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Articles 

Advanced Photonix Inc Reports Operating Results (10-Q)

February 13, 2012 | About:

Advanced Photonix Inc (API) filed Quarterly Report for the period ended 2011-12-30.

Advanced Photonix has a market cap of $24.47 million; its shares were traded at around $0.8095 with a P/E ratio of 39.5 and P/S ratio of 0.85.

Highlight of Business Operations:

Military/Aerospace market revenue in the third quarter of fiscal 2012 was $1.4 million and $3.3 million for the nine months ended December 30, 2011, a decrease of 11% (or $165,000) and 16% (or $633,000) from the comparable prior year periods. This decrease was attributable primarily to the softening in domestic military expenditures. Military/Aerospace market revenue in the third quarter of fiscal 2012 increased $246,000 (or 22%) from the second quarter of fiscal 2012, due to the timing of orders and shipments. We expect military revenues in the fourth quarter to increase as compared to the comparable quarter in the prior year, but to decrease for fiscal 2012 as compared to fiscal 2011. Medical market revenues in the third quarter ended December 30, 2011 were $308,000, a decrease from the prior year quarter of $139,000 (31%), primarily due to timing of orders and shipments. For the nine months ended December 30, 2011, revenue was $828,000, an increase of $153,000 (23%) from the prior year nine month period due to the return of a significant customer. On a sequential basis, revenue increased $83,000 from the second quarter of fiscal 2012, primarily because of the timing of shipments from one customer. We expect medical market revenue to increase substantially for fiscal 2012 as compared to fiscal 2011.

Sales and Marketing (S&M) expenses increased $29,000 (or 6%) to $484,000 (7% of sales) in the third quarter of fiscal 2012 compared to $455,000 (6% of sales) in the prior year third quarter. Sales and marketing expenses increased 23% (or $312,000) to $1.7 million for the nine month period ended December 30, 2011, compared to $1.4 million for nine month period ended December 31, 2010. The increase for both periods was primarily attributable to increased headcount. For the nine months ended December 30, 2011, external sales commissions increased year over year. We expect sales and marketing expenses for the year to increase relative to fiscal 2011 levels, but to decrease on a sequential basis.

General and Administrative (G&A) expenses increased $34,000 to approximately $1.1 million (16% of sales) for the third quarter of fiscal 2012, compared to $1.0 million (13% of sales) for the third quarter of fiscal 2011. G&A expenses for the nine month period ended December 30, 2011 increased by $528,000 (or 18%), to approximately $3.5 million (15% of sales) compared to $3.0 million (14% of sales) for the nine month period ended December 31, 2010. The increase for both periods was primarily attributable to increased headcount, higher recruiting fees and stock compensation. We expect G&A expenses to be higher on a dollar basis for fiscal 2012 compared to fiscal 2011, primarily driven by the increase in the executive management team and incremental stock compensation expense, but remain flat on a sequential basis.

General and Administrative (G&A) expenses increased $34,000 to approximately $1.1 million (16% of sales) for the third quarter of fiscal 2012, compared to $1.0 million (13% of sales) for the third quarter of fiscal 2011. G&A expenses for the nine month period ended December 30, 2011 increased by $528,000 (or 18%), to approximately $3.5 million (15% of sales) compared to $3.0 million (14% of sales) for the nine month period ended December 31, 2010. The increase for both periods was primarily attributable to increased headcount, higher recruiting fees and stock compensation. We expect G&A expenses to be higher on a dollar basis for fiscal 2012 compared to fiscal 2011, primarily driven by the increase in the executive management team and incremental stock compensation expense, but remain flat on a sequential basis.

We realized a net loss for the third quarter of fiscal 2012 of approximately $812,000 ($0.03 per share), as compared to a net loss of $649,000 ($0.03 per share) in the third quarter of fiscal 2011, an increase in the loss of approximately $163,000. This increase in loss for the fiscal 2012 quarter is primarily attributable to lower gross margin dollars realized of $394,000 and higher RD&E spending of $298,000, offset by favorable changes in the warrant value of $181,000 and no loss on debt extinguishment. Net loss for the nine month period ended December 30, 2011 was $1.0 million ($0.03 per share), as compared to a net loss of $1.3 million ($0.05 per share) for the comparable prior year periods, a decrease in loss of approximately $272,000. This improvement is primarily attributable to a favorable fair value warrant adjustment of $904,000 recorded in this period, a debt extinguishment charge of $318,000 incurred in the prior period, and an additional $731,000 in gross profit on $2.0 million higher revenue for the current period, offset by an increase in operating expenses of approximately $1.8 million. We have invested a significant portion of the additional gross profit in operating expenses like RD&E and sales & marketing.

Read the The complete Report

About the author:

10qk
Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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