APA Optics, Inc. Has Loss for Fiscal 2000 and Fourth Quarter, But Raises Capital and Presses Forward in Global Marketing of New Products
Company Raises Over $14 Million in Capital Markets in First Three Months Of Fiscal 2001; Looks to Increased Sales, With Potential for Profitable Operations in Fiscal Year Beginning in April 2001
Minneapolis, MN. APA Optics, Inc. (Nasdaq: APAT) today reported that it had a loss of $3,796,296, or $0.43 per share, for the 2000 fiscal year ended March 31, 2000, an increase from the loss of $2,513,798, or $0.30 per share, that was experienced in fiscal 1999. Management expected the loss for the year, which was attributed to expenses associated with its transition to its role as a marketing and manufacturing organization. For the fourth quarter of fiscal 2000, ended March 31, 2000, APA Optics had a loss of $935,454, or ten cents a share, as compared to a loss of $758,445, or nine cents a share, in the fourth quarter of fiscal 1999.
Reflecting the transition in its business role, revenues in fiscal 2000 totaled $420,809, as compared to $722,030 in fiscal 1999 and even higher levels in earlier years. For the fourth quarter of fiscal 2000, revenues were $181,667, as compared to $92,908 for the same period in the 1999 fiscal year.
Anil K. Jain, president and chief executive officer of APA, said the loss was expected, largely due to spending on fabrication systems, personnel and new product marketing. "Though a loss is not welcomed, we have recognized that APA s transition to its planned role as a manufacturer and marketer of advanced technology products would only come with some costs," said Jain. "We have worked to minimize the cost, but it is being borne through the losses we have experienced."
The Company has been actively raising capital both in the current fiscal year and the just ended 2000 fiscal year. Through , the Company has issued 1,011,166 shares of common stock, with gross proceeds totaling $14,450,941 and net proceeds of $13,983,935. The shares were issued against the $100 million S-3 shelf registration statement filed with the SEC in April 2000. The shares of common stock have been sold to institutional investors at market-based prices from time to time through the Company s placement agent, Ladenburg Thalmann & Co. In the fourth quarter of fiscal 2000, the Company sold 500 shares of 2% Series A Convertible Stock in a private transaction for gross proceeds of $5 million.
Looking to the future, Jain said the Company s products have drawn significant attention in the marketplace and that additional sales are anticipated. He also suggested that additional new products would be introduced in coming months, particularly in the area of gallium nitride technology.
While the Company s dense wavelength division multiplexing (DWDM) components receive considerable attention in the more visible fiber communications industry, APA s gallium nitride products, including the consumer ultraviolet light watch monitor, are expected to generate substantial coverage in the months to come. In the area of product marketing, Jain said: "We are making a committed effort to enhance and expand our marketing efforts, in part through establishing product marketing teams, which will have capabilities in application engineering."
At the end of the 2000 fiscal year, March 31, 2000, APA Optics had 8,986,525 shares of common stock outstanding, as compared to 8,512,274 shares outstanding at the end of fiscal 1999. Shareholders equity at March 31, 2000 was $6,306,049, up significantly from the $3,389,295 reported for March 31, 1999. APA Optics, Inc. ended the 2000 fiscal year with a cash balance of $5,941,906, as compared to $2,812,849 at the end of fiscal year 1999, primarily as a result of sales of the Company s common and preferred stock during fiscal 2000.
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 product development, delays in or increased costs of production, delays in or lower than anticipated sales of the Company s new products, 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. APA Optics, Inc. manufactures and markets advanced products for the fiber optic communications, optoelectronics and laser industries, including wavelength division multiplexed (WDM) components, ultraviolet (UV) detectors, nitride epitaxial layers and custom optics.
Contact: Roy Wallace, The Wallace Group for APA Optics Tel: 651-452-9800 or Anil K. Jain of APA Optics Tel: 612-784-4995
Roy Wallace, The Wallace Group for APA Optics
Tel: 651-452-9800
or
Anil K. Jain of APA Optics
Tel: 612-784-4995