Attached files
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| 8-K - ADVANCED PHOTONIX, INC. 8-K - ADVANCED PHOTONIX INC | a50374241.htm |
Exhibit 99.1
Advanced Photonix, Inc. Reports First Quarter FY2013 Results
ANN ARBOR, Mich.--(BUSINESS WIRE)--August 13, 2012--Advanced Photonix, Inc.® (NYSE Amex: API) (the “Company”) today reported results for the first quarter ended June 29, 2012.
Financial Highlights for the First Quarter Ended June 29, 2012
- Net sales for the quarter were $6.2 million, a decrease of $1.9 million or 23% from the first quarter ended July 1, 2011. Sequentially, revenues were down 4% relative to the fourth quarter of fiscal 2012.
- Gross profit margin for Q1 FY2013 was 36.1% of sales compared to 41.6% for the same quarter of fiscal 2012. Price pressures in our high-speed optical receiver (HSOR) product line prior to cost reduction efforts and lower volumes affected the rate and gross margin dollars.
- Current quarter net loss was $993,000 or $0.03 per diluted share, as compared to a quarterly profit of $18,000, or $0.00 per diluted share for the quarter ended July 1, 2011.
- The Non-GAAP net loss for the first quarter of fiscal 2013 was $689,000 or $0.02 per diluted share, as compared to a Non-GAAP net loss of $96,000, or $.00 per diluted share, for the first quarter last year.
- Adjusted EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, amortization and stock compensation), was a negative $456,000 for the first quarter of fiscal 2013 as compared to positive adjusted EBITDA of $206,000 for the quarter ended July 1, 2011.
Operating Expenses
The Company’s total operating expenses for the quarter were $3.2 million, down 15% compared to the $3.8 million reported for the first quarter last year. As a percent of revenue, total operating expenses were 51.8% compared to 46.9% for the first quarter last year.
Balance Sheet
The Company finished the quarter with $3.2 million in cash similar to March 31, 2012. The balance of current assets less current liabilities, as of June 29, 2012, was $6.7 million and the Company reported a current ratio of 2.5 to 1.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "We continue to believe that our fiscal 2013 will have a restrained first half. Recent orders in the telecommunications market combined with increasing adoption of our T-Ray® products leads us to reaffirm that revenues in the second half of our fiscal 2013 should be approximately 35% higher than the first half, assuming our supply chain can respond accordingly. We are seeing an increasing number of opportunities for us to grow in existing markets and expand into new markets.”
Conference Call
The Company will hold a conference call to discuss the results for the first quarter ended June 29, 2012 on Monday, August 13, 2012, at 4:30 PM EDT. Participants can dial into the conference call at 888-680-0869 (617-213-4854 for international) using the passcode 55447755. A question and answer period will take place at the end of the discussion.
The call will be webcast live and can be accessed at Advanced Photonix's web site at: http://investor.advancedphotonix.com.
An audio replay of the call will be available shortly thereafter and will remain on-line until August 20, 2012. The replay number is 888.286.8010 (617.801.6888 for international) and the passcode is 25632878.
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, unforeseen technological obstacles which may prevent or slow the development and/or manufacture of new products; potential problems with the integration of the acquired company and its technology and possible inability to achieve expected synergies; obstacles to successfully combining product offerings and lack of customer acceptance of such offerings; 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. API-G
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CONDENSED CONSOLIDATED BALANCE SHEET |
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| ASSETS |
June 29, 2012 |
March 31, 2012 | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 3,172,000 | $ | 3,249,000 | ||||
| Receivables, net | 4,343,000 | 4,539,000 | ||||||
| Inventories | 3,327,000 | 3,594,000 | ||||||
| Prepaid expenses and other current assets | 283,000 | 261,000 | ||||||
| Total current assets | 11,125,000 | 11,643,000 | ||||||
| Equipment and leasehold improvements, at cost | 13,123,000 | 13,028,000 | ||||||
| Accumulated depreciation | (9,927,000 | ) | (9,727,000 | ) | ||||
| Equipment and leasehold improvements, net | 3,196,000 | 3,301,000 | ||||||
| Goodwill | 4,579,000 | 4,579,000 | ||||||
| Intangibles and patents, net | 4,256,000 | 4,538,000 | ||||||
| Other assets | 371,000 | 322,000 | ||||||
| Total assets | $ | 23,527,000 | $ | 24,383,000 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 1,996,000 | $ | 1,878,000 | ||||
| Accrued compensation | 787,000 | 866,000 | ||||||
| Current portion of long-term debt – bank term loan | 333,000 | 333,000 | ||||||
| Current portion of long-term debt – bank line of credit | 800,000 | 500,000 | ||||||
| Current portion of long-term debt – MEDC/MSF | 538,000 | 532,000 | ||||||
| Total current liabilities | 4,454,000 | 4,109,000 | ||||||
| Long-term debt, less current portion – MEDC/MSF | 793,000 | 929,000 | ||||||
| Long-term debt, less current portion – bank term loan | 583,000 | 667,000 | ||||||
| Warrant liability | 9,000 | 26,000 | ||||||
| Total liabilities | 5,839,000 | 5,731,000 | ||||||
| Shareholders' equity | ||||||||
| Class A common stock, $.001 par value, 100,000,000 shares authorized; June 29, 2012 – 31,161,147 shares issued and outstanding; March 31, 2012 – 31,159,431 shares issued and outstanding | 31,000 | 31,000 | ||||||
| Additional paid-in capital | 58,475,000 | 58,446,000 | ||||||
| Accumulated deficit | (40,818,000 | ) | (39,825,000 | ) | ||||
| Total shareholders' equity | 17,688,000 | 18,652,000 | ||||||
| Total liabilities and shareholders' equity | $ | 23,527,000 | $ | 24,383,000 | ||||
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CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) |
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| Three months ended | ||||||||
| June 29, 2012 | July 1, 2011 | |||||||
| Net sales | $ | 6,216,000 | $ | 8,120,000 | ||||
| Cost of sales | 3,972,000 | 4,742,000 | ||||||
| Gross margin | 2,244,000 | 3,378,000 | ||||||
| Other operating expenses | ||||||||
| Research and development | 1,371,000 | 1,692,000 | ||||||
| General and administrative | 1,053,000 | 1,159,000 | ||||||
| Amortization | 292,000 | 342,000 | ||||||
| Sales & marketing | 505,000 | 615,000 | ||||||
| Total operating expenses | 3,221,000 | 3,808,000 | ||||||
| Net operating loss | (977,000 | ) | (430,000 | ) | ||||
| Other income and (expense) | ||||||||
| Net interest expense | (33,000 | ) | (44,000 | ) | ||||
| Change in fair value of warrant liability | 17,000 | 492,000 | ||||||
| Other income and (expense) | (16,000 | ) | 448,000 | |||||
| (Loss) or income before income taxes | (993,000 | ) | 18,000 | |||||
| Benefit for income taxes | - | - | ||||||
| Net (loss) or income | $ | (993,000 | ) | $ | 18,000 | |||
| Basic earnings per share | $ | (0.03 | ) | $ | 0.00 | |||
| Diluted earnings per share | $ | (0.03 | ) | $ | 0.00 | |||
| Weighted number of shares outstanding – Basic | 31,161,000 | 30,687,000 | ||||||
| Weighted number of shares outstanding – Diluted | 31,161,000 | 31,759,000 | ||||||
Non-GAAP Financial Measures
The Company provides Non-GAAP Net Income, EBITDA and adjusted 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, EBITDA and adjusted 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, EBITDA and adjusted EBITDA to GAAP net income and loss are set forth in the financial schedule section below.
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RECONCILIATION OF NON-GAAP INCOME (LOSS) TO GAAP INCOME (LOSS) |
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| Three months ended | ||||||||
| June 29, 2012 | July 1, 2011 | |||||||
| Net income (loss) | $ | (993,000 | ) | $ | 18,000 | |||
| Add back: | ||||||||
| Change in warrant fair value | (17,000 | ) | (492,000 | ) | ||||
| Amortization - intangibles/patents | 292,000 | 342,000 | ||||||
| Stock option compensation expense | 29,000 | 36,000 | ||||||
| Subtotal – add backs | 304,000 | (114,000 | ) | |||||
| Non-GAAP (loss) | $ | (689,000 | ) | $ | (96,000 | ) | ||
| Basic and diluted loss per share | $ | (0.02 | ) | $ | (0.00 | ) | ||
| Weighted number of shares outstanding | 31,161,000 | 31,759,000 | ||||||
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RECONCILIATION OF EBITDA AND ADJUSTED EBITDA TO GAAP INCOME (LOSS) |
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| Three months ended | ||||||||
| March 31, 2012 | March 31, 2011 | |||||||
| Net income (loss) | $ | (993,000 | ) | $ | 18,000 | |||
| Add Back: | ||||||||
| Net interest expense (income) | 33,000 | 44,000 | ||||||
| Warrant (fair value) adjustment | (17,000 | ) | (492,000 | ) | ||||
| Depreciation expense | 200,000 | 258,000 | ||||||
| Amortization | 292,000 | 342,000 | ||||||
| Subtotal – add backs | 508,000 | 152,000 | ||||||
| EBITDA | $ | (485,000 | ) | $ | 170,000 | |||
| Stock compensation | 29,000 | 36,000 | ||||||
| Adjusted EBITDA | $ | (456,000 | ) | $ | 206,000 | |||
About Advanced Photonix, Inc.
Advanced Photonix, Inc. ® (NYSE Amex: API) is a leading supplier with a broad offering of optoelectronic products to a global customer base. We provide optoelectronic solutions, high-speed optical receivers and terahertz instrumentation for telecom, homeland security, military, medical and industrial markets. With our patented technology and state-of-the-art manufacturing we offer industry leading performance, exceptional quality, and high value added products to our OEM customer base. For more information visit us on the web at www.advancedphotonix.com.
CONTACT:
Advanced Photonix, Inc.
Richard Kurtz, (734) 864-5600
Advanced
Photonix IR (734) 864-5688