Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Richard Moyer, Cameron Associates (212) 554-5466
ADVANCED PHOTONIX, INC.
REPORTS THIRD QUARTER FISCAL 2009 RESULTS
Quarterly Revenues of $7.6 million, up 43% Year over Year
Ann Arbor, MI, February 9, 2009 - --Advanced Photonix, Inc.® (NYSE Alternext US:API) (the “Company”) today reported its third quarter fiscal 2009 results ending December 26, 2008.
Financial Highlights for the Third Quarter Ended December 26, 2008
| · | Net sales for the quarter were $7.6 million, an increase of $2.3 million, or 43%, compared to revenues for the quarter ended December 28, 2007. The increase was broad based across the Company’s markets, led by the military and industrial/non destructive testing markets.. |
| · | Net sales for the year to date were $23.6 million, an increase of $5.6 million, or 31%, compared to the prior year to date period. |
| · | Gross profit margin for Q3 2009 was 43% of sales compared to 35% for the quarter ended December 28, 2007. This improvement in gross profit margin was due primarily to increased military, industrial, medical and telecommunication revenues. |
| · | Gross profit margin for the year to date was 45% compared to 39% for the prior year to date period. |
| · | Operating loss was $250,000 as compared to an operating loss of $2.3 million for the quarter ended December 28, 2007. |
| · | Operating loss year to date was $236,000 compared to an operating loss of $4.1 million for the prior year to date period. |
| · | Net loss was $359,000, or $.01 per diluted share, for the quarter, as compared to a net loss of $2.7 million, or $.11 per diluted share, for the quarter ended December 28, 2007. |
| · | Net loss year to date was $538,000 or $.02 per diluted share, as compared to $6.5 million, or $.31 per diluted share for the prior year period. |
| · | The Non-GAAP net income for the third quarter of fiscal 2009 was $260,000, or $0.01 per diluted share, as compared to a Non-GAAP net loss of $892,000, or $.04 per diluted share, for the comparable quarter ended December 28, 2007. The Company reported year to date Non-GAAP net income of $1.4 million, or $0.06 per diluted share, as compared to a Non-GAAP loss of $1.1 million, or $0.05 per diluted share, for the comparable prior year period. |
| · | EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), was a positive $590,000 for the third quarter of fiscal 2009 as compared to a negative EBITDA of $1.5 million for the quarter ended December 28, 2007. For the year to date, the Company reported positive EBITDA of $2.2 million as compared to a negative EBITDA of $1.8 million for the comparable prior year period. |
Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Richard Moyer, Cameron Associates (212) 554-5466
Richard Kurtz, Chairman and Chief Executive Officer, commented, "We are pleased with the results of the third quarter and are on track to achieve our 2009 revenue growth projection of 30% year over year. In these uncertain and difficult times, we are fortunate to have three product platforms that are all contributing to help meet our growth targets. As we’ve stated previously, our market opportunities and product platforms complement each other, and each product platform gives us a solid foundation for additional growth. In the third quarter, the strongest growth came from our military, industrial, homeland security and medical markets. We expect to continue to see fluctuations in our customer’s spending in any given quarter due primarily to their inventory plans, new product introduction patterns, and current state of the economy, but remain cautiously optimistic that we can meet our growth targets despite the generally adverse economic conditions.”
The Company will hold a conference call to discuss the results for the third quarter ended December 26, 2008 on Monday, February 9, 2009, at 4:30 PM EST. Participants can dial into the conference call at 888-680-0878 (617-213-4855 for international) using the passcode 67166630. 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 52133600.
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.
Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Richard Moyer, Cameron Associates (212) 554-5466
| Condensed Consolidated Balance Sheets | | | | | | |
| | | Unaudited | | | | |
| Assets | | December 26, 2008 | | | March 31, 2008 | |
| Current Assets | | | | | | |
| Cash and cash equivalents | | $ | 1,623,000 | | | $ | 82,000 | |
| Restricted cash | | | 500,000 | | | | 1,500,000 | |
| Accounts receivable, net of allowance | | | 4,441,000 | | | | 3,202,000 | |
| Inventories, net of allowances | | | 4,232,000 | | | | 4,131,000 | |
| Prepaid expenses and other current assets | | | 430,000 | | | | 195,000 | |
| Total current assets | | | 11,226,000 | | | | 9,110,000 | |
| Equipment & Leasehold Improvements, at cost | | | 11,380,000 | | | | 10,847,000 | |
| Accumulated depreciation | | | (6,872,000 | ) | | | (6,090,000 | ) |
| Net Equipment and Leasehold Improvements | | | 4,508,000 | | | | 4,757,000 | |
| Goodwill, net of accumulated amortization | | | 4,579,000 | | | | 4,579,000 | |
| Patents, net | | | 657,000 | | | | 538,000 | |
| Intangible assets, net | | | 8,783,000 | | | | 10,333,000 | |
| Other assets | | | 387,000 | | | | 386,000 | |
| | | | | | | | | |
| Total assets | | $ | 30,140,000 | | | $ | 29,703,000 | |
| | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | | | |
| Current liabilities | | | | | | | | |
| Line of credit | | $ | 1,394,000 | | | $ | 1,300,000 | |
| Accounts payable and accrued expenses | | | 2,658,000 | | | | 2,066,000 | |
| Compensation and related withholdings | | | 1,326,000 | | | | 527,000 | |
| Current portion of long-term debt-related parties | | | 1,401,000 | | | | 900,000 | |
| Current portion of long-term debt-capital lease obligations | | | - | | | | 460,000 | |
| Current portion of long-term debt | | | 1,874,000 | | | | 62,000 | |
| Total current liabilities | | | 8,653,000 | | | | 5,315,000 | |
| Long term debt, less current portion | | | 2,100,000 | | | | 2,249,000 | |
| Long term debt, less current portion - capital lease obligations | | | - | | | | 1,457,000 | |
| Long term debt, less current portion-related parties | | | - | | | | 951,000 | |
| Total liabilities | | | 10,753,000 | | | | 9,972,000 | |
| | | | | | | | | |
| Shareholders' equity | | | | | | | | |
Class A common stock, $.001 par value, 100,000,000 shares authorized; December 26, 2008 - 24,089,726 shares issued and outstanding; March 31, 2008 - 23,977,678 shares issued and outstanding | | | 24,000 | | | | 24,000 | |
| Additional paid-in capital | | | 52,345,000 | | | | 52,150,000 | |
| Accumulated deficit | | | (32,982,000 | ) | | | (32,443,000 | ) |
| Total shareholders' equity | | | 19,387,000 | | | | 19,731,000 | |
| | | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 30,140,000 | | | $ | 29,703,000 | |
Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Richard Moyer, Cameron Associates (212) 554-5466
| Consolidated Statement of Operations (unaudited) | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | December 26, 2008 | | | December 28, 2007 | | | December 26, 2008 | | | December 28, 2007 | |
| Net Sales | | $ | 7,606,000 | | | $ | 5,306,000 | | | $ | 23,565,000 | | | $ | 17,980,000 | |
| Cost of Sales | | | 4,329,000 | | | | 3,431,000 | | | | 12,967,000 | | | | 10,890,000 | |
| Gross Margin | | | 3,277,000 | | | | 1,875,000 | | | | 10,598,000 | | | | 7,090,000 | |
| | | | | | | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | | | | | |
| Research, Development & Engineering | | | 1,112,000 | | | | 1,034,000 | | | | 3,321,000 | | | | 2,944,000 | |
| General & Administrative | | | 1,236,000 | | | | 1,209,000 | | | | 3,751,000 | | | | 3,562,000 | |
| Amortization | | | 516,000 | | | | 491,000 | | | | 1,561,000 | | | | 1,471,000 | |
| Dodgeville consolidation | | | - | | | | 534,000 | | | | - | | | | 534,000 | |
| Wafer Fab relocation | | | 58,000 | | | | 421,000 | | | | 266,000 | | | | 1,032,000 | |
| Sales & Marketing | | | 605,000 | | | | 462,000 | | | | 1,935,000 | | | | 1,667,000 | |
| Total Operating Expenses | | | 3,527,000 | | | | 4,151,000 | | | | 10,834,000 | | | | 11,210,000 | |
| | | | | | | | | | | | | | | | | |
| Net Operating Income (Loss) | | | (250,000 | ) | | | (2,276,000 | ) | | | (236,000 | ) | | | (4,120,000 | ) |
| | | | | | | | | | | | | | | | | |
| Other (Income) & Expense | | | | | | | | | | | | | | | | |
| Other (Income)/Expense | | | - | | | | 42,000 | | | | 2,000 | | | | 24,000 | |
| Interest Income | | | 3,000 | | | | (35,000 | ) | | | (25,000 | ) | | | (82,000 | ) |
| Interest Expense-Related Parties | | | 22,000 | | | | 39,000 | | | | 77,000 | | | | 138,000 | |
| Interest Expense - Warrant discount | | | - | | | | 309,000 | | | | - | | | | 1,742,000 | |
| Interest Expense | | | 84,000 | | | | 95,000 | | | | 248,000 | | | | 547,000 | |
| Other (Income) & Expense | | | 109,000 | | | | 450,000 | | | | 302,000 | | | | 2,369,000 | |
| | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | $ | (359,000 | ) | | $ | (2,726,000 | ) | | $ | (538,000 | ) | | $ | (6,489,000 | ) |
| Basic and diluted earnings per share | | $ | (0.01 | ) | | $ | (0.11 | ) | | $ | (0.02 | ) | | $ | (0.31 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted number of shares outstanding - Basic and diluted | | | 24,109,000 | | | | 23,804,000 | | | | 24,057,000 | | | | 20,996,000 | |
Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Richard Moyer, Cameron Associates (212) 554-5466
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) | | | | | | | |
| | | (Unaudited) | | | (Unaudited) | |
| | | Three months ended | | | Nine months ended | |
| | | December 26, 2008 | | | December 28, 2007 | | | December 26, 2008 | | | December 28, 2007 | |
| Net Income (Loss) | | $ | (359,000 | ) | | $ | (2,726,000 | ) | | $ | (538,000 | ) | | $ | (6,489,000 | ) |
| | | | | | | | | | | | | | | | | |
| Add Back: | | | | | | | | | | | | | | | | |
| Interest Expense - Convertible notes | | | - | | | | 11,000 | | | | - | | | | 269,000 | |
| Interest expense - Warrant (fair value) | | | - | | | | 309,000 | | | | - | | | | 1,742,000 | |
| Amortization - intangibles/patents | | | 516,000 | | | | 491,000 | | | | 1,561,000 | | | | 1,471,000 | |
| Stock Option Compensation Expense | | | 45,000 | | | | 68,000 | | | | 145,000 | | | | 201,000 | |
| Private Placement | | | - | | | | - | | | | - | | | | 170,000 | |
| Dodgeville consolidation | | | | | | | 534,000 | | | | | | | | 534,000 | |
| Other Expense - Wafer Fabrication | | | 58,000 | | | | 421,000 | | | | 266,000 | | | | 1,032,000 | |
| Subtotal - Add backs | | | 619,000 | | | | 1,834,000 | | | | 1,972,000 | | | | 5,419,000 | |
| Non-GAAP Income (Loss) | | $ | 260,000 | | | $ | (892,000 | ) | | $ | 1,434,000 | | | $ | (1,070,000 | ) |
| | | | | | | | | | | | | | | | | |
| Net earnings (loss) per share | | $ | 0.01 | | | $ | (0.04 | ) | | $ | 0.06 | | | $ | (0.05 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted Number of shares outstanding | | | 24,109,000 | | | | 23,804,000 | | | | 24,057,000 | | | | 20,996,000 | |
Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Richard Moyer, Cameron Associates (212) 554-5466
| Reconciliation of EBITDA to GAAP income/(loss) | | | | | | | |
| | | (Unaudited) | | | (Unaudited) | |
| | | Three months ended | | | Nine months ended | |
| | | December 26, 2008 | | | December 28, 2007 | | | December 26, 2008 | | | December 28, 2007 | |
| Net Income (Loss) | | $ | (359,000 | ) | | $ | (2,726,000 | ) | | $ | (538,000 | ) | | $ | (6,489,000 | ) |
| | | | | | | | | | | | | | | | | |
| Add Back: | | | | | | | | | | | | | | | | |
| Net Interest expense (income) | | | 109,000 | | | | 99,000 | | | | 300,000 | | | | 603,000 | |
| Interest expense - Warrant (fair value) | | | - | | | | 309,000 | | | | - | | | | 1,742,000 | |
| Depreciation Expense | | | 324,000 | | | | 336,000 | | | | 861,000 | | | | 858,000 | |
| Amortization | | | 516,000 | | | | 491,000 | | | | 1,561,000 | | | | 1,471,000 | |
| Subtotal - Add backs | | | 949,000 | | | | 1,235,000 | | | | 2,722,000 | | | | 4,674,000 | |
| EBITDA | | $ | 590,000 | | | $ | (1,491,000 | ) | | $ | 2,184,000 | | | $ | (1,815,000 | ) |
Advanced Photonix, Inc.® (NYSE Alternext US: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 platform. More information on Advanced Photonix can be found at http://www.advancedphotonix.com.
