API Nanotronics Corp. (API Nanotronics) has reported revenues of $5.7 million for the second quarter of fiscal 2009, down 25%, compared with the revenues of $7.6 million in the year-ago quarter. It has also reported a net loss of $1.9 million, or $0.05 loss per share, for the second quarter of fiscal 2009, compared with the net loss of $1.2 million, or $0.05 loss per share, in the year-ago quarter.
Financial Highlights for the Second Quarter Ended November 30, 2008:
The company posted an operating loss of $2.5 million compared to an operating loss of $1.0 million for the three months ended November 30, 2007;
Strong balance sheet with around $4.1 million in cash and $0.1 million of long term debt; and
Backlog of $14.5 million.
Financial Highlights for the Six Months Ended November 30, 2008:
Revenue was $13.6 million, a decrease of 7.5% from $14.7 million in the same period in 2007;
The company continued to generate positive cash flow from operations. In the six months ended November 30, 2008, net cash provided by operating activities increased to $0.5 million compared to $0.1 million in the previous year; and
Net loss of $2.7 million or ($0.08) per share for the first half of fiscal 2009, compared to net loss of $1.9 million or ($0.08) per share for the same period of fiscal 2008.
Operating Highlights:
During the second quarter of fiscal 2009, API continued to implement cost-saving restructuring initiatives enabling the company to generate positive cash from operating activities in a difficult economic environment, while continuing to invest in future nanotechnology product development;
The company continued its consolidation efforts of reducing design and manufacturing centers to three facilities from seven and closing and consolidating operations at facilities in Ogdensburg and Endicott, New York and Largo, Florida. These strategic moves were undertaken to reduce operating costs while enhancing production capabilities;
In response to market conditions, the company continues to transition certain product lines to China for manufacture, which should assist in increasing margins;
In September, a leading semiconductor capital equipment company enlisted the company to develop a key nanotechnology derived optical component for a next generation lithography platform;
Also in September, the company announced the introduction of a new series of nano-optic high-performance polarizing beam splitter/combiners; and developed a number of products that combine its proprietary nanofabrication techniques with MEMS technologies; and
The company completed a fifteen-for-one reverse stock split.
The Company is clearly making strides towards a financial structure that will benefit long term performance and shareholder value, said Stephen B. Pudles, chief executive officer of API Nanotronics Inc. In this difficult financial period, the Company has been able to maintain a strong balance sheet and improve operations, positioning it for greatly improved performance going forward.