San Jose, Calif., April 19, 2001 -- Oplink Communications, Inc. (Nasdaq: OPLK), a designer and manufacturer of innovative optical components and integrated modules, today reported financial results for the three and nine-month periods ended March 31, 2001. Results were in-line with previous expectations announced on April 2, 2001.
Revenues for the third quarter were $36.0 million, a 283% increase over revenues of $9.4 million reported for the same period of last year.
Pro forma net loss for the third quarter was $19.2 million, or $0.12 per share, excluding non-cash charges, but including a $19.4 million provision for excess inventory. Excluding the provision for excess inventory taken during the third quarter and non-cash charges, the Company reported a slight profit and break-even earnings per share. This compares to pro forma net loss of $1.5 million, or $0.01 per share, reported in the same period last year. Please refer to the financial tables provided with this press release for further details regarding non-cash charges.
Net loss for the quarter, including non-cash charges and the inventory provision was $25.2 million, or $0.16 per share, compared to a net loss of $4.6 million, or $1.03 per share, reported in the same period last year.
Revenues for the nine-month period ended March 31, 2001 totaled $111.6 million, an increase of 440% from the same period in fiscal 2000. Pro forma net loss for the nine-month period was $15.1 million, or $0.10 per share, as compared to a pro forma net loss of $1.5 million, or $0.02 per share, reported during the same period in fiscal 2000.
"We believe that the breadth and quality of our product line, combined with our efficient offshore manufacturing capability will continue to enable Oplink to expand its worldwide presence in a difficult market environment with limited visibility in the coming quarters," commented Fred Fromm, Oplink's president.
"During the third quarter, we diversified and expanded our customer base to whom we sold a wide array of Oplink's innovative optical solutions, including amplifier modules and components, DWDM and multiplexing solutions, switching and monitoring products and optical modules and components. We vigorously pursued new product development efforts to introduce several new capabilities, including fiber Bragg gratings, 50GHz Thin Film Filters, four-port optical circulators, and an undersea coupler product line. We continued to expand our manufacturing facilities in China, which we believe will improve our operating efficiencies, although our expansion was at a slower pace than originally anticipated. Finally, we undertook selected cost-cutting measures, including a reduction in our full-time work force, which we believe will enable Oplink to better manage operating costs in light of the current industry environment.
"We closed the third quarter with approximately $265 million in cash, and we expect that our focus on cost-improvement initiatives, including a further reduction in our worldwide work force, will again lead us to pro-forma profitability within calendar year 2001, which is an important priority for Oplink. As we look ahead, we believe that our strong product line, aggressive research and development initiatives and continued cost improvement initiatives position Oplink to capitalize on the market opportunity for optical communications products to the extent demand and sales visibility improve in the coming quarters," concluded Fromm.
Oplink will provide a live webcast of its third quarter financial conference call today, Thursday, April 19, 2001 at 4:30 p.m. ET. The webcast will be available live on Oplink's website at www.oplink.com and via replay beginning two hours after the completion of the call. An audio replay of the call will also be available to investors beginning at 4:30 p.m. PT on April 19, by dialing 719-457-0820 and entering pass code 758651. The audio replay will be available until midnight ET on April 24, 2001.
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.
Except for the purely historical information contained herein, this news release regarding third quarter results contains forward-looking statements regarding our expected financial results and other matters that involve risks and uncertainties. These risks include, but are not limited to, the widespread downturns in the overall economy in the United States and other parts of the world and the telecommunications industry, sudden reductions in customer orders, the challenge to effectively manage our inventory levels and operating expenses during periods of weakening demand, the impact of reductions in work force and other restructuring on financial results, the impact of reductions in work force on productivity and expected product manufacturing and other plans, our reliance upon third parties to supply our raw materials and equipment, intense competition in our 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, the concentration and success of our manufacturing operations in China, 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 February 14, 2001.
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.