Advanced Photonix acquires assets of Silonex, cuts costs

Camarillo, CA--Advanced Photonix (NYSE: API), said it plans to acquire certain assets of optical sensor-maker Silonex, a subsidiary of ARCAS Automotive Group, for $900,000. The acquisition is expected to add over $4 million in annual revenue and generate positive EBITDA during the first full fiscal year ending March 31, 2014.

Engineering and product development for the Silonex products will continue at its location in Montreal, while production will be transitioned to an off-shore facility or to Advanced Photonix's operations in California. Advanced Photonix supplies optoelectronic solutions, high-speed optical receivers and terahertz instrumentation for telecom, homeland security, military, medical and industrial markets.

"Silonex brings a rich history of product development, new markets, new optoelectronic sensing capabilities with the addition of cadmium sulfide and a strong off-shore supply chain and customer base. 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.

He added, "To facilitate this transaction, we have established a new Canadian subsidiary that will be called Advanced Photonix Canada. In addition, because our previously announced supply chain issues have lowered expected revenues from the sale of our HSOR line of products, we are introducing a cost-cutting program which includes a 20% wage and compensation reduction by "C" management and the Board of Directors over the next five months, and a suspension of the company 401k match."