Advanced Photonix (API), continues it's trail-blazing in the
commercialization of Terahertz, and predicts that 2015 will be a break-out year
in sales of THz products and applications. The company has reached profitability for first time in 11 quarters and Rob Risser, COO noted:
"Revenue grew 8% compared to last year's first quarter and we returned to a meaningful positive adjusted EBITDA of $267,000 for the first time in 11 quarters. In addition, we were very close to reporting non-GAAP profit for the quarter, recording a $3,000 loss compared to a loss of $403,000 in the first quarter last year and a loss of $887,000 last quarter."
While there was a decrease of 41% in API's Terahertz product
platform for Q1, 2015 this was due primarily to delays in government contract
revenue, for contracts already awarded, and given current and expected Terahertz contract awards,
this trend should reverse as the company expect to see substantial growth later
in the year.
The decrease was largely attributable to later start up of
government contract awards. Although the company recently began a contract
with the Navy late in the first quarter, it had anticipated this would
have commenced early in the quarter. API had also anticipated receiving a
follow-on Air Force F-35 contract, for the inspection of the Joint Strike Fighter, during the first quarter. However, start up for this 1.5 million dollar
award has slipped to a later start date, and is projected
to commence late in the second quarter due to administrative delays by the Air
Force.
Richard (Rick) Kurtz noted:
"This contract will deliver a fully commercialized
version of a prototype handheld measurement sensor that was delivered under an
earlier contract. We expect follow-on product sales as a result of this in not
only domestic but also international OEMs in the coming years after completion.
We are continuing to see a strong buildup in potential
T-Gauge orders in the industrial market. We will be exhibiting at the
International Conference on Infrared, Millimeter, and Terahertz Waves or
IRMMW-THz Conference in Tucson ,
Arizona
The company also discussed the increasing role of the Value
Added Resellers, (VARS), in opening new doors for use of the T-Gauge, into the process
control market. The company is working with them to do what Kurtz refered
to as field trials in various vertical markets, where the VAR is provided
the equipment, who then takes the T-Gauge, to companies they work with across
the globe, where they actually demonstrate use of the T-Gauge, on the factory
line for a couple of days to collect data necessarily needed to demonstrate
the return on the investment (ROI), for increased quality or reduced material
usage for the end user.
Rick also noted that the company will demonstrate use of
it's Saf-T Chek, ADS, which is known as the "anomaly detection device" at
the IRMMW-THz Conference in September, and hopes to stir up interest in
it's use for overseas markets.
Overall the company confirmed their earlier guidance of 20% revenue growth year over year, to be driven primarily by the exploding HSOR market and a THz market that is finally beginning to realize it's potential in a vast number of market applications. It should be a fun year.
These of course, are just my opinions and as always do your own due diligence.
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