Advanced Photonix Reports Improved Results
ANN ARBOR (WWJ) -- Advanced Photonix Inc. (NYSE: API), the Ann Arbor manufacturer of optic and electronic telecommunications gear, reported improved results for its first fiscal quarter ended June 28.
Net sales for the quarter were $7.1 million, an increase of $1.1 million or 14 percent from the first quarter ended June 29, 2012. Sequentially, revenues were up 18 percent relative to the fourth quarter of fiscal 2013.
Gross profit margin for the first quarter was 41.4 percent of sales, up from 36.1 percent of sales for the first fiscal quarter of the prior fiscal year. Cost reduction efforts and a sales mix tilted toward more profitable products helped improve the rate.
The company posted a loss of $925,000 or 3 cents a share for the quarter, a slight improvement from a loss of $993,000 or 3 cents a share in the first quarter of the prior fiscal year.
The company also provided a "non-GAAP" profit figure for the quarter. By this reckoning the company lost $403,000 or 1 cent a share in the prior fiscal year, an improvement from a non-GAAP loss of $689,000 or 2 cents a share a year earlier.
Non-GAAP net income removes changes in the value of investments, amortization of intangible assets and patents, acquisition expenses, non-cash interest expenses, and stock option compensation expenses.
API's total operating expenses for the quarter were $3.5 million, up approximately $232,000 from the prior year quarter due primarily to the operating expenses assumed when Advanced Photonix Canada acquired the net operating assets of Silonex. Total operating expenses were 48.8 percent of sales compared to 51.8 percent for the first quarter last year.
The company finished the quarter with $581,000 in cash compared to $619,000 as of March 31. Approximately $922,000 was drawn on the company's line of credit. Net working capital as of June 28 was $4.2 million.
"We are excited to see the top line growing again due to increased telecommunication infrastructure spending and the APC acquisition," said Richard Kurtz, chairman and CEO. "We continue to believe that our fiscal year 2014 revenues will exceed last year's revenues by over 35 percent. As I stated in our annual report, we have begun to include our industrial sales as part of the test and measurement market. In the past we had combined our telecommunication transmission product sales and communication test and measurement (Comtest) product sales as telecommunication revenue. Going forward we have split this out so that the telecommunication revenues includes solely the transmission revenues. We have included the Comtest product sales in the test and measurement category along with the previous industrial sales and our terahertz nondestructive test and process control sales. When looked at this way, over 50 percent of API's revenues come from using optoelectronics to solve our customers' need to test and measure key elements in their applications that can only be done through optical sensing. We look forward to establishing API as a leader in the test and measurement market."
To listen to a replay of a conference call discussing these results, visit www.advancedphotonix.com .
