San Jose, Calif., October 28, 2004 -- Oplink Communications, Inc. (Nasdaq: OPLK), a leading Photonic Foundry and provider of optical networking components, today reported financial results for the first quarter of fiscal 2005 ended October 3, 2004.
For the first quarter, Oplink reported revenues of $8.9 million, which represents an increase of 22% over revenues of $7.3 million reported in the first quarter of fiscal 2004. The Company reported a net loss of $874,000, or $0.01 per share, for the first quarter of fiscal 2005, as compared to a net loss of $2.3 million, or $0.02 per share, reported in the first quarter of fiscal 2004. The Company expects revenue in the second quarter of fiscal 2005 to be approximately $9.0 million and earnings per share to be in line with that of the first quarter of fiscal 2005.
Oplink closed the quarter with $185.5 million in cash, cash equivalents and short and long-term investments with the decline of $4.9 million from the balance at the close of the prior quarter being primarily as a result of the acquisition of its new headquarters building in Fremont, CA. The Company generated $291,000 in cash from operations.
In a related release, the Company also announced that it has signed a definitive agreement to acquire EZconn Corporation, a leading manufacturer of components for the broadband cable and optical markets.
"We are satisfied with our financial results for the first quarter, and had solid sales activity with some of our larger customers, including Nortel, Fujitsu and Huawei," commented Joe Liu, president and CEO of Oplink. "We continued to win new design opportunities with our major customers particularly in the metro area and are realizing value from our Photonic Foundry capabilities. With the acquisition of EZconn, we expect to expand our market reach beyond metro and long-haul to the access market, increasing our addressable market and broadening our offerings for existing telecom and datacom customers."
The Company presents each of the fiscal quarters and fiscal year end as if it ended on the last day of each calendar quarter or twelve-month period, respectively. The Company operates and reports using interim fiscal quarters and twelve-month periods, which end on the Sunday closest to the end of each calendar quarter and twelve-month period. October 3, 2004 and September 28, 2003 represent the Sunday closest to the period ending September 30, 2004 and September 30, 2003, respectively.
Conference Call Information
The Company will host a corresponding conference call and live webcast at 2:00 p.m. Pacific Time on October 28, 2004. To access the conference call, dial (800) 257-1836 for callers in the US or Canada and (303) 262-2131 for international callers. The webcast will be available live on the Investor Relations section of the Company's corporate website at http://investor.oplink.com and via replay 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 October 28, 2004 until 11:59 p.m. Pacific Time on October 30, 2004, by dialing (800) 405-2236 ((303) 590-3000 for callers outside the U.S. and Canada) and entering pass code 11011778.
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 and Shanghai, 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 without limitation statements regarding the transaction with EZconn and Oplink's long-term market opportunities and product offerings that may result from such transaction and the guidance given for anticipated revenue and earnings per share for the second quarter of fiscal 2005, 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 latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
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.
Erica Abrams or Vanessa Lehr
The Blueshirt Group