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OPLINK COMMUNICATIONS REPORTS 534% INCREASE IN REVENUES, PRO FORMA OPERATING PROFIT AND EPS OF $0.02

San Jose, Calif., January 30, 2001 -- Oplink Communications, Inc. (Nasdaq: OPLK) a designer and manufacturer of innovative optical components and integrated modules, today reported financial results for its second fiscal quarter ended December 31, 2000.

Revenues for the second quarter were $43.2 million, a sequential increase of 34% from $32.3 million in the quarter ended September 30, 2000 and a 534% increase over revenues of $6.8 million in the same period last year. Pro forma net income for the second quarter was $3.1 million, or $0.02 per share excluding non-cash charges, as compared to a pro forma net loss of $617,000, or breakeven per share, in the quarter ended September 30, 2000, and pro forma net income of $136,000, or breakeven per share, in the same period last year. Refer to the financial tables provided with this press release for further details regarding non-cash charges.

Net loss for the second quarter including non-cash charges was $15.1 million, or $0.10 per share, compared to a net loss of $10.7 million, or $0.40 per share, in the quarter ended September 30, 2000, and a net loss of $1.5 million, or $0.55 per share, in the same period last year.

Revenues for the first six months of fiscal 2001 totaled $75.5 million, an increase of 571% from the same period in fiscal 2000. Pro forma net income of $2.4 million, or $0.01 per share for the first six months of fiscal 2001 increased from net income of $81,000 or breakeven per share during the same period in fiscal 2000.

Fred Fromm, Oplink's President, commented, “During the second fiscal quarter our financial results exceeded our expectations as we achieved an important milestone by realizing pro forma operating income. Additionally, we continued to post strong revenue and EPS growth and experienced robust demand across our wide variety of products. We saw increased shipments of the 100GHz DWDM, a 60% sequential increase in amplifier product revenues, and continued progress toward the roll out of new products such as the 1 X 2 switch, Variable Optical Attenuator (VOA) and Interleaver products. Our customer base expanded and diversified during the quarter and gross margins increased to 28% from 24% in the preceding quarter, reflecting our success in realizing operating efficiencies and managing costs.

Also, during the past quarter we signed a major supply contract with Corning to provide products for their amplifier business. The contract, which has a revenue potential of $40 million over the next year, indicates a significant amount of confidence in our ability to deliver large orders.”

Fromm continued, “Finally, we continued to execute our strategy of expanding capacity and furthering our technical leadership position. We significantly expanded facilities, hired technical personnel in China and are on track to meet calendar year 2001 financial and operational goals. We maintained a strong balance sheet, which allows us to focus on building technical and product capabilities through research and development and strategic investments.”

Oplink will provide a live webcast of its second quarter financial conference call on Tuesday, January 30, 2001 at 4:45 p.m. EST. The live webcast will be available at Oplink's website at www.oplink.com and will also be available for replay for a period of one week. A telephone replay will also be available beginning on January 30, 2001, by dialing 719-457-0820 and entering pass code 691852. 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 and Form 10-Q dated November 13, 2000.

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.

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 866-ASK-OPLK. Oplink is online at www.oplink.com.

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