API Nanotronics Corp., a prime contractor for secure communications and electronic components to the global defense and aerospace industry announced operating results for the first quarter of fiscal 2010 ended August 31, 2009.

Financial Highlights:

– Net revenue for the first quarter of fiscal 2010 was $9.2 million, a 16% increase over fiscal 2009 first quarter revenue of $7.9 million. This revenue includes the contribution from Cryptek as at the date of the acquisition on July 07, 2009;

– First quarter Gross Profit increased to $2.3 million in the first quarter of fiscal 2010 compared to $2.1 million in the first quarter of fiscal 2009. Gross Margins in the company’s electronic component and sub-system product lines improved by 4% to 30.3% on a year-over-year basis due to rationalization and efficiency efforts undertaken during fiscal 2009;

– GAAP net loss for the quarter was $0.8 million or $0.02 per share, compared to a loss of

API Nanotronics Corp., a leading supplier of electronic systems and sub-systems, components, nano-optics and nanotechnology products to the aerospace, defense and communications sectors, announced that it has acquired substantially all of the operating assets of Cryptek Technologies. The acquisition doubles the size of API Nanotronics and establishes the company as a worldwide leader in secure technologies for global military, government and intelligence agencies.

Cryptek provides an assortment of ‘ultra’ secure network and hardware solutions including Emanation Security, TEMPEST and secure network access under the ION, EMCON, SST and Netgard brand names. These solutions are sold to governments and other international organizations that need the highest security in the areas of identity validation, network access management, TEMPEST network intrusion prevention, and secure fax, computers and telephones. With operations in the United States, Canada and the UK, the company has attracted some of the world’s largest military, government and intelligence agencies.

According to the