Exhibit 99.1

MINNEAPOLIS, MN, November 9, 2006 -- APA Enterprises, Inc. (NASDAQ: APAT) today reported revenues of $4,817,813 for the second quarter of fiscal year 2007, up 18% from revenues of $4,069,367 for the same period of fiscal year 2006. The net loss in the second quarter of fiscal year 2007 decreased 62%, to $400,433, or $.03 cent per share, as compared to a loss of $1,063,628, or $.09 cents per share, for the second quarter of fiscal year 2006.

Consolidated revenues at APACN and Optronics for the first six months of fiscal 2007 were $9,843,730, an increase of approximately 30% over the $7,581,930 reported in the first six months of fiscal year 2006. The net loss for the six months ended September 30, 2006 was $512,451, or $.04 cents per share, down 74% from the net loss of $1,954,634, or $.16 cents per share, for the six months ended September 30, 2005.

Anil K. Jain, APA's president and CEO commented, “We are pleased to report the progress made to date and will, through a concerted effort of market development for all operating units, continue to focus the company on a path of increasing revenue and targeted expense controls.”

“The impact of our strategies are beginning to bear fruit as revenues and especially gross profit have accelerated over the first six months of this year,” Cheri Beranek Podzimek, president of APACN said. “We’ve made specific investments in engineering personnel ensuring our fiber management experts are meeting directly with our client group. As a result, while SGA expenses have risen 23% this year, revenues at Cables and Networks are up 29%, gross margins are up 45% and the subsidiary continues to report a profit.”

Specifically, sales for the second quarter of fiscal year 2007 were $4,784,737, compared to sales of $4,057,740 reported in the same quarter a year ago. Gross margin percentage continued to improve during the quarter, rising from 27% to 31%, while operating income rose to $188,975 in comparison to $7,061 in the same period last year.

Revenues for the six months ended September 30, 2006 were $9,759,811, up 29% from $7,566,128 in the prior year period. Sales to the Broadband market were up 37% while sales to the OEM market were up 9% compared to last year. Net income was $86,497 for the six month period, versus a loss of $238,510 in the fiscal 2006 period.

Gross revenues at Optronics decreased 70% to $33,076 from $109,877 in the same quarter a year ago mainly due to the termination of manufacturing activities in Aberdeen, South Dakota. Gross revenues for the quarter ended September 30, 2005 reflect $98,250 of sales to APACN for subcontracted labor. Optronics did not provide any subcontract labor to APACN in the quarter ended September 30, 2006. Optronics recorded a net loss of $446,234, a decrease of $534,060 from a loss of $980,294 from the same period of fiscal 2006. The decrease in the loss is mainly due to the termination of MOCVD activities.

Gross revenues at Optronics decreased 61% to $83,919 from $212,775 for six months ended September 30, 2006 as compared to the same period a year ago mainly due to the termination of manufacturing activities in Aberdeen, South Dakota. Gross revenues for the six months ended September 30, 2005 reflect $196,973 of sales to APACN for subcontracted labor. Optronics did not provide any subcontract labor to APACN in the two quarters ended September 30, 2006. Optronics recorded a net loss of $598,948, a decrease of $1,117,176 or 65% from a loss of $1,716,124 from the same period of fiscal 2006. The decrease in the loss is mainly due to the sale of two capitalized patents, and reduced operating expenses due to termination of MOCVD activities.

APA Enterprises used $374,995 cash for operations activities during the second quarter of fiscal year 2007 down $778,173 or 67% from the $1,153,168 cash used for operations during the same period in fiscal year 2006, mostly due to reduced net losses during the current fiscal year. The Company also used $907,285 in financing activities, including $901,643 toward the retirement its bonds issued by the South Dakota Economic Development and Finance Authority, and $57,331 in investing activities during the second quarter of fiscal year 2007. Overall, the Company used $1,339,611 cash during the second quarter of fiscal year 2007 as compared to $1,171,082 during the same period in fiscal 2006, resulting in cash and cash equivalents on hand of $6,804,335 at September 30, 2006.

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.

	Optronics			APACN			Eliminations			Consolidated

Three months ended September 30, 2006
External sales	$	33		$	4,785		$	-		$	4,818
Gross profit (loss)		(116	)		1,476			-			1,360
Income (loss) from operations		(655	)		189			-			(466	)
Depreciation and amortization		84			58			-			142
Capital expenditures		94			5			-			99
Assets		18,406			8,222			(7,691	)		18,937

Three months ended September 30, 2005
External sales	$	109		$	4,058		$	(98	)	$	4,069
Gross profit (loss)		(192	)		1,097			(1	)		904
Income (loss) from operations		(1,143	)		7			-			(1,136	)
Depreciation and amortization		207			67			-			274
Capital expenditures		42			71			-			113
Assets		20,257			7,440			(7,347	)		20,350

Six months ended September 30, 2006
External sales	$	84		$	9,760		$	-		$	9,844
Gross profit (loss)		(218	)		2,908			-			2,690
Income (loss) from operations		(1,016	)		359			-			(657	)
Depreciation and amortization		172			125			-			297
Capital expenditures		270			5			-			275
Assets		18,406			8,222			(7,691	)		18,937

Six months ended September 30, 2005
External sales	$	213		$	7,566		$	(197	)	$	7,582
Gross profit (loss)		(378	)		2,009			(2	)		1,629
Loss from operations		(2,035	)		(60	)		-			(2,095	)
Depreciation and amortization		417			127			-			544
Capital expenditures		129			105			-			234
Assets		20,257			7,440			(7,347	)		20,350

	Three Months Ended						Six Months Ended
	September 30						September 30

	2006			2005			2006			2005

REVENUES	$	4,817,813		$	4,069,367		$	9,843,730		$	7,581,930

COST OF SALES		3,458,236			3,165,297			7,154,166			5,952,750

GROSS PROFIT		1,359,577			904,070			2,689,564			1,629,180

OPERATING EXPENSES
Research and development		135,205			343,372			288,992			666,970
Selling, general and administrative		1,696,482			1,680,366			3,409,485			3,150,774
Loss (Gain) on disposal of assets		(6,498	)		16,809			(351,498	)		(93,126	)
		1,825,189			2,040,547			3,346,979			3,724,618

LOSS FROM OPERATIONS		(465,612	)		(1,136,477	)		(657,415	)		(2,095,438	)

OTHER INCOME (LOSS), net		89,449			73,599			188,214			142,504

LOSS BEFORE INCOME TAXES		(376,163	)		(1,062,878	)		(469,201	)		(1,952,934	)

INCOME TAXES		24,270			750			43,250			1,700

NET LOSS	$	(400,433	)	$	(1,063,628	)	$	(512,451	)	$	(1,954,634	)

NET LOSS PER SHARE:
Basic and diluted	$	(0.03	)	$	(0.09	)	$	(0.04	)	$	(0.16	)

WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic and diluted		11,872,331			11,872,331			11,872,331			11,872,331

	September 30, 2006			March 31, 2006

Assets:
Cash and cash equivalents	$	6,804,335		$	8,947,777
Other current assets		5,747,488			4,028,751
Property, plant and equipment, net		2,566,259			2,623,412
Other assets		3,819,203			3,993,631

Total assets	$	18,937,285		$	19,593,571

Liabilities:
Current liabilities	$	3,476,006		$	3,723,195
Long-term liabilities		378,258			290,934

Shareholders’ equity:
Common stock		118,723			118,723
Additional-paid-in-capital		51,982,243			51,966,213
Accumulated deficit		(37,017,945	)		(36,505,494	)
Total shareholders’ equity		15,083,021			15,579,442

Total liabilities and shareholders’ equity	$	18,937,285		$	19,593,571

APA Enterprises Inc., consists of an Optronics group and a Cables & Networks group (APACN). The Company develops, designs, manufactures and markets a variety of fiber optics, copper and Gallium Nitride (GaN) based components and devices for industrial, commercial, consumer and scientific applications. APACN designs, manufactures and markets a variety of fiber optic and copper components to the data communication and telecommunication industries. Optronics is active in the development, design, manufacture and marketing of ultraviolet (UV) detection and measurement devices for consumers and industrial customers, and Gallium Nitride (GaN) based transistors for power amplifiers and other commercial applications. Additional information about APA Enterprises is available at http://www.apaenterprises.com.