Full Press Release Details
ASTROTECH REPORTS THIRD QUARTER OF FISCAL YEAR 2017 FINANCIAL RESULTS
Austin, Texas - May 9, 2017 - Astrotech Corporation (NASDAQ: ASTC) reported its financial results for the third quarter of fiscal year 2017 ended March 31, 2017.
"In the third quarter, we took important steps at 1st Detect to accelerate our strategy to provide a mass spectrometer-based Explosive Trace Detection solution to the Department of Homeland Security. Our instrument provides far superior detection capabilities compared to existing passenger and baggage screening technologies at airports worldwide," said Thomas B. Pickens III, Chairman and CEO of Astrotech Corporation. "We are also pleased with the progress being made at Astral Images in gaining market acceptance for its Astral HDR ICE product."
Third Quarter Fiscal Year 2017 Financial Highlights
Revenue, costs of goods sold, SG&A, and R&D are expected to continue to fluctuate based on the timing of projects.
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 for use in the security, defense, healthcare, food and beverage, and environmental markets. Sourced from decades of image research from the laboratories of IBM and Kodak, 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.
Company Contact: Eric Stober, Chief Financial Officer, Astrotech Corporation, (512) 485-9530
IR Contact Cathy Mattison and Kirsten Chapman, LHA Investor Relations, (415) 433-3777, ir@astrotechcorp.com
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share data)
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue | $ | 411 | $ | 196 | $ | 1,937 | $ | 1,123 | ||||||||
| Cost of revenue | 161 | 354 | 1,211 | 986 | ||||||||||||
| Gross profit (loss) | 250 | (158 | ) | 726 | 137 | |||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 1,633 | 1,875 | 5,817 | 5,832 | ||||||||||||
| Research and development | 1,561 | 1,903 | 4,107 | 4,493 | ||||||||||||
| Total operating expenses | 3,194 | 3,778 | 9,924 | 10,325 | ||||||||||||
| Loss from operations | (2,944 | ) | (3,936 | ) | (9,198 | ) | (10,188 | ) | ||||||||
| Interest and other expense, net | 99 | 86 | 232 | 279 | ||||||||||||
| Loss before income taxes | (2,845 | ) | (3,850 | ) | (8,966 | ) | (9,909 | ) | ||||||||
| Income tax (expense) benefit | (2 | ) | 11 | (2 | ) | 9 | ||||||||||
| Net loss | (2,847 | ) | (3,839 | ) | (8,968 | ) | (9,900 | ) | ||||||||
| Less: Net loss attributable to noncontrolling interest | (47 | ) | (97 | ) | (150 | ) | (268 | ) | ||||||||
| Net loss attributable to Astrotech Corporation | $ | (2,800 | ) | $ | (3,742 | ) | $ | (8,818 | ) | $ | (9,632 | ) | ||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 20,164 | 20,636 | 20,474 | 20,681 | ||||||||||||
| Basic and diluted net loss per common share: | ||||||||||||||||
| Net loss attributable to Astrotech Corporation | $ | (0.14 | ) | $ | (0.18 | ) | $ | (0.43 | ) | $ | (0.47 | ) | ||||
| Other comprehensive loss, net of tax: | ||||||||||||||||
| Available-for-sale securities: | ||||||||||||||||
| Net unrealized gain (loss) | $ | 18 | $ | 29 | $ | (21 | ) | $ | (161 | ) | ||||||
| Reclassification adjustment for realized losses | - | - | 60 | 14 | ||||||||||||
| Total comprehensive loss | $ | (2,782 | ) | $ | (3,713 | ) | $ | (8,779 | ) | $ | (9,779 | ) |
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
| March 31, 2017 | June 30, 2016 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 4,453 | $ | 4,399 | ||||
| Short-term investments | 10,798 | 17,102 | ||||||
| Accounts receivable, net of allowance | 183 | 156 | ||||||
| Costs and estimated revenues in excess of billings | - | 451 | ||||||
| Inventory, net | 209 | 496 | ||||||
| Prepaid expenses and other current assets | 467 | 319 | ||||||
| Total current assets | 16,110 | 22,923 | ||||||
| Property and equipment, net | 3,354 | 3,392 | ||||||
| Long-term investments | 2,186 | 4,208 | ||||||
| Total assets | $ | 21,650 | $ | 30,523 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 273 | $ | 237 | ||||
| Accrued liabilities and other | 1,643 | 1,563 | ||||||
| Total current liabilities | 1,918 | 1,800 | ||||||
| Other liabilities | 282 | 96 | ||||||
| Total liabilities | 2,200 | 1,896 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred stock, no par value, convertible, 2,500,000 shares authorized; no shares issued and outstanding, at March 31, 2017 and June 30, 2016 | - | - | ||||||
| Common stock, no par value, 75,000,000 shares authorized; 22,555,247 and 21,811,153 shares issued at March 31, 2017 and June 30, 2016, respectively; 20,577,356 and 20,627,511 shares outstanding at March 31, 2017 and June 30, 2016, respectively | 190,279 | 189,294 | ||||||
| Treasury stock, 1,977,891 and 1,183,642 shares at cost at March 31, 2017 and June 30, 2016, respectively | (4,111 | ) | (2,828 | ) | ||||
| Additional paid-in capital | 1,469 | 1,419 | ||||||
| Accumulated deficit | (167,935 | ) | (159,117 | ) | ||||
| Accumulated other comprehensive loss | (62 | ) | (101 | ) | ||||
| Equity attributable to stockholders of Astrotech Corporation | 19,640 | 28,667 | ||||||
| Noncontrolling interest | (190 | ) | (40 | ) | ||||
| Total stockholders' equity | 19,450 | 28,627 | ||||||
| Total liabilities and stockholders' equity | $ | 21,650 | $ | 30,523 |