San Jose, Calif., April 22, 2004 -- Oplink Communications, Inc. (Nasdaq: OPLK), a leading Photonic Foundry and provider of optical networking components, today reported financial results for the third quarter and the first nine months of fiscal 2004 ended March 31, 2004.
For the third quarter of fiscal 2004, Oplink reported revenues of $9.2 million, which represents an increase of 63% over revenues of $5.6 million reported in the third quarter of fiscal 2003 and an increase of 13% over revenues of $8.1 million reported in the second quarter of fiscal 2004. Loss from continuing operations was $1.4 million, or $0.01 per share, for the third quarter of fiscal 2004, as compared to a loss from continuing operations of $2.6 million, or $0.02 per share, in the third quarter of fiscal 2003 and a loss from continuing operations of $2.1 million, or $0.01 per share, in the second quarter of fiscal 2004.
At March 31, 2004, Oplink had $189.9 million in cash, cash equivalents and short and long-term investments.
"We are pleased to report solid financial performance in the third quarter, as we continued to see an increasing level of sales activity in the industry," commented Joe Liu, president and CEO of Oplink. "In addition to posting revenue growth, we made good progress towards achieving profitability through increased gross margins. We strengthened our integrated photonic-electronic design and manufacturing services and introduced our Photonic Foundry strategy, where we will continue to expand our broad range of subsystem and system level hardware solutions."
"Looking ahead, we are confident in our long-term opportunity as the industry shows further signs of recovery. We completed two acquisitions in the quarter and plan to continue to extend our leadership in the market, by strategically adding technologies to broaden our portfolio and increase our range of offerings, in order to develop the most innovative solutions for our customers," concluded Mr. Liu.
Net loss for the third quarter of fiscal 2004, including a total of $1.1 million for in-process research and development, non-cash compensation charges, loss from discontinued operation, and amortization of intangibles, improved to $1.5 million, or $0.01 per share. This compares to a net loss of $3.0 million, or $0.02 per share, reported in the third quarter of fiscal 2003 and a net loss of $2.1 million, or $0.01 per share, reported in the second quarter of fiscal 2004. Net loss for the third quarter of fiscal 2003 includes net charges totaling $735,000 for net non-cash compensation, amortization of intangibles and loss from discontinued operation. Net loss for the second quarter of 2004 includes net charges totaling $1.2 million for in-process research and development and non-cash compensation offset by income from discontinued operation.
For the nine-month period ended March 31, 2004, Oplink reported revenues of $24.5 million and a net loss of $5.8 million, or $0.04 per share. This compares to revenues of $16.7 million and a net loss of $26.1 million, or $0.16 per share, reported for the nine-month period ended March 31, 2003. For the nine months ended March 31, 2004, net loss includes net charges of $3.1 million, which consists of non-cash compensation charges, in-process research and development costs, and amortization of intangible assets offset by income from discontinued operation. For the nine-months ended March 31, 2003, net loss includes net charges of $12.5 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 nine-month periods as if it ended on the last day of each calendar quarter or nine-month period, respectively. The Company operates and reports using interim fiscal quarters and nine-month periods, which end on the Sunday closest to the end of each calendar quarter and nine-month period. March 28, 2004 and March 30, 2003 represent the Sunday closest to the period ending March 31, 2004 and March 31, 2003, respectively.
Conference Call Information
The Company will host a corresponding conference call and live Webcast at 2:00 p.m. Pacific Time on April 22, 2004. To access the conference call in the US or Canada, dial 800-240-4186. For all international calls, dial 303-205-0033. 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 April 22, 2004 until 11:59 p.m. Pacific Time on April 24, 2004, by dialing 800-405-2236 (303-590-3000 for callers outside the U.S. and Canada) and entering pass code 576193.
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, long-term market opportunities and ability to acquire and effectively integrate additional technologies, 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 December 31, 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.