Astrotech Corporation (NASDAQ: ASTC) reported its financial
results for the second quarter of fiscal year 2017 ended
December 31, 2016.
“In the second quarter, Astrotech achieved important milestones
with subsidiaries 1st Detect and Astral Images,” stated Thomas B.
Pickens III, Chairman and CEO of Astrotech Corporation. “1st Detect
and its partner, an incumbent TSA explosive trace detection (ETD)
systems provider, made great progress on the next-generation system
for passenger and carry-on baggage screening at airports and other
homeland security operations. During the team’s critical design
review in October, 1st Detect’s OEM-1000 chemical analyzer
technology performed according to design specs. Also, 1st Detect’s
collaboration with the University of Texas Health Science Center
(UTHSC) on a bedside chemical analyzer for breath analysis is
progressing well and we are beginning to test human samples of
hospital-acquired pneumonia (HAP).
“Evaluations of Astral Images’ proprietary image correction and
enhancement (ICE®) technology continues to gain traction at several
large film studios that have advanced the evaluations to the next
level. To meet the 4K HDR digital color revolution specifications,
Astral has introduced its updated Black ICE™ for black and white
film, its updated Color ICE™ for color film, and its newly
developed HDR ICE™ for the new HDR format. As part of the business
development process, Astral opened a demonstration space in
Burbank, CA to facilitate relationships with film industry
customers. Also, on November 29, 2016, Astral was granted a U.S.
patent titled Dufay Color Converted DOG. This patent protects
Astral technology that improves the resolution and reduces the
noise of images from color film.”
Second Quarter Fiscal Year 2017 Financial Highlights
Revenue, costs of goods sold, SG&A, and R&D are expected
to continue to fluctuate based on the timing of projects.
- Revenue was $520 thousand, reflecting
1st Detect’s income from research-based, fixed-price,
government-related subcontracts.
- Gross profit was $201 thousand, or 39%,
for the second quarter of fiscal 2017, compared to $295 thousand,
or 32%, for the second quarter of fiscal 2016. The margin increase
was due to additional work completed at higher margins.
- The Company continues to expect the
July 2016 corporate realignment to save approximately $3.5 million
for the 2017 fiscal year.
- Cash and investments at
December 31, 2016 were $19.4 million; there was no debt at
December 31, 2016.
About Astrotech
Astrotech Corporation (NASDAQ: ASTC) is an innovative science
and technology development and commercialization company that
invents, acquires, and commercializes technological innovations
sourced from internal research, universities, laboratories, and
research institutions, and then funds, manages, and builds 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 for use in the airport
security, military, food and beverage, and breath analysis markets.
Sourced from decades of image research from the laboratories of IBM
and Kodak, 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 Loss
(In thousands, except per share data)
(Unaudited)
Three Months Ended December
31,
Six Months Ended December 31, 2016
2015 2016
2015 Revenue $ 520 $ 927 $ 1,526 $ 927
Cost of revenue 319 632 1,050
632
Gross profit 201
295 476
295 Operating expenses: Selling, general and
administrative 1,636 1,671 4,184 3,957 Research and development
1,254 1,326 2,546
2,590 Total operating expenses 2,890
2,997 6,730 6,547
Loss from
operations (2,689 ) (2,702 )
(6,254 ) (6,252 ) Interest and other
expense, net 35 94 133
193
Loss before income taxes (2,654
) (2,608 ) (6,121 )
(6,059 ) Income tax expense — —
— (2 )
Net loss (2,654
) (2,608 ) (6,121 )
(6,061 ) Less: Net loss attributable to
noncontrolling interest (51 ) (82 ) (103 )
(171 )
Net loss attributable to Astrotech Corporation
$ (2,603 ) $ (2,526 )
$ (6,018 ) $ (5,890 )
Weighted average common shares outstanding: Basic and
diluted 20,620 20,701 20,626 20,703
Basic and diluted net
loss per common share: Net loss attributable to Astrotech
Corporation $ (0.13 ) $ (0.12 ) $ (0.29 ) $ (0.28 )
Other
comprehensive income (loss), net of tax: Available-for-sale
securities: Net unrealized loss $ (80 ) $ (96 ) $ (39 ) $ (190 )
Reclassification adjustment for realized losses 60
8 60 14
Total
comprehensive loss $ (2,623 ) $
(2,614 ) $ (5,997 ) $
(6,066 )
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
December 31, 2016 June 30, 2016
Assets Current assets Cash and cash equivalents $ 4,932 $
4,399 Short-term investments 11,181 17,102 Accounts receivable, net
of allowance 751 156 Costs and estimated revenues in excess of
billings — 451 Inventory, net 307 496 Prepaid expenses and other
current assets 479 319
Total current
assets 17,650 22,923 Property and equipment, net
3,289 3,392 Long-term investments 3,248 4,208
Total assets $ 24,187 $
30,523 Liabilities and stockholders’
equity Current liabilities Accounts payable $ 191 $ 237 Accrued
liabilities and other 1,735 1,563
Total current liabilities 1,926 1,800 Other
liabilities 63 96
Total
liabilities 1,989 1,896
Commitments and contingencies
Stockholders’ equity Preferred stock, no par value,
convertible, 2,500,000 shares authorized; no shares issued and
outstanding, at December 31, 2016 and June 30, 2016 — — Common
stock, no par value, 75,000,000 shares authorized; 22,555,247 and
21,811,153 shares issued at December 31, 2016 and June 30, 2016,
respectively; 20,577,356 and 20,627,511 shares outstanding at
December 31, 2016 and June 30, 2016, respectively 190,212 189,294
Treasury stock, 1,977,891 and 1,183,642 shares at cost at December
31, 2016 and June 30, 2016, respectively (4,111 ) (2,828 )
Additional paid-in capital 1,455 1,419 Accumulated deficit (165,135
) (159,117 ) Accumulated other comprehensive loss (80 )
(101 )
Equity attributable to stockholders of Astrotech
Corporation 22,341 28,667 Noncontrolling interest
(143 ) (40 )
Total stockholders’ equity
22,198 28,627 Total
liabilities and stockholders’ equity $ 24,187
$ 30,523
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version on businesswire.com: http://www.businesswire.com/news/home/20170209006196/en/
Company Contact:Astrotech CorporationEric Stober,
512-485-9530Chief Financial OfficerorIR Contact:LHA Investor
RelationsCathy Mattison and Kirsten Chapman,
415-433-3777ir@astrotechcorp.com
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