Advanced Photonix Reports Sharply Lower Sales, Bigger Loss

ANN ARBOR -- Advanced Photonix Inc. (NYSE MKT: API) Tuesday reported sharply lower sales and a larger loss for the second fiscal quarter ended Sept. 28.

Revenue was $5.6 million, down 33 percent from $8.1 million in the same quarter a year earlier. Revenue was also down 10 percent from the first fiscal quarter.

The loss for the quarter was $1.3 million or 4 cents a share, worse than a quarterly loss of $254,000 or 1 cent a share for the second fiscal quarter of the prior fiscal year.

Earnings before interest, taxes, depreciation, amortization and stock compensation, sometimes referred to as cash flow, was a negative $717,000 for the quarter, compared to positive adjusted EBITDA of $469,000 for the prior year's second fiscal quarter.

The company's total operating expenses for the quarter were $3.2 million, down 17 percent compared to the $3.9 million reported for the second quarter last year. As a percent of revenue, total operating expenses were 58 percent compared to 47 percent for the second quarter last year.

"We continue to believe that our fiscal 2013 will have a much better second half," said Advanced Photonix CEO Richard Kurtz. "As with the other telecommunications suppliers we have seen weakness in network spending recently. This has caused us to be more cautious in our total year outlook. Our recent success in securing increased 100G business from one of our large OEM's for calendar year 2013 is a positive sign amid general softness we have seen from China and Europe due to challenging macro economic conditions. Our terahertz product platform is continuing to gain traction in industrial process control markets and we expect this growth to continue during the balance of the fiscal year and beyond. However, due to the more challenging international macroeconomic environment, reduced U.S. military activities, and the looming U.S. fiscal cliff and their corresponding impact on our customer's expansion plans in the industrial and defense markets, we are projecting a more cautious outlook for the fiscal year. Due to these conditions we are changing revenue growth for the second half of our fiscal 2013 to a range of 15 to 25 percent higher than the first half."

To listen to a replay of a conference call discussing the results, call (888) 286-8010 in the United States or (617) 801-6888 elsewhere, using the pass code is 27900435.

Advanced Photonix supplies optoelectronic products to a global customer base. It provides high-speed optical receivers and terahertz instrumentation for telecom, homeland security, military, medical and industrial markets.

More at www.advancedphotonix.com.