Astrotech Corporation (NASDAQ:ASTC) reported its financial
results for the third quarter of fiscal year 2016 as of
March 31, 2016.
“1st Detect’s breakthrough chemical analyzer technology achieved
a key validation of our long-term corporate strategy by partnering
with Smiths Detection Inc., a subsidiary of Smiths Group, as
announced in March,” said Thomas B. Pickens III, Chairman and CEO
of Astrotech Corporation. “Together, we are working hard to develop
next generation explosives trace detection (ETD) systems for the
Department of Homeland Security Science and Technology Directorate
(DHS S&T) for use at security checkpoints in airports. Having
met or exceeded the high level of performance required by both DHS
and Smiths Detection to be selected for this program, 1st Detect
was chosen to be part of a revolutionary next generation solution
that will significantly improve false positives that are endemic in
the current generation technology and will also drastically expand
the library of explosives that can be detected. We are excited to
be working on this worldwide opportunity with Smiths, one of three
incumbent ETD providers, and possibly one of two providers should
the acquisition of Morpho Detection by Smiths Detection close.
“Additionally, our Astral Images subsidiary continues to make
advances in industry leading technology for film-to-digital
conversion, image enhancement, defect removal, and color correction
software. In April, we announced the availability of Astral HDR
ICE™, our new software to automate the ultra-high definition, high
dynamic range and color match conversion process for upgrading
digital and traditional films to the new HDR10 standard. As
evidenced by every major TV manufacturer unveiling new
HDR-compatible televisions at CES 2016, consumers are enthusiastic
about the new Ultra High Definition/High Dynamic Range/Color Match
(UHD/HDR/CM) capabilities. Astral HDR ICE™ automatically color
matches the film directors’ and colorists’ creative intent and is
designed to quickly and inexpensively meet the increasing demand
for UHD/HDR.
“We are excited about the future. Our success attracting
development partners for 1st Detect’s technology has created
significant opportunities with Smiths in the large international
market for ETD systems and with Battelle as we drive toward the
next phase of the next generation chemical detector (NGCD) program
for the Department of Defense. In addition, Astral Images’ HDR
transformation technology is under evaluation by a Tier-1 Hollywood
studio, and we are in advanced discussions with a large film museum
in California,” concluded Mr. Pickens.
Third Quarter Fiscal Year 2016 Financial Highlights
Revenue, costs of goods sold, SG&A, and R&D are expected
to continue to fluctuate based on the timing of contract revenue
and 1st Detect’s continued transition from a research company to an
operating company.
- Revenue was $196 thousand, reflecting
1st Detect’s income from research-based, fixed-price,
government-related subcontracts.
- Cost of goods sold related to certain
deliverables in the Battelle and Smiths projects resulted in a
negative $158 thousand gross profit, yet both projects are still
projected to net a positive gross profit.
- Loss from continuing operations before
income taxes was $3.9 million.
- Astrotech held $28.0 million in cash
and investments at March 31, 2016. This included the receipt
of 100% of the $6.1 million indemnity receivable from the sale of
its Astrotech Space Operations (ASO) business unit to a
wholly-owned subsidiary of Lockheed Martin Corporation in August
2014 following a successful hand-over of the operations and
accounting of ASO.
- Astrotech Corporation had no debt at
March 31, 2016.
Technology Highlights
- 1st Detect partnered with Smiths
Detection Inc., a subsidiary of Smiths Group, to develop next
generation ETD systems for the DHS S&T using 1st Detect’s
breakthrough chemical analyzer technology.
- 1st Detect received one U.S. patent and
one international patent during the third quarter and one U.S.
patent in April. The total at April 30, 2016 reached 16 U.S. and 10
international issued and 8 U.S. and 12 international pending.
- Astral Images announced the
availability of Astral HDR ICE™ as its new Ultra High
Definition/High Dynamic Range/Color Match (UHD/HDR/CM) conversion
software package, which upgrades digital and traditional films to
the new HDR10 standard while automatically color matching the film
directors’ and colorists’ creative intent.
- Astrogenetix continued its long-term
efforts to use the unique power of microgravity to develop a novel
vaccine and therapeutic products, and, in conjunction with NASA,
continued the pursuit of an investigational new drug application
with the Food and Drug Administration for Salmonella.
About Astrotech Corporation
Astrotech Corporation (NASDAQ:ASTC) is an innovative science and
technology company that invents, acquires, and commercializes
technological innovations sourced from research institutions,
laboratories, universities, and internally, and then funds,
manages, and builds proprietary, scalable start-up companies for
profitable divestiture to market leaders to maximize shareholder
value. Sourced from Oak Ridge Laboratory’s chemical analyzer
research, 1st Detect develops, manufactures,
and sells chemical analyzers that streamline processes for
industrial use in the airport security, food and beverage,
semiconductor, pharmaceutical, research and environmental markets,
and the military. Sourced from decades of image research from the
laboratories of IBM and Kodak combined with classified satellite
technology from government laboratories, Astral Images sells
film to digital image enhancement, defect removal and color
correction software, and post processing services providing
economically feasible conversion of television and feature 35mm and
16mm films to the new 4K ultra-high definition (UHD), high-dynamic
range (HDR) format necessary for the new generation of digital
distribution. Sourced from NASA’s extensive microgravity research,
Astrogenetix is applying a fast-track on-orbit discovery
platform using the International Space Station to develop vaccines
and other therapeutics. Demonstrating its entrepreneurial strategy,
Astrotech management sold its state-of-the-art satellite servicing
operations to Lockheed Martin in August 2014. Astrotech has
operations throughout Texas and is headquartered in Austin. For
information, please visit www.astrotechcorp.com.
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, whether we can successfully develop our proprietary
technologies and whether the market will accept our products and
services, as well as other risk factors and business considerations
described in the Company’s Securities and Exchange Commission
filings including the annual report on Form 10-K. Any
forward-looking statements in this document should be evaluated in
light of these important risk factors. The Company assumes no
obligation to update these forward-looking statements.
ASTROTECH CORPORATION AND SUBSIDIARIES Condensed
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine
Months Ended March 31, March 31, 2016
2015 2016 2015
Revenue $ 196 $ 12 $ 1,123 $ 336 Cost of revenue 354 —
986 281
Gross (loss) profit (158
) 12 137 55
Operating expenses: Selling, general and administrative 1,875 1,681
5,832 5,653 Research and development 1,903 659 4,493
2,335 Total operating expenses 3,778 2,340
10,325 7,988
Loss from operations
(3,936 ) (2,328 ) (10,188
) (7,933 ) Interest and other expense, net 86
76 279 112
Loss from continuing
operations before income taxes (3,850 )
(2,252 ) (9,909 ) (7,821
) Income tax benefit 11 894 9 2,953
Loss from continuing operations (3,839
) (1,358 ) (9,900 )
(4,868 ) Discontinued operations Income from
discontinued operations — — — 1,303 Income tax expense — (753 ) —
(3,315 ) Gain on sale of discontinued operations — —
— 25,630
(Loss) income from discontinued
operations — (753 ) —
23,618 Net (loss) income (3,839
) (2,111 ) (9,900 )
18,750 Less: Net loss attributable to noncontrolling
interest (97 ) (11 ) (268 ) (11 )
Net (loss) income attributable
to Astrotech Corporation (3,742 ) (2,100
) (9,632 ) 18,761 Less: Deemed dividend
to State of Texas — — — 531
Net
(loss) income attributable to common stockholders $
(3,742 ) $ (2,100 ) $
(9,632 ) $ 18,230
Amounts attributable to Astrotech Corporation: Loss from
continuing operations, net of tax $ (3,742 ) $ (1,347 ) $ (9,632 )
$ (4,857 )
(Loss) income from discontinued operations, net of
tax — (753 ) — 23,618
Net (loss) income
attributable to Astrotech Corporation $ (3,742
) $ (2,100 ) $ (9,632
) $ 18,761 Weighted average
common shares outstanding: Basic 20,636 19,497 20,681 19,561
Basic net (loss) income per common share: Net loss
attributable to Astrotech Corporation from continuing operations $
(0.18 ) $ (0.07 ) $ (0.47 ) $ (0.28 ) Net (loss) income from
discontinued operations — (0.04 ) — 1.21 Net
(loss) income attributable to Astrotech Corporation $ (0.18 ) $
(0.11 ) $ (0.47 ) $ 0.93
Other comprehensive
income, net of tax: Available-for-sale securities: Net
unrealized gain (loss), net of tax (expense) benefit of ($10),
($5), $63, and ($5) $ 18 $ 8 $ (117 ) $ 8 Reclassification
adjustment for realized losses included in net (loss) income, net
of taxes of $0, $0, $5, and $0 — — 9 —
Total comprehensive (loss) income $ (3,724 ) $ (2,092 ) $ (9,740 )
$ 18,769
ASTROTECH
CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance
Sheets
(In thousands, except share data)
(Unaudited)
March 31, June 30, 2016
2015 Assets Current assets Cash and cash
equivalents $ 6,073 $ 2,330 Short-term investments 17,658 23,161
Accounts receivable, net of allowance 314 198 Inventory 1,536 509
Indemnity receivable — 6,100 Prepaid expenses and other current
assets 470 296
Total current assets
26,051 32,594 Property and equipment, net 3,554 3,108
Long-term investments 4,304 8,516
Total assets
$ 33,909 $ 44,218
Liabilities and stockholders’ equity Current liabilities
Accounts payable $ 296 $ 398 Accrued liabilities and other 1,517
1,801 Income tax payable — 190
Total current
liabilities 1,813 2,389 Other liabilities 113
101
Total liabilities $ 1,926
$ 2,490 Commitments and
contingencies Stockholders’ equity Preferred
stock, no par value, convertible, 2,500,000 shares authorized; no
shares issued and outstanding, at March 31, 2016 and June 30, 2015
— — Common stock, no par value, 75,000,000 shares authorized;
21,776,381 and 21,864,548 shares issued at March 31, 2016 and June
30, 2015, respectively; 20,612,506 and 20,743,973 shares
outstanding at March 31, 2016 and June 30, 2015, respectively
189,164 189,007 Treasury stock, 1,163,875 and 1,120,575 shares at
cost at March 31, 2016 and June 30, 2015, respectively (2,789 )
(2,672 ) Additional paid-in capital 1,420 1,139 Accumulated deficit
(155,654 ) (146,022 ) Accumulated other comprehensive loss (189 )
(23 )
Equity attributable to stockholders of Astrotech
Corporation 31,952 41,429 Noncontrolling interest
31 299
Total stockholders’ equity
31,983 41,728 Total liabilities and
stockholders’ equity $ 33,909 $
44,218
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version on businesswire.com: http://www.businesswire.com/news/home/20160509005240/en/
Company Contact:Astrotech CorporationEric Stober,
512-485-9530Chief Financial OfficerorIR ContactLHA Investor
RelationsCathy Mattison and Kirsten Chapman,
415-433-3777ir@astrotechcorp.com
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