Astrotech Reports Fiscal Year 2018 Financial Results

AUSTIN, Texas–(BUSINESS WIRE)–$ASTC–Astrotech Corporation (NASDAQ: ASTC) reported its financial results for
the fourth quarter and fiscal year ended June 30, 2018.

Thomas B. Pickens III, Chairman and CEO of Astrotech, stated, “Fiscal
2018 was an excellent year in terms of product endorsement at 1st
Detect. We achieved three major milestones toward our goal of securing
airports, borders, package distribution centers, and other public venues
from explosive threats, as we strive to modernize the explosives trace
detector (ETD) market.” The three milestones include:

1.   1st Detect began Test and Evaluation (T&E) activities at
the Department of Homeland Security’s Transportation Security
Laboratory (TSL). The TRACER 1000 is currently undergoing
Developmental Test and Evaluation (DT&E), and is expected to enter
Independent Test and Evaluation (IT&E) in the coming months. A
successful IT&E review would lead to TSL Certification. Once TSL
Certification is complete, our product is ready to undergo TSL
Qualification Testing and field trials, the result of which is a
recommendation of whether the system should be placed on the
Qualified Products List (QPL), which is necessary for deployment in
U.S. airports.
 
2. The TRACER 1000 was accepted into the Transportation Security
Administration’s (TSA) Air Cargo Screening Technology Qualification
Test (ACSQT) program. Certification under this program would enable
the TRACER 1000 to be purchased for use in air cargo handling
facilities throughout the United States, to include both package
distribution centers and checked luggage at airports. This summer,
the TRACER 1000 underwent substantial testing at one of the world’s
largest package distribution companies, as well as at a major U.S.
airline’s cargo facility. Results from these tests will support the
data package for submission into the ACSQT program.
 
3. 1st Detect applied to and was accepted into the European
Civil Aviation Conference (ECAC) Common Evaluation Process (CEP) for
both aviation checkpoint and cargo security. ECAC Certification
under this program would enable the TRACER 1000 to be sold to
airports throughout Europe and other non-U.S. countries. Testing
under this program kicked off this month and we anticipate feedback
in the coming months.
 

There is no assurance that any of the further steps detailed in the
milestones mentioned above will be achieved or that our technology will
be approved by any of the programs listed.

“We believe these three programs represent the airport security and
detection industry’s most rigorous technology review programs,”
continued Pickens. “Government and commercial customers throughout the
world consider certifications under these programs in their procurement
decisions and investment strategies.

“The TRACER 1000 would be the first certified ETD driven by mass
spectrometry, a technology that we believe offers far superior detection
as compared to the currently-deployed, ion-mobility spectrometry
(IMS)-based ETDs. With a near-zero false alarm rate, very high levels of
specificity, and a considerably expanded library of compounds, our
solution is expected to fill critical security gaps by improving
screening efficiency, increasing throughput, and enabling officials to
stay ahead of evolving threats.

“At Astral Images, we entered into a partnership with ColorTime, a
leading post-production house, to incorporate our proprietary Image
Correction and Enhancement (ICE™) software and scanner hardware into
their workflow. With ColorTime’s customer base comprised of many major
film studios, we are encouraged by the potential for our products to
gain exposure on a larger scale,” concluded Pickens.

Fiscal Year Financial Highlights

Management continues efforts to optimize our resources while reducing
cost and adding financial flexibility.

  • On July 3, we announced the filing of a universal shelf registration
    statement on Form S-3 with the United States Securities and Exchange
    Commission (SEC). On August 20, the shelf registration statement
    became effective. The shelf registration statement provides
    flexibility in regards to our capital raising options.
  • Currently, monthly cash burn has been reduced to just over $750
    thousand, a 15.0% reduction from our run rate in fiscal year 2018.
    This decrease was mainly driven by a reduction of headcount,
    optimizing our workforce, and an ongoing emphasis on cost reduction.
    Further, this represents a 33.3% decrease from the end of fiscal year
    2016, when such cost cutting measures began.
  • Astrotech Corporation had no debt at June 30, 2018.

About Astrotech

Astrotech (NASDAQ: ASTC) is a science and technology development and
commercialization company that launches, manages, and builds scalable
companies based on innovative technology in order to maximize
shareholder value. 1st
Detect
develops, manufactures, and sells chemical analyzers for
use in the security, defense, healthcare, and environmental markets. Astral
Images
sells film-to-digital image enhancement, defect removal,
color correction, and post processing software, providing economically
feasible conversion of film to the new 4K ultra-high definition (UHD),
high-dynamic range (HDR) format. Astrotech is headquartered in Austin,
Texas. For information, please visit www.astrotechcorp.com.

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, whether we can
successfully develop our proprietary technologies and whether the market
will accept our products and services, as well as other risk factors and
business considerations described in the Company’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. The Company assumes no obligation
to update these forward-looking statements.

 

ASTROTECH CORPORATION
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share data)
     
June 30,
2018     2017
Revenue $ 86 $ 2,328
Cost of revenue   36     1,293  
Gross profit   50     1,035  
Operating expenses:
Selling, general and administrative 5,629 7,508
Research and development 6,065 5,587
Loss on impairment of long-lived assets   1,693      
Total operating expenses   13,387     13,095  
Loss from operations (13,337 ) (12,060 )
Interest and other income, net   86     306  
Loss from operations before income taxes (13,251 ) (11,754 )
Income tax expense       (2 )
Net loss (13,251 ) (11,756 )
Less: Net loss attributable to noncontrolling interest       (174 )
Net loss attributable to Astrotech Corporation $ (13,251 ) $ (11,582 )
Weighted average common shares outstanding:
Basic and diluted 4,061 4,084
Basic and diluted net loss per common share:
Net loss attributable to Astrotech Corporation $ (3.26 ) $ (2.84 )
Other comprehensive loss, net of tax:
Net loss attributable to Astrotech Corporation $ (13,251 ) $ (11,582 )
Available-for-sale securities
Net unrealized losses, net of zero tax expense (94 ) (20 )

Reclassification adjustment for realized losses included in net
loss, net of zero tax expense

 

  124     60  
Total comprehensive loss attributable to Astrotech Corporation $ (13,221 ) $ (11,542 )
 
     
ASTROTECH CORPORATION
Consolidated Balance Sheets
(In thousands, except share data)
 
June 30,
2018     2017
Assets
Current assets
Cash and cash equivalents $ 552 $ 2,184
Short-term investments 3,551 10,900
Accounts receivable 12 146
Inventory, net 7 166
Prepaid expenses and other current assets   154     269  
Total current assets 4,276 13,665
Property and equipment, net 733 3,180
Long-term investments 50 1,990
Other assets, net   81      
Total assets $ 5,140   $ 18,835  
Liabilities and stockholders’ equity
Current liabilities
Accounts payable $ 112 $ 259
Payroll related accruals 412 907
Accrued and other liabilities 434 641
Income tax payable   2     2  
Total current liabilities 960 1,809
Other liabilities   188     256  
Total liabilities   1,148     2,065  
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value, convertible, 2,500,000 shares
authorized, no shares issued and outstanding at June 30, 2018 and
June 30, 2017
Common stock, $0.001 par value, 15,000,000 shares authorized;
4,496,873 and 4,508,509 shares issued at June 30, 2018 and June 30,
2017, respectively; 4,097,346 and 4,111,281 shares outstanding at
June 30, 2018 and June 30, 2017, respectively
190,570 190,382
Treasury stock, 399,527 and 397,228 shares at cost at June 30, 2018
and June 30, 2017, respectively
(4,128 ) (4,121 )
Additional paid-in capital 1,745 1,483
Accumulated deficit (184,164 ) (170,913 )
Accumulated other comprehensive loss   (31 )   (61 )
Total stockholders’ equity   3,992     16,770  
Total liabilities and stockholders’ equity $ 5,140   $ 18,835  

Contacts

Astrotech Corporation:
Eric Stober, 512-485-9530
Chief
Financial Officer
or
IR Contact:
Nicole Conser,
512-485-9530
Marketing Director