API Technologies Corporation, a trusted provider of RF/microwave, microelectronics, and security solutions for critical and high-reliability applications, today announced results for the fiscal second quarter ended May 31, 2012.

• Revenue of $78.9 million for the quarter ended May 31, 2012, up from $70.7 million in the quarter ended February 29, 2012 and $28.7 million in the quarter ended May 31, 2011.
  
• Net loss of $109.5 million compared to net income of $0.8 million in the quarter ended February 29, 2012 and net loss of $14.7 million in the comparable quarter of 2011. Restructuring costs recorded in the three months ended May 31, 2012 were approximately $11.5 million compared to approximately $3.3 million in the comparable period of 2011. A Goodwill impairment charge estimated at $87 million was recorded during the quarter ended May 31, 2012.
  
• Adjusted EBITDA of $11.2 million (14.2% margin) for the quarter ended May 31, 2012 compared to $10.8 million (15.3% margin) for quarter ended February 29, 2012 and an Adjusted EBITDA loss of $3.4 million (-11.8% margin) in the comparable prior-year period.
  
• Excluding the EMS business, Adjusted EBITDA margin was 21.7%.
  
• Announced and initiated EMS business restructuring measures to accelerate drive toward Company-wide goal of 20% Adjusted EBITDA margin.
  
• Completed integration of C-MAC Aerospace Limited and RTI Electronics, both acquired during the quarter ended May 31, 2012.
  
• Implemented $4.6 million of annualized net cost reductions during the quarter ended May 31, 2012.

Results for the Quarter Ended May 31, 2012

API Technologies reported revenue of $78.9 million for the quarter ended May 31, 2012 compared to $28.7 million for the same period in the prior year, primarily due to acquisitions completed in the past twelve months. Gross margin was 13.2% for the quarter ended May 31, 2012 compared to 24.9% for the quarter ended February 29, 2012, adversely affected by the EMS business and associated restructuring costs, and versus 7.5% in the comparable quarter last year.

Adjusted EBITDA for the quarter ended May 31, 2012 was $11.2 million (14.2% margin) compared to $10.8 million (15.3% margin) for the quarter ended February 29, 2012, primarily reflecting lower margins in the EMS business. Excluding the Company’s EMS business, API Technologies’ Adjusted EBITDA for the quarter ended May 31, 2012 was $13.3 million (21.7% margin). For the three months ended May 31, 2011, the Company had a total Adjusted EBITDA loss of $3.4 million (-11.8% margin).