FREMONT, Calif., Oct 30, 2008 (BUSINESS WIRE) -- Oplink Communications, Inc. (Nasdaq:OPLK), a leading provider of photonic components, intelligent modules and subsystem solutions, today reported its financial results for its fiscal 2009 first quarter, ended September 30, 2008.
Revenues for the quarter were $43.0 million, compared to $37.3 million reported for the fourth quarter of fiscal 2008. GAAP net loss for the first quarter of fiscal 2009 was $3.4 million, or $0.16 per share. This compares to a GAAP net loss of $791,000, or $0.04 per share, reported for the fourth quarter of fiscal 2008.
Non-GAAP net income for the first quarter of fiscal 2009 was $3.2 million, or $0.15 per diluted share, which excludes a $4.1 million provision for excess and obsolete inventory, $1.6 million in stock-based compensation and $954,000 in amortization of intangible assets. This compares to non-GAAP net income of $2.8 million, or $0.13 per diluted share, reported for the fourth quarter of fiscal 2008, which excluded $1.4 million in stock-based compensation, $961,000 in amortization of intangible assets, $891,000 of inventory adjustments and $451,000 in transitional costs for contract manufacturing, partially offset by a $69,000 adjustment to a previously booked asset impairment charge.
Oplink generated $4.3 million in cash from operations during the first quarter and closed the quarter with cash, cash equivalents and short and long-term investments of $146.7 million.
"We reported revenue slightly above the outlook we provided last quarter and continued to generate cash from operations," commented Tom Keegan, President of Oplink. "While we remain optimistic about long-term demand for our products, we are cautious about the near-term impact of economic conditions on telecom capital expenditures and our revenue. We have begun closely controlling expenses to ensure that our costs align with near-term revenue as we enter this challenging period. During this period, we will continue to work towards future design wins with our traditional passive customers and releasing new, more competitive transceiver designs. Despite the near-term challenges, we remain confident in the long-term prospects for our business."
For the quarter ending December 31, 2008, the Company expects to report revenues of between $34 million and $38 million and GAAP net loss per share of approximately $0.03 to $0.07. On a non-GAAP basis, excluding stock-based compensation, amortization of intangible assets, and other non-cash or non-recurring charges, if any, the Company expects earnings per diluted share for the quarter ending December 31, 2008 of approximately $0.03 to $0.07.
Conference Call Information
The Company will host a conference call and live webcast at 2:00 p.m. Pacific Time today, October 30, 2008. To access the conference call, dial 877-801-6172 or 303-262-2056 (outside the U.S. and Canada). 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 5:00 p.m. Pacific Time on October 30, 2008 until 11:59 p.m. Pacific Time on November 6, 2008, by dialing 800-405-2236 or 303-590-3000 (outside the U.S. and Canada) and entering pass code 11121687#.
Non-GAAP Financial Measures
In this earnings release and during the earnings conference call and webcast as described above, Oplink will discuss certain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A reconciliation between non-GAAP and GAAP measures can be found in the accompanying tables. Oplink believes that, while these non-GAAP measures are not a substitute for GAAP results, they provide a basis for evaluating the Company's cash requirements for ongoing operating activities. These non-GAAP measures have been reconciled to the nearest GAAP measure as required under Securities and Exchange Commission rules.
Incorporated in 1995, Oplink is a leading provider of design, integration and optical manufacturing solutions (OMS) for optical networking components, modules 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 optical-centric front-end design, application, and customer service functions at its offices in Fremont and Calabasas, California and has research facilities in Zhuhai and Wuhan, China and Hsinchu Science-Based Industrial Park in Taiwan. 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 the guidance given for anticipated results for the second quarter of fiscal year 2009, that involve risks and uncertainties that may cause results to differ substantially from expectations. These risks include, but are not limited to, the potential for a downturn in the telecommunications industry or the overall economy in the United States and other parts of the world, possible reductions in customer orders, Oplink's reliance upon third parties to supply components and materials for its products, intense competition in Oplink's target markets and potential pricing pressure that may arise from changing supply or demand conditions in the industry, 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.
OPLINK COMMUNICATIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, June 30, 2008 2008 (Unaudited) (1) ASSETS Current assets: Cash and cash equivalents $ 99,450 $ 72,001 Short-term investments 32,253 50,077 Accounts receivable, net 32,743 34,200 Inventories 24,065 27,950 Prepaid expenses and other current assets 5,387 4,949 Total current assets 193,898 189,177 Long-term investments 15,003 20,003 Property, plant and equipment, net 32,780 34,206 Goodwill and intangible assets, net 22,533 23,487 Other assets 1,877 1,867 Total assets $ 266,091 $ 268,740 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 14,515 $ 16,014 Accrued liabilities and other current liabilities 13,021 12,756 Accrued transitional costs for contract manufacturing 282 341 Restructuring accrual - 370 Total current liabilities 27,818 29,481 Non-current liabilities 979 989 Total liabilities 28,797 30,470 Stockholders' equity 237,294 238,270 Total liabilities and stockholders' equity $ 266,091 $ 268,740 (1) The June 30, 2008 condensed consolidated balance sheet has been derived from audited consolidated financial statements at that date.
OPLINK COMMUNICATIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Three Months Ended September 30, 2008 2007 (Unaudited) (Unaudited) Revenues $ 42,952 $ 49,151 Cost of revenues: Cost of revenues 36,645 37,194 Stock compensation expense 118 129 Total cost of revenues 36,763 37,323 Gross profit 6,189 11,828 Operating expenses: Research and development 3,282 4,432 Sales and marketing 2,257 2,880 General and administrative 2,666 4,404 Transitional costs for contract manufacturing - 755 Merger fees - 1,421 Stock compensation expense 1,449 1,617 Amortization of intangible and other assets 412 266 Total operating expenses 10,066 15,775 Loss from operations (3,877 ) (3,947 ) Interest and other income, net 927 3,059 (Loss) gain on sale/disposal of assets (6 ) (37 ) Loss before minority interest and provision for income taxes (2,956 ) (925 ) Minority interest in loss of consolidated subsidiaries - 2,484 Provision for income taxes (456 ) (234 ) Net (loss) income $ (3,412 ) $ 1,325 Net (loss) income per share: Basic $ (0.16 ) $ 0.06 Diluted $ (0.16 ) $ 0.06 Shares used in per share calculation: Basic 20,757 23,182 Diluted 20,757 23,792 RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET INCOME Three Months Ended September 30, 2008 2007 Net (loss) income, GAAP $ (3,412 ) $ 1,325 Adjustments to measure non-GAAP: Provision for excess and obsolete inventory included in cost of 4,065 - revenues Transitional costs for contract manufacturing - 755 Merger fees - 1,546 Stock compensation expense 1,567 1,746 Amortization of intangible and other assets 954 540 Minority interest in loss of consolidated subsidiaries - (1,287 ) Non-GAAP net income $ 3,174 $ 4,625 Net income per share, non-GAAP: Basic $ 0.15 $ 0.20 Diluted $ 0.15 $ 0.19 Shares used in per share calculation: Basic 20,757 23,182 Diluted 21,268 23,792
OPLINK COMMUNICATIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended September 30, 2008 2007 (Unaudited) Cash flows from operating activities: Net (loss) income $ (3,412 ) $ 1,325 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 2,789 2,435 Stock compensation expense 1,567 1,746 Provision for excess and obsolete inventory 4,065 - Transitional costs for contract manufacturing and other costs - 755 Minority interest in loss of consolidated subsidiaries - (2,484 ) Other (481 ) 75 Change in assets and liabilities (200 ) 1,965 Net cash provided by operating activities 4,328 5,817 Cash flows from investing activities: Net sales (purchases) of investments 22,986 (982 ) Net sales (purchases) of property and equipment 6 (1,071 ) Net sales of cost investments - 4,600 Acquisition of businesses, net of cash acquired - (699 ) Net cash provided by investing activities 22,992 1,848 Cash flows from financing activities: Proceeds from issuance of common stock 353 218 Net cash provided by financing activities 353 218 Effect of exchange rate changes on cash and cash equivalents (224 ) (30 ) Net increase in cash and cash equivalents 27,449 7,853 Cash and cash equivalents, beginning of period 72,001 111,600 Cash and cash equivalents, end of period $ 99,450 $ 119,453
SOURCE: Oplink Communications, Inc.
For Oplink Communications, Inc. Investor Relations: Erica Abrams, 415-217-5864 firstname.lastname@example.org Matthew Hunt, 415-489-2194 email@example.com
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