Astrotech Corporation (NASDAQ:ASTC) reported its financial results for the first quarter of fiscal year 2017, ended September 30, 2016. "The foundational achievements of fiscal year 2016 drove our continued progress on our government-related subcontract agreements to $1.0 million in revenue for our first quarter of fiscal 2017," said Thomas B. Pickens III, Chairman and CEO of Astrotech Corporation. "Our 1 st Detect subsidiary delivered milestones for a key government contract to develop next-generation explosive trace detection (ETD) systems for aviation security and began preparing to deliver multiple prototype units for integration into Battelle's Next Generation Chemical Detection (NGCD) prototype solution. We believe these two achievements continue to bolster future sales prospects for 1 st Detect, while cost reductions implemented in July helped the bottom line. Also, we remain actively engaged with our commercial development partners for application specific chemical detection solutions for opportunities in healthcare, breath analysis, food and beverage manufacturing quality control. "Our Astral Images subsidiary continues to receive very positive results from critical evaluations by leading studios of its revolutionary automated image correction and enhancement technology. With more than 6 billion feet of film in the US needing conversion to remain relevant in the next generation of digital distribution, we are pursuing the most attractive opportunities. "In summary, we continue to create value with our technological innovations and protect the unique advantages of our products with a strong IP portfolio," concluded Mr. Pickens. First 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 contract revenue.
- During the first quarter 2017, revenue was $1.0 million, reflecting 1 st Detect's income from research-based, fixed-price, government-related subcontracts.
- Gross profit was $275 thousand for the first quarter 2017.
- Corporate realignment is expected to save the Company approximately $3.5 million for the year.
- Cash and investments at September 30, 2016, were $22.3 million; there was no debt for each of the periods ended September 30, 2016, and June 30, 2016.
- Granted one additional U.S. patent and one international patent during the first quarter 2017, bringing the total to 17 U.S. patents and seven international patents.
|ASTROTECH CORPORATION AND SUBSIDIARIES|
|Condensed Consolidated Statements of Operations and Comprehensive Income|
|(In thousands, except per share data)|
|Three Months Ended|
|Cost of revenue||731||—|
|Selling, general and administrative||2,548||2,286|
|Research and development||1,292||1,264|
|Total operating expenses||3,840||3,550|
|Loss from operations||(3,565||)||(3,550||)|
|Interest and other expense, net||98||99|
|Loss before income taxes||(3,467||)||(3,451||)|
|Income tax expense||—||(2||)|
|Less: Net loss attributable to noncontrolling interest||(52||)||(89||)|
|Net loss attributable to Astrotech Corporation||$||(3,415||)||$||(3,364||)|
|Weighted average common shares outstanding:|
|Basic net loss per common share:|
|Net loss attributable to Astrotech Corporation||$||(0.17||)||$||(0.16||)|
|Other comprehensive income, net of tax:|
|Net unrealized gain (loss)||$||41||$||(94||)|
|Reclassification adjustment for realized losses||—||6|
|Total comprehensive loss||$||(3,374||)||$||(3,452||)|
|ASTROTECH CORPORATION AND SUBSIDIARIES|
|Condensed Consolidated Balance Sheets|
|(In thousands, except share data)|
|September 30,||June 30,|
|Cash and cash equivalents||$||3,543||$||4,399|
|Accounts receivable, net of allowance||1,018||156|
|Costs and estimated revenues in excess of billings||155||451|
|Prepaid expenses and other current assets||450||319|
|Total current assets||20,713||22,923|
|Property and equipment, net||3,245||3,392|
|Liabilities and stockholders' equity|
|Accrued liabilities and other||1,402||1,563|
|Total current liabilities||1,668||1,800|
|Commitments and contingencies|
|Preferred stock, no par value, convertible, 2,500,000 shares authorized; no shares issued and outstanding, at September 30, 2016, and June 30, 2016||—||—|
|Common stock, no par value, 75,000,000 shares authorized; 22,555,247 and 21,811,153 shares issued at September 30, 2016, and June 30, 2016, respectively; 21,179,208 and 20,627,511 shares outstanding at September 30, 2016, and June 30, 2016, respectively||190,138||189,294|
|Treasury stock, 1,376,039 and 1,183,642 shares at cost at September 30, 2016, and June 30, 2016, respectively||(3,136||)||(2,828||)|
|Additional paid-in capital||1,437||1,419|
|Accumulated other comprehensive loss||(60||)||(101||)|
|Equity attributable to stockholders of Astrotech Corporation||25,847||28,667|
|Total stockholders' equity||25,755||28,627|
|Total liabilities and stockholders' equity||$||27,503||$||30,523|