Exhibit 99.1
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| | Contact: Richard Kurtz, Advanced Photonix, Inc. (734) 864 -5600 Richard Moyer, Cameron Associates (212) 554-5466 |
ADVANCED PHOTONIX, INC.
REPORTS FOURTH QUARTER AND FISCAL 2008 RESULTS
Ann Arbor, MI, June 30, 2008 --Advanced Photonix, Inc.® (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™ 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.
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| | Contact: Richard Kurtz, Advanced Photonix, Inc. (734) 864 -5600 Richard Moyer, Cameron Associates (212) 554-5466 |
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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 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.
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| | Contact: Richard Kurtz, Advanced Photonix, Inc. (734) 864 -5600 Richard Moyer, Cameron Associates (212) 554-5466 |
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| | | 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 | |
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| | Contact: Richard Kurtz, Advanced Photonix, Inc. (734) 864 -5600 Richard Moyer, Cameron Associates (212) 554-5466 |
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Consolidated Statement of Operations | |
| | | Three months ended | | Twelve months ended | |
| | | March 31, 2008 | | March 31, 2007 | | March 31, 2008 | | March 31, 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 | |
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Net Operating Loss | | | (1,884,000 | ) | | (1,547,000 | ) | | (6,001,000 | ) | | (3,196,000 | ) |
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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 | |
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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 | |
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| | Contact: Richard Kurtz, Advanced Photonix, Inc. (734) 864 -5600 Richard Moyer, Cameron Associates (212) 554-5466 |
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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, 2008 | | March 31, 2007 | | March 31, 2008 | | March 31, 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, 2008 | | March 31, 2007 | | March 31, 2008 | | March 31, 2007 | |
Net Income (Loss) | | $ | (3,139,000 | ) | $ | (1,324,000 | ) | $ | (9,628,000 | ) | $ | (4,646,000 | ) |
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| 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.® (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® photodetectors; high-speed optical receivers; and the T-Ray 4000™ THz product platforms. More information on Advanced Photonix can be found at http://www.advancedphotonix.com.
