MINNEAPOLIS, MN--(Marketwire - August 14, 2007) - APA Enterprises, Inc. (
NASDAQ:
APAT) today
announced results of its first quarter ending June 30, 2007.
"Excluding the non-recurring costs associated with the Company's decision
to close the APA Optronics business unit, the Company was able to deliver
near break-even performance for the quarter," commented Cheri Beranek
Podzimek, president and CEO of APA Enterprises. "The Company is wrapping up
activities associated with the closure of the Optronics business unit and
looks forward to focusing our financial and management resources on Cables
& Networks, the growth engine of APA Enterprises."
APA Cables & Networks Subsidiary Performance
APACN had consolidated revenues of $4,907,046 for the first quarter ended
June 30, 2007, compared to revenues of $5,072,186 for the same period of
last year. Gross profit increased $17,683 to 30% as a percentage of
revenue compared to 28% in the same quarter of 2006.
Discontinued Operations
After careful analysis the company elected to discontinue the APA Optronics
business and sell its APA India operation. All of the costs and related
transactions associated with the discontinued operations sale of APA India
and APA Optronics impairment of assets are reflected in the quarter's
financial statements. The company also intends to exits its current office
in Blaine, Minnesota and to designate the office of its subsidiary, APA
Cables & Networks, as its principal office. The company expects an
additional $60,000 in costs associated with these closure activities to be
recorded in the 2nd quarter.
Net Loss and Cash Flow
The net loss in the first quarter of fiscal 2007 is $1,409,939 or $.12
cents per share, compared to a loss of $112,018 or $.01 per share for the
first quarter of fiscal year 2006. The company used $254,263 in cash during
the first quarter of fiscal year 2007 as compared to $803,831 during the
same period in fiscal 2006, resulting in cash and cash equivalents on hand
of $6,509,106 at June 30, 2007. The cash used in the current period
reflects the impact of discontinued operations and working capital changes
in the amount of $503,167. This compares to cash used in the same quarter
of 2006 of $946,762. The company also realized net cash of $244,523 due to
investing activities compared to $169,895 for the same period in 2006.
APA Enterprises recently announced a change in its fiscal year-end from
March 31 to September 30, with the period from April 1, 2007 through
September 30, 2007 being a short year.
Forward-Looking Statements
Forward-looking statements contained herein are made pursuant to the safe
harbor provisions of the Private Litigation Reform Act of 1995. These
statements are based upon the Company's current expectations and judgments
about future developments in the Company's business. Certain important
factors could have a material impact on the Company's performance,
including, without limitation, delays in or increased costs of production,
delays in or lower than anticipated sales of the Company's new products,
the Company's ability to sell such products at a profitable price, the
Company's ability to fund operations, and other factors discussed from time
to time in the Company's filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on
forward-looking statements. The Company undertakes no obligation to update
such statements to reflect actual events.
FINANCIAL RESULTS (unaudited)
Three Months Ended
June 30
--------------------------
2007 2006
------------ ------------
REVENUES $ 4,907,046 $ 5,072,186
COSTS OF SALES: 3,456,901 3,639,724
------------ ------------
GROSS PROFIT 1,450,145 1,432,462
OPERATING EXPENSES 1,977,583 1,489,542
------------ ------------
LOSS FROM OPERATIONS (527,438) (57,080)
OTHER INCOME, net 82,870 98,757
------------ ------------
(LOSS) INCOME BEFORE INCOME TAXES (444,568) 41,677
INCOME TAXES 24,370 18,980
------------ ------------
(LOSS) NET INCOME FROM CONTINUING OPERATONS (468,938) 22,697
LOSS FROM DISCONTINUED OPERATIONS (941,001) (134,715)
------------ ------------
NET LOSS $ (1,409,939) $ (112,018)
============ ============
NET LOSS PER SHARE:
Basic and diluted $ (0.12) $ (0.01)
============ ============
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic and diluted 11,872,331 11,872,331
============ ============
FINANCIAL RESULTS (unauditied - continued)
June 30, March 31,
2007 2007
------------ ------------
Assets:
Cash and cash equivalents $ 6,509,106 $ 6,716,176
Other current assets 3,905,960 3,516,016
Property, plant and equipment, net 1,668,160 2,210,890
Other assets 3,432,980 3,279,476
------------ ------------
Total assets $ 15,516,206 $ 15,722,558
============ ============
Liabilities:
Current liabilities $ 2,740,305 $ 2,010,726
Long-term liabilities 691,669 235,348
Shareholders equity:
Common stock 118,723 118,723
Additional-paid-in-capital 52,028,252 52,018,729
Accumulated deficit (40,062,743) (38,660,968)
------------ ------------
Total shareholders equity 12,084,232 13,476,484
------------ ------------
Total liabilities and shareholders equity $ 15,516,206 $ 15,722,558
============ ============
APA Enterprises Inc. consists of the Cables & Networks group. Cables &
Networks designs, manufactures and markets a variety of fiber optic and
copper components to the data communication and telecommunication
industries. Additional information about APA Enterprises is available at
http://www.apaenterprises.com.
Net Loss in the first quarter ended June 30, 2007, is $1,409,939 or $.12
cents per share compared to a loss of $112,018 or $.01 per share for the
quarter ended June 30, 2006. The net loss from continuing operations in the
quarter ended June 30, 2007 is $468,938 of $0.04 per share compared to net
income from continuing operations of $22,697 during the period ended June
30, 2006. The 2007 amounts include $397,471 of severance costs related to
the departure of our former CEO. The company used $254,263 in cash during
the first quarter of fiscal year 2007 as compared to $803,831 during the
same period in fiscal quarter of fiscal year 2007 as equivalents on hand of
$6,509,106 at June 30, 2007. The cash used in the current period of
$503,167 reflects the impact of both continuing and discontinued operations
as well as, working capital changes. This compares to cash used in the same
quarter of 2006 of $946,762. The company also realized net cash of $244,523
due to investing activities compared to $165,895 for the same period in
2006.
Contact Information:
APA Enterprises, Inc. Contact Information:
Cheryl Beranek Podzimek
Chief Executive Officer and President
investor-relations@apaenterprises.com
763-476-6866