Record Quarterly Revenues of $8.2 million, up 25% ANN ARBOR, Mich.,
Nov. 10 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.(R)
(NYSE:API) (the "Company") today reported its second quarter fiscal
2009 results ending September 26, 2008. Financial Highlights for
the Second Quarter Ended September 26, 2008 -- Net sales for the
quarter were $8.2 million, an increase of $1.7 million, or 25%,
compared to revenues for the quarter ended September 28, 2007. The
increase was driven by military and Industrial/NDT markets. Net
sales for the year to date were $16.0 million, an increase of $3.3
million, or 26%, compared to the prior year to date period. The
increase was broad based across four of its five markets off-set by
a reduction in medical revenues. -- Gross profit margin for Q2 2009
was 44% of sales compared to 42% for the quarter ended September
28, 2007. This improvement in gross profit margin was due primarily
to favorable product mix attributable to increased revenues from
military and homeland security markets. Gross profit margin for the
year to date was 46% compared to 41% for the prior year to date
period, driven by favorable product mix attributable to increased
revenues from military, telecommunications and homeland security
markets. -- Operating loss for the quarter was $225,000 as compared
to an operating loss of $768,000 for the quarter ended September
28, 2007. Operating income year to date was $14,000 compared to an
operating loss of $1.8 million for the prior year to date period.
-- GAAP net loss for the quarter was $326,000, or $.01 per diluted
share, as compared to a GAAP net loss of $1.9 million, or $.09 per
diluted share, for the quarter ended September 28, 2007. GAAP net
loss year to date was $179,000 or $.01 per diluted share, as
compared to $3.8 million, or $.19 per diluted share, for the prior
year period. -- The Non-GAAP net income for the second quarter of
fiscal 2009 was $307,000, or $0.01 per diluted share, as compared
to a Non-GAAP net loss of $86,000, or $.00 per diluted share, for
the comparable quarter ended September 28, 2007. The Company
reported year to date Non-GAAP net income of $1.2 million, or $0.05
per diluted share, as compared to a Non-GAAP loss of $350,000, or
$0.02 per diluted share, for the comparable prior year period. --
On an EBITDA basis (which is defined as GAAP earnings before
interest, taxes, depreciation, and amortization), the Company
reported EBITDA of $559,000 for the second quarter of fiscal 2009
as compared to EBITDA of $15,000 for the quarter ended September
28, 2007. For the year to date, the Company reported EBITDA of $1.6
million as compared to a negative EBITDA of $324,000 for the
comparable prior year period. Richard Kurtz, Chairman and Chief
Executive Officer, commented, "We are pleased with the results of
the second quarter. The balance and strength of our three product
platforms continues to give us the ability to meet our growth
targets in this challenging economic environment. As we've stated
previously, our market opportunities and product platforms
compliment each another, and each product platform gives us a solid
foundation to grow. In the second quarter, the strongest growth
came from our military, industrial and homeland security markets.
We continue to believe we are in a strong multi-year growth period,
but can still experience uneven quarterly revenue growth in our
product platforms as our customers continue to test, qualify and
deploy next-generation 40G HSOR and terahertz systems. We expect to
continue to see fluctuations in our customers' spending in any
given quarter due primarily to slower new product introductions and
reduced capital expenditures due to current macro economic
conditions. Looking ahead we continue to be cautiously optimistic
and are taking a prudently cautious view of guidance for the
balance of the year. As a result we are continuing to hold to our
revenue growth target of 30% year over year." The Company will hold
a conference call to discuss the results for the second quarter
ended September 26, 2008 on Monday, November 10, 2008, at 5:00 PM
EST. Participants can dial into the conference call at 888-713-4217
(617-213-4869 for international) using the pass code 81504349. 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
http://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 13151357. 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. Condensed Consolidated Balance Sheets Assets September
26, 2008 March 31, 2008 Current Assets (unaudited) Cash and cash
equivalents $389,000 $82,000 Restricted cash 500,000 1,500,000
Accounts receivable, net of allowance 5,188,000 3,202,000
Inventories, net of allowances 4,309,000 4,131,000 Prepaid expenses
and other current assets 478,000 195,000 Total current assets
10,864,000 9,110,000 Equipment & Leasehold Improvements, at
cost 11,226,000 10,847,000 Accumulated depreciation (6,627,000)
(6,090,000) Net Equipment and Leasehold Improvements 4,599,000
4,757,000 Goodwill 4,579,000 4,579,000 Patents, net 621,000 538,000
Intangible assets, net 9,295,000 10,333,000 Other assets 385,000
386,000 Total assets $30,343,000 $29,703,000 Liabilities and
shareholders' equity Current liabilities Line of credit $1,363,000
$1,300,000 Accounts payable 1,420,000 1,339,000 Accrued expenses
1,962,000 1,254,000 Current portion of long-term debt-related
parties 1,851,000 900,000 Current portion of long-term debt-capital
lease obligations - 460,000 Current portion of long-term debt-bank
term loan 398,000 - Current portion of long-term debt - MEDC
322,000 62,000 Total current liabilities 7,316,000 5,315,000 Long
term debt, less current portion 3,327,000 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 10,643,000 9,972,000 Shareholders' equity Class A
common stock, $.001 par value, 100,000,000 shares authorized;
September 26, 2008 - 24,076,216 shares issued and outstanding;
March 31, 2008 - 23,977,678 shares issued and outstanding 24,000
24,000 Additional paid-in capital 52,298,000 52,150,000 Accumulated
deficit (32,622,000) (32,443,000) Total shareholders' equity
19,700,000 19,731,000 Total liabilities and shareholders' equity
$30,343,000 $29,703,000 Consolidated Statements of Operations
(unaudited) Three months ended Six months ended September 26,
September 28, September 26, September 28, 2008 2007 2008 2007 Net
Sales $8,188,000 $6,529,000 $15,958,000 $12,674,000 Cost of Sales
4,624,000 3,784,000 8,638,000 7,459,000 Gross Margin 3,564,000
2,745,000 7,320,000 5,215,000 Other Operating Expenses Research
& Development 1,081,000 1,016,000 2,209,000 1,910,000 General
& Administrative 1,432,000 1,180,000 2,515,000 2,353,000
Amortization 518,000 490,000 1,044,000 980,000 Wafer Fab
Consolidation 48,000 268,000 208,000 611,000 Sales & Marketing
710,000 559,000 1,330,000 1,205,000 Total Other Operating Expenses
3,789,000 3,513,000 7,306,000 7,059,000 Net Operating Income (Loss)
(225,000) (768,000) 14,000 (1,844,000) Other (Income) & Expense
Other (Income) /Expense 2,000 (12,000) 2,000 (18,000) Interest
Income (12,000) (26,000) (28,000) (47,000) Interest Expense-Related
Parties 28,000 42,000 55,000 99,000 Interest Expense - Warrant
discount - 805,000 - 1,373,000 Interest Expense 83,000 280,000
164,000 512,000 Other (Income) & Expense 101,000 1,089,000
193,000 1,919,000 Net Income (Loss) $(326,000) $(1,857,000)
$(179,000) $(3,763,000) Basic and diluted earnings per share
$(0.01) $(0.09) $(0.01) $(0.19) Weighted number of shares
outstanding - Basic and diluted 24,060,000 19,906,000 24,035,000
19,584,000 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) Three months ended Six months ended September
26, September 28, September 26, September 28, 2008 2007 2008 2007
Net Income (Loss) $(326,000) $(1,857,000) $(179,000) $(3,763,000)
Add Back: Interest Expense - Convertible notes - 129,000 - 256,000
Interest expense - Warrant (fair value) - 805,000 - 1,373,000
Amortization - intangibles/patents 518,000 490,000 1,044,000
980,000 Stock Option Compensation Expense 67,000 49,000 100,000
133,000 Private Placement - 30,000 - 60,000 Other Expense - Wafer
Fabrication 48,000 268,000 208,000 611,000 Subtotal - Add backs
633,000 1,771,000 1,352,000 3,413,000 Non-GAAP Income (Loss)
$307,000 $(86,000) $1,173,000 $(350,000) Net earnings loss per
share $0.01 $(0.00) $0.05 $(0.02) Weighted Average Number of shares
outstanding 24,060,000 19,906,000 24,035,000 19,584,000
Reconciliation of EBITDA to GAAP income/(loss) Three months ended
Six months ended September 26, September 28, September 26,
September 28, 2008 2007 2008 2007 Net Income (Loss) $(326,000)
$(1,857,000) $(179,000) $(3,763,000) Add Back: Net Interest expense
(income) 99,000 296,000 191,000 564,000 Interest expense - Warrant
(fair value) - 805,000 - 1,373,000 Depreciation Expense 268,000
281,000 536,000 522,000 Amortization 518,000 490,000 1,044,000
980,000 Subtotal - Add backs 885,000 1,872,000 1,771,000 3,439,000
EBITDA $559,000 $15,000 $1,592,000 $(324,000) Advanced Photonix,
Inc.(R) (NYSE: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(R) photodetectors; high-speed
optical receivers; and the T-Ray(TM) 2000 and QA1000 THz product
platforms. More information on Advanced Photonix can be found at
http://www.advancedphotonix.com/. Contact: Richard Kurtz, Advanced
Photonix, Inc. (734) 864-5600 Richard Moyer, Cameron Associates
(212) 554-5466 DATASOURCE: Advanced Photonix, Inc.(R) CONTACT:
Richard Kurtz, Advanced Photonix, Inc., +1-734-864-5600, or Richard
Moyer, Cameron Associates, +1-212-554-5466 Web site:
http://www.advancedphotonix.com/
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