Astrotech Reports Second Quarter 2014 Financial Results

Astrotech Reports Second Quarter 2014 Financial Results

  *GAAP results: net loss of $2.6 million (attributable to Astrotech
    Corporation), on revenue of $2.5 million, or $(0.13) per diluted share for
    the quarter ended December 31, 2013, which includes a one-time $0.6
    million charge related to the vesting of employee stock options triggered
    by the Company's share price exceeding $1.50
  *Astrotech Space Operations ("ASO"), the Company's core business, did not
    complete any satellite launches during the second quarter of fiscal year
  *1^st Detect achieved a significant milestone in signing its first
    strategic OEM agreement with RIGAKU Corporation of Tokyo, Japan
  *1^st Detect received a key patent for the Company's innovative ion trap,
    further protecting our ground-breaking miniature mass spectrometer

AUSTIN, Texas, Feb. 14, 2014 (GLOBE NEWSWIRE) -- Astrotech Corporation
(Nasdaq: ASTC), a leading provider of commercial aerospace services, today
announced financial results for its fiscal year 2014 second quarter ended
December 31, 2013.

"Our core satellite processing business, Astrotech Space Operations,
experienced an uncharacteristically slow second quarter due to a very light
launch schedule and a mission slip," said Thomas B. Pickens III, Chairman and
CEO of Astrotech. "On a positive note, our 18-month rolling backlog at ASO
remains healthy and we are excited about the prospects at 1^st Detect now that
we have signed our first significant commercial agreement with RIGAKU, a world
recognized leader in chemical analysis instrumentation."

Second Quarter Results

The Company posted a second quarter fiscal year 2014 net loss of $2.6 million,
or $(0.13) per diluted share on revenue of $2.5 million compared with a second
quarter fiscal year 2013 net loss of $0.8 million, or $(0.04) per diluted
share on revenue of $4.1 million.

Update of Ongoing Operations

ASO's 18-month rolling backlog, which includes contractual backlog and
scheduled but uncommitted missions was $24.4 million at December 31, 2013. The
majority of the revenue at ASO consists of pre-launch satellite processing
services, which include hardware launch preparation, advance planning, use of
unique satellite preparation facilities and spacecraft checkout,
encapsulation, fueling, transport, design and fabrication of equipment and
hardware for space launch activities at our Titusville, Florida and VAFB,
California locations.

1^st Detect is the leading commercial developer of miniature mass spectrometry
technology. We are paving the way with next generation chemical detection
instrumentation and we are aggressively pursuing new strategic partnerships as
we move to drive a paradigm shift in this marketplace.

Financial Position and Liquidity

Working capital was $3.8 million as of December31, 2013, which included $6.7
million in cash and cash equivalents.

About Astrotech Corporation

Astrotech is one of the first space commerce companies and remains a strong
entrepreneurial force in the aerospace industry. We are leaders in
identifying, developing and marketing space technology for commercial use. Our
ASO business unit serves our government and commercial satellite and
spacecraft customers with pre-launch services on the eastern and western
range. 1^stDetect Corporation is developing what we believe is a breakthrough
miniature mass spectrometer, the MMS-1000™, while Astrogenetix, Inc. is a
biotechnology company utilizing microgravity as a research platform for drug
discovery and development.

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,
continued government support and funding for key space programs, product
performance and market acceptance of products and services, as well as other
risk factors and business considerations described in Astrotech'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. Astrotech assumes no obligation to update these
forward-looking statements.

Tables follow
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
                                      Three Months Ended  Six Months Ended
                                      December31,        December31,
                                      2013      2012      2013      2012
                                      (unaudited)         (unaudited)
Revenue                                $ 2,538   $ 4,122  $ 9,227   $ 10,251
Cost of revenue                        2,682     3,125    5,768     8,032
Gross profit                           (144)     997      3,459     2,219
Operating expenses:                                               
Selling, general and administrative    2,209     1,484    3,947     3,583
Research and development               350       393      1,156     1,035
Total operating expenses               2,559     1,877    5,103     4,618
Loss from operations                   (2,703)   (880)     (1,644)   (2,399)
Interest and other expense, net        (65)      (46)      (117)     (85)
Loss before income taxes               (2,768)   (926)     (1,761)   (2,484)
Income tax expense                     (6)       —        (6)       —
Net loss                               (2,774)   (926)     (1,767)   (2,484)
Less: Net loss attributable to         (220)     (116)     (466)     (257)
noncontrolling interest*
Net loss attributable to Astrotech     $ (2,554) $ (810)   $ (1,301) $ (2,227)
Net loss per share attributable to     $(0.13) $(0.04) $(0.07) $(0.12)
Astrotech Corporation, basic
Weighted average common shares         19,479    19,428   19,476    19,189
outstanding, basic
Net loss per share attributable to     $(0.13) $(0.04) $(0.07) $(0.12)
Astrotech Corporation, diluted
Weighted average common shares         19,479    19,428   19,476    19,189
outstanding, diluted

* Noncontrolling interest resulted from grants of restricted stock in 1^st
Detect and Astrogenetix to certain employees, officers and directors. Please
refer to the December31, 2013 10-Q filed with the Securities and Exchange
Commission for further detail.


Condensed Consolidated Balance Sheets
(In thousands)
                                          December31, June30,
                                          2013         2013
Cash and cash equivalents                  $6,659     $5,096
Accounts receivable, net                   306          5,317
Prepaid expenses and other current assets  762          503
Total current assets                       7,727        10,916
Property, plant, and equipment, net        36,080       37,035
Other assets, net                          40           51
Total assets                               $43,847    $48,002
Liabilities and stockholders' equity                   
Current liabilities                        $3,895     $6,609
Long-term liabilities                      5,633        5,913
Stockholders' equity                       34,319       35,480
Total liabilities and stockholders' equity $43,847    $48,002

Unaudited Reconciliation of Non-GAAP Measures
(In thousands)
Earnings Before Interest, Taxes, Depreciation and Amortization
                                       ThreeMonths       SixMonths
                                       EndedDecember31, EndedDecember31,
                                       2013       2012    2013      2012
EBITDA                                  $ (2,116)  $ (338) $ (454)   $ (1,325)
Depreciation& amortization             592        525     1,187     1,032
Interest expense                        60         63      120       127
Income tax expense                      6          —      6         —
Net income loss                         (2,774)    (926)   (1,767)   (2,484)
Net loss attributable to noncontrolling (220)      (116)   (466)     (257)
Net income lossattributable to         $ (2,554)  $ (810) $ (1,301) $ (2,227)
Astrotech Corporation

EBITDA (earnings before interest, taxes, depreciation and amortization) is a
non-U.S. GAAP financial measure. We included information concerning EBITDA
because we use such information when evaluating operating earnings (loss)to
better evaluate the underlying performance of the Company. EBITDA does not
represent, and should not be considered an alternative to, net income (loss),
operating earnings (loss), or cash flow from operations as those terms are
defined by U.S. GAAP and does not necessarily indicate whether cash flows will
be sufficient to fund cash needs. While EBITDA is frequently used as measures
of operations and the ability to meet debt service requirements by other
companies, our use of this financial measure is not necessarily comparable to
such other similarly titled captions of other companies.

         Eric Stober
         Astrotech Corporation

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