Advanced Photonix Reports Revenue Up 19 Percent

ANN ARBOR -- Advanced Photonix Inc. (NYSE Amex: API), the maker of advanced optical and electronic communications gear and terahertz instrumentation, reported revenue of $8.4 million in the quarter ended Sept. 30, up 19 percent from $7 million a year earlier.

The loss for the quarter was $254,000 or 1 cent a share, an improvement from a loss of $398,000 or 2 cents a share in the same quarter a year earlier.

For the first six months of the company's fiscal year, revenue was $16.5 million, up 24 percent from $13.3 million a year earlier.

The loss for the six months was $236,000 or 1 cent a share, vs. a loss of $671,000 or 3 cents a share in the first half of the prior fiscal year.

"Our second quarter results were in line with our expectations of growth," said API CEO Richard Kurtz. "We had strong growth in ... the telecommunication market and in the terahertz homeland security market relative to last year's second quarter. Our gross margins increased to 43 percent this quarter a result of our reduction in scrap and rework expenses on high-speed optical receiver products. The effect of the flooding in Thailand is impacting the telecommunication supply chain, resulting in some customers' delaying orders and deliveries. We are continuing to invest in our high growth opportunities and are optimistic about our long-term future, but the impact of the flooding, and continued malaise in the macroeconomic environment is expected to reduce our growth for this fiscal year."

To listen to a replay of a conference call discussing the company's results, call (888) 286-8010 in the United States or (617) 801-6888 elsewhere, using the pass code 87882970.

Advanced Photonix provides optoelectronic products and services, high-speed optical receivers and terahertz instrumentation for telecom, homeland security, military, medical and industrial markets.

More at www.advancedphotonix.com.