ممدوح
23-01-2004, Fri 12:20 AM
Oplink Reports Revenue Growth and Improving Operating Model in the Second
Quarter of Fiscal 2004
Business Editors/High-Tech Writers
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 22, 2004--Oplink
Communications, Inc. (Nasdaq:OPLK), a leading Photonic Foundry and
provider of optical networking components, today reported financial
results for the second quarter and the first six months of fiscal 2004
ended December 31, 2003.
For the second quarter of fiscal 2004, Oplink reported revenues of
$8.1 million, which represents an increase of 12% over revenues of
$7.2 million reported in the first quarter of fiscal 2004 and an
increase of 60% over revenues of $5.0 million reported in the second
quarter of fiscal 2003. Loss from continuing operations was $2.1
million, or $0.01 per share, for the second quarter of fiscal 2004, as
compared to a loss from continuing operations of $2.4 million, or
$0.02 per share, reported in the first quarter of fiscal 2004, and
$12.0 million, or $0.07 per share, in the second quarter of fiscal
2003.
Net loss for the second quarter of fiscal 2004 improved to $2.1
million, or $0.01 per share, as compared to a net loss of $2.3
million, or $0.02 per share, reported in the first quarter of fiscal
2004, and a net loss of $14.4 million, or $0.09 per share, reported in
the second quarter of fiscal 2003. Net loss for the second quarter of
fiscal 2004 includes certain net charges totaling $1.2 million, which
consists of in-process research and development costs related to the
acquisition on November 3, 2003 of RedClover Networks, Inc. and
non-cash compensation charges offset by income from discontinued
operation. Net loss for the first quarter of fiscal 2004 includes
certain net charges totaling $1.6 million, which consists of non-cash
compensation charges, amortization of intangible assets and $890,000
of expenses associated with the exploration of strategic business
opportunities included in general and administrative expenses offset
by income from discontinued operation. Net loss for the second quarter
of fiscal 2003 includes net charges totaling $9.6 million, which
consists of restructuring and other charges, loss from discontinued
operation, merger fees and amortization of intangible assets offset by
net amortization of deferred stock recovery. The foregoing net loss
results also include revenue associated with the unexpected
utilization of fully reserved inventory of $240,000, $515,000 and
$530,000 in the second quarter of fiscal 2004, the first quarter of
fiscal 2004 and the second quarter of fiscal 2003, respectively.
At December 31, 2003, Oplink had $188.7 million in cash, cash
equivalents and, short and long-term investments.
"We are very satisfied with our financial performance in the
second quarter, and encouraged by recent increases in
telecommunication spending activity," commented Joe Liu, president and
CEO of Oplink. "In addition to posting solid revenue increases in the
quarter, we continued to make good progress at improving profitability
and managing cash. Our Optical Manufacturing Solutions (OMS) business
grew in the quarter, representing approximately 50% of revenue, and we
were pleased to report higher sales activity with newer customers that
we believe may represent potential future opportunities.
"Looking ahead, we continue to be optimistic about our long-term
market opportunity as the industry begins to shows signs of recovery.
We plan to continue to seek strategic technologies which will broaden
our portfolio of offerings and expand our OMS capabilities, while
providing Oplink's low-cost, highly technical manufacturing
capabilities," concluded Mr. Liu.
For the six-month period ended December 31, 2003, Oplink reported
revenues of $15.3 million and a net loss of $4.4 million, or $0.03 per
share. This compares to revenues of $11.0 million and a net loss of
$23.1 million, or $0.14 per share, reported for the six-month period
ended December 31, 2002. For the six months ended December 31, 2003
net loss includes net charges of $2.8 million, which consists of
non-cash compensation charges, in-process research and development
costs, amortization of intangible assets and $890,000 of expenses
associated with the exploration of strategic business opportunities
included in general and administrative expenses offset by income from
discontinued operation. For the six months ended December 31, 2002 net
loss includes net charges of $11.7 million, which consists of
restructuring costs and other charges, loss from discontinued
operation, merger fees, net non-cash compensation expenses and
amortization of intangible assets.
The Company presents each of the fiscal quarters and six-month
periods as if it ended on the last day of each calendar quarter or
six-month period, respectively. The Company operates and reports using
interim fiscal quarters and six-month periods, which end on the Sunday
closest to the end of each calendar quarter and six-month period.
December 28, 2003 and December 29, 2002 represent the Sunday closest
to the period ending December 31, 2003 and December 31, 2002,
respectively.
Conference Call Information
The Company will host a corresponding conference call and live
Webcast at 2:00 p.m. Pacific Time on January 22, 2004. To access the
conference call in the US or Canada, dial 800-366-3908. For all
international calls, dial 303-262-2141. The Webcast will be available
live on the Investor Relations section of the Company's corporate
website at http://investor.oplink.com/index.cfm.
A replay of the Webcast will be available live on the Investor
Relations section of the Company's corporate website at
http://investor.oplink.com/index.cfm beginning approximately two hours
after the completion of the call until the Company's announcement of
its financial results for the next quarter. An audio replay of the
call will also be available to investors beginning at approximately
4:00 p.m. Pacific Time on January 22, 2004 until 11:59 p.m. Pacific
Time on January 24, 2004, by dialing 800-405-2236 (303-590-3000 for
callers outside the U.S. and Canada) and entering pass code 566960.
About Oplink
Incorporated in 1995, Oplink is a leading provider of design,
integration and optical manufacturing solutions (OMS) for optical
networking components and subsystems. The Company offers advanced and
cost-effective optical-electrical components and subsystem
manufacturing through its facilities in Zhuhai, China. In addition,
Oplink maintains a full complement of optical-centric front-end
design, application, and customer service functions at its
headquarters in San Jose, California. The Company's customers include
telecommunications, data communications and cable TV equipment
manufacturers around the globe. Oplink is committed to providing fully
customized, Photonic Foundry services which incorporate its subsystems
manufacturing capabilities. To learn more about Oplink, visit its web
site at: http://www.oplink.com/.
This news release contains forward-looking statements, including
statements regarding Oplink's expected financial results in the
quarter, market opportunities and ability to improve profitability,
effectively manage cash, acquire and effectively integrate additional
technologies and achieve market acceptance with respect to its new
products and designs, that involve risks and uncertainties which may
cause Oplink's actual results to differ substantially from
expectations. These risks include, but are not limited to, the
potential widespread downturn in the overall economy in the United
States and other parts of the world and the telecommunications
industry, including reductions in telecommunication spending activity,
possible reductions in customer orders, challenges to successfully
integrate and realize anticipated benefits of acquisitions of
businesses or technologies, our reliance upon third parties to supply
our raw materials and equipment, intense competition in our target
markets and potential pricing pressure that may arise from changing
supply-demand conditions in the industry, the need to retain and
motivate key personnel, risks associated with the protection of our,
and possible infringement of others', intellectual property, and other
risks detailed from time to time in our periodic reports filed with
the Securities and Exchange Commission, including our quarterly report
filed on Form 10-Q for the quarter ended September 30, 2003.
The foregoing information represents Oplink's outlook only as of
the date of this press release, and Oplink undertakes no obligation to
update or revise any forward-looking statements, whether as a result
of new developments or otherwise.
-0-
*T
OPLINK COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
================================================== ====================
Three Months Ended Six Months Ended
December 31, December 31,
2003 2002 2003 2002
----------------------------------------------------------------------
Revenues $8,071 $5,029 $15,305 $11,040
Cost of revenues:
Cost of revenues 5,612 5,319 10,785 12,688
Non-cash compensation expense
(recovery) 52 (716) 128 (614)
-------- --------- -------- ---------
Total cost of revenues 5,664 4,603 10,913 12,074
-------- --------- -------- ---------
Gross profit (loss) 2,407 426 4,392 (1,034)
-------- --------- -------- ---------
Operating expenses:
Research and development 1,645 2,459 3,007 5,407
Sales and marketing 813 1,233 1,597 2,886
General and administrative 1,373 1,888 3,629 3,529
Restructuring costs and other
charges - 7,324 - 7,324
Merger fees - 190 - 1,300
In-process research and
development 861 - 861 -
Non-cash compensation expense 346 361 1,047 991
Amortization of intangible and
other assets - 22 10 48
-------- --------- -------- ---------
Total operating expenses 5,038 13,477 10,151 21,485
-------- --------- -------- ---------
Loss from operations (2,631) (13,051) (5,759) (22,519)
Interest and other income, net 589 1,088 1,141 2,114
(Loss) gain on sale of assets (90) - 125 -
-------- --------- -------- ---------
Loss from continuing operations (2,132) (11,963) (4,493) (20,405)
Income (loss) from discontinued
operation 25 (2,413) 128 (2,686)
-------- --------- -------- ---------
Net loss $(2,107) $(14,376) $(4,365) $(23,091)
======== ========= ======== =========
Basic and diluted net loss per
share:
Continuing operations $(0.01) $(0.07) $(0.03) $(0.12)
Discontinued operation 0.00 (0.02) 0.00 (0.02)
-------- --------- -------- ---------
Total $(0.01) $(0.09) $(0.03) $(0.14)
======== ========= ======== =========
Basic and diluted weighted
average shares outstanding 145,544 162,213 144,066 163,490
======== ========= ======== =========
================================================== ====================
OPLINK COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
================================================== ====================
Dec. 31, June 30,
2003 2003
(Unaudited) (1)
================================================== ====================
ASSETS
Current assets:
Cash, cash equivalents $129,480 $121,498
Short-term investments 40,947 66,605
Accounts receivable, net 5,868 4,716
Inventories 4,740 3,436
Prepaid expenses and other current assets 2,346 2,355
Net assets of discontinued operation 2,667 2,667
----------- ---------
Total current assets 186,048 201,277
Long-term investments 18,294 -
Property and equipment, net 27,293 31,738
Intangible assets - 120
Other assets 608 608
----------- ---------
Total assets $232,243 $233,743
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,106 $4,587
Accrued liabilities and other current
liabilities 7,486 8,885
----------- ---------
Total current liabilities 12,592 13,472
Non-current liabilities 858 1,555
----------- ---------
Total liabilities 13,450 15,027
----------- ---------
Stockholders' equity 218,793 218,716
----------- ---------
Total liabilities and stockholders' equity $232,243 $233,743
=========== =========
(1) The June 30, 2003 consolidated balance sheet has been derived from
audited financial statements at that date.
OPLINK COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
================================================== ====================
Six Months Ended
December 31,
2003 2002
----------------------------------------------------------------------
Cash flows from operating activities:
Loss from continuing operations $(4,493) $(20,405)
Adjustments to reconcile loss from continuing
operations to net cash used in operating
activities of continuing operations:
Non-cash restructuring costs and other charges - 4,259
Depreciation and amortization 4,262 5,835
Amortization of deferred stock compensation 1,175 377
Acquired in-process research and development 861 -
Other (77) (447)
Change in assets and liabilities (2,293) 2,118
--------- ---------
Net cash used in continuing operations (565) (8,263)
--------- ---------
Cash flows from investing activities:
Net maturities (purchases) of investments 7,361 (76,225)
Net sales (purchase) of assets 286 (6)
Acquisition of RedClover Networks, Inc. (1,322) -
--------- ---------
Net cash provided by (used in) investing
activities of continuing operations 6,325 (76,231)
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of common stock 3,169 96
Repurchase of common stock - (3,715)
Repayment of capital lease obligations (1,102) (2,100)
--------- ---------
Net cash provided by (used in) financing
activities of continuing operations 2,067 (5,719)
--------- ---------
Net cash provided by (used in) continuing
operations 7,827 (90,213)
Net cash provided by (used in) discontinued
operation 155 (240)
--------- ---------
Net increase (decrease) in cash and cash
equivalents 7,982 (90,453)
Cash and cash equivalents, beginning of period 121,498 219,033
--------- ---------
Cash and cash equivalents, end of period $129,480 $128,580
--------- ---------
*T
--30--IK/sf*
CONTACT: the blueshirt group
Erica Abrams, 415-217-7722
erica@blueshirtgroup.com
Annie Palmore, 415-217-7722
annie@blueshirtgroup.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: TELECOMMUNICATIONS HARDWARE CONFERENCE CALLS
EARNINGS
SOURCE: Oplink Communications, Inc.
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Jan-22-2004 21:15 GMT
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US;OPLK
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