ANN ARBOR — The Ann Arbor optical and electronic equipment manufacturer Advanced Photonix Inc. (NYSE: API) reported revenue of $7.8 million in the second fiscal quarter ended Sept. 26, up from 3 percent from $7.5 million in the same quarter a year aerlier.
The loss for the quarter was $368,000 or 1 cent a share, an improvement from a loss fo $578,000 or 2 cents a share in the same quarter a year earlier.
The company said cost reductions in all operating expense lines were the main reason for the reduced loss.
The company also reported a “non-GAAP” profit figure, which excludes several items, a loss of $152,000 or less than a penny a share for the quarter, an improvement from a loss of $300,000 or 1 cent a share in the same quarter a year earlier. The non-GAAP figure excludes a change in the market value of stock warrants, amortization of intangibles and patents, non-cash interest expense, and stock option compensation expense.
GAAP earnings before interest, taxes, depreciation, amortization and stock compensation, sometimes called cash flow, was $74,000 for the quarter, up from $20,000 a year earlier.
For the six months, revenue was $15.5 million, up from $14.6 million a year ago. The loss for the six months was $636,000 or 2 cents a share, an improvement from a loss of $1.5 million or 5 cents a share in the same period of the prior fiscal year.
The company’s total operating expenses for the quarter were $2.9 million, down $439,000 from the prior year quarter due to cost reduction measures taken during last years’ second quarter. Total operating expenses were 37.2 percent of sales, down from 44.3 percetn for the second quarter last year.
The company finished the quarter with $1.1 million in cash, up from $120,000 as of March 31, due to the receipt in June of $2.9 million in net proceeds from a firm underwritten placement of 6.2 million shares by B Riley and Co.
“The second quarter was lower than expected due to a combination of a slowdown in telecommunication revenues and the continuing push out of F-35 contract activity,” said API president and CEO Richard Kurtz. “Our major customers for 100G transmission products are seeing a pause by domestic service providers in capital expenditures. This is simply a temporary situation and we expect to see a return in ordering later in our fiscal year. As previously mentioned during the quarter, we received a $1.6 million contract for the Rolling Airframe Missile or RAM program. This award will grow our military revenues for the remaining balance of the year. On the terahertz side, we have expanded our value-added reseller distribution chain with the addition of Seltek Ltd. This privately held company is located in Turkey, but has systems installed around the world. We have completed their VAR training and shipped the first system last month. We are also in the process of launching a new Terahertz product designated as the Single Point Gauge or SPG, targeted at off-line inspection for thickness measurements. While we cannot disclose the near term market opportunity, due to department of defense restrictions, we will have more news about the SPG product and market opportunities in our 4th quarter earnings call. On our HSOR product development roadmap, we have started to sample our new 10G APD Receiver Optical Sub Assembly or ROSA product for the fiber to the home market. We are expecting to see revenues from this new product next fiscal year. The recent pause in telecommunication and contract revenues has caused us to revaluate the year over year growth projections for this year. We are now positioning ourselves for flat growth year over year. We do believe that the combination of new products in the pipeline today, the release of the F-35 contract and a return to normalized capital expenditures by service providers, will happen in our 4th quarter and lead to a resumption of growth.”
To listen to a replay of the conference call discussing these results, visit www.advancedphotonix.com.
Advanced Photonix manufactures optoelectronic sensors, devices and instruments used by test and measurement, process control, medical, telecommunication and homeland security markets. The company has three product lines: Optosolutions focuses on enabling manufacturers to measure physical properties, including temperature, particular counting, color, and fluorescence for the medical, homeland security and process control applications. The Terahertz sensor product line is targeted to the process control, to enable quality control, and security markets through nondestructive testing. The T-Gauge sensor can measure subsurface physical properties, like multi-layers thicknesses, density, moisture content, anomaly detection and some chemical features, online and in real time. API’s high-speed optical receiver products are used by the telecommunication market in both telecommunication equipment and in test and measurement equipment utilized in the manufacturing of telecommunication equipment. For more information visit us on the web at www.advancedphotonix.com.