Giga-tronics Incorporated reported net sales for the fourth fiscal quarter ended March 26, 2016 of $2.7 million, a decrease of 37% as compared to the $4.3 million reported for the fourth quarter of fiscal 2015.
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The company's Microsource business unit (Microsource) saw a decrease of approximately $900,000 in net sales, from $1.8 million in the fourth quarter of fiscal 2015 to $904,000 in the fourth quarter of fiscal 2016, associated with a three month gap in high performance YIG RADAR filter production caused by the completion of an annual customer contract and the timing of the start of the next annual contract.
Typical quarterly shipments of the YIG RADAR filters range from $1.2 to $2.5 million. YIG RADAR filter production and shipments are expected to return to normal volumes in the current quarter. Giga-tronics also saw a decrease of $598,000 in net sales of legacy product, from $2.0 million in the fourth quarter of fiscal 2015 to $1.4 million in fourth quarter of fiscal 2016, due the transition Power Meter, Amplifiers, Sensors, and legacy Signal Generator product lines to Spanawave Corporation.
The company announced the product line sales on January 4, 2016, and is currently transitioning the manufacturing capabilities to Spanawave. Sales of the new Advance Signal Generator (ASG) decreased approximately $101,000, from $499,000 in the fourth quarter of fiscal 2015 to $398,000 in the fourth quarter of fiscal 2016, due to a delay in completing an additional feature.
Net sales for the fiscal year ended March 26, 2016 were $14.6 million, a decrease of 21%, compared to $18.5 million for the fiscal year ended March 28, 2015. The company's Microsource business segment saw a decrease of approximately $3.7 million in net sales, from $9.3 million in fiscal 2015 to $5.9 million in fiscal 2016, due to winding down of a $6.2 million order (NRE Order) for non-recurring engineering associated with YIG RADAR filters for an aircraft platform.
In fiscal 2016 Microsource also received an associated $10.0 million YIG RADAR filter production order, in which shipments are expected to start in the summer of 2016 and continue through fiscal 2020. Legacy products sold to Spanawave decreased $1.2 million, from $3.9 million in fiscal 2015 to $2.7 million in fiscal 2016.
There was also a $900,000 decrease in sales of the Company's Model 8003 Precision Scalar Analyzers and associated accessories (8003), from $2.4 million in fiscal 2015 to $1.5 million in fiscal 2016.
The 8003 sales were all end of life orders from the United States Navy. These decreases in sales were partially offset by a $1.3 million increase in sales of the ASG. Sales of the ASG increased from $499,000 in fiscal 2015 to $1.8 million in fiscal 2016, as Giga-tronics moved the ASG into production.
Operating loss for the fourth quarter of fiscal 2016 was $1.5 million compared to $48,000 in the fourth quarter of fiscal 2015. The increase in operating loss was due to the decreases in sales discussed above, and the impact these lower sales had on absorbing fixed factory overhead costs.
Operating loss for fiscal 2016 was $3.7 million compared to operating income of $14,000 in fiscal 2015. The fiscal 2016 operating loss was primarily due to the decreases in sales discussed above, including the winding down of the Microsource NRE Order which had a lower cost of sales compared to product sales.
Net loss for the fourth quarter of fiscal 2016 was $1.6 million compared to $1.4 million for the fourth quarter of fiscal 2015. The fourth quarter of fiscal 2015 included a non-recurring and non-cash charge of approximately $1.2 million related to the issuance of new warrants in connection with an equity financing.
Net loss for fiscal year 2016 was $4.1 million, compared to a net loss of $1.7 million in fiscal 2015. The increase in net loss in fiscal 2016 compared to the same period in fiscal 2015 was primarily due to decreased revenues associated with the Microsource NRE Order, which was partially offset by the non-recurring and non-cash charge of approximately $1.2 million related to the issuance of new warrants discussed above.
Net loss per fully diluted common share for the fourth quarter of fiscal year 2016 was $0.18, compared to $0.25 for the fourth quarter of fiscal year 2015. Net loss per fully diluted common share for fiscal year 2016 was $0.59, compared to $0.32 for fiscal year 2015. On January 19, 2016, Giga-tronics sold 2,787,872 common shares, impacting the comparison of fiscal 2016 reporting periods of losses per fully diluted common share to fiscal 2015 reporting periods.
Non-GAAP net loss for the fourth quarter of fiscal 2016 was $1.4 million or $0.16 per fully diluted common share, compared to a non-GAAP net income for the fourth quarter of fiscal 2015 of $179,000, or $0.03 per fully diluted common share.
Non-GAAP net loss for the fiscal year ended March 26, 2016 was $3.0 million, or $0.43 per fully diluted common share, compared to a non-GAAP net income for the fiscal year ended March 28, 2015 of $538,000, or $0.10 per fully diluted common share. Non-GAAP net income / loss excludes non-cash expenses associated with the derivative revaluation and discount accretion on debt agreements as well as stock-based compensation. ■