Advanced Photonix Inc. reports second- quarter FY1997 results and management changes.

CAMARILLO, Calif.--(BUSINESS WIRE)--Nov. 11, 1996--Advanced Photonix Inc. (ASE:API) Monday announced its results for the second quarter and six months ended Sept. 29, 1996, and permanent management appointments.

For the second quarter, revenues totaled $1.7 million, compared with $2 million reported in the second quarter of the prior year. The company reported a net loss of $597,000, or 6 cents per share, compared with a net loss of $114,000, or 1 cent per share, in last year's second quarter.

Revenues for the six months ended Sept. 29, 1996, were $3.5 million compared with $3.9 million in the prior year. Net loss for the six months was 8 cents per share, compared with 4 cents per share for the same period of the previous year.

Second-quarter results reflect the impact of lower revenues and a one-time reorganization charge of approximately $290,000. Lower product shipments are primarily related to military aerospace business with the company's largest customer.

Volume should begin to increase as the company begins to commercialize and ship large area avalanche photodiode (LAAPD) products utilizing a new chip later in the current fiscal year. The company recently announced a new process and patent-pending approach which produces LAAPD chips with a device lifetime that is in excess of 100,000 hours.

The company also announced that Hayden Leason, appointed chairman on Oct. 16, was named chief executive officer and Harry Melkonian was named president. Both of these appointments succeed Robert G. Allison, who was elected as interim CEO and president after the shareholder meeting of Oct. 16. Allison will remain a member of the board of directors.

Commenting on the announcement, Allison said: ``Since being named interim president and CEO, I have had the opportunity to assess the capabilities, technology and strategies of the company.

``This process quickly convinced me that the company has the operating management talent in place to lead the company towards profitability and growth and the strategic vision at the board level to ensure market positioning and effective utilization of capital resources.''

Relative to the announcement regarding Melkonian, Allison offered: ``Harry has been an officer of the company since joining in 1992, and has consistently demonstrated his effective general management skills in running the company's PIN Diode business.

``We are excited about having him concentrate on the whole of the business and have tremendous confidence in his ability to lead the company towards growth and profitability.''

Prior to joining the company, Melkonian was instrumental in the company's acquisition of its subsidiary, Silicon Detector Corp. Melkonian has had a distinguished operations career, including director of operations of Simulaser Corp. and various management responsibilities at Sensor Technology Inc.

In related changes, the company announced that Patrick J. Holmes has been named executive vice president in addition to his previous duties as chief financial officer, and Andrzej Dabrowski, a co-founder of the company, has resigned to pursue his own business venture. Dabrowski will remain a technical consultant to the company.

Regarding the current strategy, Leason said: ``The new management intends to aggressively focus its effort on sales and marketing in both the core business and the new LAAPD line of products.

``We intend to create a renewed spirit and general sense of urgency among our fellow employees to maximize our substantial business opportunities in this enabling technology. We have the products, the resources and the employees to be the leader in this goal.''

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 (particularly its LAAPD product line) and a decline in the general demand for opto-electronic products.

Advanced Photonix is a high-technology growth company which designs and manufactures silicon photodetectors, opto-electronic hybrid assemblies and proprietary solid-state, large area avalanche photodiodes. The company recently unveiled a new silicon chip design for its proprietary large area avalanche photodetectors. -0-

                      Advanced Photonix Inc.
                       Financial Highlights

                     Three Months Ended         Six Months Ended
                    Sept. 29,     Oct. 1,     Sept. 29,     Oct. 1,
                      1996         1995         1996         1995

Revenues            $ 1,717      $ 2,041      $ 3,483      $ 3,943
Gross profit margin
  from net product
  shipments         $   430      $   715      $ 1,047      $ 1,298
 Percent to net
   product shipments     30%          38%          34%          35%
Research &
  development costs $   512      $   462      $ 1,088      $   915
Net loss           ($   597)    ($   114)    ($   907)    ($   401)
Net loss per
  share            (6 cents)     (1 cent)    (8 cents)    (4 cents)
Weighted average
  number of shares
  outstanding    10,823,000    9,978,000   10,817,000    9,179,000

CONTACT: Advanced Photonix Inc., Camarillo

Patrick J. Holmes, 805/987-0146