News

11 August 2009

 

Advanced Photonix returns to underlying profit despite revenue drop

For its fiscal first-quarter 2010 (ending 26 June 2009), Advanced Photonix Inc of Ann Arbor, MI, USA (which designs and makes silicon, InP- and GaAs-based photodetectors, high-speed optical receivers, and terahertz instrumentation) has reported revenue of $5.9m, down 3% on $6.1m the prior quarter and down 24% on $7.8m a year ago.

“As we stated in our year-end conference call [in late June], the first half of the year would be a slow start with a drop in revenues from the prior year due primarily to the current economic conditions,” says chairman & CEO Richard Kurtz. “The first quarter results were in line with this guidance," he adds.

“The good news is we have been able to improve our EBITDA [earnings before interest, taxes, depreciation, and amortization] and non-GAAP profit over the fourth-quarter of fiscal 2009, despite a revenue drop,” says Kurtz. Though still down on $869,000 a year ago, non-GAAP net profit was $315,000, compared with a net loss of $884,000 the prior quarter. While still down on $1.04m a year ago, EBITDA was a positive $554,000, compared with negative $603,000 last quarter. Gross margin of 51% is up on 38% the prior quarter and 48% a year ago.

“This reflects the initial payoff from our long-term strategy over the past several years of investing in our high-value-added products targeted at growth markets and the streamlining of our operations [consolidation of the wafer fabs in Camarillo, CA and Dodgeville, WI into Ann Arbor and closure of the assembly facility in Dodgeville],” Kurtz comments. “In addition, our recent cost-reduction initiatives in response to the recession have helped control our operating expenses [cut to $3.2m, from $3.8m the prior quarter and $3.5m a year ago],” he continues.

“While we have instituted cost cuts this year, we are committed to continuing to make the strategic investments necessary to enable growth as the economic conditions improve,” Kurtz says. “We remain cautiously optimistic that our reduced cost structure and gross margin improvements have positioned API for long-term profitability as revenue growth returns and the economic conditions improve.”

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