News

1 July 2008

 

Advanced Photonix’s losses grow after telecom & defense sales slump

For its fiscal 2008 (to end March), vertically integrated optoelectronics manufacturer Advanced Photonix Inc (API) of Ann Arbor, MI, USA has reported revenue of $23.2m, down 1.6% on fiscal 2007’s $23.6m, due mainly to delays in certain telecom and defense product shipments from the latter half of fiscal 2008 to fiscal 2009. Fourth-quarter revenue was $5.2m, down on 16% on $6.2m a year ago.  

Non-GAAP net loss has grown from $287,000 in fiscal 2007 to $2.4m in fiscal 2008 (including $1.1m in Q4), due mainly to the unfavorable product mix resulting from lower sales to the telecoms and defense markets.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) have fallen from +$40,000 for fiscal 2007 to -$2.8m (including $1.8m of non-recurring expenses associated with wafer fab consolidation and closure of the assembly facility in Dodgeville, WI).

Gross margin has fallen from 46% to 38%. However, the firm does not believe this is a trend, and anticipates improvement in fiscal 2009 as a result of the plant consolidation (largely completed in fiscal 2008), the selective elimination of low-margin products in the industrial sensing market, increasing revenues from the telecom market (driven by 40Gb/s products), and the ramp up of T-Ray 4000 sales (beginning in fiscal 2009).

Products include patented silicon, indium phosphide and gallium arsenide based APD, PIN, and FILTRODE photodetectors; high-speed optical receivers; and the T-Ray 2000 and QA1000 THz terahertz instrumentation platforms.

“This past year marked a year of transition for API, one from cost reduction and product development the past few years to revenue and profit growth as we enter fiscal 2009,” says chairman and CEO Richard Kurtz. “Fiscal 2008 was a year of some successes, unexpected surprises, and delays; but overall making substantial progress in positioning API for growth in our three product platforms,” he adds.

“Looking to fiscal 2009, we are expecting to grow revenues 25% to $29m and report strong revenue and earnings growth starting in our first quarter,” Kurtz continues. “We expect that our gross margins will move closer to our strategic goal of 50% in fiscal 2009 as the benefits of our cost-reduction programs in our custom optoelectronics product platform and the revenue growth in our HSOR [ high-speed optical receiver] and THz product platforms increase our capacity utilization.”

See related items:

Advanced Photonix’s revenues fall 10% after 40G shipment delays

Advanced Photonix achieves positive EBITDA

Advanced Photonix closing Dodgeville assembly facility

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