Advanced Photonix, Inc.® (NYSE Amex: API) (the "Company") today reported its second quarter fiscal 2012 results ending September 30, 2011.
Financial Highlights for the second quarter compared to the prior year
- The Company's revenues for the quarter ended September 30, 2011 were $8.4 million, an increase of 19% (or $1.4 million) over revenues of $7.0 million for the quarter ended September 30, 2010.
- Gross Profit for Q2 FY2012 was $3.6 million compared to Q2 FY2011 of $2.9 million, or an increase of 23%.
- Operating expenses were $3.9 million for the quarter as compared to $3.1 million for the comparable prior year period, an increase of $834,000 or 27%.
- Quarterly net loss was $254,000 or $0.01 per diluted share, as compared to a net loss of $398,000, or $0.02 per diluted share, for the quarter ended October 1, 2010.
- The Non-GAAP net profit for the second quarter of fiscal 2012 was $155,000 or $0.01 per diluted share, as compared to a Non-GAAP net profit of $209,000 or $0.01 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 $260,000 for the second quarter of fiscal 2012 as compared to positive EBITDA of $455,000 for the comparable prior year period.
Financial Highlights for the six months ended compared to the six months ended Fiscal 2011
- Net Sales for the six months were $16.5 million, an increase of $3.2 million or 24% compared to the six months ended October 1, 2010.
- Year to date gross profit margin increased $1.1 million or 19% over the prior year six months ended October 1, 2010.
- Operating expenses were $7.7 million for the six months ended September 30, 2011 as compared to $6.2 million for the comparable prior year.
- Net loss for the six months was $236,000 or $0.01 per diluted share, as compared to a net loss of $671,000, or $0.03 per diluted share, comparable prior year period.
- The Non-GAAP net income for the six months of fiscal 2012 was $59,000 or $0.00 per diluted share, as compared to a Non-GAAP net income of $306,000 or $0.01 per diluted share, for comparable prior year period.
- EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $429,000 for the first quarter of fiscal 2012 as compared to an EBITDA of $841,000 comparable prior year period.
Market Highlights for the six months ended compared to the six months ended Fiscal 2011
- Telecommunication revenue up 94% or $3.7 million
- Medical Market revenue up 127% or $291,000
- Homeland security market revenues up $897,000
Richard Kurtz, Chairman and Chief Executive Officer, commented, "Our second quarter results were in line with our expectations of growth. We had strong growth in our HSOR platform in the telecommunication market and in the Terahertz homeland security market relative to last year's second quarter. Our gross margins increased to 43% this quarter a result of our reduction in scrap and rework expenses on HSOR products. The effect of the flooding in Thailand is impacting the telecommunication supply chain, resulting in some customers' delaying orders and deliveries. We are continuing to invest in our high growth opportunities and are optimistic about our long term future, but the impact of the flooding, and continued malaise in the macroeconomic environment is expected to reduce our growth for this fiscal year."
The Company will hold a conference call to discuss the results for the second quarter Monday, November 14, 2011, 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 888.679.8035 (617.213.4848for international) using the passcode 25994501.
An audio replay of the call will be available shortly thereafter on the same day and will remain on-line until November 21, 2011. The replay number is 888.286.8010 (617.801.6888 for international) and the passcode is 87882970.
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 | Â | Â | ||||
| September 30, 2011 | March 31, 2011 | |||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 3,848,000 | $ | 4,744,000 | ||
| Restricted cash | - | 500,000 | ||||
| Accounts receivable, net of allowance | 5,503,000 | 4,587,000 | ||||
| Inventories, net of allowances | 4,667,000 | 4,775,000 | ||||
| Prepaid expenses and other current assets | Â | 387,000 | Â | 349,000 | ||
| Total current assets | 14,405,000 | 14,955,000 | ||||
| Equipment & leasehold improvements, at cost | 12,859,000 | 12,505,000 | ||||
| Accumulated depreciation | Â | (9,252,000) | Â | (8,775,000) | ||
| Net equipment and leasehold improvements | 3,607,000 | 3,730,000 | ||||
| Goodwill, net of accumulated amortization | 4,579,000 | 4,579,000 | ||||
| Patents, net | 1,131,000 | 1,062,000 | ||||
| Intangible assets, net | 3,999,000 | 4,651,000 | ||||
| Other assets | Â | 266,000 | Â | 275,000 | ||
| Total assets | $ | 27,987,000 | $ | 29,252,000 | ||
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| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
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| Current liabilities | ||||||
| Accounts payable and accrued expenses | $ | 2,832,000 | $ | 3,031,000 | ||
| Compensation and related withholdings | 878,000 | 953,000 | ||||
| Accrued warrant liability | - | 389,000 | ||||
| Current portion of long-term debt - related parties | 725,000 | 675,000 | ||||
| Current portion of long-term debt - bank term loan | 229,000 | 687,000 | ||||
| Current portion of bank line of credit | - | 494,000 | ||||
| Current portion of long-term debt - MEDC/MSF | Â | 521,000 | Â | 511,000 | ||
| Total current liabilities | 5,185,000 | 6,740,000 | ||||
| Long term debt, less current portion - MEDC/MSF | 1,197,000 | 1,460,000 | ||||
| Long term debt, less current portion - bank term loan | 770,000 | - | ||||
| Long term debt, less current portion - line of credit | 494,000 | - | ||||
| Long term debt, less current portion - related parties | - | 500,000 | ||||
| Long term debt portion - warrant liability | Â | 98,000 | Â | 343,000 | ||
| Total liabilities | 7,744,000 | 9,043,000 | ||||
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| Shareholders' equity | ||||||
| Class A common stock, $.001 par value, 100,000,000 shares authorized; September 30, 2011 - 30,971,560 shares issued and outstanding; March 31, 2011 - 30,679,046 shares issued and outstanding | 31,000 | 31,000 | ||||
| Additional paid-in capital | 58,161,000 | 57,891,000 | ||||
| Accumulated deficit | Â | (37,949,000) | Â | (37,713,000) | ||
| Total shareholders' equity | 20,243,000 | 20,209,000 | ||||
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| Total liabilities and shareholders' equity | $ | 27,987,000 | $ | 29,252,000 | ||
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CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) | ||||||||||||||||
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| Â | Three months ended | Â | Six months ended | |||||||||||||
| September 30, 2011 | Â | October 1, 2010 | September 30, 2011 | Â | October 1, 2010 | |||||||||||
| Net sales | $ | 8,352,000 | $ | 6,999,000 | $ | 16,473,000 | $ | 13,252,000 | ||||||||
| Cost of sales | Â | 4,785,000 | Â | Â | 4,097,000 | Â | Â | 9,528,000 | Â | Â | 7,432,000 | Â | ||||
| Gross margin | 3,567,000 | 2,902,000 | 6,945,000 | 5,820,000 | ||||||||||||
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| Other operating expenses | ||||||||||||||||
| Research & development | 1,714,000 | 1,303,000 | 3,406,000 | 2,591,000 | ||||||||||||
| General & administrative | 1,300,000 | 952,000 | 2,459,000 | 1,964,000 | ||||||||||||
| Amortization | 342,000 | 408,000 | 684,000 | 814,000 | ||||||||||||
| Wafer Fab Consolidation | - | - | - | - | ||||||||||||
| Sales & marketing | Â | 565,000 | Â | Â | 424,000 | Â | Â | 1,180,000 | Â | Â | 897,000 | Â | ||||
| Total other operating expenses | 3,921,000 | 3,087,000 | 7,729,000 | 6,266,000 | ||||||||||||
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| Net operating loss | (354,000 | ) | (185,000 | ) | (784,000 | ) | (446,000 | ) | ||||||||
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| Other (income) & expense | ||||||||||||||||
| Other (income)/expense | - | - | - | 2,000 | ||||||||||||
| Change in fair value of warrant liability | (142,000 | ) | 143,000 | (634,000 | ) | 89,000 | ||||||||||
| Interest income | (2,000 | ) | (1,000 | ) | (4,000 | ) | (2,000 | ) | ||||||||
| Interest expense - related parties | 13,000 | 15,000 | 28,000 | 30,000 | ||||||||||||
| Interest expense | Â | 31,000 | Â | Â | 56,000 | Â | Â | 62,000 | Â | Â | 106,000 | Â | ||||
| Other (income) & expense | (100,000 | ) | 213,000 | (548,000 | ) | 225,000 | ||||||||||
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| Net loss | $ | (254,000 | ) | $ | (398,000 | ) | $ | (236,000 | ) | $ | (671,000 | ) | ||||
| Basic & diluted earnings per share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | ||||
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| Weighted number of shares outstanding - basic & diluted | 30,827,000 | 25,659,000 | 30,756,000 | 25,164,000 | ||||||||||||
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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) | ||||||||||||
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| Â | Three months ended | Â | Six months ended | |||||||||
| September 30, 2011 | Â | October 1, 2010 | September 30, 2011 | Â | October 1, 2010 | |||||||
| Net loss | $ | (254,000) | $ | (398,000) | $ | (236,000) | $ | (671,000) | ||||
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| Add back: | ||||||||||||
| Change in warrant fair value | (142,000) | 143,000 | (634,000) | 89,000 | ||||||||
| Amortization - intangibles/patents | 342,000 | 408,000 | 684,000 | 814,000 | ||||||||
| Stock option compensation expense | Â | 209,000 | Â | 56,000 | Â | 245,000 | Â | 74,000 | ||||
| Other expense - wafer fabrication | Â | - | Â | - | Â | - | Â | - | ||||
| Subtotal - add backs | Â | 409,000 | Â | 607,000 | Â | 295,000 | Â | 977,000 | ||||
| Non-GAAP income | $ | 155,000 | $ | 209,000 | $ | 59,000 | $ | 306,000 | ||||
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| Basic & diluted earnings per share | $ | 0.01 | $ | 0.01 | $ | 0.00 | $ | 0.01 | ||||
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| Weighted number of shares outstanding - Basic & diluted | 30,827,000 | 25,659,000 | 30,756,000 | 25,164,000 | ||||||||
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RECONCILIATION OF EBITDA TO GAAP INCOME(LOSS) | ||||||||||||
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| Three months ended | Six months ended | |||||||||||
| September 30, 2011 | October 1, 2010 | September 30, 2011 | October 1, 2010 | |||||||||
| Net loss | $ | (254,000) | $ | (398,000) | $ | (236,000) | $ | (671,000) | ||||
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| Add back: | ||||||||||||
| Net interest expense (income) | 42,000 | 70,000 | 86,000 | 134,000 | ||||||||
| Change in warrant fair value | (142,000) | 143,000 | (634,000) | 89,000 | ||||||||
| Depreciation Expense | 272,000 | 232,000 | 529,000 | 475,000 | ||||||||
| Amortization | Â | 342,000 | Â | 408,000 | Â | 684,000 | Â | 814,000 | ||||
| Subtotal - add backs | Â | 514,000 | Â | 853,000 | Â | 665,000 | Â | 1,512,000 | ||||
| EBITDA | $ | 260,000 | $ | 455,000 | $ | 429,000 | $ | 841,000 | ||||
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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.
Contacts:
Advanced Photonix, Inc.
Richard Kurtz, (734) 864-5688
IR@advancedphotonix.com
