Record Quarterly Revenues of $7.8 million, up 47% sequentially; EPS
Improves to $.01 GAAP and $.04 Non-GAAP per diluted share ANN
ARBOR, Mich., Aug. 11 /PRNewswire-FirstCall/ -- Advanced Photonix,
Inc.(R) (AMEX:API) (the "Company") today reported its first quarter
fiscal 2009 results ending June 27, 2008. Financial Highlights for
the First Quarter Ended June 27, 2008 -- Net sales for the quarter
were $7.8 million, an increase of $2.5 million, or 47%, compared to
revenues of $5.3 million for the prior quarter ended March 31,
2008. The increase was broad based across the company's markets,
lead by the telecommunication market. This reflects the beginning
production ramp-up of the Company's 40Gbps client side receivers
driven by the carriers' current capacity expansion of the long haul
transport portion of their infrastructure. -- Net sales of $7.8
million reflects an increase of $1.7 million, or 26%, compared to
net sales of $6.1 million in the quarter ended June 29, 2007,
primarily as a result of increased sales in the 40Gbps
telecommunications and military markets, offset by lower demand in
the medical market. -- Gross profit margin for Q1 2009 was 48% of
sales compared to 34% for the prior quarter ended March 31, 2008
and 40% for the quarter ended June 29, 2007. This improvement in
gross profit margin was due primarily to increased military and
telecommunication revenues, along with lower costs resulting from
the Wisconsin facilities consolidation. -- Operating income was
$239,000, or 3% of sales, as compared to an operating loss of $1.9
million, or 36%, for the quarter ended March 31, 2008 and an
operating loss of $1.1 million, or 18%, for the quarter ending June
29, 2007. -- Net income was $147,000, or $.01 per diluted share,
for the quarter, as compared to a net loss of $3.1 million, or $.13
per diluted share, for the prior quarter ended March 31, 2008, and
a net loss of $1.9 million, or $0.10 per diluted share, for the
quarter ended June 29, 2007. -- The Non-GAAP net income for the
first quarter of fiscal 2009 was $869,000, or $0.04 per diluted
share, as compared to a Non-GAAP net loss of $1.1 million, or $.05
per diluted share, for the quarter ended March 31, 2008 and net
loss of $264,000, or $0.01 per diluted share, for the comparable
quarter ended June 29, 2007. -- On an EBITDA basis (which is
defined as GAAP earnings before interest, taxes, depreciation, and
amortization), the Company reported positive EBITDA of $1,035,000
for the first quarter of fiscal 2009 as compared to negative EBITDA
of $1.0 million for the quarter ended March 31, 2008 and negative
EBITDA of $339,000 for the comparable quarter ended June 29, 2007.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "We
are pleased with the results of the first quarter which exceeded
our planned revenue and earnings targets. Our high-speed optical
receiver 40G products are starting to meet our growth projections,
and we expect this to continue on an accelerated basis for the next
several years. Our Optosolutions product platform provided strong
revenue from the military and industrial markets that helped to
offset the decline in our medical revenues. Our industry leading,
fourth generation T-Ray(TM) 4000 has been enthusiastically received
by the worldwide R&D laboratory market and one of our goals in
fiscal 2009 is to focus intently on furthering industrial OEM
deployment. We continue to be cautiously optimistic with our growth
projections. We believe the growth in broadband applications and
non-destructive testing markets will drive growth in our business
now and in the foreseeable future. We are cautious due to the
overall health of the economy and expect to continue to see
fluctuations in customer spending in any given quarter due
primarily to their new product introduction patterns. Even with
this backdrop, we are increasing our previously announced revenue
growth guidance from 25% to 30% for fiscal 2009." The Company will
hold a conference call to discuss the results for the first quarter
ended June 27, 2008 on Monday, August 11, 2008, at 5:00 PM EDT.
Participants can dial into the conference call at 888-713-4216
(617-213-4868 for international) using the pass code 43918096. 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 15736689. 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, risks associated with the
move of our wafer fabrication facilities, technological
obsolescence of existing product lines and 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 June 27,
2008 March 31, 2008 Current Assets Cash and cash equivalents
$1,473,000 $82,000 Restricted cash 500,000 1,500,000 Accounts
receivable, net of allowance 4,348,000 3,202,000 Inventories, net
of allowances 4,401,000 4,131,000 Prepaid expenses and other
current assets 303,000 195,000 Total current assets 11,025,000
9,110,000 Equipment & Leasehold Improvements, at cost
11,054,000 10,847,000 Accumulated depreciation (6,359,000)
(6,090,000) Net Equipment and Leasehold Improvements 4,695,000
4,757,000 Goodwill, net of accumulated amortization 4,579,000
4,579,000 Patents, net 568,000 538,000 Intangible assets, net
9,808,000 10,333,000 Other assets 388,000 386,000 Total assets
$31,063,000 $29,703,000 Liabilities and shareholders' equity
Current liabilities Line of credit $1,300,000 $1,300,000 Accounts
payable and accrued expenses 2,799,000 2,066,000 Compensation and
related withholdings 1,088,000 527,000 Current portion of long-term
debt-related parties 1,851,000 900,000 Current portion of long-term
debt-capital lease obligations 460,000 460,000 Current portion of
long-term debt 468,000 62,000 Total current liabilities 7,966,000
5,315,000 Long term debt, less current portion 1,843,000 2,249,000
Long term debt, less current portion - capital lease obligations
1,342,000 1,457,000 Long term debt, less current portion-related
parties - 951,000 Total liabilities 11,151,000 9,972,000
Shareholders' equity Class A common stock, $.001 par value,
50,000,000 shares authorized; June 27, 2008 - 24,007,978 shares
issued and outstanding; March 31, 2008 - 23,977,678 shares issued
and outstanding 24,000 24,000 Additional paid-in capital 52,184,000
52,150,000 Accumulated deficit (32,296,000) (32,443,000) Total
shareholders' equity 19,912,000 19,731,000 Total liabilities and
shareholders' equity $31,063,000 $29,703,000 Consolidated Statement
of Operations (unaudited) Three months ended June 27, 2008 June 29,
2007 Net Sales $7,770,000 $6,145,000 Cost of Sales 4,014,000
3,675,000 Gross Margin 3,756,000 2,470,000 Other Operating Expenses
Research & Development 1,128,000 896,000 General &
Administrative 1,083,000 1,171,000 Amortization 526,000 490,000
Wafer Fab Consolidation 160,000 343,000 Sales & Marketing
620,000 646,000 Total Other Operating Expenses 3,517,000 3,546,000
Net Operating Income (Loss) 239,000 (1,076,000) Other (Income)
& Expense Other (Income)/Expense - (6,000) Interest Income
(16,000) (21,000) Interest Expense-Related Parties 27,000 57,000
Interest Expense - Warrant discount - 567,000 Interest Expense
81,000 233,000 Other (Income) & Expense 92,000 830,000 Net
Income (Loss) $147,000 $(1,906,000) Net earnings per share $0.01
$(0.10) Diluted earnings per share $0.01 $(0.10) Weighted number of
shares outstanding 24,010,000 19,258,000 Anti-diluted weighted
number of shares 24,370,000 19,258,000 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) Three months ended
June 27, 2008 June 29, 2007 Net Income (Loss) $147,000 $(1,906,000)
Add Back: Interest Expense - Convertible notes - 157,000 Interest
expense - Warrant (fair value) - 567,000 Amortization -
intangibles/patents 528,000 490,000 Stock Option Compensation
Expense 34,000 85,000 Other Expense - Wafer Fabrication 160,000
343,000 Subtotal - Add backs 722,000 1,642,000 Non-GAAP Income
(Loss) $869,000 $(264,000) Net earnings per share $0.04 $(0.01)
Diluted earnings per share $0.04 $(0.01) Weighted Number of shares
outstanding 24,010,000 19,258,000 Diluted shares outstanding
24,370,000 19,258,000 Reconciliation of EBITDA to GAAP
income/(loss) Three months ended June 27, 2008 June 29, 2007 Net
Income (Loss) $147,000 $(1,906,000) Add Back: Net Interest expense
(income) 92,000 270,000 Interest expense - Warrant (fair value) -
567,000 Depreciation Expense 268,000 240,000 Amortization 528,000
490,000 Subtotal - Add backs 888,000 1,567,000 EBITDA $1,035,000
$(339,000) 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(TM) 2000 and QA1000 THz
product platforms. More information on Advanced Photonix can be
found at http://www.advancedphotonix.com/. Contact: Richard Kurtz,
Advanced Photonix, Inc. (734) 864-5600 Richard Moyer, Cameron
Associates (212) 554-5466 DATASOURCE: Advanced Photonix, Inc.
CONTACT: Richard Kurtz, Advanced Photonix, Inc., +1-734-864-5600;
Richard Moyer, Cameron Associates, +1-212-554-5466 Web site:
http://www.advancedphotonix.com/
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