Advanced Photonix Acquires Silonex, Cuts Costs
ANN ARBOR, Mich., March 4, 2013 — Optoelectronic components supplier Advanced Photonix has acquired certain assets of Silonex Inc., a wholly owned subsidiary of Arcas Automotive Group, for $900,000 in cash.
The acquisition is expected to bring in more than $4 million in annual revenue and generate positive earnings during the first full fiscal year ending March 31, 2014. Engineering and product development for the Silonex products will continue in Montreal, while production will be transitioned to an off-shore facility or to the operations of Advanced Photonix in Camarillo, Calif.
"We are looking forward to building and leveraging those relationships to expand our revenue growth and lower our unit costs," said Rick Kurtz, Advanced Photonix president and CEO. To facilitate the transaction, the company has established a new Canadian subsidiary called Advanced Photonix Canada Inc.
In addition, Advanced Photonix has introduced a cost-cutting program that includes a 20 percent wage and compensation reduction by “C” management and the board of directors over the next five months, and a suspension of the company 401(k) match, Kurtz said.
The company announced last month that sales for the third quarter were down 10 percent, and they recorded a net loss of $700,000.
“Because of the continuing supply issues we have experienced and continue to have in our 100G HSOR product platform, we now expect a flat second half of fiscal 2013 relative to the first half with growth picking up in subsequent quarters,” Kurtz said. “In anticipation of the drop in revenue in this second half, we have secured an additional $2.5 million in a credit facility to insure we can meet our growth plans this coming year.”
For more information, visit: www.advancedphotonix.com