Nov. 1, 2001--APA Optics, Inc. (Minneapolis, MN) (NASDAQ:APAT) reported a net loss of $1,364,499 or 11 cents a share for second quarter of fiscal 2002, ended September 30, compared to a net loss of $596,999 posed for the same period in fiscal 2001. For the first six months of fiscal year 2002, the company experienced a net loss of $2,009,560, or 17 cents a share, as compared to a net loss of $1,506,674 reported for the first six months of fiscal 2001. Revenues increased for the first six months, with $521,909 reported for fiscal 2002, as compared to $174,979 for the first six months of fiscal 2001. APA attributed the increased loss largely to a higher cost of goods sold, reduced interest income, and the slowing economy.
"Our financial results reflect the impact of the current economic slowdown, particularly in fiber optic communications, and performance issues with our DWDMs related to environmental specifications," said Anil K. Jain, APA's president and chief executive officer. "While we have made significant improvements in the environmental performance of our DWDM components, a key requirement in obtaining Telcordia certification, remaining performance issues, and production uniformity issues related to the SunUVWatch all contributed to lower revenues in the second quarter."
The company states that it continues to work toward automated production of DWDMs for increased production capacity, uniform performance, and lower production costs. It also initiated R&D activities in gallium nitride based hetero-junction field effect transistors (HFETs) for high-speed communication, while continuing to work on bringing ultraviolet radiation detector based products to market.
APA also reported that one of its customers has discontinued development of an optical system that used its DWDM components. As a result, the customer cancelled the majority of an outstanding purchase order for 21 DWDM components.
The weighted average shares outstanding for the second quarter of the 2002 fiscal year totaled 11,917,465 as compared to the 11,694,715 weighted average shares outstanding during the three months ended September 31, 2000. On September 19, 2001, the company adopted a stock repurchase plan and during the quarter ended September 30, 2001, the company repurchased 43,200 shares of its common stock at an average price of $2.14 per share.