Financial Highlights For Third Quarter Of Fiscal 2009:
The gross margins increased from 3% to 29% in the third quarter of 2009, compared to 26% in the year-ago quarter and up over 100% from second quarter 2009 gross margins of 13%. Excluding restructuring charges, third quarter 2009 gross margins were 30%;
The net loss incorporates nanotechnology R&D expenses of $1.1 million. Excluding such expenses, net loss for the third quarter of 2009 would have been $0.5 million;
Balance sheet with over $2.5 million in cash and marketable securities; and
Backlog increased over 7% from the second quarter to over $15.6 million, highlighted by a 32% year over year increase at the company’s National Hybrid division to $8.3 million.
Financial Highlights for the Nine Months Ended February 28, 2009:
Revenue was $19.4, a decrease of 12% from $22.1 million in the same period in fiscal 2008;
Gross margins declined 4% to 23% in the first nine months of fiscal 2009 from the previous year’s 27%. Excluding restructuring charges gross margins for the first nine months of 2009 were 26%; and
Net loss of $4.3 million or ($0.12) per share for the first nine months of fiscal 2009, compared to net loss of $3.0 million or ($0.12) per share for the same period of fiscal 2008. The GAAP net loss includes nanotechnology R&D expenses. Excluding such expenses, net loss for the first nine months of 2009 would have been $1.2 million.
Operating Highlights:
During third quarter of fiscal 2009, API Nanotronics continued its consolidation efforts and the shift of some manufacturing overseas resulting in a greater than 100% gross margin improvement from the previous quarter to 29%. Excluding restructuring charges related to the ongoing consolidation, third quarter gross margins were 67% higher than the second quarter1;
During the quarter API Nanotronics said that due to what its board of directors deems an undervalued share price and its strong balance sheet it authorized the repurchase of up to 10% of the company’s outstanding common shares.
Stephen Pudles, chief executive officer of API Nanotronics, said, Recent and continuing consolidation initiatives are delivering a better operating foundation for the company’s future. We are already seeing improved operating margins in this past quarter. We believe in our current products and that investments in innovative technologies will yield new products and growth going forward.
API Nanotronics is a Canada-based supplier of electronic components, systems and sub-systems, nano-optics and nanotechnology research and development.
