,000
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Subtotal - Add backs 611,000 722,000
------- -------
Non-GAAP Income (Loss) $315,000 $869,000
======== ========
Net earnings per share $0.01 $0.04
Diluted earnings per share $0.01 $0.04
Weighted Number of shares outstanding 24,135,000 24,010,000
Diluted shares outstanding 24,135,000 24,370,000
Reconciliation of EBITDA to GAAP income/(loss)
Three months ended
------------------
June 26, 2009 June 27, 2008
Net Income (Loss) $(296,000) $147,000
Add Back:
Net Interest expense (income) 80,000 93,000
Income - change in warrant fair value (39,000) -
Depreciation Expense 294,000 267,000
Amortization 515,000 528,000
------- -------
Subtotal - Add backs 850,000 888,000
------- -------
EBITDA $554,000 $1,035,000
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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.
