ANN ARBOR, Mich., March 4, 2013 /PRNewswire/ -- Advanced Photonix ® (NYSE MKT: API), a leading supplier of Optoelectronic components, sub-systems and systems to industry, announced today that it has acquired certain assets of Silonex, Inc. Silonex, Inc. is/was a wholly owned subsidiary of ARCAS Automotive Group (Luxco 1) S.a.r.l. , in exchange for a cash payment of $900,000.
The Silonex acquisition is expected to bring in over $4 million in annual revenue and generate positive EBITDA during the first full fiscal year ending March 31, 2014. Engineering and Product development for the Silonex products will continue in Montreal, while production will be transitioned to an off-shore facility or to Advanced Photonix's operations in Camarillo, California.
"I would like to welcome Silonex customers, staff and suppliers to the Advanced Photonix family. Silonex brings a rich history of product development, new markets, new optoelectronic sensing capabilities with the addition of Cadmium Sulfide, or CdS, and a strong off-shore supply chain and customer base. We are looking forward to building and leveraging those relationships to expand our revenue growth and lower our unit costs," said Rick Kurtz, Advanced Photonix President and CEO. "We have had a long relationship with Silonex, working together as customer and supplier, and believe the synergies of our engineering, sales and customer base will provide a strong foundation for future growth. To facilitate this transaction, we have established a new Canadian subsidiary that will be called Advanced Photonix Canada, Inc. In addition, because our previously announced supply chain issues have lowered expected revenues from the sale of our HSOR line of products, we are introducing a cost-cutting program which includes a 20% wage and compensation reduction by "C" management and the Board of Directors over the next five months, and a suspension of the company 401k match."About Silonex, Inc. Silonex designs, manufactures and markets optoelectronic devices and sensor solutions. Its expertise in optical sensor design and integrated manufacturing meet the most challenging application requirements. A number of various vertical markets are addressed by Silonex's innovative optoelectronic-based sensor solutions, including Industrial Controls, Banking, Vending, Medical and Telecommunications.