30 June 2010


Advanced Photonix returns to growth, led by high-speed optical receivers

For fiscal 2010 (to end March), Advanced Photonix Inc of Ann Arbor, MI, USA (which designs and makes silicon, InP- and GaAs-based photodetectors, subsystems, and terahertz instrumentation) has reported revenue of $21.1m, down 29% on $29.7m the prior year. The decrease was broad based across the firm’s markets, led by industrial, military and medical applications.

However, fiscal fourth-quarter revenue was $5.1m, down 16% on $6.1m a year ago but up 12% on $4.6m last quarter. “We have turned the corner and are beginning to grow again,” says chairman & CEO Richard Kurtz.

Despite the 16% revenue drop year-to-year, gross margin has risen from 38% to 46%, due mainly to product mix, facilities consolidation efforts completed in prior years (merging the wafer fabs in Camarillo, CA and Dodgeville, WI into Ann Arbor in mid-2007 and closing the silicon photodiode assembly facility in Dodgeville in late 2007), and cost-saving efforts implemented during the year. “This is a validation of the improved operating leverage of the business as a result of our operational improvements gained through facilities consolidation during the past several years as well as our long-term strategic plan,” says Kurtz.

Compared to $884,000 a year ago and $921,000 last quarter, non-GAAP net loss has been slashed to $310,000. Also, compared to –$603,000 a year ago and –$646,000 last quarter, EBITDA (earnings before interest, taxes, depreciation, and amortization) has improved to –$12,000.

“We have successfully navigated the worst recessionary environment in our life time,” says Kurtz. “While the speed and the amount of the recovery may still be in question, the fact is, business is getting better... We have continued to make the necessary investment in our product platforms to position us for growth as the economy recovers,” he adds.

“Our growth platforms of high-speed optical receivers (HSOR) and Terahertz systems are starting to show signs of recovery,” continues Kurtz. “We recently [in April] added a second shift in response to the growing demand and backlog for our HSOR products and our terahertz application development pipeline has never been stronger,” he adds. “Our Optosolutions business has stabilized and has begun to gradually recover. We are looking forward to restoring growth to our business in the coming year, led by our high-growth HSOR products.”

See related items:

Advanced Photonix restructures debt to boost cash flow by $1.3m through fiscal 2013 and cut interest by $120,000

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