Advanced Photonix Inc. Reports Third- Quarter Fiscal Year 1999 Results.

CAMARILLO, Calif.--(BUSINESS WIRE)--Feb. 10, 1999--Advanced Photonix Inc. (AMEX:API), the leading developer and manufacturer of large area avalanche photodiodes (LAAPDs), Wednesday reported its third-quarter Fiscal Year 1999 results.

Total revenues for the third quarter ended Dec. 27, 1998, were $1.9 million, a decrease of 5 percent over $2.0 million reported in the third quarter last year. Net income rose 42 percent to $143,000 (1 cent per share), compared with net income of $101,000 (1 cent per share) in last year's third quarter.

Total revenues for the nine months ended Dec. 27, 1998, were $5.8 million, compared with $5.0 million in the prior year -- an increase of 17 percent. Net income for the nine months was 4 cents per share, compared with a loss of 1 cent per share for the same period of the previous year.

In announcing the results, Harry Melkonian, president and chief executive officer of Advanced Photonix, said: "API is reporting its sixth consecutive profitable quarter. YTD net product sales increased 24 percent over the prior year.

"The outlook for fiscal 1999, which ends March 28, 1999, is good, with higher revenues and net income than last year. This is anticipated despite a projected soft fourth quarter, which should result in break-even net income."

Melkonian continued: "In conjunction with increased LAAPD marketing activities, we continue to see growing customer interest in the LAAPD product line and continue to anticipate increasing LAAPD revenues in the future. However, the qualification periods for full design acceptance of the LAAPD technology, as I have previously reported, can be as long as several years."

The company indicated that its LAAPD marketing campaign, which targets market segments currently utilizing Photomultiplier Tubes (PMTs), continues to foster rising customer inquiries as more PMT users evaluate the advantages of a solid-state replacement to the older vacuum-tube technology.

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

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 that may prevent or slow the development and/or manufacture of new products, limited (or slower-than-anticipated) customer acceptance of new products that have been and are being developed by the company, and a decline in the general demand for optoelectronic products. -0-

                        ADVANCED PHOTONIX INC.
                         Financial Highlights
                  (In thousands, except share data)

                             Three months ended     Nine months ended
                             Dec. 27,   Dec. 28,   Dec. 27,   Dec. 28,
                               1998       1997       1998       1997
Revenues:
 Net product sales           $1,866     $1,873     $5,785     $4,647
 Development contracts           --        100         --        311
 Total                       $1,866     $1,973     $5,785     $4,958
Gross profit margin on net
 product shipments           $  751     $  878     $2,255     $1,837
Percent to net product
 shipments                      40%        47%        39%        40%
Net income (loss)            $  143     $  101     $  400     $  (92)
Basic net income (loss)
 per share (a)               $  .01     $  .01     $  .04     $ (.01)
Weighted average number of
 shares outstanding      10,917,000 10,913,000 10,917,000 10,876,000

(a) The impact of dilutive shares is immaterial.