Fremont, Calif., April 28, 2005 -- Oplink Communications, Inc. (Nasdaq: OPLK), a leading Photonic Foundry and provider of optical networking components, today reported financial results for the third quarter of fiscal year 2005 ended April 3, 2005.
For the third quarter, Oplink reported revenues of $8.4 million, which represents an increase of 3.4% over revenues of $8.1 million reported in the second quarter of fiscal 2005. The company reported a net loss of $359,000, or $0.00 per share, for the third quarter of fiscal 2005, as compared to a net loss of $2.3 million, or $0.02 per share, reported in the second quarter of fiscal 2005. The net loss in the third quarter of fiscal 2005 includes a one-time benefit of $904,000 from the termination of the EZConn transaction.
"We are satisfied with our results for the third quarter, posting solid gross margins, continued improvement in our operating model, and a balance of almost $186 million in cash, cash equivalents and investments," commented Joe Liu, president and CEO of Oplink. "We had solid sales activity with some of our larger customers, including Nortel, Fujitsu, ADVA and Huawei and believe there is opportunity for continued growth in the coming quarters. We are encouraged by the level of interest in our intelligent subsystem capabilities and opportunities in the Fiber-to-the-X and access market."
For the fourth quarter of fiscal 2005, Oplink expects sequential revenue growth to be slightly better than the sequential revenue growth in third quarter of fiscal 2005 and a net loss per share of $0.01.
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. April 3, 2005 and March 28, 2004 represent the Sunday closest to the periods ended March 31, 2005 and March 31, 2004, respectively.
Conference Call Information
The company will host a corresponding conference call and live webcast at 2:00 p.m. Pacific Time on April 28, 2005. To access the conference call, dial (800) 240-2430 for the US or Canada and (303) 262-2139 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 April 28, 2005 until 11:59 p.m. Pacific Time on May 2, 2005, by dialing (800) 405-2236 ((303) 590-3000 for callers outside the U.S. and Canada) and entering pass code 11028503.
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 Fremont, 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 opportunities for continuing growth and opportunities in the Fiber-to-the-X and access market and the guidance given for anticipated revenue and earnings per share for the fourth 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, Oplink's reliance upon third parties to supply its raw materials and equipment, intense competition in Oplink's 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 Oplink's, and possible infringement of others', intellectual property, and other risks detailed from time to time in Oplink's periodic reports filed with the Securities and Exchange Commission, including the company's 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