Message #11 From:
NewsBot Date: February 12, 2007 01:05:00 PM
API News Advanced Photonix, Inc. Reports Third Quarter Fiscal 2007 Results
ANNARBOR, Mich.--(BUSINESS WIRE)--Advanced Photonix, Inc. ® (AMEX:API) (the “Company”) today reported its third quarter fiscal 2007 results.
Revenues for the third quarter of fiscal 2007 ended December 29, 2006 were $5.881 million, a decrease of $630,000, or 10%, compared to revenues of $6.511 million for the quarter ended December 25, 2005. . The Company reported a net loss calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") of $964,000, or $.05 per share fully diluted, for the quarter, compared with a GAAP net loss of $886,000, or $0.05 per share fully diluted, for the third quarter of fiscal 2006.
The Company had substantial growth in the telecommunications market in the 3rd quarter ended December 29, 2006 (Q3 2007) as compared to the quarter ended December 25, 2005 (Q3 2006). Telecommunications market revenues were $1.766 million, an increase of 109% (or $922,000) over Q3 2006 revenues of $844,000. Medical market revenues were $578,000, an increase of 12% (or $60,000) over Q3 2006 revenues of $518,000. Industrial Sensing/NDT market revenues decreased to $2.287 million, a decrease of 16% (or $452,000) from Q3 2006 revenues of $2.739 million due primarily to the delay in shipments of Terahertz NDT systems. Military/aerospace market revenues were $1.162 million, a decrease of 32% (or $534,000) from the comparable prior period revenues of $1.696 million, due primarily to the delay in Optosolution product orders and a reduction in development contracts for Terahertz. Homeland Security revenues of $88,000 decreased $626,000 (or 88%) compared to Q3 2006 revenues of $714,000, due to the continued delay in government Terahertz development contracts from the Transportation Security Administration (TSA).
Gross profit improved to 49% of sales for the third quarter 2007 and to 47% of sales for the nine months ended December 29, 2006, compared to 46% and 43%, respectively, of sales for the comparable prior year periods, due primarily to product mix. For the nine months ended December 29, 2006, gross profit of $8.242 million, increased by $972,000 over the comparable nine month period of fiscal 2006 on increased sales of $645,000.
Revenues for the nine months ended December 29, 2006 were $17.427 million, an increase of $645,000 or 4%, compared to revenues of $16.782 million for the nine months ended December 25, 2005. Telecommunication revenues were $4.271 million, an increase of 88% compared to revenues of $2.269 million in the comparable period of the prior year, due primarily to the introduction and rapid market acceptance of new 10 Gbs and 40Gbs products for the growing fiber optic communications market, resulting in new customers and gains in existing market share.
The Non-GAAP income for the third quarter of fiscal 2007 was $256,000, or $0.01 per share fully diluted, compared to Non-GAAP income of $537,000 or $0.03 per share fully diluted for the comparable period a year ago. Non-GAAP loss for the nine month period ended December 29, 2006 was $79,000 or $0.00 per share fully diluted, as compared to Non-GAAP income of $427,000, or $0.02 per share fully diluted, for the period ended December 25, 2005.
Non-GAAP income is considered non-GAAP financial information, and a reconciliation of non-GAAP financial measures used in this press release to the GAAP financial measures can be found in the reconciliation of Non-GAAP income to GAAP income financial schedule, included on page five of this press release.
On an EBITDA basis (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), the Company reported income of $347,000 for the third quarter of 2007. This compares to income of $889,000 for the third quarter of 2006. A reconciliation of EBITDA to GAAP income can also be found on page five of this press release.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "We are pleased with our growth in the telecommunications market, up 109% over the same period of the prior year. We expect our growth in this market to continue through the remainder of this year and next year. While we did not meet our internal revenue growth targets for the quarter, we did exceed our gross margin expectations. The revenue short fall comes from both the military and homeland security markets. The military market shortfall is the result of delays in receiving follow-on contracts, which we fully expect to receive in future quarters. While we continue to be disappointed in the speed at which the Transportation Security Administration (TSA) is developing and deploying the next generation technologies for Homeland security, we are actively engaged in non-destructive testing application development for other markets, and in the development of next generation terahertz systems. These next generation systems will provide the foundation for further expansion in homeland security, aerospace, military and industrial quality control markets, and we believe will pay dividends in the coming years. With the delay in receiving military contracts, and continued delay in receiving TSA contracts, we are reducing our revenue guidance for fiscal 2007 from the previous $27 to $28 million to $24.5 million to $25.5 million, or approximately 4% to 8% revenue growth.”
The Company will hold a conference call to discuss the results for the third quarter ended December 29, 2006 on Monday, February 12, 2007, at 5:00 PM EST. Participants can dial into the conference call at 800-798-2801 (617-614-6205 for international) using the pass code 94694797. 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 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 passcode 36105562.
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.
Consolidated Statement of Operations (unaudited)
Three months ended
Nine months ended
December 29, 2006
December 25, 2005 (Restated)
December 29, 2006
December 25, 2005 (Restated)
Net Sales
$
5,881,000
$
6,511,000
$
17,427,000
$
16,782,000
Cost of Sales
2,997,000
3,513,000
9,185,000
9,512,000
Gross Margin
2,884,000
2,998,000
8,242,000
7,270,000
Other Operating Expenses
Research & Development
1,005,000
836,000
2,994,000
2,083,000
General & Administrative
1,517,000
1,420,000
5,097,000
4,229,000
Other Expense - Wafer Fab
174,000
-
294,000
-
Sales & Marketing
524,000
482,000
1,507,000
1,311,000
Total Other Operating Expenses
3,220,000
2,738,000
9,892,000
7,623,000
Net Operating Loss
(336,000)
260,000
(1,650,000)
(353,000)
Other (Income) & Expense
Other (Income)/Expense
10,000
(3,000)
7,000
4,000
Interest Income
(48,000)
(10,000)
(165,000)
(24,000)
Interest Expense-Related Party
56,000
57,000
168,000
140,000
Interest Expense - Warrant discount
407,000
1,013,000
1,048,000
1,904,000
Interest Expense
203,000
89,000
613,000
368,000
Other (Income) & Expense
628,000
1,146,000
1,671,000
2,392,000
Net Loss
$
(964,000)
$
(886,000)
$
(3,321,000)
$
(2,745,000)
Net earnings per share
$
(0.05)
$
(0.05)
$
(0.17)
$
(0.16)
Diluted earnings per share
anti-dilutive
anti-dilutive
anti-dilutive
anti-dilutive
Weighted number of shares outstanding
19,089,000
18,563,000
19,032,000
16,983,000
Condensed Consolidated Balance Sheets
December 29, 2006 (Un-audited)
March 31, 2006 (Restated)
Assets
Current assets:
Cash and cash equivalents
$
4,191,000
$
5,933,000
Accounts receivable, net
3,164,000
4,387,000
Inventory, net
4,135 000
3,434,000
Prepaid expenses and other current assets
547,000
711,000
Total current assets
12,037,000
14,465,000
Equipment and leasehold improvements, net
4,196,000
3,375,000
Goodwill, net of accumulated amortization of $353,000 for December 29, 2006 and March 31, 2006
4,719,000
4,719,000
Intangibles and patents, net
13,315,000
14,355,000
Other assets
1,014,000
1,087,000
Total assets
$
35,281,000
$
38,001,000
Liabilities and shareholders' equity
Current liabilities
Line of credit
$
1,000,000
$
1,000,000
Accounts payable and accrued expenses
2,100,000
1,934,000
Compensation and related withholdings
855,000
697,000
Deferred income
--
77,000
Current portion of long-term debt, related party
550,000
500,000
Current portion of long-term debt
4,956,000
927,000
Total current liabilities
9,461,000
5,135,000
Long-term debt, less current portion
1,350,000
5,002,000
Long-term debt, less current portion - related party
1,851,000
2,401,000
Total liabilities
12,662,000
12,538,000
Commitments and contingencies
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
32,000
Shareholders' equity:
Preferred stock - no shares issued and outstanding
