API - Advanced Photonix, Inc. - Business Update Call Transcript

    We also announced in May the release of our new 10 gig APD product for fiber-to-the-home in metro markets. We're expecting to have the product in our customers' hands later this calendar year.

    We also released a press release in the middle of May announcing a new $700,000 100G order from a current China telecom customer that was above our previously forecasted demand. As a result of these increases in demand, we have added a second shift and are working to significantly expand our HSOR operations.

    As I previously alluded to, we have received notification of an expected award on a approximately 1 million new small business innovative research or SBIR contract for the U.S. Navy for our Terahertz product platform. In this Phase 2 SBIR project, we have proposed to build and test a prototype non-contact time-domain Terahertz non-destructive evaluation scanning system to acquire subsurface images that need submarine acoustic hull coatings. This system will enable the rapid detection of hull defects such as corrosion and gouges hidden beneath the submarine hull coating as well as hull coating material and adhesion defects.

    In addition, we have being informally advised that we have been selected to receive an SBIR Phase 2 grant for 1.5 million for the F-35 program. The selection term designation means that a contracting officer has being signed to finalize and negotiate contract with us. There is no assurance that can be given those negotiations will be successfully completed.

    Modern day fighter aircraft require precise alignment of exterior doors and panels in order to meet stringent performance and interchangeability requirement.

    To meet requirements for rigging doors and panels of the aircraft, two key measurements are required, step height and gap width between the door and panel in the adjacent structure.

    The purpose of the Phase 2 grant is to transition the prototype hand-held Step/Gap end effector that we developed under an earlier SBIR award to a commercial off-the-shelf COTS product.

    In addition, there are also additional purchasers that we expect to receive in the coming months indicating that military business should be returning to a more normalized run rate.

    In summary, the headwinds of last year have become tailwinds for us as U.S. government, military and China telecom spending have picked up dramatically. As a result, we are currently anticipating greater than 20% year-over-year revenue growth in fiscal 2015 which should increase our revenues for the year to more than the 31 million level at which we expect to have positive EBITDA as decline in our lending agreements with SVB and PFG.

    For all these reasons and despite the fierce competition and pricing pressures in the telecom space and many difficulties in introducing our radical new technology like Terahertz , we're excited about the coming year's prospect. Please join us on our fourth quarter and year end earnings call to find out more on June 30, 2014. Thank you.


    The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

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