ANN ARBOR, Mich., Aug. 16 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.® (NYSE Amex: API) (the "Company") today reported its first quarter fiscal 2011 results ending July 2, 2010.

Financial Highlights for the First Quarter compared to the 4th quarter 2010

    --  Net Sales for the quarter were $6.3 million, an increase of $1.1 million
        or 22% over the 4th quarter ended March 31, 2010.
    --  Gross profit margin for Q1 2011 was 47% of sales compared to 46% for the
        4th quarter ended March 31, 2010.
    --  Operating expenses were $3.2 million for the quarter as compared to $3.3
        million for the 4th quarter ended March 31, 2010, a decrease of 3%.
    --  Quarterly net loss was $273,000 or $0.01 per diluted share, as compared
        to a net loss of $846,000, or $0.03 per diluted share, for the 4th
        quarter ended March 31, 2010.
    --  The Non-GAAP net profit for the first quarter of fiscal 2011 was $97,000
        or $0.00 per diluted share, as compared to a Non-GAAP net loss of
        $324,000 or $0.01 per diluted share, for the 4th quarter ended March 31,
        2010.
    --  EBITDA (which is defined as GAAP earnings before interest, taxes,
        depreciation, and amortization), was a positive $387,000 for the first
        quarter of fiscal 2011 as compared to a negative EBITDA of $12,000 from
        the 4th quarter ended March 31, 2010.

Financial Highlights for the First Quarter compared to the prior year

    --  The Company's revenues for the quarter ended July 2, 2010 were $6.3
        million, an increase of 5% (or $319,000) over revenues of $5.9 million
        for the quarter ended June 26, 2009.
    --  Gross Profit for Q1 2011 was $2.9 million compared to Q1 2010 of $3.0
        million, or a slight decrease of 3% on 5% increase in revenue volume. 
        Gross profit margins decreased to 47% for Q1 2011 compared to 51% of
        sales for the comparable prior year period.
    --  Operating expenses were $3.2 million for the quarter as compared to $3.2
        million for the comparable prior year period.
    --  Quarterly net loss was $273,000 or $0.01 per diluted share, as compared
        to a net loss of $296,000, or $0.01 per diluted share, for the quarter
        ended June 26, 2009.
    --  The Non-GAAP net profit for the first quarter of fiscal 2011 was $97,000
        or $0.00 per diluted share, as compared to a Non-GAAP net profit of
        $315,000 or $0.01 per diluted share, for the comparable prior year
        period.
    --  EBITDA (which is defined as GAAP earnings before interest, taxes,
        depreciation, and amortization), was a positive $387,000 for the first
        quarter of fiscal 2011 as compared to positive EBITDA of $554,000 for
        the comparable prior year period.

Richard Kurtz, Chairman and Chief Executive Officer, commented, "As we stated in our year end conference call, this year would be one of getting us back on a growth path. The first quarter results were in line with the guidance we gave in June of 15% to 20% year over year growth. If we annualize the 1st quarter of $6.3 million that would give us a $24.8 million for FY 2011 or a projected growth rate of 18% over last year. Our second quarter is also strong and we are continuing to see an increase in demand for our HSOR products, a rebounding of our Optosolutions product platform and strong interest with our terahertz product platform, as demonstrated by our recent sale of a system into the art conservation world of the Louvre. We are optimistic about meeting our growth goals and would narrow our guidance range to the high end or 20% for the year."

The Company will hold a conference call to discuss the results for the first quarter Monday, August 16, 2010, at 4:30 PM EDT. Participants can dial into the conference call at 888.713.4218 (617.213.4870 for international) using the passcode 882734227. A question and answer period will take place at the end of the discussion. A press release with the financial results will be announced after the close of the market on the same day.

Participants may pre-register for the call at:

https://www.theconferencingservice.com/prereg/key.process?key=PDEYHUMDA

Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection.

The call will be webcast live by CCBN and can be accessed at Advanced Photonix's web site at http://investor.advancedphotonix.com.

An audio replay of the call will be available shortly thereafter the same day and will remain on-line for two weeks. The replay number is 888-286-8010 (617-801-6888 for international) using passcode 38850634.

Forward-looking Statements:

The information contained herein includes forward-looking statements that are based on assumptions that management believes to be reasonable but are subject to inherent uncertainties and risks including, but not limited to, risks associated with the move of our wafer fabrication facilities, technological obsolescence of existing product lines and technological obstacles which may prevent or slow the development and/or manufacture of new products, limited (or slower than anticipated) customer acceptance of new products which have been and are being developed by the Company and a decline in the general demand for optoelectronic products.

    Contact:
    Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
    Cameron Donahue, Hayden IR (651) 653-1854

                   CONSOLIDATED BALANCE SHEETS
              Condensed Consolidated Balance Sheets

                                              July 2,       March 31,
                   Assets                       2010           2010
                                            (unaudited)
    Current Assets
      Cash and cash equivalents               $1,431,000     $1,762,000
      Accounts receivable, net of
       allowance                               3,407,000      2,679,000
      Inventories, net of allowances           3,805,000      3,656,000
      Prepaid expenses and other current
       assets                                    201,000        200,000
                                                 -------        -------
              Total current assets             8,844,000      8,297,000
      Equipment & Leasehold Improvements,
       at cost                                11,366,000     11,200,000
      Accumulated depreciation                (8,144,000)    (7,916,000)
                                              ----------     ----------
      Net Equipment and Leasehold
       Improvements                            3,222,000      3,284,000
      Goodwill, net of accumulated
       amortization                            4,579,000      4,579,000
      Patents, net                               962,000        861,000
      Intangible assets, net                   5,839,000      6,235,000
      Restricted cash                            500,000        500,000
      Other assets                               276,000         99,000
        Total assets                         $24,222,000    $23,855,000
                                             ===========    ===========

    Liabilities and shareholders' equity
    Current liabilities
      Accounts payable and accrued
       expenses                               $3,023,000     $2,828,000
      Compensation and related
       withholdings                              539,000        530,000
      Current portion of long-term debt-
       related parties                         1,401,000      1,401,000
      Current portion of long-term debt-
       bank term loan                            434,000        434,000
      Current portion of long-term debt-
       MEDC                                      422,000        254,000
                                                 -------        -------
        Total current liabilities              5,819,000      5,447,000
    Long term debt, less current
     portion-MEDC                              1,802,000      1,970,000
    Long term debt, less current portion
     -line of credit                           1,394,000      1,394,000
    Long term debt, less current portion
     -bank term loan                             542,000        687,000
                                                 -------        -------
        Total liabilities                      9,557,000      9,498,000

    Shareholders' equity
      Class A common stock, $.001 par
       value, 100,000,000 shares
       authorized; July 2, 2010 -
       25,537,032 shares issued and
       outstanding; March 31, 2010 -
       24,495,669 shares issued and
       outstanding                                26,000         24,000
      Additional paid-in capital              50,743,000     50,164,000
      Accumulated deficit                    (36,104,000)   (35,831,000)
                                             -----------    -----------
        Total shareholders' equity            14,665,000     14,357,000

      Total liabilities and shareholders'
       equity                                $24,222,000    $23,855,000
                                             ===========    ===========

    Consolidated Statement of Operations (unaudited)
    ------------------------------------------------

                                      Three months ended
                                      ------------------
                                      July 2,    June 26,
                                        2010        2009
    Net Sales                       $6,253,000  $5,934,000
    Cost of Sales                    3,335,000   2,937,000
                                     ---------   ---------
    Gross Margin                     2,918,000   2,997,000

    Other Operating Expenses
        Research & Development       1,288,000   1,063,000
        General & Administrative     1,012,000   1,173,000
        Amortization                   406,000     515,000
        Wafer Fab Consolidation              -      40,000
        Sales & Marketing              473,000     451,000
                                       -------     -------
    Total Other Operating Expenses   3,179,000   3,242,000

    Net Operating Income (Loss)       (261,000)   (245,000)

    Other (Income) & Expense
        Other (Income)/Expense           2,000      10,000
        Change in fair value of
         warrant liability             (54,000)    (39,000)
        Interest Income                 (1,000)     (1,000)
        Interest Expense-Related
         Parties                        15,000      14,000
        Interest Expense                50,000      67,000
                                        ------      ------
    Other (Income) & Expense            12,000      51,000

    Net Income (Loss)                $(273,000)  $(296,000)
    Basic and diluted earnings per
     share                              $(0.01)     $(0.01)

    Weighted number of shares
     outstanding -Basic and
     diluted                        24,675,000  24,135,000

Non-GAAP Financial Measures

The Company provides Non-GAAP Net Income and EBITDA as supplemental financial information regarding the Company's operational performance. These Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Non-GAAP Net Income and EBITDA should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from similar measures used by other companies. Reconciliation of Non-GAAP Net Income and EBITDA to GAAP net income and loss are set forth in the financial schedule section below.

    Reconciliation of Non-GAAP Income (loss) to GAAP Income (loss)

                                         Three months ended
                                         ------------------
                                         July 2,    June 26,
                                           2010        2009
    Net Income (Loss)                   $(273,000)  $(296,000)

    Add Back:
        Change in warrant fair value      (54,000)    (39,000)
        Amortization -intangibles/
         patents                          406,000     515,000
        Stock Option Compensation
         Expense                           18,000      95,000
        Other Expense -Wafer
         Fabrication                            -      40,000
                                              ---      ------
           Subtotal - Add backs           370,000     611,000
          Non-GAAP Income (Loss)          $97,000    $315,000
                                          =======    ========

    Net earnings per share                  $0.00       $0.01

    Weighted number of shares
     outstanding -Basic and
     diluted                           24,675,000  24,135,000


        Reconciliation of EBITDA to GAAP income/(loss)
                                         Three months ended
                                         ------------------
                                         July 2,    June 26,
                                           2010        2009
    Net Income (Loss)                   $(273,000)  $(296,000)

    Add Back:
        Net Interest expense (income)      64,000      80,000
        Change in warrant fair value      (54,000)    (39,000)
        Depreciation Expense              244,000     294,000
        Amortization                      406,000     515,000
                                          -------     -------
           Subtotal - Add backs           660,000     850,000
                  EBITDA                 $387,000    $554,000
                                         ========    ========

Advanced Photonix, Inc.® (NYSE Amex API) is a leading vertically integrated optoelectronic semiconductor manufacturer of optoelectronic solutions, high-speed optical receivers and terahertz instrumentation to a global OEM customer base. Products include patented silicon (Si), indium phosphide (InP) and gallium arsinide (GaAs) based APD, PIN, and FILTRODE® photodetectors; high-speed optical receivers; and the T-Ray(TM) 4000 THz product platform. More information on Advanced Photonix can be found at http://www.advancedphotonix.com.

SOURCE Advanced Photonix, Inc.