Astrotech Corporation (NASDAQ: ASTC) reported its financial results for
the second quarter of fiscal year 2016 as of December 31, 2015.
“During the second quarter of fiscal year 2016, our technologies
garnered additional validation,” said Thomas B. Pickens III, Chairman
and CEO of Astrotech Corporation. “1st Detect is meeting and
exceeding milestones related to the next generation chemical detector
(NGCD) program. The engineering team remains focused on satisfying
application specific chemical detection objectives for customers and
development partners.”
Astral Color ICE™ technology was selected by a worldwide technology
leader in the media and entertainment sector to perform film
restoration. “We are excited about the engagement and the market
opportunity,” said Rajesh Mellacheruvu, COO of Astrotech Corporation.
“As the demand for ultra-high definition, high-dynamic range 4K
resolution format increases, we expect to expand Astral’s use among
digital media and entertainment post-production houses and studios.”
Second 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 the continued
transition from a research company to an operating company.
-
Revenue was $927 thousand, reflecting 1st Detect’s income
from research-based, fixed-price, government-related subcontracts of
$685 thousand and from the manufacturing sales of space-grade
handrails, a legacy business, of $242 thousand.
-
Gross profit was $295 thousand, or 32%, which reflects the benefit
from the higher margin handrail sales.
-
Loss from continuing operations before income taxes was $2.6 million,
compared to $3.0 million in the second quarter of fiscal year 2015.
This decrease is the result of the aforementioned revenue.
-
Astrotech held $32.2 million in cash, investments, and an indemnity
receivable at the quarter close. Management continues to expect to
receive the full indemnity receivable of $6.1 million by the end of
February 2016, and, as of February 8, was not aware of any claims
against this receivable.
-
Astrotech Corporation had no debt at December 31, 2015.
-
The Board extended the share repurchase plan of up to $5 million of
the Company’s outstanding common stock through December 31, 2016.
Technology Highlights
-
1st Detect received three U.S. patents during the second
quarter. The total at January 31, 2016 reached 14 U.S. and nine
international issued and 10 U.S. and 16 international pending.
-
1st Detect launched its new iONTRAC Process Chemical
Analyzer at the Gulf Coast Conference where it contributed five
technical programs in October.
-
Astral Images signed a contract with a worldwide technology leader in
the media and entertainment sector to use Astral Color ICE™ as part of
its workflow to restore film.
-
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) identifies and commercializes
emerging disruptive technologies through its closely held subsidiaries.
Management 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
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 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
December 31,
|
|
Six Months Ended
December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenue
|
|
$
|
927
|
|
|
$
|
4
|
|
|
$
|
927
|
|
|
$
|
324
|
|
|
Cost of revenue
|
|
632
|
|
|
4
|
|
|
632
|
|
|
281
|
|
|
Gross profit
|
|
295
|
|
|
—
|
|
|
295
|
|
|
43
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
1,671
|
|
|
2,012
|
|
|
3,957
|
|
|
3,972
|
|
|
Research and development
|
|
1,326
|
|
|
984
|
|
|
2,590
|
|
|
1,676
|
|
|
Total operating expenses
|
|
2,997
|
|
|
2,996
|
|
|
6,547
|
|
|
5,648
|
|
|
Loss from operations
|
|
(2,702
|
)
|
|
(2,996
|
)
|
|
(6,252
|
)
|
|
(5,605
|
)
|
|
Interest and other expense, net
|
|
94
|
|
|
24
|
|
|
193
|
|
|
36
|
|
|
Loss from continuing operations before income taxes
|
|
(2,608
|
)
|
|
(2,972
|
)
|
|
(6,059
|
)
|
|
(5,569
|
)
|
|
Income tax benefit (expense)
|
|
—
|
|
|
734
|
|
|
(2
|
)
|
|
2,059
|
|
|
Loss from continuing operations
|
|
(2,608
|
)
|
|
(2,238
|
)
|
|
(6,061
|
)
|
|
(3,510
|
)
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,303
|
|
|
Income tax expense
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
(2,562
|
)
|
|
Gain on sale of discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,630
|
|
|
(Loss) income from discontinued operations
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
24,371
|
|
|
Net (loss) income
|
|
(2,608
|
)
|
|
(2,422
|
)
|
|
(6,061
|
)
|
|
20,861
|
|
|
Less: Net loss attributable to noncontrolling interest
|
|
(82
|
)
|
|
—
|
|
|
(171
|
)
|
|
—
|
|
|
Net (loss) income attributable to Astrotech Corporation
|
|
(2,526
|
)
|
|
(2,422
|
)
|
|
(5,890
|
)
|
|
20,861
|
|
|
Less: Deemed dividend to State of Texas
|
|
—
|
|
|
—
|
|
|
—
|
|
|
531
|
|
|
Net (loss) income attributable to common stockholders
|
|
$
|
(2,526
|
)
|
|
$
|
(2,422
|
)
|
|
$
|
(5,890
|
)
|
|
$
|
20,330
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Astrotech Corporation:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations, net of tax
|
|
$
|
(2,526
|
)
|
|
$
|
(2,238
|
)
|
|
$
|
(5,890
|
)
|
|
$
|
(3,510
|
)
|
|
(Loss) income from discontinued operations, net of tax
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
24,371
|
|
|
Net (loss) income attributable to Astrotech Corporation
|
|
$
|
(2,526
|
)
|
|
$
|
(2,422
|
)
|
|
$
|
(5,890
|
)
|
|
$
|
20,861
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
20,701
|
|
|
19,637
|
|
|
20,703
|
|
|
19,593
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net (loss) income per common share:
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Astrotech Corporation from continuing
operations
|
|
$
|
(0.12
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.20
|
)
|
|
Net (loss) income from discontinued operations
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
1.24
|
|
|
Net (loss) income attributable to Astrotech Corporation
|
|
$
|
(0.12
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
Net unrealized loss, net of tax benefit of $40, $0, $73, and $0
|
|
$
|
(74
|
)
|
|
$
|
—
|
|
|
$
|
(135
|
)
|
|
$
|
—
|
|
|
Reclassification adjustment for realized losses included in net
(loss) income, net of taxes of $2, $0, $5, and $0
|
|
5
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
Total comprehensive (loss) income
|
|
$
|
(2,595
|
)
|
|
$
|
(2,422
|
)
|
|
$
|
(6,016
|
)
|
|
$
|
20,861
|
|
|
|
|
|
|
|
|
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,145
|
|
|
$
|
2,330
|
|
|
Short-term investments
|
|
18,192
|
|
|
23,161
|
|
|
Accounts receivable, net of allowance
|
|
143
|
|
|
198
|
|
|
Inventory
|
|
1,232
|
|
|
509
|
|
|
Indemnity receivable
|
|
6,100
|
|
|
6,100
|
|
|
Prepaid expenses and other current assets
|
|
475
|
|
|
296
|
|
|
Total current assets
|
|
28,287
|
|
|
32,594
|
|
|
Property and equipment, net
|
|
3,572
|
|
|
3,108
|
|
|
Long-term investments
|
|
5,768
|
|
|
8,516
|
|
|
Total assets
|
|
$
|
37,627
|
|
|
$
|
44,218
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
|
$
|
409
|
|
|
$
|
398
|
|
|
Accrued liabilities and other
|
|
1,483
|
|
|
1,801
|
|
|
Income tax payable
|
|
—
|
|
|
190
|
|
|
Total current liabilities
|
|
1,892
|
|
|
2,389
|
|
|
Other liabilities
|
|
130
|
|
|
101
|
|
|
Total liabilities
|
|
2,022
|
|
|
2,490
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
Preferred stock, no par value, convertible, 2,500,000 shares
authorized; no shares issued and outstanding, at December 31, 2015
and June 30, 2015
|
|
—
|
|
|
—
|
|
|
Common stock, no par value, 75,000,000 shares authorized; 21,864,548
shares issued at December 31, 2015 and June 30, 2015, respectively;
20,700,673 and 20,743,973 shares outstanding at December 31, 2015
and June 30, 2015, respectively
|
|
189,185
|
|
|
189,007
|
|
|
Treasury stock, 1,163,875 and 1,120,575 shares at cost at December
31, 2015 and June 30, 2015, respectively
|
|
(2,789
|
)
|
|
(2,672
|
)
|
|
Additional paid-in capital
|
|
1,210
|
|
|
1,139
|
|
|
Accumulated deficit
|
|
(151,912
|
)
|
|
(146,022
|
)
|
|
Accumulated other comprehensive loss
|
|
(217
|
)
|
|
(23
|
)
|
|
Equity attributable to stockholders of Astrotech Corporation
|
|
35,477
|
|
|
41,429
|
|
|
Noncontrolling interest
|
|
128
|
|
|
299
|
|
|
Total stockholders’ equity
|
|
35,605
|
|
|
41,728
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
37,627
|
|
|
$
|
44,218
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160209005554/en/
Copyright Business Wire 2016