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ANN ARBOR, Mich., June 29, 2010 /PRNewswire via COMTEX News Network/ -- Advanced Photonix, Inc.(R) (NYSE Amex: API) (the "Company") today reported its fourth quarter and year end fiscal 2010 results ending March 31, 2010.
Financial Highlights for the Fourth Quarter and Fiscal Year Ended March 31, 2010
Operating Expenses
The Company's total operating expenses for the quarter were $3.3 million, down 13% compared to the $3.8 million reported for the fourth quarter last year. As a percent of revenue, total operating expenses were 63.7% compared to 61.4% for the fourth quarter last year. For the year, total operating expenses were $12.7 million, or 60.1% of revenue, compared to $14.6 million, or 49.2% of revenue last year.
Balance Sheet
The Company completed the year with $1.8 million in cash compared to $2.1 million as of March 31, 2009. Working capital as of March 31, 2010 was $2.9 million and the Company reported a current ratio of 1.5 to 1.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "We have successfully navigated the worst recessionary environment in our life time. While the speed and the amount of the recovery may still be in question, the fact is, business is getting better. We have continued to make the necessary investment in our product platforms to position us for growth as the economy recovers. The sequential revenue growth of 12% in the fourth quarter compared to the third quarter is an indication that we have turned the corner and are beginning to grow again. Gross margins in the fourth quarter improved to 46% compared to 38% in the prior year fourth quarter, despite a 16% drop in revenue on a comparative basis. This is a validation of the improved operating leverage of the business as a result of our operational improvements gained through facilities consolidation during the past several years as well as our long term strategic plan. Our growth platforms of High Speed Optical Receivers (HSOR) and Terahertz systems are starting to show signs of recovery. We recently added a second shift in response to the growing demand and backlog for our HSOR products and our terahertz application development pipeline has never been stronger. Our Optosolutions business has stabilized and has begun to gradually recover. We are looking forward to restoring growth to our business in the coming year, lead by our high growth HSOR products."
Conference Call
The Company will hold a conference call to discuss the results for the fourth quarter and fiscal year ended March 31, 2010 on Tuesday, June 29, 2010, at 4:30 PM EDT. Participants can dial into the conference call at 888-713-4215 (617-213-4867 for international) using the passcode 89519228. A question and answer period will take place at the end of the discussion.
Participants may pre-register for the call at: https://www.theconferencingservice.com/prereg/key.process?key=PNHUJHALB.
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 and can be accessed at Advanced Photonix's web site at: http://investor.advancedphotonix.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 passcode 50851248.
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, unforeseen technological obstacles which may prevent or slow the development and/or manufacture of new products; potential problems with the integration of the acquired company and its technology and possible inability to achieve expected synergies; obstacles to successfully combining product offerings and lack of customer acceptance of such offerings; 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. API-G
Condensed Consolidated Balance Sheets
Assets March 31, 2010 March 31, 2009
Current Assets
Cash and cash equivalents $1,762,000 $2,072,000
Accounts receivable, net 2,679,000 3,284,000
Inventories, net 3,656,000 3,669,000
Prepaid expenses and other current
assets 200,000 252,000
------- -------
Total current assets 8,297,000 9,277,000
Equipment & Leasehold Improvements,
at cost 11,200,000 11,470,000
Accumulated depreciation (7,916,000) (7,148,000)
---------- ----------
Net Equipment and Leasehold
Improvements 3,284,000 4,322,000
Goodwill 4,579,000 4,579,000
Patents, net 860,000 705,000
Intangible assets, net 6,236,000 8,270,000
Restricted cash 500,000 500,000
Other assets 99,000 388,000
Total assets $23,855,000 $27,541,000
=========== ===========
Liabilities and shareholders'
equity
Current liabilities
Accounts payable and accrued
expenses $2,828,000 $2,484,000
Compensation and related
withholdings 530,000 1,037,000
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 254,000 353,000
------- -------
Total current liabilities 5,447,000 5,709,000
Long term debt, less current
portion -MEDC 1,970,000 1,871,000
Long term debt, less current
portion -bank line of credit 1,394,000 1,394,000
Long term debt, less current
portion-related parties 687,000 1,121,000
------- ---------
Total liabilities 9,498,000 10,095,000
Shareholders' equity
Class A common stock, $.001 par
value, 50,000,000 shares
authorized; March 31, 2010 -
24,463,978 shares issued and
outstanding; March 31, 2009 -
24,089,726 shares issued and
outstanding 24,000 24,000
Additional paid-in capital 50,164,000 52,400,000
Accumulated deficit (35,831,000) (34,478,000)
----------- -----------
Total shareholders' equity 14,357,000 17,946,000
Total liabilities and shareholders'
equity $23,855,000 $28,041,000
=========== ===========
Consolidated Statement of Operations (unaudited)
------------------------------------------------
Three months Twelve months
ended ended
------------ -------------
March March March March
31, 31, 31, 31,
2010 2009 2010 2009
Net Sales $5,129,000 $6,111,000 $21,075,000 $29,675,000
Cost of Sales 2,753,000 3,777,000 12,059,000 16,744,000
--------- --------- ---------- ----------
Gross Margin 2,376,000 2,334,000 9,016,000 12,931,000
Other Operating
Expenses
Research &
Development 1,325,000 1,355,000 4,738,000 4,676,000
General &
Administrative 1,009,000 1,120,000 4,160,000 4,871,000
Amortization 519,000 520,000 2,071,000 2,081,000
Wafer Fab
Consolidation - 35,000 40,000 300,000
Sales &
Marketing 414,000 724,000 1,663,000 2,659,000
------- ------- --------- ---------
Total Other
Operating
Expenses 3,267,000 3,754,000 12,672,000 14,587,000
Net Operating
Income (Loss) (891,000) (1,420,000) (3,656,000) (1,656,000)
Other (Income)
& Expense
Other
(Income)/Expense 48,000 - (7,000) 2,000
Interest Income (4,000) (3,000) (8,000) (28,000)
Interest
Expense-
Related
Parties 15,000 17,000 60,000 94,000
Change in fair
value of
warrant
liability (61,000) - (182,000) -
Interest
Expense 42,000 63,000 244,000 311,000
------ ------ ------- -------
Other (Income)
& Expense 40,000 77,000 107,000 379,000
Loss before
benefit from
income taxes (931,000) (1,497,000) (3,763,000) (2,035,000)
Benefit for
income taxes (85,000) - (85,000) -
Net (Loss) $(846,000) $(1,497,000) $(3,678,000) $(2,035,000)
Basic and
diluted
earnings per
share $(0.03) $(0.06) $(0.15) $(0.08)
Weighted number
of shares
outstanding -
Basic and
diluted 24,496,000 24,121,000 24,368,000 24,074,000
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 Twelve months ended
------------------ -------------------
March 31, March 31, March 31, March 31,
2010 2009 2010 2009
Net Income (Loss) $(846,000) $(1,497,000) $(3,678,000) $(2,035,000)
Add Back:
Change in warrant
fair value (61,000) - (182,000) -
Amortization -
intangibles/
patents 519,000 520,000 2,071,000 2,081,000
Stock Option
Compensation
Expense 78,000 58,000 367,000 204,000
Other Expense -
Wafer
Fabrication - 35,000 40,000 300,000
--- ------ ------ -------
Subtotal -Add
backs 536,000 613,000 2,296,000 2,585,000
Non-GAAP Income
(Loss) $(310,000) $(884,000) $(1,382,000) $550,000
========= ========= =========== ========
Net earnings loss
per share $(0.01) $(0.04) $(0.06) $0.02
Weighted Number
of shares
outstanding 24,496,000 24,121,000 24,368,000 24,074,000
Reconciliation of EBITDA to GAAP income/(loss)
Three months ended Twelve months ended
------------------ -------------------
March 31, March 31, March 31, March 31,
2010 2009 2010 2009
Net Income (Loss) $(846,000) $(1,497,000) $(3,678,000) $(2,035,000)
Add Back:
Net Interest expense
(income) 54,000 77,000 296,000 376,000
Interest expense -
Warrant (fair value) (61,000) - (182,000) -
Depreciation Expense 322,000 297,000 1,168,000 1,157,000
Amortization 519,000 520,000 2,071,000 2,081,000
------- ------- --------- ---------
Subtotal - Add backs 834,000 894,000 3,353,000 3,614,000
EBITDA $(12,000) $(603,000) $(325,000) $1,579,000
======== ========= ========= ==========
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.
Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Cameron Donahue, Hayden IR (651) 653-1854
SOURCE Advanced Photonix, Inc.
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