Advanced Photonix, Inc Amends its Michigan Facility Lease, Saving $1.6 Million
January 13 2010 - 8:00AM
PR Newswire (US)
ANN ARBOR, Mich., Jan. 13 /PRNewswire-FirstCall/ -- Advanced
Photonix Inc.'s (NYSE Amex: API) wholly owned subsidiary,
Picometrix LLC, has entered into a "Fourth Addendum & Extension
Agreement" for its lease of the Ann Arbor, MI facility. The 50,000
sq. ft. facility houses the Company's research, development and
manufacturing for its terahertz and high-speed optical receiver
product platforms, API's corporate headquarters, and the
semiconductor microfabrication facility for all three of Advanced
Photonix's product platforms. The state-of-the-art facility was
completed in 2001 and was designed to meet the unique requirements
of the Company's ultrafast optoelectronic product platforms;
including InP and GaAs material growth, semiconductor
microfabrication, and precision hybrid assembly and high-speed
test. In addition, the facility includes an industry leading HSOR
laboratory and three secure user laboratories for collaborative
terahertz application development. In 2001, the Company entered
into a 10-year lease with two 5-year options to renew at a lease
rate tied to the CPI, with a minimum increase for each 5-year
option. The original lease included the first right of refusal to
purchase the facility and was scheduled to expire in May 31, 2011.
The Company amended the lease terms and extended the lease to May
31, 2021. The new lease represents a 19% reduction in lease
payments over the new lease term, or approximately $1.6 million in
savings. The Company retained the right of first refusal to
purchase the property during the new lease term. In addition, the
Company negotiated an option to purchase the facility on May 31,
2016 for no less than $7.1 million. "This represents a significant
cost savings for the Company in these challenging economic times,
preserves our substantial investments in this unique facility, and
ensures our ability to make future investments to support our
long-term growth objectives without the expense and disruption of
relocating to another facility," said Rob Risser, Advanced
Photonix's Chief Financial Officer. "We expect the savings to begin
to be reflected in our results in the first quarter of 2010." About
Advanced Photonix, Inc. Advanced Photonix, Inc. (R) (NYSE Amex:
API) is a leading supplier with a broad offering of optoelectronic
products to a global customer base. We provide optoelectronic
solutions, high-speed optical receivers and terahertz
instrumentation for telecom, homeland security, military, medical
and industrial markets. With our patented technology and
state-of-the-art manufacturing we offer industry leading
performance, exceptional quality, and high value added products to
our OEM customer base. For more information visit us on the web at
http://www.advancedphotonix.com/. The information contained herein
includes forward looking statements that are based on assumptions
that management believes to be reasonable but are subject to
inherent uncertainties and risks including, but not limited to,
unforeseen technological obstacles which may prevent or slow the
development and/or manufacture of new products; potential problems
with the integration of the acquired company and its technology and
possible inability to achieve expected synergies; obstacles to
successfully combining product offerings and lack of customer
acceptance of such offerings; limited (or slower than anticipated)
customer acceptance of new products which have been and are being
developed by the Company; and a decline in the general demand for
optoelectronic products. API-G Contact: Richard Kurtz, Advanced
Photonix, Inc. (734) 864-5600 Cameron Donahue, Hayden IR (651)
653-1854; DATASOURCE: Advanced Photonix, Inc. CONTACT: Richard
Kurtz of Advanced Photonix, Inc., +1-734-864-5600; or Cameron
Donahue of Hayden IR, +1-651-653-1854, , for Advanced Photonix,
Inc. Web Site: http://www.advancedphotonix.com/
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