Advanced Photonix, Inc. (AMEX: API) , a supplier of optoelectronic photodetector components and systems, reported on June 30, 2008, that the company had released its earnings report for the fiscal year ended March 31, 2008. The reported figures were not charming. The company's revenue, which was $23.2 million for the fiscal year ended 2008, decreased 1.6% from the previous year. Advanced Photonix also reported a decreased profit margin of 38%, compared to 46% a year ago. On a quarterly basis, revenue dropped 15% to $5.2 million. The decrease in revenues led to a net loss of $2.4 million or 11 cents per share compared to $287 thousand or 2 cents per share for the fiscal year ended 2007. The net loss for the last quarter was $1.88 million.
Despite such nasty figures, Advanced Photonix believes that they will be able to increase their revenues by 25% for fiscal 2009. These expectations are based on management's belief that the current figures do not optimally represent the company's financial trends.
As would be expected, after such news, Advanced Photonix's share price dropped over 8% in trading this morning. The stock has been dropping for over half a year before it bounced up most likely because of its oversold position at the time. Still, the recent rally up, which lasted nearly a month, should not be expected to recur. On the contrary, the stock will most likely fall on the considerably bad earnings announcement.
Advanced Photonix's reported earlier this year they had signed a contract with a military contractor for the custom photodiode used in guided missile weapon systems. However the contract is only for $2.1 million, so the company will hardly show vast improvement in its income statement.
References:
http://www.advancedphotonix.com/
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