Fremont, Calif., October 27, 2005 -- 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 2006 ended October 2, 2005.
For the first quarter of fiscal 2006, Oplink reported revenues of $10.7 million, which is an increase of 20% over the first quarter of fiscal 2005 and the fourth quarter of fiscal 2005. Net income, prior to any stock option expense as required by Statement of Financial Accounting Standards (SFAS) No. 123 ® was $157,000, or $0.00 per share, as compared to a net loss of $874,000 or ($0.01) per share reported in the first quarter of fiscal 2005 and net income of $868,000, or $0.01 per share, reported in the fourth quarter of fiscal 2005. Fourth quarter of fiscal 2005 results included a non-recurring benefit of $1.3 million primarily related to the resolution of vendor liabilities.
Including the stock option expense for the first quarter of fiscal 2006, Oplink reported a net loss of $440,000 or $0.00 per share.
Oplink generated $1.8 million in cash from operating activities in the first quarter of fiscal 2006 and closed the quarter with $187.6 million in cash, cash equivalents and short and long-term investments, an increase from the balance at the close of the fourth quarter of fiscal 2005 of $186.1 million.
"Growth in the quarter came as the result of increasing interest in our components and subsystems from a widening range of customers," commented Joe Liu, president and CEO of Oplink. "We continue to have success winning market share from other vendors, as a result of our aggressive pricing, broad and growing product offerings and capabilities, and low-cost, efficient manufacturing facilities.
"We remain committed to expanding our product offerings and will continue to seek additional technologies to broaden our market opportunity with customers. We are optimistic about our future as telecommunication spending begins to increase modestly and believe we are well positioned."
Oplink currently expects revenue growth of approximately 10% in the second quarter of fiscal 2006 over the first quarter of fiscal 2006 and a slight improvement in net income.
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 2, 2005 and October 3, 2004 represent the Sunday closest to the period ending September 30, 2005 and September 30, 2004, respectively.
Conference Call Information
The company will host a corresponding conference call and live webcast at 2:00 p.m. Pacific Time on October 27, 2005. To access the conference call, dial 800-257-6566 US or Canada -and 303-262-2005 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 27, 2005 until 11:59 p.m. Pacific Time on October 29, 2005, by dialing (800) 405-2236 ((303) 590-3000 for callers outside the U.S. and Canada) and entering pass code 11041488.
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 incorporating 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, anticipated broadening of Oplink's product line, Oplink's ability to win market share and the guidance given for anticipated revenue and earnings per share for the second quarter of fiscal 2006, 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