- iONTRAC 1st Detect Patents Strengthen
Competitive Position -
Astrotech Corporation (NASDAQ: ASTC) reported its financial results for
the quarter ended September 30, 2015, the first quarter of fiscal year
2016.
“Astrotech continues to execute our plan to commercialize the
breakthrough technologies of our three subsidiaries,” said Thomas B.
Pickens III, Chairman and CEO of Astrotech Corporation. “1st
Detect is positioned to turn the corner from a research and development
(R&D) focus to an operating company. In the first quarter of fiscal year
2016, we increased investment in R&D and sales. In October, we launched
our next generation process chemical analyzer, and the quantity and
quality of interest received at the premier petrochemical and refining
industry conference confirmed 1st Detect is developing the
right suite of products.
“We believe ongoing successes of our current subsidiaries and future
technologies will bear significant value for our shareholders,”
concluded Pickens.
Highlights
-
Astrotech’s first quarter of fiscal year 2016 loss from continuing
operations was $3.5 million, compared to $1.3 million in the first
quarter of fiscal year 2015. The increase reflects 1st
Detect’s larger sales team and R&D investment.
-
At September 30, 2015, the company had $28.6 million in cash, short
term investments, and an indemnity receivable; there was no debt.
-
1st Detect develops, manufactures, and
sells chemical analyzers for applications like explosive trace
detection, food processing plants, and clean-room manufacturing lines,
among others. Recent 1st Detect highlights are as follows:
-
Unveiled the next generation iONTRAC Process Chemical Analyzer
that delivers cost effective laboratory performance and improves
industrial processing efficiencies while providing customers with
“All the Data, All the Time.”
-
Received very positive feedback from the petrochemical and
refining industry at the Gulf Coast Conference which took place
October 20th – 22nd.
-
Received two U.S. patents during the third quarter bringing the
total issued to 11 U.S. and nine international and pending to 11
U.S. and 17 international.
-
Astral Images, which is setting the standard for film digital
conversion, advanced conversations with leaders in digital media and
entertainment.
-
Astrogenetix, which is using the power of the unique
microgravity environment of space to develop novel therapeutic
products, continued in conjunction with NASA the pursuit of an
investigational new drug (“IND”) application with the Food and Drug
Administration for salmonella.
About Astrotech Corporation
Astrotech Corporation (NASDAQ: ASTC) identifies and commercializes
emerging, disruptive technologies through its closely held subsidiaries.
Management employs creativity in execution as well as sources investment
opportunities from various government laboratories, agencies,
universities, and corporations, as well as through its own internal
research. Sourced from Oak Ridge Laboratory’s mass spectrometer
research, 1st Detect develops,
manufactures, and sells chemical analyzers that streamline processes for
industrial use in the food and beverage, semiconductor, pharmaceutical,
research, and environmental markets as well as for government
applications used in explosive and chemical warfare detection for the
Department of Homeland Security and the military. Sourced from decades
of image research from the laboratories of IBM and Kodak and 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.
“Safe Harbor” Statement
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 are able to
commercialize our products, whether the market will accept our products,
whether our products will perform as expected and whether we will obtain
the approvals and licenses necessary to commercialize our products, as
well as other risk factors and business considerations described in
Astrotech’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.
Astrotech assumes no obligation to update these forward-looking
statements.
Tables follow
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ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and
Comprehensive Income
(In thousands, except per share data)
(Unaudited)
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Three Months Ended
September 30,
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2015
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2014
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Revenue
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$
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—
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$
|
320
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Cost of revenue
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|
|
|
|
—
|
|
|
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277
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Gross profit
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—
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43
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Operating expenses:
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|
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Selling, general and administrative
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|
|
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2,286
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1,960
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Research and development
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1,264
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692
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Total operating expenses
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3,550
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2,652
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Loss from operations
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|
|
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|
(3,550
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)
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(2,609
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)
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Interest and other expense, net
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|
|
|
|
99
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|
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|
12
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Loss from continuing operations before income taxes
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(3,451
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)
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(2,597
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)
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Income tax (expense) benefit
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|
|
(2
|
)
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1,325
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Loss from continuing operations
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|
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(3,453
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)
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(1,272
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)
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Discontinued operations
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Income from discontinued operations
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—
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1,303
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Income tax expense
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—
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(2,378
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)
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Gain on sale of discontinued operations
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—
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25,630
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Income from discontinued operations
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|
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—
|
|
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24,555
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Net (loss) income
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(3,453
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)
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23,283
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Less: Net loss attributable to noncontrolling interest
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(89
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)
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—
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Net (loss) income attributable to Astrotech Corporation
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(3,364
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)
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23,283
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Less: Deemed dividend to State of Texas
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—
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531
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Net (loss) income attributable to common stockholders
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$
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(3,364
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)
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$
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22,752
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Amounts attributable to Astrotech Corporation:
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Loss from continuing operations, net of tax
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$
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(3,364
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)
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|
|
$
|
(1,272
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)
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Income from discontinued operations, net of tax
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|
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—
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24,555
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Net (loss) income attributable to Astrotech Corporation
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|
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$
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(3,364
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)
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$
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23,283
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Weighted average common shares outstanding:
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Basic and diluted
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20,705
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19,548
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Basic and diluted net (loss) income per common share:
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Net loss attributable to Astrotech Corporation from continuing
operations
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$
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(0.16
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)
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$
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(0.09
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)
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Net income from discontinued operations
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—
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1.25
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Net (loss) income attributable to Astrotech Corporation
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|
$
|
(0.16
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)
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|
|
$
|
1.16
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|
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ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
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September 30,
2015
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June 30,
2015
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Assets
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Current assets
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Cash and cash equivalents
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$
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1,356
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$
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2,330
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Short-term investments
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21,193
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23,161
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Accounts receivable, net of allowance
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221
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198
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Inventory
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783
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509
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Indemnity receivable
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6,100
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6,100
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Prepaid expenses and other current assets
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580
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296
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Total current assets
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30,233
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32,594
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Property and equipment, net
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3,631
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|
3,108
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Long-term investments
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6,257
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8,516
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Total assets
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$
|
40,121
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$
|
44,218
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Liabilities and stockholders’ equity
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Current liabilities
|
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Accounts payable
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$
|
261
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$
|
398
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Accrued liabilities and other
|
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1,501
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|
1,801
|
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Income tax payable
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—
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|
190
|
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Total current liabilities
|
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1,762
|
|
|
|
2,389
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Other liabilities
|
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|
146
|
|
|
|
101
|
|
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Total liabilities
|
|
|
1,908
|
|
|
|
2,490
|
|
|
|
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Commitments and contingencies
|
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Stockholders’ equity
|
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Preferred stock, no par value, convertible, 2,500,000 authorized
shares; no issued and outstanding shares, at September 30, 2015 and
June 30, 2015
|
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|
—
|
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—
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Common stock, no par value, 75,000,000 shares authorized; 21,864,548
shares issued at September 30, 2015 and June 30, 2015; 20,700,673
and 20,743,973 shares outstanding at September 30, 2015 and June 30,
2015, respectively
|
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|
189,096
|
|
|
|
189,007
|
|
|
Treasury stock, 1,163,875 and 1,120,575 shares at cost at September
30, 2015 and June 30, 2015, respectively
|
|
|
(2,789
|
)
|
|
|
(2,672
|
)
|
|
Additional paid-in capital
|
|
|
1,193
|
|
|
|
1,139
|
|
|
Accumulated deficit
|
|
|
(149,386
|
)
|
|
|
(146,022
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(111
|
)
|
|
|
(23
|
)
|
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Equity attributable to stockholders of Astrotech Corporation
|
|
|
38,003
|
|
|
|
41,429
|
|
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Noncontrolling interest
|
|
|
210
|
|
|
|
299
|
|
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Total stockholders’ equity
|
|
|
38,213
|
|
|
|
41,728
|
|
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Total liabilities and stockholders’ equity
|
|
|
$
|
40,121
|
|
|
|
$
|
44,218
|
|
|
|
|
|
|
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