API Nanotronics Corp., a prime contractor for secure communications and electronic components to the global defense and aerospace industry announced operating results for the first quarter of fiscal 2010 ended August 31, 2009.
Financial Highlights:
— Net revenue for the first quarter of fiscal 2010 was $9.2 million, a 16% increase over fiscal 2009 first quarter revenue of $7.9 million. This revenue includes the contribution from Cryptek as at the date of the acquisition on July 07, 2009;
— First quarter Gross Profit increased to $2.3 million in the first quarter of fiscal 2010 compared to $2.1 million in the first quarter of fiscal 2009. Gross Margins in the company’s electronic component and sub-system product lines improved by 4% to 30.3% on a year-over-year basis due to rationalization and efficiency efforts undertaken during fiscal 2009;
— GAAP net loss for the quarter was $0.8 million or $0.02 per share, compared to a loss of $0.9 million or $0.03 per share in the first quarter of 2009;
— Balance sheet remains strong with approximately $3.0 million in cash and marketable securities and the company reports a record backlog of $19.6 million;
Operating Highlights
— On July 7th, 2009, API acquired substantially all of the assets of Cryptek Technologies, a leading provider of network communications & security products to the government and defense sectors, effectively doubling the size of the Company and significantly broadening its presence in the defense and secure communications markets;
— In July, the Company was contracted to develop a proprietary nanofabrication process for highly sophisticated wafer manufactured sensors, the largest nanotechnology order in API’s history;
— In August, the Company’s rationalization and efficiency efforts continued with the process to consolidate its Filtran and Emcon divisions in Ottawa, Canada into one facility;
-In August, the Company, partnering with Pulse Engineering, a Technitrol company, introduced Bus+(TM), the world’s smallest 1553 data bus transceiver/transformer integrated into a single package;
Commenting on recent results Stephen B. Pudles, Chief Executive Officer of API Nanotronics Inc. said, “We are extremely pleased with the acquisition and integration of Cryptek. Despite the initial post-closing period required to bring their operations back to historical levels, this acquisition solidifies our position as a leader in the global secure communications sector,” While the continued weak economic environment coupled with what is typically the slowest quarter of our fiscal year affected the results in the quarter, we are excited with the prospects for the remainder of the year and beyond as API further expands its business to become one of the leading defense and communication contractors in North America and Europe.”
API Nanotronics customers include the U.S. Department of Defense (DoD) and its prime contractors, U.S. Government intelligence agencies, the U.S. Department of Homeland Security (DHS), U.S. Department of State (DoS) and U.S. Department of Justice (DoJ), including various government and prime contractors of Canada, the United Kingdom, NATO and the European Union. The Company is engaged in providing innovative design, engineering and manufacturing solutions to customers. The Company has also developed expertise in the R&D and manufacture of nanotechnology and MEMS products.
Let us hear your thoughts: