Advanced Photonix Inc. Reports Record Performance for the Fourth Quarter and Fiscal 1998

Business Wire, June 4, 1998

CAMARILLO, Calif.--(BUSINESS WIRE)--June 4, 1998--Advanced Photonix Inc. (ASE: API), the leading developer and manufacturer of high performance, large area avalanche photodiodes, Thursday reported record profitability for the third consecutive quarter and its first profitable fiscal year since inception of the company.

For the fourth quarter, revenues totaled $2.05 million, or 42% higher than the $1.45 million reported in the fourth quarter of the prior year. The company reported a net profit of $102,000 or $.01 per share, compared with a net loss of $593,000 or $.05 per share in last year's fourth quarter.

Revenues for the twelve months ended March 29, 1998, were $7.01 million, or 10% higher than the $6.38 million reported in the prior year. Net profit for the twelve months was $10,000 or $.00 per share compared with a net loss of $1.89 million or $.17 per share for the same period of the previous year.

In announcing the results, Harry Melkonian, President & CEO, said: "We are very pleased with this strong finish to our fiscal year. This quarter's performance caps a year in which we continued to execute well in many key areas of our business, achieving three consecutive quarters of improving profitability. Fourth quarter gross margin as a percent to product shipments improved 45% over last year's fourth quarter and by 24% on a year to year basis."

Melkonian went on to say: "Our financial position is strong and the outlook for overall demand in the optoelectronic industry remains very healthy. With our current backlog, we are optimistic that we will experience continued profitability in the near term."

The company indicated that FY 1998 revenues from its LAAPDs reached $192,000 -- the highest level of shipments in company history, as newly refined manufacturing processes improved yields and performance.

LAAPD products are being tested in a number of customer beta sites, including airline ice detection systems, film to video conversion equipment, process inspection applications, widefield retinal visualization instruments and advanced scientific research experiments. All of the customers for these applications are early adopters of the technology.

In conclusion, Melkonian said, "We continue to pursue a strategy of being recognized as a technology leader and are optimistic that our focused efforts in developing and commercializing enabling technologies, such as our patented LAAPD, will produce additional opportunities in new market segments as well as an increased share of those in which we currently participate."

Advanced Photonix is a high-technology company which designs and manufactures silicon photodetectors, optoelectronic hybrid assemblies and proprietary solid state large area avalanche photodiodes. -0-

The information contained herein includes forward looking statements that are based on assumptions that management believes to be reasonable but are subject to inherent uncertainties and risks including, but not limited to, unforeseen technological obstacles which may prevent or slow the development and/or manufacture of new products, limited (or slower than anticipated) customer acceptance of new products which have been and are being developed by the company, a decline in the general demand for optoelectronic products and the cancellation of certain U.S. Government contracts due to a variety of reasons including a lack of funding. -0-

                        ADVANCED PHOTONIX INC.
                        (000 except share data)

                          Three Months Ended     Twelve Months Ended
                         March 29,   March 30,  March 29,     March 30,
                            1998        1997       1998         1997

REVENUES                   $2,050      $1,448     $7,008      $6,375
GROSS PROFIT MARGIN ON
 NET PRODUCT SHIPMENTS        905         420      2,742       1,892
 Percent to Net Product
  Shipments                   45%         31%        41%         33%
NET PROFIT (LOSS)            $102       ($593)       $10     ($1,886)
BASIC EARNINGS (LOSS)
 PER SHARE (a)               $.01       ($.05)      $.00       ($.17)
BASIC WEIGHTED AVG.
 NUMBER OF SHARES
 OUTSTANDING (a)       10,914,000  10,854,000 10,886,000  10,831,000

(a ) the impact of dilutive shares is immaterial

CONTACT: Advanced Photonix Inc., Camarillo

Patrick J. Holmes, 805/987-0146