Astrotech Corporation (NASDAQ: ASTC) reported its financial results for
the third quarter of fiscal year 2019 ended March 31, 2019.
The third quarter was pivotal for Astrotech’s 1st Detect
subsidiary, having announced on February 21 that it received official
European Civil Aviation Conference (ECAC) certification for both
passenger and cargo screening.
With a near-zero false alarm rate, a virtually unlimited detection
library, and near 100% uptime, the TRACER 1000™ is the only certified
explosives trace detector (ETD) that can detect more threats than the
extremely limited number detected by current ETDs. We believe these
features will accelerate airport passenger security line throughput,
significantly enhance passenger and cargo security, and position the
TRACER 1000 as a market disruptor in explosives and harmful substance
trace detection.
“ECAC certification has led to two successful field trials and in both
instances, the state-of-the-art TRACER 1000 outperformed the currently
deployed ion mobility spectrometry (IMS) based ETDs. We are excited that
these field trials confirm the results we have been seeing in testing,”
stated Thomas B. Pickens III, Chairman and CEO of Astrotech.
Following the end of the third quarter, in April 2019, Astrotech
completed a $2 million private investment from its Chairman and CEO and
another long-term investor.
“This investment is expected to provide the resources toward the goal of
transitioning from a devoted R&D company to a manufacturing organization
after receiving ECAC certification,” continued Pickens.
Third Quarter Fiscal Year 2019 Financial Highlights
Management continues efforts to optimize our resources while reducing
cost and adding financial flexibility.
-
Operating expenses decreased 27% through the third quarter of fiscal
2019, compared to the third quarter of fiscal 2018, due to an ongoing
emphasis on cost reduction. -
Monthly cash burn for the fiscal year has been reduced to $731
thousand, a 25% reduction from our run rate through the third quarter
of fiscal year 2018. - Astrotech Corporation had no debt at March 31, 2019.
About Astrotech
Astrotech (NASDAQ: ASTC) is a science and technology development and
commercialization company that launches, manages, and builds scalable
companies based on innovative technology in order to maximize
shareholder value. 1st Detect develops,
manufactures, and sells chemical analyzers for use in the security,
defense, healthcare, and environmental markets. Astral Images sells
film-to-digital image enhancement, defect removal, color correction, and
post processing software, providing economically feasible conversion of
film to the new 4K ultra-high definition (UHD), high-dynamic range (HDR)
format. Astrotech is headquartered in Austin, Texas. 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, the Company’s use of
proceeds from the private placement transaction, 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 for
the fiscal year ended June 30, 2018. Any forward-looking statements in
this document should be evaluated in light of these important risk
factors. In addition, any forward-looking statements included in this
press release represent the Company’s views only as of the date of its
publication and should not be relied upon as representing its views as
of any subsequent date. The Company assumes no obligation to update
these forward-looking statements.
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ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and (In thousands, except per share data) (Unaudited) |
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Three Months Ended
March 31, |
Nine Months Ended
March 31, |
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| 2019 | 2018 | 2019 | 2018 | |||||||||||||||
| Revenue | $ | — | $ | — | $ | 40 | $ | 41 | ||||||||||
| Cost of revenue | — | — | 11 | 24 | ||||||||||||||
| Gross profit | — | — | 29 | 17 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Selling, general and administrative | 1,238 | 1,363 | 3,667 | 4,397 | ||||||||||||||
| Research and development | 1,026 | 1,495 | 3,027 | 4,721 | ||||||||||||||
| Total operating expenses | 2,264 | 2,858 | 6,694 | 9,118 | ||||||||||||||
| Loss from operations | (2,264 | ) | (2,858 | ) | (6,665 | ) | (9,101 | ) | ||||||||||
| Interest and other income, net | 12 | 3 | 15 | 103 | ||||||||||||||
| Loss before income taxes | (2,252 | ) | (2,855 | ) | (6,650 | ) | (8,998 | ) | ||||||||||
| Income tax benefit | 858 | — | 858 | — | ||||||||||||||
| Net loss | $ | (1,394 | ) | $ | (2,855 | ) | $ | (5,792 | ) | $ | (8,998 | ) | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||||
| Basic and diluted | 5,467 | 4,060 | 4,734 | 4,059 | ||||||||||||||
| Basic and diluted net loss per common share: | ||||||||||||||||||
| Net loss | $ | (0.25 | ) | $ | (0.70 | ) | $ | (1.22 | ) | $ | (2.22 | ) | ||||||
| Other comprehensive loss, net of tax: | ||||||||||||||||||
| Net loss | $ | (1,394 | ) | $ | (2,855 | ) | $ | (5,792 | ) | $ | (8,998 | ) | ||||||
| Available-for-sale securities: | ||||||||||||||||||
| Net unrealized gain | — | (32 | ) | — | (67 | ) | ||||||||||||
| Reclassification adjustment for realized loss | — | 42 | 31 | 76 | ||||||||||||||
| Total comprehensive loss | $ | (1,394 | ) | $ | (2,845 | ) | $ | (5,761 | ) | $ | (8,989 | ) | ||||||
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ASTROTECH CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) (Unaudited) |
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March 31,
2019 |
June 30,
2018 |
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| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 1,524 | $ | 552 | ||||||
| Short-term investments | — | 3,551 | ||||||||
| Accounts receivable, net of allowance | 41 | 12 | ||||||||
| Income tax receivable | 429 | — | ||||||||
| Prepaid expenses and other current assets | 328 | 161 | ||||||||
| Total current assets | 2,322 | 4,276 | ||||||||
| Property and equipment, net | 531 | 733 | ||||||||
| Deferred tax asset | 429 | — | ||||||||
| Long-term investments | — | 50 | ||||||||
| Other assets, net | 81 | 81 | ||||||||
| Total assets | $ | 3,363 | $ | 5,140 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | 139 | 112 | ||||||||
| Payroll-related accruals | 312 | 412 | ||||||||
| Accrued liabilities and other | 393 | 434 | ||||||||
| Income tax payable | 2 | 2 | ||||||||
| Total current liabilities | 846 | 960 | ||||||||
| Other liabilities | 156 | 188 | ||||||||
| Total liabilities | 1,002 | 1,148 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders’ equity | ||||||||||
|
Preferred stock, $0.001 par value, convertible, 2,500,000 shares authorized; no shares issued and outstanding at March 31, 2019 and June 30, 2018, respectively |
— | — | ||||||||
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Common stock, $0.001 par value, 15,000,000 shares authorized; 6,176,425 and 4,496,873 shares issued at March 31, 2019 and June 30, 2018, respectively; 5,776,509 and 4,097,346 shares outstanding at March 31, 2019 and June 30, 2018, respectively |
190,648 | 190,570 | ||||||||
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Treasury stock, 399,916 and 399,527 shares at cost at March 31, 2019 and June 30, 2018, respectively |
(4,129 | ) | (4,128 | ) | ||||||
| Additional paid-in capital | 5,798 | 1,745 | ||||||||
| Accumulated deficit | (189,956 | ) | (184,164 | ) | ||||||
| Accumulated other comprehensive loss | — | (31 | ) | |||||||
| Total stockholders’ equity | 2,361 | 3,992 | ||||||||
| Total liabilities and stockholders’ equity | $ | 3,363 | $ | 5,140 | ||||||
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