EXHIBIT 99.1
[API ADVANCED PHOTONIX, INC. LOGO] Contact: Advanced Photonix, Inc.
Richard Kurtz (805) 987-0146
Cameron Associates
Richard E. Moyer (212) 554-5466
richard@cameronassoc.com
ADVANCED PHOTONIX, INC.
REPORTS SECOND QUARTER FISCAL 2006 RESULTS
CAMARILLO, CALIFORNIA, NOVEMBER 9, 2005-- Advanced Photonix, Inc.(R)(AMEX: API)
(the "Company"), today reported results for the second quarter fiscal 2006 and
the six month period ended September 25, 2005.
Revenues for the second quarter of fiscal year 2006 and the six month period
ended September 25, 2005 were $5,193,000 and $10,271,000, respectively. Revenue
for the second quarter of fiscal year 2006 increased by $1,484,000, or 40%, over
revenue of $3,709,000 for the second quarter of fiscal year 2005. Revenue for
the first six months of fiscal year 2006 increased by $3,309,000, or 47%, over
revenue of $6,692,000 for the comparable six month period in fiscal year 2005.
The Company recorded increases in three of its principal markets during the
second quarter (and four during the first six months of fiscal year 2006) with
the most significant revenue increases coming from the telecommunications,
industrial sensing and homeland security markets. Revenue in the Medical market
was $446,000 in the second quarter, a decrease of $108,000 or 19% over the
comparable prior year period due primarily to fluctuations in customer delivery
schedules. Military/Aerospace revenues decreased by $123,000, or 9%, in the
second quarter compared to the comparable period in the prior year due to
fluctuations in customer delivery schedules. While the Company continues to
expect consolidated revenue to increase in fiscal year 2006 as compared to
fiscal year 2005, the quarter to quarter comparisons can vary significantly for
both revenue and market analyses due to fluctuations in customer delivery and
production schedules which are beyond the control of the Company. Management
believes that the decreases in revenue to the Medical and Military/Aerospace
markets in the most recent quarter were primarily attributable to the above
factors and do not reflect a general decline in the level of demand for the
Company's products.
The Company reported a net loss for the second quarter of fiscal year 2006 and
the six month period ended September 25, 2005 of $834,000, or $0.05 per share,
and $968,000, or $0.05 per share, respectively,. This compares to net income of
$260,000 or $0.02 per share for the second quarter of fiscal 2005, and $608,000
or $0.04 per share for the six month period ending September 26, 2004.
On an EBITDA basis (earnings before interest, taxes, depreciation and
amortization), the Company lost $12,000 for the second quarter of fiscal year
2006 and made $457,000 for the six month period ended September 25, 2005. This
compares to a net gain of $363,000 and $822,000 for the second quarter of fiscal
year 2005 and the six month period ending September 26, 2004, respectively.
Richard Kurtz, Chairman and Chief Executive Officer, commented, "We have made
great progress in focusing our entire organization on integration of financial
information, marketing image and human resources of our recent acquisitions. We
need to continue to improve our operational efficiencies and product development
cycle We believe there will still be substantial revenue growth in the last half
of our fiscal year and will continue to have positive cash flows."
In commenting on the results, Paul Ludwig, President of Advanced Photonix, Inc.
stated, "We are pleased that year to date revenue is 47% ahead of the same
period last year, primarily due to the recent acquisitions of Picometrix and
Photonic Detectors. Operationally, we have made significant progress in our
Camarillo facility in improving order fulfillment performance, and our focus
continues to be on further gross margin improvement. From a sales and
engineering perspective, we are pursuing excellent growth initiatives with new
and existing customers in all of the markets we serve. This is reflected in our
increased R&D spending. The market opportunities and project activity for our
Terahertz Imaging systems continue to develop in the Homeland Security,
Aerospace and Pharmaceutical markets."
BUSINESS OUTLOOK
Management projects revenue growth of approximately 65% for fiscal year 2006
over consolidated revenue for fiscal 2005, based upon the revenue growth of 47%
for the first six months of operations and projections for the remainder of the
fiscal year.
NON-GAAP FINANCIAL MEASURES
The Company reports its financial results in accordance with GAAP and
additionally on a non-GAAP basis referred to as EBITDA. These non-GAAP measures
are not in accordance with, nor are they a substitute for, GAAP measures and
they may not be consistent with the presentation used by other companies. API
uses the EBITDA to evaluate and manage the Company's operations and believes
these non GAAP measures enhance the comparability and transparency of results
for the period. API is providing this information to investors to allow for the
performance of additional financial analysis. A reconciliation table of GAAP to
non GAAP measures of EBITDA is included later in this release.
ABOUT ADVANCED PHOTONIX, INC
Advanced Photonix, Inc. (R) (AMEX: API) is engaged in the development and
manufacture of optoelectronic devices and value-added sub-systems and systems.
The Company serves a variety of global Original Equipment Manufacturers (OEMs)
in the telecommunication, military/aerospace, industrial sensing, medical,
homeland security, and other markets. The Company supports the customer from the
initial concept and design phase of the product, through testing to full-scale
production. The company has three manufacturing facilities; located in
Camarillo, CA, Dodgeville, WI and Ann Arbor, MI. Advanced Photonix, Inc.(R)
(AMEX: API) is a leading supplier of opto-electronic solutions and Terahertz
instrumentation to a global OEM customer base. Products include the patented
High speed optical receivers in APD and PIN configurations and silicon Large
Area Avalanche Photodiode (LAAPD), PIN photodiode and FILTRODE(R) detectors.
More information on Advanced Photonix can be found at
http://www.advancedphotonix.com.
SAFE HARBOR STATEMENT
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, unforeseen
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, the availability of other competing technologies and a decline in the
general demand for optoelectronic products.
ADVANCED PHOTONIX, INC.
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
(000 except per share data) Three Months Ended
---------------------------------------
September 25, September 26,
2005 2004
------------------ ------------------
NET SALES $ 5,193 $ 3,709
GROSS PROFIT MARGIN ON NET SALES $ 2,116 $1,258
Percent to Net Sales 41% 34%
NET INCOME (LOSS) $ (834) $ 260
BASIC EARNINGS PER SHARE ($.05) $.02
DILUTED EARNINGS PER SHARE ($.05) $.02
WEIGHTED AVG. NUMBER OF SHARES OUTSTANDING 19,450,000 14,228,600
</Table>
Non-GAAP Financial Measures
The Company provides EBITDA as supplemental financial information regarding the
Company's operational performance. Non-GAAP financial measures are not in
accordance with, or an alternative for, generally accepted accounting principles
in the United States. 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 EBITDA measures used
by other companies. A reconciliation of EBITDA to GAAP net income and loss is
set forth in the financial schedule section below.
<Table>
<Caption>
ADVANCED PHOTONIX INC
RECONCILIATION OF EBITDA TO GAAP NET INCOME
THREE MONTH PERIOD ENDED SIX MONTH PERIOD ENDED
-------------------------------------------------------------------
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
25, 2005 26, 2004 25, 2005 26, 2004
GAPP NET INCOME/(LOSS) $(834,000) $ 260,000 ($968,000) $ 608,000
ADJUSTMENTS
DEPRECIATION 207,000 90,000 364,000 181,000
NET INTEREST EXPENSE/(INCOME) 177,000 (6,000) 348,000 (6,000)
AMORTIZATION - INTANGIBLES/PATENTS 381,000 19,000 593,000 39,000
AMORTIZATION - PREPAID FINANCE EXPENSE 57,000 -- 120,000 --
--------- ---------------------------- ---------
EBITDA (12,000) $ 363,000 $ 457,000 $ 822,000
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