Washington, D.C.   20549

 

FORM 8-K

 

Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): July 22, 2004

 

ADVANCED POWER TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

 

 

405 SW Columbia Street,
Bend, Oregon 97702

(Address of principal executive offices) (ZIP Code)

 

Registrant’s telephone number, including area code:

(541) 382-8028

 

 

Item 5. Other Events and Required Disclosure

 

On July 22, 2004, the Registrant announced the following financial results and developments:

 

For the second quarter of 2004, revenues were a record $18.1 million, up 45 percent from $12.5 million in the same period in fiscal 2003 and up sequentially 20 percent from $15.1 million in the first quarter of 2004.  Net income in accordance with generally accepted accounting principles (“GAAP”) was $869,000, or $0.08 per diluted share.  This compares to the net loss of $119,000, in the same period in fiscal 2003, or $(0.01) per share, and to a net income in the first quarter of 2004 of $283,000 or $0.03 per diluted share.  On a GAAP basis, gross margin for the second quarter of 2004 was 38.0 percent of revenue compared to 35.5 percent in the same period in fiscal 2003 and 36.1 percent in the prior quarter.

 

Selling, general and administrative (“SG&A”) expenses in the second quarter of 2004 were $5.1 million and included $1.3 million of legal fees related to a patent litigation matter active during the quarter.  Summary judgment in favor of the Company, dismissing IXYS Corporation’s claims of patent infringement against the Company, was granted by the U.S. District Court on June 16, 2004. The Court held that IXYS’ United States Patent Nos. 5,486,715 and 5,801,419 are not infringed by APT’s power MOSFET products, and further held that “IXYS’s patents are invalid because obvious.”

 

 

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ADVANCED POWER TECHNOLOGY, INC

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

(unaudited)

 

		Three Months Ended June 30,						Six Months Ended June 30,
		2004			2003			2004			2003
Revenues, net		$	18,061		$	12,487		$	33,154		$	23,646
Cost of goods sold		10,915			7,777			20,282			15,529
Amortization of technology rights & other		274			280			548			564
Total cost of goods sold		11,189			8,057			20,830			16,093
Gross profit		6,872			4,430			12,324			7,553
Operating expenses:
Research and development		783			668			1,670			1,501
Selling, general and administrative		5,130			3,703			9,240			7,394
Restructuring charges		115			—			321			240
Total operating expenses		6,028			4,371			11,231			9,135
Income (loss) from operations		844			59			1,093			(1,582		)
Other income (expense), net:
Interest, net		41			52			81			108
Other, net		12			(145		)	6			(134		)
Income (loss) before income taxes		897			(34		)	1,180			(1,608		)
Provision (benefit) for income taxes		28			85			28			(480		)
Net Income (loss)		$	869		$	(119	)	$	1,152		$	(1,128	)
Net Income (loss) per share:
Basic		$	0.08		$	(0.01	)	$	0.11		$	(0.11	)
Diluted		$	0.08		$	(0.01	)	$	0.10		$	(0.11	)
Weighted average number of shares used in the computation of net income (loss) per share:
Basic		10,605			10,404			10,556			10,402
Diluted		11,261			10,404			11,212			10,402

 

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ADVANCED POWER TECHNOLOGY, INC

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

		June 30, 2004			Dec. 31, 2003
Assets
Current assets:
Cash and cash equivalents		$	10,168		$	11,564
Short term investments in available-for-sale securities		3,800			4,000
Accounts receivable, net		10,895			7,564
Inventories, net		12,944			12,382
Prepaid and other current assets		2,414			2,436
Total current assets		40,221			37,946
Property and equipment, net		11,174			11,002
Long term investments in available-for-sale securities		2,005			1,000
Other assets		53			174
Intangible assets, net		8,272			8,811
Goodwill		15,570			15,570
Total assets		$	77,295		$	74,503
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	4,771		$	3,471
Accrued expenses		2,423			2,695
Total current liabilities		7,194			6,166
Other long term liabilities		117			127
Total liabilities		7,311			6,293
Stockholders’ equity:
Common stock		108			106
Additional paid in capital		89,116			88,625
Treasury stock		(1,761		)	(1,761		)
Deferred stock compensation		—			(21		)
Accumulated other comprehensive income		417			309
Accumulated deficit		(17,896		)	(19,048		)
Total stockholders’ equity		69,984			68,210
Total liabilities and stockholders’ equity		$	77,295		$	74,503

 

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Item 12. Results of Operations and Financial Condition

 

The Registrant’s media release dated July 22, 2004, regarding results for the quarter ended June 30, 2004 and guidance for the quarter ending September 30, 2004, is attached hereto as Exhibit 99.1.  This information is being furnished under Item 12 of Form 8-K, and shall not be deemed “filed” for purposes of Section 18 or the Securities Exchange Act of 1934, or incorporated by reference in any filing under the Securities Act of 1933.

 

SIGNATURES

 

Pursuant to the requirements of the Section 13 of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized this 23^rd day of July, 2004.

 

	ADVANCED POWER TECHNOLOGY, INC.
	BY:	/s/ GREG M. HAUGEN
		Greg M. Haugen
		Vice President, Finance and Administration,
		Chief Financial Officer and Secretary
		(Principal Financial Officer)

 

EXHIBIT LIST

 

Exhibit No.		Description
99.1		Media Release dated July 22, 2004, “Advanced Power Reports Strong Second Quarter Results, Sees Increasing Revenue and Profit by the Third Quarter.”

 

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