8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report:  August 14, 2007

(Date of earliest event reported)

APA ENTERPRISES, INC.

(Exact Name of Registrant as Specified in Charter)

Minnesota

(State or Other Jurisdiction of Incorporation)

0-16106	41-1347235
(Commission File No.)	(IRS Employer Identification No.)

2050 NE 84^th Lane, Blaine, MN 55449

(Address of Principal Executive Offices)(Zip Code)

(763) 784-4995

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

On August 14, 2007, APA Enterprises, Inc. issued a press release announcing the results of its first quarter  ended June 30, 2007.  A copy of that press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

Item 9.01  Financial Statements and Exhibits

(c) The following exhibit is being furnished herewith:

99.1  Press release dated August 14, 2007

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		APA ENPTERPRISES, INC.
	By	/s/ Cheryl Beranek Podzimek
Dated: August 14, 2007		Cheryl Beranek Podzimek, Chief Executive
		(Principal Executive Officer) and authorized signatory

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SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

EXHIBIT INDEX

to

Form 8-K Current Report

APA Enterprises, Inc.

Exhibit Number	Description
99.1	Press release dated August 14, 2007

4

EX-99.1

 

APA ENTERPRISES, INC. REPORTS RESULTS FOR THE FIRST QUARTER OF FISCAL YEAR ENDING SEPTEMBER 30, 2007

 

· Net Sales for the quarter of $4.9 Million

· Non-recurring expenses primarily related to the closure of the Optronics business segment of $1.6 Million

· Sale of land nets $0.26 Million

· Resulting Net Loss of $1.4 Million

MINNEAPOLIS, MN, August 14, 2007 -- APA Enterprises, Inc. (Nasdaq: APAT) today announced results of its first quarter ending June 30, 2007.

“Excluding the non-recurring costs associated with the Company’s decision to close the APA Optronics business unit and unrelated severance costs, the Company was able to deliver near break-even performance for the quarter,” commented Cheri Beranek Podzimek, president and CEO of APA Enterprises. “The Company is wrapping up activities associated with the closure of the Optronics business unit and looks forward to focusing our financial and management resources on Cables & Networks, the growth engine of APA Enterprises.”

APA Cables & Networks Subsidiary Performance

APACN had consolidated revenues of $4,907,046 for the first quarter ended June 30, 2007, compared to revenues of $5,072,186 for the same period of last year.  Gross profit increased $17,683 to 30% as a percentage of revenue compared to 28% in the same quarter of 2006.

Discontinued Operations

After careful analysis the company elected to discontinue the APA Optronics business and sell its APA India operation.  All of the costs and related transactions associated with the discontinued operations sale of APA India and APA Optronics impairment of assets are reflected in the quarter’s financial statements. The company also intends to exit its current office in Blaine, Minnesota and to designate the office of its subsidiary, APA Cables & Networks, as its principal office.  The company expects an additional $60,000 in costs associated with these closure activities to be recorded in the 2^nd quarter.

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APA Enterprises/page two

Net Loss and Cash Flow

The net loss in the first quarter ended June 30, 2007, is $1,409,939 or $.12 cents per share compared to a loss of $112,018 or $.01 per share for the quarter ended June 30, 2006. The net loss from continuing operations in the quarter ended June 30, 2007 is $468,938 of $0.04 per share compared to net income from continuing operations of $22,697 during the period ended June 30, 2006.  The 2007 amounts include $397,471 of severance costs related to the departure of our former CEO. The company used $254,263 in cash during the first quarter of fiscal year 2007 as compared to $803,831 during the same period in fiscal quarter of fiscal year 2007 as equivalents on hand of $6,509,106 at June 30, 2007. The cash used in the current period of $503,167 reflects the impact of both continuing and discontinued operations as well as, working capital changes. This compares to cash used in the same quartere of 2006 of $946,762. The company also realized net cash of $244,523 due to investing activities compared to $165,895 for the same period in 2006.

APA Enterprises recently announced a change in its fiscal year-end from March 31 to September 30, with the period from April 1, 2007 through September 30, 2007 being a short year.

Forward-Looking Statements

Forward-looking statements contained herein are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. These statements are based upon the Company's current expectations and judgments about future developments in the Company's business. Certain important factors could have a material impact on the Company's performance, including, without limitation, delays in or increased costs of production, delays in or lower than anticipated sales of the Company's new products, the Company's ability to sell such products at a profitable price, the Company's ability to fund operations, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update such statements to reflect actual events.

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APA Enterprises/page three

FINANCIAL RESULTS (unaudited)

	Three Months Ended
	June 30
	2007			2006
REVENUES	$	4,907,046		$	5,072,186
COSTS OF SALES		3,456,901			3,639,724
GROSS PROFIT		1,450,145			1,432,462
OPERATING EXPENSES		1,977,583			1,489,542
LOSS FROM OPERATIONS		(527,438	)		(57,080	)
OTHER INCOME, net		82,870			98,757
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(444,568	)		41,677
INCOME TAXES		24,370			18,980
NET (LOSS) INCOME FROM CONTINUING OPERATONS		(468,938	)		22,697
LOSS FROM DISCONTINUED OPERATIONS		(941,001	)		(134,715	)
NET LOSS	$	(1,409,939	)	$	(112,018	)
NET LOSS PER SHARE:
Basic and diluted	$	(0.12	)	$	(0.01	)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic and diluted		11,872,331			11,872,331

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APA Enterprises/page four

FINANCIAL RESULTS (unauditied - continued)

	June 30, 2007			March 31, 2007
Assets:
Cash and cash equivalents	$	6,509,106		$	6,716,176
Other current assets		3,905,960			3,516,016
Property, plant and equipment, net		1,668,160			2,210,890
Other assets		3,432,980			3,279,476
Total assets	$	15,516,206		$	15,722,558
Liabilities:
Current liabilities	$	2,740,305		$	2,010,726
Long-term liabilities		691,669			235,348
Shareholders’ equity:
Common stock		118,723			118,723
Additional-paid-in-capital		52,028,252			52,018,729
Accumulated deficit		(40,062,743	)		(38,660,968	)
Total shareholders’ equity		12,084,232			13,476,484
Total liabilities and shareholders’ equity	$	15,516,206		$	15,722,558

APA Enterprises Inc., consists of the Cables & Networks group. Cables & Networks designs, manufactures and markets a variety of fiber optic and copper components to the data communication and telecommunication industries.  Additional information about APA Enterprises is available at http://www.apaenterprises.com.

APA Enterprises, Inc. Contact Information:

Cheryl Beranek Podzimek

Chief Executive Officer and President

investor-relations@apaenterprises.com

763-476-6866

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