[May 09, 2016] |
|
Astrotech Reports Third Quarter of Fiscal Year 2016 Financial Results
Astrotech Corporation (NASDAQ:ASTC) reported its financial results for
the third quarter of fiscal year 2016 as of March 31, 2016.
"1st Detect's breakthrough chemical analyzer technology
achieved a key validation of our long-term corporate strategy by
partnering with Smiths Detection Inc., a subsidiary of Smiths Group, as
announced in March," said Thomas B. Pickens III, Chairman and CEO of
Astrotech Corporation. "Together, we are working hard to develop next
generation explosives trace detection (ETD) systems for the Department
of Homeland Security Science and Technology Directorate (DHS S&T (News - Alert)) for
use at security checkpoints in airports. Having met or exceeded the high
level of performance required by both DHS and Smiths Detection to be
selected for this program, 1st Detect was chosen to be part
of a revolutionary next generation solution that will significantly
improve false positives that are endemic in the current generation
technology and will also drastically expand the library of explosives
that can be detected. We are excited to be working on this worldwide
opportunity with Smiths, one of three incumbent ETD providers, and
possibly one of two providers should the acquisition of Morpho Detection
by Smiths Detection close.
"Additionally, our Astral Images subsidiary continues to make advances
in industry leading technology for film-to-digital conversion, image
enhancement, defect removal, and color correction software. In April, we
announced the availability of Astral HDR (News - Alert) ICE™, our new software to
automate the ultra-high definition, high dynamic range and color match
conversion process for upgrading digital and traditional films to the
new HDR10 standard. As evidenced by every major TV manufacturer
unveiling new HDR-compatible televisions at CES (News - Alert) 2016, consumers are
enthusiastic about the new Ultra High Definition/High Dynamic
Range/Color Match (UHD/HDR/CM) capabilities. Astral HDR ICE™
automatically color matches the film directors' and colorists' creative
intent and is designed to quickly and inexpensively meet the increasing
demand for UHD/HDR.
"We are excited about the future. Our success attracting development
partners for 1st Detect's technology has created significant
opportunities with Smiths in the large international market for ETD
systems and with Battelle as we drive toward the next phase of the next
generation chemical detector (NGCD) program for the Department of
Defense. In addition, Astral Images' HDR transformation technology is
under evaluation by a Tier-1 Hollywood studio, and we are in advanced
discussions with a large film museum in California," concluded Mr.
Pickens.
Third Quarter Fiscal Year 2016 Financial Highlights
Revenue, costs of goods sold, SG&A, and R&D are expected to continue
to fluctuate based on the timing of contract revenue and 1st
Detect's continued transition from a research company to an operating
company.
-
Revenue was $196 thousand, reflecting 1st Detect's income
from research-based, fixed-price, government-related subcontracts.
-
Cost of goods sold related to certain deliverables in the Battelle and
Smiths projects resulted in a negative $158 thousand gross profit, yet
both projects are still projected to net a positive gross profit.
-
Loss from continuing operations before income taxes was $3.9 million.
-
Astrotech held $28.0 million in cash and investments at March 31,
2016. This included the receipt of 100% of the $6.1 million indemnity
receivable from the sale of its Astrotech Space Operations (ASO)
business unit to a wholly-owned subsidiary of Lockheed Martin (News - Alert)
Corporation in August 2014 following a successful hand-over of the
operations and accounting of ASO.
-
Astrotech Corporation had no debt at March 31, 2016.
Technology Highlights
-
1st Detect partnered with Smiths Detection Inc., a
subsidiary of Smiths Group, to develop next generation ETD systems for
the DHS S&T using 1st Detect's breakthrough chemical
analyzer technology.
-
1st Detect received one U.S. patent and one international
patent during the third quarter and one U.S. patent in April. The
total at April 30, 2016 reached 16 U.S. and 10 international issued
and 8 U.S. and 12 international pending.
-
Astral Images announced the availability of Astral HDR ICE™ as its new
Ultra High Definition/High Dynamic Range/Color Match (UHD/HDR/CM)
conversion software package, which upgrades digital and traditional
films to the new HDR10 standard while automatically color matching the
film directors' and colorists' creative intent.
-
Astrogenetix continued its long-term efforts to use the unique power
of microgravity to develop a novel vaccine and therapeutic products,
and, in conjunction with NASA, continued the pursuit of an
investigational new drug application with the Food and Drug
Administration for Salmonella.
About Astrotech Corporation
Astrotech Corporation (NASDAQ:ASTC) is an innovative science and
technology company that invents, acquires, and commercializes
technological innovations sourced from research institutions,
laboratories, universities, and internally, and then funds, manages, and
builds proprietary, scalable start-up companies for profitable
divestiture to market leaders to maximize shareholder value. Sourced
from Oak Ridge Laboratory's chemical analyzer research, 1st
Detect develops, manufactures, and sells chemical analyzers that
streamline processes for industrial use in the airport security, food
and beverage, semiconductor, pharmaceutical, research and environmental
markets, and the military. Sourced from decades of image research from
the laboratories of IBM (News - Alert) and Kodak combined with classified satellite
technology from government laboratories, Astral Images sells film
to digital image enhancement, defect removal and color correction
software, and post processing services providing economically feasible
conversion of television and feature 35mm and 16mm films to the new 4K
ultra-high definition (UHD), high-dynamic range (HDR) format necessary
for the new generation of digital distribution. Sourced from NASA's
extensive microgravity research, Astrogenetix is applying a
fast-track on-orbit discovery platform using the International Space
Station to develop vaccines and other therapeutics. Demonstrating its
entrepreneurial strategy, Astrotech management sold its state-of-the-art
satellite servicing operations to Lockheed Martin in August 2014.
Astrotech has operations throughout Texas and is headquartered in
Austin. For information, please visit www.astrotechcorp.com.
This press release contains forward-looking statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks, trends, and uncertainties that could cause actual
results to be materially different from the forward-looking statement.
These factors include, but are not limited to, whether we can
successfully develop our proprietary technologies and whether the market
will accept our products and services, as well as other risk factors and
business considerations described in the Company's Securities and
Exchange Commission filings including the annual report on Form 10-K.
Any forward-looking statements in this document should be evaluated in
light of these important risk factors. The Company assumes no obligation
to update these forward-looking statements.
|
ASTROTECH CORPORATION AND SUBSIDIARIES
|
Condensed Consolidated Statements of Operations and Comprehensive
Income
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Revenue
|
|
|
$
|
196
|
|
|
|
$
|
12
|
|
|
|
$
|
1,123
|
|
|
|
$
|
336
|
|
Cost of revenue
|
|
|
354
|
|
|
|
-
|
|
|
|
986
|
|
|
|
281
|
|
Gross (loss) profit
|
|
|
(158
|
)
|
|
|
12
|
|
|
|
137
|
|
|
|
55
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
1,875
|
|
|
|
1,681
|
|
|
|
5,832
|
|
|
|
5,653
|
|
Research and development
|
|
|
1,903
|
|
|
|
659
|
|
|
|
4,493
|
|
|
|
2,335
|
|
Total operating expenses
|
|
|
3,778
|
|
|
|
2,340
|
|
|
|
10,325
|
|
|
|
7,988
|
|
Loss from operations
|
|
|
(3,936
|
)
|
|
|
(2,328
|
)
|
|
|
(10,188
|
)
|
|
|
(7,933
|
)
|
Interest and other expense, net
|
|
|
86
|
|
|
|
76
|
|
|
|
279
|
|
|
|
112
|
|
Loss from continuing operations before income taxes
|
|
|
(3,850
|
)
|
|
|
(2,252
|
)
|
|
|
(9,909
|
)
|
|
|
(7,821
|
)
|
Income tax benefit
|
|
|
11
|
|
|
|
894
|
|
|
|
9
|
|
|
|
2,953
|
|
Loss from continuing operations
|
|
|
(3,839
|
)
|
|
|
(1,358
|
)
|
|
|
(9,900
|
)
|
|
|
(4,868
|
)
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,303
|
|
Income tax expense
|
|
|
-
|
|
|
|
(753
|
)
|
|
|
-
|
|
|
|
(3,315
|
)
|
Gain on sale of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25,630
|
|
(Loss) income from discontinued operations
|
|
|
-
|
|
|
|
(753
|
)
|
|
|
-
|
|
|
|
23,618
|
|
Net (loss) income
|
|
|
(3,839
|
)
|
|
|
(2,111
|
)
|
|
|
(9,900
|
)
|
|
|
18,750
|
|
Less: Net loss attributable to noncontrolling interest
|
|
|
(97
|
)
|
|
|
(11
|
)
|
|
|
(268
|
)
|
|
|
(11
|
)
|
Net (loss) income attributable to Astrotech Corporation
|
|
|
(3,742
|
)
|
|
|
(2,100
|
)
|
|
|
(9,632
|
)
|
|
|
18,761
|
|
Less: Deemed dividend to State of Texas
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
531
|
|
Net (loss) income attributable to common stockholders
|
|
|
$
|
(3,742
|
)
|
|
|
$
|
(2,100
|
)
|
|
|
$
|
(9,632
|
)
|
|
|
$
|
18,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Astrotech Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations, net of tax
|
|
|
$
|
(3,742
|
)
|
|
|
$
|
(1,347
|
)
|
|
|
$
|
(9,632
|
)
|
|
|
$
|
(4,857
|
)
|
(Loss) income from discontinued operations, net of tax
|
|
|
-
|
|
|
|
(753
|
)
|
|
|
-
|
|
|
|
23,618
|
|
Net (loss) income attributable to Astrotech Corporation
|
|
|
$
|
(3,742
|
)
|
|
|
$
|
(2,100
|
)
|
|
|
$
|
(9,632
|
)
|
|
|
$
|
18,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
20,636
|
|
|
|
19,497
|
|
|
|
20,681
|
|
|
|
19,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss) income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Astrotech Corporation from continuing
operations
|
|
|
$
|
(0.18
|
)
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.47
|
)
|
|
|
$
|
(0.28
|
)
|
Net (loss) income from discontinued operations
|
|
|
-
|
|
|
|
(0.04
|
)
|
|
|
-
|
|
|
|
1.21
|
|
Net (loss) income attributable to Astrotech Corporation
|
|
|
$
|
(0.18
|
)
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
(0.47
|
)
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gain (loss), net of tax (expense) benefit of ($10),
($5), $63, and ($5)
|
|
|
$
|
18
|
|
|
|
$
|
8
|
|
|
|
$
|
(117
|
)
|
|
|
$
|
8
|
|
Reclassification adjustment for realized losses included in net
(loss) income, net of taxes of $0, $0, $5, and $0
|
|
|
-
|
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
Total comprehensive (loss) income
|
|
|
$
|
(3,724
|
)
|
|
|
$
|
(2,092
|
)
|
|
|
$
|
(9,740
|
)
|
|
|
$
|
18,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASTROTECH CORPORATION AND SUBSIDIARIES
|
Condensed Consolidated Balance Sheets
|
(In thousands, except share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
June 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
6,073
|
|
|
|
$
|
2,330
|
|
Short-term investments
|
|
|
17,658
|
|
|
|
23,161
|
|
Accounts receivable, net of allowance
|
|
|
314
|
|
|
|
198
|
|
Inventory
|
|
|
1,536
|
|
|
|
509
|
|
Indemnity receivable
|
|
|
-
|
|
|
|
6,100
|
|
Prepaid expenses and other current assets
|
|
|
470
|
|
|
|
296
|
|
Total current assets
|
|
|
26,051
|
|
|
|
32,594
|
|
Property and equipment, net
|
|
|
3,554
|
|
|
|
3,108
|
|
Long-term investments
|
|
|
4,304
|
|
|
|
8,516
|
|
Total assets
|
|
|
$
|
33,909
|
|
|
|
$
|
44,218
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
296
|
|
|
|
$
|
398
|
|
Accrued liabilities and other
|
|
|
1,517
|
|
|
|
1,801
|
|
Income tax payable
|
|
|
-
|
|
|
|
190
|
|
Total current liabilities
|
|
|
1,813
|
|
|
|
2,389
|
|
Other liabilities
|
|
|
113
|
|
|
|
101
|
|
Total liabilities
|
|
|
$
|
1,926
|
|
|
|
$
|
2,490
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Preferred stock, no par value, convertible, 2,500,000 shares
authorized; no shares issued and outstanding, at March 31, 2016 and
June 30, 2015
|
|
|
-
|
|
|
|
-
|
|
Common stock, no par value, 75,000,000 shares authorized; 21,776,381
and 21,864,548 shares issued at March 31, 2016 and June 30, 2015,
respectively; 20,612,506 and 20,743,973 shares outstanding at March
31, 2016 and June 30, 2015, respectively
|
|
|
189,164
|
|
|
|
189,007
|
|
Treasury stock, 1,163,875 and 1,120,575 shares at cost at March 31,
2016 and June 30, 2015, respectively
|
|
|
(2,789
|
)
|
|
|
(2,672
|
)
|
Additional paid-in capital
|
|
|
1,420
|
|
|
|
1,139
|
|
Accumulated deficit
|
|
|
(155,654
|
)
|
|
|
(146,022
|
)
|
Accumulated other comprehensive loss
|
|
|
(189
|
)
|
|
|
(23
|
)
|
Equity attributable to stockholders of Astrotech Corporation
|
|
|
31,952
|
|
|
|
41,429
|
|
Noncontrolling interest
|
|
|
31
|
|
|
|
299
|
|
Total stockholders' equity
|
|
|
31,983
|
|
|
|
41,728
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
33,909
|
|
|
|
$
|
44,218
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160509005240/en/
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