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| 8-K - ADVANCED PHOTONIX, INC. 8K - ADVANCED PHOTONIX INC | a50166601.htm |
Exhibit 99.1
Advanced Photonix, Inc. Reports Third Quarter FY2012 Results
ANN ARBOR, Mich.--(BUSINESS WIRE)--February 13, 2012--Advanced Photonix, Inc.® (NYSE Amex: API) (the “Company”) today reported its third quarter fiscal 2012 results ending December 30, 2011.
Financial Highlights for the third quarter compared to the prior year
- The Company's revenues for the quarter ended December 30, 2011 were $6.5 million, a decrease of 16% (or $1.2 million) over revenues of $7.7 million for the quarter ended December 31, 2010.
- Gross Profit for Q3 FY2012 was $2.7 million compared to Q3 FY2011 of $3.1 million, or a decrease of 13%.
- Operating expenses were $3.6 million for the quarter as compared to $3.3 million for the comparable prior year period, an increase of $296,000.
- Quarterly net loss was $812,000 or $0.03 per diluted share, as compared to a net loss of $649,000, or $0.03 per diluted share, for the quarter ended December 31, 2010.
- The Non-GAAP net profit for the second quarter of fiscal 2012 was $317,000 or $0.01 per diluted share, as compared to a Non-GAAP net profit of $259,000 or $0.01 per diluted share, for the comparable prior year period. Non-GAAP income and loss information eliminates certain non-cash adjustments required under generally accepted accounting principles in the Unites States.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $236,000 for the third quarter of fiscal 2012 as compared to positive EBITDA of $472,000 for the comparable prior year period.
Financial Highlights for the nine months ended compared to the nine months ended Fiscal 2011
- Net Sales for the nine months were $23 million, an increase of $2 million or 10% compared to the nine months ended December 31, 2010.
- Year to date gross profit margin increased $731,000 or 8% over the prior year nine months ended December 31, 2010.
- Operating expenses were $11.3 million for the nine months ended December 30, 2011 as compared to $9.5 million for the comparable prior year.
- Net loss for the nine months ended December 30, 2011 was $1.0 million or $0.03 per diluted share, as compared to a net loss of $1.3 million, or $0.05 per diluted share, for the comparable prior year period.
- The Non-GAAP net income for the first nine months of fiscal 2012 was $259,000 or $0.01 per diluted share, as compared to a Non-GAAP net income of $565,000 or $0.02 per diluted share, for comparable prior year period.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $193,000 for the first nine months of fiscal 2012 as compared to an EBITDA of a positive $1.3 million for the comparable prior year period.
Market Highlights for the nine months ended December 31, 2011, compared to the nine months ended Fiscal 2011
- Telecommunication revenue up 33% or $2.3 million
- Medical Market revenue up 23% or $152,000
- Homeland security market revenues up $921,000
- Military revenue down 16% or $633,000
- Industrial/NDT revenue down 8% or $758,000
Richard Kurtz, Chairman and Chief Executive Officer, commented, "Our third quarter results were as expected, down in light of the flooding in Thailand which affected the supply chain for our major telecommunications customers, as well as the timing of orders in the military market. While the first half of the year was strong in the telecommunications market, as we stated last quarter revenues in the second half are expected to be down substantially. We believe that this is primarily attributable to the temporary supply chain issue and not a lack of long term demand for our 40G and 100G products. We expect a return to the robust growth we enjoyed in the first half of this fiscal year to return in our next fiscal year. We are continuing to sell our T-Ray® systems into industrial applications and are working closely with our customers to establish a Value Added Reseller channel to install, integrate and service our systems. With our new banking relationship we have the financial strength to continue investing in our high growth opportunities and are optimistic about our long term future, but as we stated last quarter, for this fiscal year we are reducing our annual revenue growth for this fiscal year to a maximum of 5% year over year.”
The Company will hold a conference call to discuss the results for the second quarter Monday, February 13, 2012, at 4:30 PM EST.
The conference call will be webcast live and will be accessible at http://investor.advancedphotonix.com. Participants can dial into the conference call at 888.679.8033 (617.213.4846 for international) using the passcode 89252680.
An audio replay of the call will be available shortly thereafter on the same day and will remain on-line until February 20, 2012. The replay number is 888.286.8010 (617.801.6888 for international) and the passcode is 89328044.
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
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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| ASSETS | ||||||||
| December 30, 2011 | March 31, 2011 | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 3,621,000 | $ | 4,744,000 | ||||
| Restricted cash | - | 500,000 | ||||||
| Accounts receivable, net of allowance | 3,922,000 | 4,587,000 | ||||||
| Inventories, net of allowances | 4,324,000 | 4,775,000 | ||||||
| Prepaid expenses and other current assets | 402,000 | 349,000 | ||||||
| Total current assets | 12,269,000 | 14,955,000 | ||||||
| Equipment & leasehold improvements, at cost | 12,987,000 | 12,505,000 | ||||||
| Accumulated depreciation | (9,520,000 | ) | (8,775,000 | ) | ||||
| Net equipment and leasehold improvements | 3,467,000 | 3,730,000 | ||||||
| Goodwill, net of accumulated amortization | 4,579,000 | 4,579,000 | ||||||
| Patents, net | 1,172,000 | 1,062,000 | ||||||
| Intangible assets, net | 3,672,000 | 4,651,000 | ||||||
| Other assets | 266,000 | 275,000 | ||||||
| Total assets | $ | 25,425,000 | $ | 29,252,000 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 1,708,000 | $ | 3,031,000 | ||||
| Compensation and related withholdings | 808,000 | 953,000 | ||||||
| Accrued warrant liability | - | 389,000 | ||||||
| Current portion of long-term debt - related parties | 726,000 | 675,000 | ||||||
| Current portion of long-term debt - bank term loan | 958,000 | 687,000 | ||||||
| Current portion of bank line of credit | - | 494,000 | ||||||
| Current portion of long-term debt - MEDC/MSF | 482,000 | 511,000 | ||||||
| Total current liabilities | 4,682,000 | 6,740,000 | ||||||
| Long term debt, less current portion - MEDC/MSF | 1,064,000 | 1,460,000 | ||||||
| Long term debt, less current portion - related parties | - | 500,000 | ||||||
| Long term debt portion - warrant liability | 13,000 | 343,000 | ||||||
| Total liabilities | 5,759,000 | 9,043,000 | ||||||
| Shareholders' equity | ||||||||
| Class A common stock, $.001 par value, 100,000,000 shares authorized; December 30, 2011 - 30,968,716 shares issued and outstanding; March 31, 2011 - 30,679,046 shares issued and outstanding | 31,000 | 31,000 | ||||||
| Additional paid-in capital | 58,396,000 | 57,891,000 | ||||||
| Accumulated deficit | (38,761,000 | ) | (37,713,000 | ) | ||||
| Total shareholders' equity | 19,666,000 | 20,209,000 | ||||||
| Total liabilities and shareholders' equity | $ | 25,425,000 | $ | 29,252,000 | ||||
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CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) |
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| Three months ended | Nine months ended | |||||||||||||||
| December 30, 2011 | December 31, 2010 | December 30, 2011 | December 31, 2010 | |||||||||||||
| Net sales | $ | 6,518,000 | $ | 7,720,000 | $ | 22,991,000 | $ | 20,972,000 | ||||||||
| Cost of sales | 3,828,000 | 4,636,000 | 13,356,000 | 12,068,000 | ||||||||||||
| Gross margin | 2,690,000 | 3,084,000 | 9,635,000 | 8,904,000 | ||||||||||||
| Other operating expenses | ||||||||||||||||
| Research & development | 1,660,000 | 1,362,000 | 5,066,000 | 3,953,000 | ||||||||||||
| General & administrative | 1,062,000 | 1,028,000 | 3,521,000 | 2,992,000 | ||||||||||||
| Amortization | 344,000 | 409,000 | 1,028,000 | 1,223,000 | ||||||||||||
| Sales & marketing | 484,000 | 455,000 | 1,664,000 | 1,352,000 | ||||||||||||
| Total other operating expenses | 3,550,000 | 3,254,000 | 11,279,000 | 9,520,000 | ||||||||||||
| Net operating loss | (860,000 | ) | (170,000 | ) | (1,644,000 | ) | (616,000 | ) | ||||||||
| Other (income) & expense | ||||||||||||||||
| Other (income)/expense | (3,000 | ) | (1,000 | ) | (3,000 | ) | 1,000 | |||||||||
| Change in fair value of warrant liability | (84,000 | ) | 97,000 | (719,000 | ) | 186,000 | ||||||||||
| - | 318,000 | - | 318,000 | |||||||||||||
| Interest income | (1,000 | ) | - | (5,000 | ) | (2,000 | ) | |||||||||
| Interest expense - related parties | 10,000 | 15,000 | 38,000 | 45,000 | ||||||||||||
| Interest expense | 30,000 | 50,000 | 93,000 | 156,000 | ||||||||||||
| Other (income) & expense | (48,000 | ) | 479,000 | (596,000 | ) | 704,000 | ||||||||||
| Net loss | $ | (812,000 | ) | $ | (649,000 | ) | $ | (1,048,000 | ) | $ | (1,320,000 | ) | ||||
| Basic & diluted earnings per share | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.05 | ) | ||||
| Weighted number of shares outstanding - basic & diluted | 30,972,000 | 25,908,000 | 30,828,000 | 25,410,000 | ||||||||||||
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.
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RECONCILIATION OF NON-GAAP INCOME(LOSS) TO GAAP INCOME(LOSS) |
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| Three months ended | Nine months ended | |||||||||||||||
| December 30, 2011 | December 31, 2010 | December 30, 2011 | December 31, 2010 | |||||||||||||
| Net loss | $ | (812,000 | ) | $ | (649,000 | ) | $ | (1,048,000 | ) | $ | (1,320,000 | ) | ||||
| Add back: | (84,000 | ) | 97,000 | (719,000 | ) | 186,000 | ||||||||||
| Change in warrant fair value | - | 318,000 | - | 318,000 | ||||||||||||
| Amortization - intangibles/patents | 344,000 | 409,000 | 1,028,000 | 1,223,000 | ||||||||||||
| Stock option compensation expense | 235,000 | 84,000 | 480,000 | 158,000 | ||||||||||||
| Other expense - wafer fabrication | 495,000 | 908,000 | 789,000 | 1,885,000 | ||||||||||||
| Subtotal - add backs | $ | (317,000 | ) | $ | 259,000 | $ | (259,000 | ) | $ | 565,000 | ||||||
| Non-GAAP income | $ | (812,000 | ) | $ | (649,000 | ) | $ | (1,048,000 | ) | $ | (1,320,000 | ) | ||||
| Basic & diluted earnings per share | $ | (0.01 | ) | $ | 0.01 | $ | (0.01 | ) | $ | 0.02 | ||||||
| Weighted number of shares outstanding - Basic & diluted | 30,972,000 | 25,908,000 | 30,828,000 | 25,410,000 | ||||||||||||
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RECONCILIATION OF EBITDA TO GAAP INCOME(LOSS) |
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| Three months ended | Nine months ended | |||||||||||||||
| December 30, 2011 | December 31, 2010 | December 30, 2011 | December 31, 2010 | |||||||||||||
| Net loss | $ | (812,000 | ) | $ | (649,000 | ) | $ | (1,048,000 | ) | $ | (1,320,000 | ) | ||||
| Add back: | 39,000 | 65,000 | 126,000 | 199,000 | ||||||||||||
| Net interest expense (income) | (84,000 | ) | 97,000 | (719,000 | ) | 186,000 | ||||||||||
| Change in warrant fair value | - | 318,000 | - | 318,000 | ||||||||||||
| Depreciation expense | 277,000 | 232,000 | 806,000 | 707,000 | ||||||||||||
| Amortization | 344,000 | 409,000 | 1,028,000 | 1,223,000 | ||||||||||||
| Subtotal - add backs | 576,000 | 1,121,000 | 1,241,000 | 2,633,000 | ||||||||||||
| EBITDA | $ | (236,000 | ) | $ | 472,000 | $ | 193,000 | $ | 1,313,000 | |||||||
About Advanced Photonix, Inc.
Advanced Photonix, Inc.® (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:
Advanced Photonix, Inc.
Richard Kurtz, (734) 864-5688
IR@advancedphotonix.com