Astrotech Corp (NASDAQ:ASTC) Continues To Suffer
The $53 million market capped aerospace firm Astrotech Corp (NASDAQ:ASTC) has been suffering from acute lack of investor confidence ever since it reported second quarter FY14 operation results on 14th February. Since the publishing of the worse than expected numbers, new investors have continued to stay away from the stock, even as existing stock owners have continued to sell them at a discount resulting in 14 percent dip in market valuation since 14th February.
Second Quarter Financials
Revenue for the second quarter of FY14 dropped by almost 38.4 percent to $2.53 million in comparison to $4.12 million it had recorded in 2Q13. Gross margins entered the negative zone with a 6 percent negative growth, as against a 24 percent gross margin it had recorded in 2QFY13. Due to the severe dip in the incoming revenue, the gross loss for the quarter was $144,000 as against a gross profit of $0.99 million in 2Q13. The net income and operational profitability took a further hit as the firm had to increase its operational expenses by 36 percent to $2.55 million in 2Q14 as against $1.877 million expenses it had recorded in 2Q13. Hence net loss for the quarter more than tripled to $2.77 as against the $0.92 million loss it had recorded same quarter last year.
The primary revenue generator for the company has been the Astrotech Space Operations unit which has contributed 97 and 99 percent respectively of company’s total revenue for the second quarter and half year respectively. Spacetech is the other business unit which is working towards setting up a regular revenue flow through its operations by offering spectrometers to the high tech industry. The third business unit is Astrogenetix which has tied up with NASA to develop new technology related to microgravity. The investors in the stock would be hoping that the pressure on revenue will not continue into next quarter