San Jose, Calif., November 7, 2000 --Oplink Communications, Inc. (Nasdaq: OPLK) a provider of fiber optic components and integrated optical modules that increase the performance of optical networks, today reported financial results for its first fiscal quarter ended September 30, 2000. This is Oplink's first quarter of reporting as a public company.
Revenues for the first quarter were $32.3 million, a sequential increase of 76% from $18.4 million in the quarter ended June 30, 2000 and a 628% increase over revenues of $4.4 million in the same period last year. Pro forma net loss for the first quarter was $617,000, or breakeven per share, as compared to a pro forma net loss of $2.7 million, or $0.02 per share, in the quarter ended June 30, 2000 and a pro forma net loss of $55,000, or breakeven per share, in the same period last year. Pro forma net losses exclude non-cash charges for amortization of goodwill and deferred compensation, interest expense on a convertible note payable to Cisco Systems and in-process research and development. The pro forma per share calculations assume conversion into common stock of the Company's convertible preferred stock and a convertible note purchased by Cisco Systems in August 2000. The actual conversions of the preferred stock and convertible note took place upon the closing of the Company's initial public offering in October 2000.
Fred Fromm, Oplink's President, commented, "We are extremely proud of what we accomplished during the past quarter, in particular the completion of our initial public offering, better-than-anticipated financial results, and continued strong demand across all of our product lines. In addition, we made considerable progress towards the development of new telecom products, including introducing our line of Circulator and100GHZ DWDM and Interleaver products. We now have 22 base component products, which we also package into over 100 custom solutions. Our customer base continued to expand and diversify in the quarter and gross margin improved to 24% this quarter from 13 % in the preceding quarter."
Fromm continued, "In the first quarter, Oplink added 851 employees, including several key executives in sales, marketing and engineering, bringing our total headcount to 2,138 employees worldwide. Additionally, we broke ground for a new facility in Zhuhai, China, where we plan to increase Zhuhai's current 100,000 square foot facility substantially by the end of calendar 2001. We also intend to commence operations at other locations in China before the end of this calendar year and are taking the necessary steps to continue to scale our infrastructure in a very efficient manner to meet the strong demand from our customers."
"Finally, with our successful initial public offering we are gaining even greater visibility in the marketplace. In October, our initial public offering of 15,755,000 shares of common stock, including the over-allotment, netted the Company approximately $264 million. Proceeds from this offering will be used to expand our technology leadership position, increase our production capacity to sustain continued growth in this rapidly expanding market, and for working capital and general corporate purposes."
Oplink will provide a live webcast of its first quarter financial conference call on Tuesday November 7, 2000 at 4:45 p.m. EST. The webcast will be available at Oplink's website at www.oplink.com. The webcast will be available for replay at www.oplink.com until midnight November 21. The webcast will provide forward-looking guidance.
Except for the historical information contained herein, this news release contains forward-looking statements regarding market conditions, the Company's future financial performance and/or the introduction, performance and acceptance of new products that involve risks and uncertainties. These risks include our limited operating history, history of losses and dependence on a few large customers, the need to expand our manufacturing capacity and to effectively manage that expansion, the need to effectively manage our inventory levels and operating expenses, our reliance upon third parties to supply our raw materials and equipment, intense competition in our target markets, the need to attract and retain key personnel, the concentration of our manufacturing operations in China, our dependence on wavelength expansion products, declining average selling prices in the optical networking component industry, risks associated with the protection of our, and possible infringement of others', intellectual property and other risks detailed from time to time in our SEC filings, including our registration statement on form S-1, dated October 3, 2000.
About Oplink Communications
Oplink designs, manufactures and markets fiber optic networking components and integrated optical modules that expand optical bandwidth, amplify optical signals, monitor and protect wavelength performance and redirect light signals within an optical network. Oplink offers a broad line of products that increase the performance of optical networks and enable service providers and optical system manufacturers to provide flexible and scalable bandwidth to support the exponential increase of data traffic on the Internet. The Company currently sells products worldwide to telecommunications equipment suppliers. To learn more about Oplink investor or sales information call toll free 1-866-ASK-OPLK. Oplink is online at www.oplink.com.