Net Sales for the Quarter of $4.9 Million; Non-Recurring Expenses Primarily Related to the Closure of the Optronics Business Segment of $1.6 Million; Sale of Land Nets $0.26 Million; Resulting Net Loss of $1.4 Million
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