SAN JOSE, Calif., July 31, 2001- Oplink Communications, Inc. (NASDAQ: OPLK), a designer and manufacturer of innovative optical components and integrated modules, today announced financial results for the fourth quarter and fiscal year ended June 30, 2001. Results were consistent with expectations announced on July 2, 2001.
For the fourth quarter, Oplink reported revenues of $20.3 million and a pro forma net loss of $6.7 million, or $0.04 per share. This compares to revenues of $18.4 million and a pro forma net loss of $2.7 million, or $0.02 per share reported in the same period last year. Pro forma results for the quarter ended June 30, 2001 exclude charges of $22.6 million for the write down of goodwill and intangible assets, amortization of deferred compensation, in-process research and development charges associated with an acquisition and the cost of restructuring operations.
During the fourth quarter, Oplink reduced total pro forma operating expenses by 26% over the third quarter levels and took other measures to monitor costs and preserve cash resources, including the acceleration of its planned move of manufacturing operations to China.
For fiscal year 2001, the Company reported revenues of $131.8 million and a pro forma net loss of $21.9 million, or $0.14 per share. This compares to revenues of $39.0 million and a pro forma net loss of $4.2 million, or $0.04 per share, reported for fiscal year 2000.
Fiscal year 2001 pro forma net loss excludes charges of $58.5 million for the write down of goodwill and intangible assets, amortization of deferred compensation and goodwill, in-process research and development associated with an acquisition, the cost of restructuring and $9.3 million of sales and marketing and interest expense representing the discount given to Cisco on a convertible note. However, the pro forma net loss includes a $19.4 million, or $0.12 per share, provision for excess inventory taken in the third quarter.
"Despite a decline in telecommunications spending in the past several quarters, we made significant progress during fiscal year 2001," commented Fred Fromm, Oplink's president. "In addition to 238% year over year revenue growth, we broadened our product line, adding access, metro and undersea products, and we enhanced our capabilities in the long-haul and ultra long-haul markets, while reducing the overall product cost. We accelerated our plan to transfer a majority of manufacturing operations to China, for which we expect to realize operating efficiencies."
"In fiscal year 2002, we will focus on expanding our product capabilities, lowering product costs, gaining design wins with our customers and affirming our strong position as an independent supplier of optical components and subsystems. We believe strongly in the long-term opportunity for fiber optics as it remains the core technology for broadband networks of the future. The market continues to demand highly functional, low-cost components, and we believe Oplink will be well positioned competitively when demand resumes."
Conference Call Information
The Company will host a corresponding conference call and live webcast at 1:45 p.m. Pacific Time on July 31, 2001 The webcast will be available live on the Company's corporate 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 4:45 p.m. PT on July 31, 2001 by dialing 719-457-0820 and entering pass code 480181.
About Oplink Communications
Oplink designs, manufactures and markets high performance fiber optic networking components and integrated optical subsystems that control, expand, amplify, switch, route, monitor, and protect optical signals. Oplink offers a broad line of components and subsystems that increase the performance of all-optical networks. The company supplies products to all major telecommunications equipment providers worldwide. To learn more about Oplink, visit its web site at: www.oplink.com.
Except for the purely historical information contained herein, this news release regarding fourth quarter and fiscal 2001 results contains forward-looking statements regarding our business activities, developments in the economy and our markets and 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 and fiber optic industry, sudden reductions in customer orders, potential delays, product quality issues and other difficulties associated with transitioning our manufacturing operations to China and conducting manufacturing there, the challenge to effectively manage our inventory levels and operating expenses during periods of weakening demand and the impact of potential inventory write-offs, 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, 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 May 15, 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.