ANN ARBOR, Mich., June 30 /PRNewswire-FirstCall/ -- Advanced
Photonix, Inc.(R) (AMEX:API) (the "Company") today reported its
fourth quarter and fiscal year 2008 results ended March 31, 2008.
The Company's revenues were approximately flat for fiscal 2008, in
line with revised third quarter guidance. Revenues were $23.2
million, a slight decrease of 1.6% from prior year revenues of
$23.6 million. This decrease was primarily the result of delays in
certain telecommunication and defense product shipments from the
latter half of fiscal 2008 to fiscal 2009. Non-GAAP net loss for
fiscal 2008 was $(2,410,000) or $(.11) per diluted share as
compared to $(287,000) or $(.02) per diluted share for fiscal 2007.
This loss was primarily due to unfavorable product mix due to lower
sales to the telecommunications and defense markets. Non-GAAP net
income (loss) is considered non-GAAP financial information, and
reconciliation between net income (loss) on a GAAP basis and
non-GAAP net income (loss) is provided in the attached table. On an
EBITDA basis (GAAP earnings/loss before interest, taxes,
depreciation, and amortization), the Company reported negative
EBITDA of ($2,815,000) for fiscal 2008. This compares to a positive
EBITDA of $40,000 for fiscal 2007. The fiscal 2008 negative EBITDA
included $1.8 million of non-recurring expenses associated with the
wafer fabrication consolidation and closure of the Dodgeville
facility. Gross Profit was $8.9 million (or 38% of revenue),
compared to the prior year of $10.9 million (or 46% of revenue), a
reduction of 18%. The Company does not believe this is a trend, and
anticipates improved gross margins in fiscal 2009 as a result of
the facilities consolidation that has been largely completed in
fiscal 2008, the selective elimination of low margin products in
the industrial sensing market, increasing revenues from the
telecommunication market driven by 40G products, and the ramp up of
our T-Ray 4000(TM) sales beginning in fiscal 2009. Richard Kurtz,
Chairman and Chief Executive Officer, commented, "This past year
marked a year of transition for API, one from cost reduction and
product development the past few years to revenue and profit growth
as we enter fiscal 2009. Fiscal 2008 was a year of some successes,
unexpected surprises, and delays; but overall making substantial
progress in positioning API for growth in our three product
platforms. Looking to fiscal 2009, we are expecting to grow
revenues 25% to $29 million and report strong revenue and earnings
growth starting in our first quarter. We expect that our gross
margins will move closer to our strategic goal of 50% in fiscal
2009 as the benefits of our cost reduction programs in our custom
optoelectronics product platform and the revenue growth in our HSOR
and THz product platforms increase our capacity utilization". This
press release, the financial tables, as well as other supplemental
information including the reconciliations of certain non-GAAP
measures to their nearest comparable GAAP measures, will also be
available on our website under the "Investor Relations" link. The
Company will hold a conference call to discuss the results for the
fourth quarter and fiscal year ended March 31, 2008 on Monday, June
30, 2008, at 5:00 PM ET. Participants can dial into the conference
call at 888-679-8038 (617-213-4850 for international) using the
passcode 16220111. The call will be webcast live by CCBN and can be
accessed at Advanced Photonix's web site at
http://investor.advancedphotonix.com/or at
http://www.earnings.com/. An audio replay of the call will be
available shortly thereafter the same day and will remain on-line
for two weeks. The replay number is 888-286-8010 (617-801-6888 for
international) using pass code 50452591. 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, risks associated with the integration of newly acquired
businesses, technological obstacles which may prevent or slow the
development and/or manufacture of new products, 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. Condensed Consolidated
Balance Sheets Assets March 31, 2008 March 31, 2007 Current Assets:
Cash and cash equivalents $1,582,000 $3,274,000 Accounts
receivable, net of allowance 3,202,000 3,587,000 Inventories, net
of allowances 4,131,000 4,439,000 Prepaid expenses and other
current assets 195,000 377,000 Total current assets 9,110,000
11,677,000 Equipment & Leasehold Improvements, at cost
10,847,000 10,301,000 Accumulated depreciation (6,090,000)
(5,565,000) Net Equipment and Leasehold Improvements 4,757,000
4,736,000 Goodwill, net of accumulated amortization 4,579,000
4,579,000 Patents, net 538,000 355,000 Intangible assets, net
10,333,000 12,285,000 Deferred tax asset, net of current portion -
1,225,000 Other assets 386,000 385,000 Total assets $29,703,000
$35,242,000 Liabilities and shareholders' equity Current
liabilities Line of credit $1,300,000 $741,000 Accounts payable and
accrued expenses 2,066,000 2,336,000 Compensation and related
withholdings 527,000 1,091,000 Current portion of long-term
debt-related parties 900,000 550,000 Current portion of long-term
debt 522,000 4,535,000 Total current liabilities 5,315,000
9,253,000 Long term debt, less current portion 3,706,000 3,015,000
Long term debt, less current portion-related parties 951,000
1,851,000 Total liabilities 9,972,000 14,119,000 Class A redeemable
convertible preferred stock, $.001 par value; 780,000 shares
authorized; 40,000 shares issued and outstanding; liquidation
preference $32,000. - 32,000 Shareholders' equity Class A common
stock, $.001 par value, 50,000,000 shares authorized 2008 -
23,977,678 shares issued and outstanding; 2007 - 19,226,006 shares
issued and outstanding 24,000 19,000 Additional paid-in capital
52,150,000 43,887,000 Accumulated deficit (32,443,000) (22,815,000)
Total shareholders' equity 19,731,000 21,091,000 Total liabilities
and shareholders' equity $29,703,000 $35,242,000 Consolidated
Statement of Operations Three months ended Twelve months ended
March 31, March 31, March 31, March 31, 2008 2007 2008 2007 Net
Sales $5,236,000 $6,161,000 $23,215,000 $23,588,000 Cost of Sales
3,451,000 3,508,000 14,340,000 12,693,000 Gross Margin 1,785,000
2,653,000 8,875,000 10,895,000 Other Operating Expenses Research
& Development 1,272,000 1,019,000 4,218,000 4,012,000 General
& Administrative 1,035,000 1,168,000 4,593,000 5,020,000
Amortization 493,000 430,000 1,963,000 1,676,000
Goodwill/Intangible impairment - 489,000 - 489,000 Wafer Fab
Consolidation 224,000 427,000 1,256,000 720,000 Dodgeville
Consolidation - - 534,000 - Sales & Marketing 645,000 667,000
2,312,000 2,174,000 Total Other Operating Expenses 3,669,000
4,200,000 14,876,000 14,091,000 Net Operating Loss (1,884,000)
(1,547,000) (6,001,000) (3,196,000) Other (Income) & Expense
Other (Income)/Expense (49,000) (2,000) (23,000) 5,000 Income tax -
deferred 1,225,000 (921,000) 1,225,000 (920,000) Interest Income
(14,000) (49,000) (96,000) (213,000) Interest Expense-Related
Parties 34,000 56,000 162,000 224,000 Interest Expense - Warrant
discount - 480,000 1,672,000 1,528,000 Interest Expense 59,000
213,000 687,000 826,000 Other (Income) & Expense 1,255,000
(223,000) 3,627,000 1,450,000 Net Loss $(3,139,000) $(1,324,000)
$(9,628,000) $(4,646,000) Net earnings per share $(0.13) $(0.07)
$(0.44) $(0.24) Diluted earnings per share $(0.13) $(0.07) $(0.44)
$(0.24) Weighted number of shares outstanding 23,926,000 19,165,000
21,770,000 19,065,000 Anti-diluted weighted number of shares
24,352,000 22,625,000 22,195,000 22,525,000 Non-GAAP Financial
Measures The Company provides Non-GAAP Net Income (Loss) 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 to GAAP Income Three months ended Twelve months
ended March 31, March 31, March 31, March 31, 2008 2007 2008 2007
Net Income (Loss) $(3,139,000) $(1,324,000) $(9,628,000)
$(4,646,000) Add Back: Interest Expense - Convertible notes -
126,000 268,000 504,000 Interest expense - Warrant (Fair Value) -
480,000 1,672,000 1,528,000 Amortization - prepaid finance expense
70,000 48,000 70,000 148,000 Amortization - intangibles/patents
493,000 382,000 1,963,000 1,528,000 Goodwill/Intangible impairment
- 489,000 - 489,000 Stock Option Compensation Expense 28,000 84,000
230,000 361,000 Income Taxes - deferred 1,225,000 (921,000)
1,225,000 (920,000) Other Expense - DV Consolidation - - 534,000 -
Other Expense - Wafer Fabrication 224,000 427,000 1,256,000 721,000
Subtotal - Add backs 2,040,000 1,115,000 7,218,000 4,359,000
Non-GAAP Income $(1,099,000) $(209,000) $(2,410,000) $(287,000) Net
earnings per share $(0.05) $(0.01) $(0.11) $(0.02) Diluted earnings
per share $(0.05) $(0.01) $(0.11) $(0.02) Weighted Number of shares
outstanding 23,926,000 19,165,000 21,770,000 19,065,000 Diluted
shares outstanding 24,352,000 22,625,000 22,195,000 22,525,000
Reconciliation of EBITDA to GAAP income/(loss) Three months ended
Twelve months ended March 31, March 31, March 31, March 31, 2008
2007 2008 2007 Net Income (Loss) $(3,139,000) $(1,324,000)
$(9,628,000) $(4,646,000) Add Back: Net Interest expense (income)
80,000 221,000 753,000 837,000 Interest expense - Warrant (Fair
Value) - 480,000 1,672,000 1,528,000 Depreciation Expense 272,000
323,000 1,130,000 1,076,000 Income Taxes - deferred 1,225,000
(921,000) 1,225,000 (920,000) Goodwill/Intangible impairment -
489,000 - 489,000 Amortization - prepaid finance expense 70,000
48,000 70,000 148,000 Amortization 493,000 382,000 1,963,000
1,528,000 Subtotal - Add backs 2,140,000 1,022,000 6,813,000
4,686,000 EBITDA $(999,000) $(302,000) $(2,815,000) $40,000
Advanced Photonix, Inc.(R) (AMEX:API) is a leading vertically
integrated optoelectronic semiconductor manufacturer of
optoelectronic solutions, high-speed optical receivers and
terahertz instrumentation to a global OEM customer base. Products
include patented silicon (Si), indium phosphide (InP) and gallium
arsinide (GaAs) based APD, PIN, and FILTRODE(R) photodetectors;
high-speed optical receivers; and the T-Ray 4000(TM) THz product
platforms. More information on Advanced Photonix can be found at
http://www.advancedphotonix.com/. DATASOURCE: Advanced Photonix,
Inc. CONTACT: Richard Kurtz, Advanced Photonix, Inc.,
+1-734-864-5600, or Richard Moyer, Cameron Associates,
+1-212-554-5466, for Advanced Photonix, Inc. Web site:
http://www.advancedphotonix.com/
http://investor.advancedphotonix.com/ http://www.earnings.com/
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