Highlights
• 1st Detect announced initial orders
from new industrial customers in the petrochemical and food
processing verticals.
• 1st Detect received GSA status,
expanding the accessibility and ease of procurement of its products
to government customers.
• 1st Detect granted three U.S. patents
for core technology enhancements, validating the company's ability
to provide breakthrough technological solutions.
• Astrotech Corporation launched Astral Images
following the acquisition of key assets and intellectual property
from Image Trends, Inc. via bankruptcy auction.
Astrotech Corporation (NASDAQ: ASTC), a leader in the
commercialization of government sponsored advanced space
technologies, today announced financial results for its third
quarter ended March 31, 2015.
“The third quarter was an exciting period for Astrotech as we
have now successfully completed the divesting of our legacy
government services assets while we transition to a space
technology commercialization company. We are very pleased to
announce that 1st Detect is now booking orders as we execute our
strategy of being the first full functioning mass spectrometer to
serve the industrial processing markets. Additionally, we are also
applying space satellite imaging correction technology to our newly
formed film scanning company Astral Images which is ideally
positioned to convert film to the new Ultra-High Definition 4K
standards,” said Thomas B. Pickens III, Chairman and CEO of
Astrotech Corporation.
Third Quarter Results
The Company posted third quarter fiscal year 2015 net income of
$(2.1) million, or $(0.11) per diluted share, compared with a third
quarter fiscal year 2014 net income of $(2.8) million or $(0.14)
per diluted share. It also posted year to date fiscal year 2015 net
income of $18.8 million, or $0.93 per diluted share, which was
primarily the result of a $25.6 million gain ($23.7 million
after-tax) related to the sale of our former ASO business to
Lockheed Martin, compared with a third quarter year to date fiscal
year 2014 net income of $(4.1) million or $(0.22) per diluted
share.
Financial Position and Liquidity
Working capital was $34.7 million as of March 31, 2015,
which primarily consisted of $30.6 million in cash and cash
equivalents and short-term investments. Additionally, the Company
continues to record a receivable of $6.1 million for an amount held
in escrow related to the sale, which is not included in working
capital. The Company believes it will fully realize the remaining
$6.1 million held in escrow in February 2016.
About Astrotech Corporation
Astrotech Corporation is an Austin, TX based technology company
that has evolved from over 30 years in the human spaceflight, Space
Shuttle, and Department of Defense satellite programs. The company
has become a leader in the commercialization of government
sponsored advanced space technologies. In 2014, the company
completed the sale of one of its businesses, Astrotech Space
Operations, to Lockheed Martin for $61 million.
1st Detect Corporation was create to develop a mass spectrometer
that was designed for use on the International Space Station. 1st
Detect is a game-changing technology in the chemical detection and
analysis market because it delivers laboratory performance of
traditional mass spectrometry, but in a small, affordable and
portable package. 1st Detect's technology is useful in the
semiconductor, food and beverage processing, petrochemical,
laboratory, process control, explosive detection, and chemical
warfare markets.
Astrogenetix Corporation was formed as a result of over $4
billion spent by NASA over a 25 year period on experiments
conducted in sustained microgravity, where results were only
achieved while orbiting in space. Astrotech designed and flew 1,113
of these experiments in its Spacehab modules, and after an
extensive review, discovered that microgravity greatly enhanced the
discovery of valuable vaccines and therapeutics. The company has
completed 12 successful biomarker discovery missions to the
International Space Station and has identified a salmonella vaccine
candidate, while ten additional discoveries are in the pipeline.
NASA has awarded Astrogenetix 26 free flights to the $130 billion
ISS National Laboratory, along with full crew support.
Astral Images, Inc. was launched to commercialize identified
government funded satellite image correction technologies. Along
with the acquisition of certain established defect correction
technologies, first funded by IBM and Kodak, Astral is positioned
to be the world leader in the technology required to convert and
repair feature films and film based television series to the new
digital Ultra-High Definition 4K standards.
This press release contains forward-looking statements that are
made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks, trends, and uncertainties that
could cause actual results to be materially different from the
forward-looking statement. These factors include, but are not
limited to, our ability to successfully develop our remaining
Spacetech business unit, our ability to develop and integrate our
miniaturized mass spectrometer, the MMS-1000™, product performance,
market acceptance of products and services, and our ability to
identify, execute and integrate potential acquisitions, as well as
other risk factors and business considerations. Any forward-looking
statements in this document should be evaluated in light of these
important risk factors. Astrotech assumes no obligation to update
these forward-looking statements.
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (In
thousands, except per share data) (unaudited)
Three Months Ended March 31, Nine Months Ended
March 31, 2015
2014 2015
2014 Revenue $ 12 $ 48 $ 336 $ 130 Cost of revenue
— — 281 —
Gross profit 12 48
55 130 Operating
expenses: Selling, general and administrative 1,681 1,432 5,653
5,007 Research and development 659 645
2,335 1,800 Total operating expenses
2,340 2,077 7,988
6,807
Loss from operations (2,328 )
(2,029 ) (7,933 ) (6,677
) Interest and other income (expense), net 76
— 112 9
Loss from
continuing operations before income taxes (2,252
) (2,029 ) (7,821 )
(6,668 ) Income tax benefit (expense) 894
(360 ) 2,953 1,371
Loss from continuing operations (1,358
) (2,389 ) (4,868
) (5,297 ) Discontinued operations
(Note 3) Income (loss) from operations of ASO business
(including gain from sale of $25.6 million) — (1,022 ) 26,933 1,855
Income tax expense (753 ) 358 (3,315 )
(1,379 )
Income (loss) on discontinued operations
(753 )
(664 ) 23,618
476 Net (loss) income
(2,111 ) (3,053 ) 18,750
(4,821 ) Less: Net loss attributable to
noncontrolling interest (11 ) (216 ) (11 )
(681 )
Net (loss) income attributable to Astrotech
Corporation $ (2,100 ) $
(2,837 ) $ 18,761 $
(4,140 ) Amounts attributable to Astrotech
Corporation: Loss from continuing operations, net of tax $
(1,347 ) $ (2,173 ) $ (4,857 ) $ (4,616 ) Income (loss) from
discontinued operations, net of tax (753 ) (664 )
23,618 476
Net (loss) income
attributable to Astrotech Corporation $ (2,100
) $ (2,837 ) $ 18,761
$ (4,140 ) Weighted average
common shares outstanding: Basic and diluted 19,497 19,486 19,561
19,479 Basic and diluted net income (loss) per common share: Net
loss attributable to Astrotech Corporation from continuing
operations $ (0.07 ) $ (0.11 ) $ (0.28 ) $ (0.24 ) Net (loss)
income from discontinued operations (0.04 ) (0.03 )
1.21 0.02 Net (loss) income
attributable to Astrotech Corporation $ (0.11 ) $ (0.14 ) $ 0.93
$ (0.22 )
*
Noncontrolling interest resulted from
grants of restricted stock in 1st Detect and Astrogenetix to
certain employees, officers and directors. Please refer to the
September 30, 2014 10-Q filed with the Securities and Exchange
Commission for further detail.
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance
Sheets (In thousands, except share data)
(unaudited) March 31, 2015 June
30, 2014 Assets Current assets Cash and cash
equivalents $ 6,666 $ 3,831 Short-term investments 23,946 —
Accounts receivable, net of allowance 95 59 Income tax receivable —
— Indemnity receivable 6,100 — Prepaid expenses and other current
assets 725 389 Discontinued operations – current assets —
1,405
Total current assets
37,532 5,684 Property and equipment, net 2,699 1,211
Long-term investments 9,255 — Discontinued operations – net of
current assets — 33,887
Total
assets $ 49,486 $ 40,782
Liabilities and stockholders’ equity Current
liabilities Accounts payable $ 462 $ 996 Accrued liabilities and
other 2,082 1,753 Income tax payable 300 — Discontinued operations
– current liabilities — 7,344
Total
current liabilities 2,844 10,093 Other
liabilities 114 152 Discontinued operations – net of current
liabilities — 237
Total
liabilities 2,958 10,482
Commitments and Contingencies Stockholders’
equity Preferred stock, no par value, convertible, 2,500,000
authorized shares; no issued and outstanding shares, at March 31,
2015 and June 30, 2014 — — Common stock, no par value, 75,000,000
authorized shares; 20,013,787 and 19,856,454 shares issued at March
31, 2015 and June 30, 2014 184,088 183,866 Treasury stock, 524,285
and 311,660 at March 31, 2015 and at June 30, 2014, at cost (775 )
(237 ) Additional paid-in capital 1,087 1,671 Accumulated deficit
(138,039 ) (156,800 ) Accumulated other comprehensive income 13 —
Noncontrolling interest 154 1,800
Total stockholders’ equity 46,528
30,300 Total liabilities and stockholders’
equity $ 49,486 $ 40,782
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Reconciliation of Non-GAAP
Measures
Earnings Before Interest, Taxes,
Depreciation and Amortization
(In thousands) Three Months Ended March
31, Nine Months Ended March 31,
2015 2014
2015 2014 EBITDA $
(2,160 ) $ (2,414 ) $ 19,724 $ (2,881 ) Depreciation &
amortization 92 574 549 1,739 Interest expense — 63 63 193 Income
tax (benefit) expense (141 ) 2 362
8
Net (loss) income (2,111 ) (3,053 )
18,750 (4,821 ) Less: Net loss attributable to NCI (11 )
(216 ) (11 ) (681 )
Net (loss) income
attributable to ASTC $ (2,100 ) $ (2,837 ) $ 18,761 $
(4,140 )
EBITDA (earnings before interest, taxes, depreciation and
amortization) is a non-U.S. GAAP financial measure. We included
information concerning EBITDA because we use such information when
evaluating operating earnings (loss) to better evaluate the
underlying performance of the Company. EBITDA does not represent,
and should not be considered an alternative to, net income (loss),
operating earnings (loss), or cash flow from operations as those
terms are defined by U.S. GAAP and does not necessarily indicate
whether cash flows will be sufficient to fund cash needs. While
EBITDA is frequently used as measures of operations and the ability
to meet debt service requirements by other companies, our use of
this financial measure is not necessarily comparable to such other
similarly titled captions of other companies.
Astrotech CorporationEric Stober, 512-485-9530Chief Financial
Officer
Astrotech (NASDAQ:ASTC)
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