Advanced Photonix Reports FY2013 Third Quarter Results
Advanced Photonix Reports FY2013 Third Quarter Results
ANN ARBOR, Mich.--(BUSINESS WIRE)-- Advanced Photonix, Inc.® (NYSE MKT: API) (the "Company") today reported results for the third quarter ended December 28, 2012.
Financial Highlights for the Third Quarter Ended December 28, 2012
Net sales for the quarter were $5.8 million, a decrease of $0.7 million or 10% from the third quarter ended December 30, 2011. Sequentially, revenues were up 4% relative to the second quarter of fiscal 2013.
Gross profit margin for Q3 FY2013 was 42.0% of sales compared to 41.3% for the same quarter of fiscal 2012 due to a favorable product mix and cost reduction efforts.
Current quarter net loss was $1,026,000 or $0.03 per diluted share, as compared to a quarterly loss of $812,000, or $0.03 per diluted share for the quarter ended December 30, 2011.
The Non-GAAP net loss for the third quarter of fiscal 2013 was $700,000 or $0.02 per diluted share, as compared to a Non-GAAP net loss of $317,000, or $.01 per diluted share, for the third quarter last year.
Adjusted EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, amortization and stock compensation), was a negative $485,000 for the third quarter of fiscal 2013 as compared to a negative adjusted EBITDA of $1,000 for the quarter ended December 30, 2011.
Operating Expenses
The Company's total operating expenses for the quarter were $3.5 million, comparable to the $3.5 million reported for the third quarter last year. As a percent of revenue, total operating expenses for the third quarter of 2013 relative to the third quarter of 2012 were 59% and 55% respectively.
Richard Kurtz, Chief Executive Officer, commented, "We continue to see signs of improving business condition although further out than we expected. Because of the continuing supply issues we have experienced and continue to have in our 100G HSOR product platform, we now expect a flat second half of fiscal 2013 relative to the first half with growth picking up in subsequent quarters. In anticipation of the drop in revenue in this second half, we have secured an additional $2.5 million in a credit facility to insure we can meet our growth plans this coming year. I would like to thank Partners for Growth for working with us to structure a financing deal that aligns our short term and long term debt and minimizes shareholder dilution. We plan to give our total revenue guidance for fiscal 2014 in June with our total year fiscal year 2013 results."
Conference Call
The Company will hold a conference call to discuss the results for the third quarter ended on Monday, February 11, 2013, at 4:30 PM EST.
The conference call will be webcast live and will be accessible at http://advancedphotonix.investorroom.com. Participants can dial into the conference call at 888.680.0869 (617.213.4854 for international) using the passcode 71842800. A question and answer period will take place at the end of the discussion.
An audio replay of the call will be available shortly thereafter and will remain on-line until February 18, 2013. The replay number is 888.286.8010 (617.801.6888 for international) and the passcode is 20930728.
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, unforeseen technological obstacles which may prevent or slow the development and/or manufacture of new products; potential problems with the integration of the acquired company and its technology and possible inability to achieve expected synergies; obstacles to successfully combining product offerings and lack of customer acceptance of such offerings; 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; and the risk factors listed from time to time in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and any subsequent SEC filings. The Company assumes no obligation to update forward-looking statements contained in this release to reflect new information or future events or developments. API-G
CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||
Dec 28, 2012 | ||||||||||
ASSETS | (unaudited) | March 31, 2012 | ||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 559,000 | $ | 3,249,000 | ||||||
Receivables, net | 3,770,000 | 4,539,000 | ||||||||
Inventories | 3,702,000 | 3,594,000 | ||||||||
Prepaid expenses and other current assets | 450,000 | 261,000 | ||||||||
Total current assets | 8,481,000 | 11,643,000 | ||||||||
Equipment and leasehold improvements, net | 3,033,000 | 3,301,000 | ||||||||
Goodwill | 4,579,000 | 4,579,000 | ||||||||
Intangibles and patents, net | 3,760,000 | 4,538,000 | ||||||||
Other assets | 345,000 | 322,000 | ||||||||
Total assets | $ | 20,198,000 | $ | 24,383,000 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Current liabilities | ||||||||||
Accounts payable and accrued expenses | $ | 2,206,000 | $ | 1,878,000 | ||||||
Accrued compensation | 708,000 | 866,000 | ||||||||
Current portion of long-term debt - bank term loan | 333,000 | 333,000 | ||||||||
Current portion of long-term debt - bank line of credit | -- | 500,000 | ||||||||
Current portion of long-term debt - MEDC/MSF | 547,000 | 532,000 | ||||||||
Total current liabilities | 3,794,000 | 4,109,000 | ||||||||
Long-term debt, less current portion - MEDC/MSF | 517,000 | 929,000 | ||||||||
Long-term debt, less current portion - bank term loan | 417,000 | 667,000 | ||||||||
Warrant liability | -- | 26,000 | ||||||||
Total liabilities | 4,728,000 | 5,731,000 | ||||||||
Shareholders' equity | ||||||||||
Class A common stock, $.001 par value, 100,000,000 shares authorized; December 28, 2012 - 31,161,147 shares issued and outstanding; March 31, 2012 - 31,159,431 shares issued and outstanding | 31,000 | 31,000 | ||||||||
Additional paid-in capital | 58,570,000 | 58,446,000 | ||||||||
Accumulated deficit | (43,131,000 | ) | (39,825,000 | ) | ||||||
Total shareholders' equity | 15,470,000 | 18,652,000 | ||||||||
Total liabilities and shareholders' equity | $ | 20,198,000 | $ | 24,383,000 | ||||||
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
Dec 28, 2012 | Dec 30, 2011 | Dec 28, 2012 | Dec 30, 2011 | ||||||||||||||
Sales, net | $ | 5,834,000 | $ | 6,518,000 | $ | 17,636,000 | $ | 22,991,000 | |||||||||
Cost of products sold | 3,381,000 | 3,828,000 | 10,965,000 | 13,356,000 | |||||||||||||
Gross profit | 2,453,000 | 2,690,000 | 6,671,000 | 9,635,000 | |||||||||||||
Operating expenses | |||||||||||||||||
Research and development | 1,558,000 | 1,660,000 | 4,271,000 | 5,066,000 | |||||||||||||
Sales and marketing | 527,000 | 484,000 | 1,528,000 | 1,664,000 | |||||||||||||
General and administrative | 1,087,000 | 1,062,000 | 3,259,000 | 3,521,000 | |||||||||||||
Amortization | 293,000 | 344,000 | 876,000 | 1,028,000 | |||||||||||||
Total operating expenses | 3,465,000 | 3,550,000 | 9,934,000 | 11,279,000 | |||||||||||||
Loss from operations | (1,012,000 | ) | (860,000 | ) | (3,263,000 | ) | (1,644,000 | ) | |||||||||
Other income (expense) | |||||||||||||||||
Interest income | 7,000 | 1,000 | 7,000 | 5,000 | |||||||||||||
Interest expense | (34,000 | ) | (30,000 | ) | (97,000 | ) | (93,000 | ) | |||||||||
Interest expense, related parties | -- | (10,000 | ) | -- | (38,000 | ) | |||||||||||
Change in fair value of warrant liability | 13,000 | 84,000 | 26,000 | 719,000 | |||||||||||||
Other income | -- | 3,000 | 22,000 | 3,000 | |||||||||||||
Net loss | $ | (1,026,000 | ) | $ | (812,000 | ) | $ | (3,305,000 | ) | $ | (1,048,000 | ) | |||||
Net loss per common share | |||||||||||||||||
Basic and diluted | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.03 | ) | |||||
Weighted average common shares outstanding | |||||||||||||||||
Basic and diluted | 31,161,000 | 30,972,000 | 31,161,000 | 30,828,000 | |||||||||||||
Non-GAAP Financial Measures
The Company provides Non-GAAP Net Income, EBITDA and adjusted 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, EBITDA and adjusted 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, EBITDA and adjusted 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 | Nine months ended | ||||||||||||||||
Dec 28, 2012 | Dec 30, 2011 | Dec 28, 2012 | Dec 30, 2011 | ||||||||||||||
Net income (loss) | $ | (1,026,000 | ) | $ | (812,000 | ) | $ | (3,305,000 | ) | $ | (1,048,000 | ) | |||||
Add back: | |||||||||||||||||
Change in warrant fair value | (13,000 | ) | (84,000 | ) | (26,000 | ) | (719,000 | ) | |||||||||
Amortization - intangibles/patents | 293,000 | 344,000 | 876,000 | 1,028,000 | |||||||||||||
Stock option compensation expense | 46,000 | 235,000 | 124,000 | 480,000 | |||||||||||||
Subtotal - add backs | 326,000 | 495,000 | 974,000 | 789,000 | |||||||||||||
Non-GAAP (loss) | $ | (700,000 | ) | $ | (317,000 | ) | $ | (2,331,000 | ) | $ | (259,000 | ) | |||||
Net loss per common share | |||||||||||||||||
Basic and diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.07 | ) | $ | (0.01 | ) | |||||
Weighted average common shares outstanding | |||||||||||||||||
Basic and diluted | 31,161,000 | 30,972,000 | 31,161,000 | 30,828,000 | |||||||||||||
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA TO GAAP (LOSS) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
Dec 28, 2012 | Dec 30, 2011 | Dec 28, 2012 | Dec 30, 2011 | ||||||||||||||
Net income (loss) | $ | (1,026,000 | ) | $ | (812,000 | ) | $ | (3,305,000 | ) | $ | (1,048,000 | ) | |||||
Add Back: | |||||||||||||||||
Net interest expense (income) | 27,000 | 39,000 | 90,000 | 126,000 | |||||||||||||
Warrant (fair value) adjustment | (13,000 | ) | (84,000 | ) | (26,000 | ) | (719,000 | ) | |||||||||
Depreciation expense | 188,000 | 277,000 | 583,000 | 806,000 | |||||||||||||
Amortization | 293,000 | 344,000 | 876,000 | 1,028,000 | |||||||||||||
Subtotal - add backs | 495,000 | 576,000 | 1,523,000 | 1,241,000 | |||||||||||||
EBITDA | $ | (531,000 | ) | $ | (236,000 | ) | $ | (1,782,000 | ) | $ | |||||||
