Boston, MA 09/29/2014 (wallstreetpr) – API Technologies Corp (NASDAQ:ATNY) announced the financial results of the third quarter (3Q2014) ended August 31, 2014. During the period, the Company reported revenues of $56.9 million with a net loss of $0.6 million.
Operational performance
During 3Q2014, API Technologies’ revenues were $56.9 million, down by 9% from $62.3 million in 3Q2013. The decline was due to lower revenues across its three business segments. It includes revenues of $41.9 million from Systems, Subsystems & Components (SSC), and $8.8 million from Electronic Manufacturing Services (EMS) and $6.3 million from Secure Systems & Information Assurance (SSIA).
Gross profit was $14.8 million and 26.0% with respect to revenues (gross margin). But, after the exclusion of restructuring and other exceptional expenses, the Company registered an adjusted gross margin of 27.4%.
Similarly, the adjusted EBITDA for the period was $7.8 million with a margin of 13.6% as SSC and EMS recorded positive adjusted EBITDA margin of 17% and 16.3% respectively.
Net bookings
Backlog may increase or decrease that depends on the timing of purchase orders by customers. As of August 31, 2014, API Technologies Corp (NASDAQ:ATNY) recorded net bookings of $59.7 million with book to bill of 1.1. The SSC bookings continued to increase in the quarter compared to other segments.
The Company expects to fill the backlog orders of ~$89.5 million by May 31, 2015 with increasing bookings SSC products and also some additional bookings from other two segments.
Final take
API Technologies Corp (NASDAQ:ATNY)’ CEO Bel Lazar pleased with the performance as the Company managed to retain the positive growth in revenue, gross and operating margin. Adjusted EBITDA of 3Q2014 remained the highest among the last eight quarters.
He said that the Company is financial sound to continue the innovation and deliver advanced technology products and RF/microwave as per the customers’ requirement. As of August 31, 2014, API Technologies has cash and cash equivalents of $7.7 million and total debt of ~$130.0 million to support the financial requirements.
