Oplink Communications, Inc. Logo

Print Print page   Email Email page   PDF Download PDF    Add to Briefcase
« Previous Release | Next Release »



OPLINK REPORTS SECOND QUARTER FISCAL YEAR 2012 FINANCIAL RESULTS

FREMONT, Calif., Feb. 2, 2012 (GLOBE NEWSWIRE) -- Oplink Communications, Inc. (Nasdaq:OPLK), a leading provider of design, integration and optical manufacturing solutions (OMS) for optical networking components, modules and subsystems, today reported its financial results for its second quarter of fiscal 2012, ended January 1, 2012.

Revenues for the second quarter were $43.3 million and GAAP net loss was $1.5 million, or $(0.08) per share. This compares to revenues of $43.4 million and GAAP net income of $1.2 million, or $0.06 per diluted share, reported in the prior quarter and revenues of $52.0 million and GAAP net income of $8.5 million, or $0.41 per diluted share, reported in the same period of the prior year.

Non-GAAP net income for the second quarter was $2.0 million, or $0.10 per diluted share, as compared to $3.1 million, or $0.15 per diluted share, reported in the prior quarter, and $10.7 million, or $0.52 per diluted share, reported in the same period of the prior year. Non-GAAP results exclude the items described in the Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures attached to this press release.

Oplink generated $3.8 million in cash from operations, after a $4 million payment to settle a patent lawsuit, and closed the quarter with cash, cash equivalents and short-term investments of $174.0 million.

"We are generally pleased with our results in the quarter, which were in line with our expectations," commented Joe Liu, Chairman and CEO of Oplink. "Looking ahead, we still see a sluggish overall spending climate in the near term but we are encouraged by slightly improved order patterns. Over the long-term, we expect our investments in new and flexible network technologies to yield additional market share gains as the demand environment improves."

Business Outlook for the Quarter Ending April 1, 2012

For the quarter ending April 1, 2012, the Company expects to report revenues between $40 million and $43 million and GAAP net income per diluted share of approximately $0.01 to $0.07. On a non-GAAP basis, excluding stock compensation, amortization of intangible assets and other non-cash or non-recurring charges, if any, the Company expects earnings per diluted share of approximately $0.07 to $0.13. GAAP and non-GAAP net income per diluted share for the quarter ending April 1, 2012 assume an effective tax rate of 41% and 36%, respectively.

Conference Call Information

Oplink will host a corresponding conference call and live webcast at 2:00 p.m. Pacific Time on February 2, 2012. The conference call can be accessed by dialing 1-877-941-2068, or 1-480-629-9712 (outside the U.S. and Canada). A live webcast will be available on the Investors section of Oplink's corporate website at www.oplink.com and via replay beginning approximately two hours after the completion of the call until Oplink'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 February 2, 2012 until 11:59 p.m. Pacific Time on February 10, 2012, by dialing 1-800-406-7325 or 1-303-590-3030 (outside the U.S. and Canada) and entering pass code 4505395#.

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 providing these non-GAAP measures to its investors provides investors the benefit of viewing Oplink's performance using the same financial metrics that the management team uses in making many key decisions and evaluating how Oplink's "core operating performance" and its results of operations may look in the future. Oplink defines "core operating performance" as its on-going performance in the ordinary course of its operations. Items that are non-recurring or do not involve cash expenditures, such as one-time tax benefits, impairment charges, restructuring charges, amortization of intangible assets, litigation settlement payments and non-cash compensation related to stock and options, are not included in Oplink's view of "core operating performance."

About Oplink

Incorporated in 1995, Oplink is a leading provider of design, integration and optical manufacturing solutions (OMS) for optical networking components, modules and subsystems. Oplink 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 Woodland Hills, California and has research facilities in Zhuhai and Wuhan, China and Hsinchu Science-Based Industrial Park in Taiwan. Oplink'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 website at: http://www.oplink.com/.

Cautionary Statement

This press release contains forward-looking statements, including without limitation the statements under the heading "Business Outlook for the Quarter Ending April 1, 2012." These forward-looking statements involve risks and uncertainties that could cause Oplink's results to differ materially from those expressed or implied by such forward-looking statements, including the following risks and uncertainties: possible reductions in customer orders or delays in shipments of products to customers; potential effects from the flooding in Thailand, which may adversely affect our customers' supply chains and result in delayed or cancelled orders for Oplink products; potential delays in introduction of new Oplink products; Oplink's reliance on a small number of customers for a substantial portion of its revenues; Oplink's reliance on third parties to supply critical 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; the potential for a further downturn in the telecommunications industry or the overall economy in the United States or other parts of the world; 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)
     
     
  January 1, 2012 July 3, 2011
  (Unaudited) (1)
ASSETS    
Current assets:    
Cash and cash equivalents  $ 53,527 $ 52,644
Short-term investments 120,467 134,089
Accounts receivable, net 33,834 34,880
Inventories 21,884 24,719
Prepaid expenses and other current assets 11,107 10,706
Deferred tax assets 14,537 15,171
Total current assets 255,356 272,209
Property, plant and equipment, net 41,576 36,863
Goodwill and intangible assets, net 1,902 2,948
Deferred tax assets 8,284 8,291
Other assets 1,264 493
Total assets $ 308,382 $ 320,804
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $ 12,583 $ 11,549
Accrued liabilities and other current liabilities 12,778 12,041
Total current liabilities 25,361 23,590
Non-current liabilities 7,318 6,852
Total liabilities 32,679 30,442
Stockholders' equity 275,703 290,362
Total liabilities and stockholders' equity $ 308,382 $ 320,804
     
     
(1) The July 3, 2011 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  Six Months Ended
  January 1, 2012 October 2, 2011 January 2, 2011 January 1, 2012 January 2, 2011
  (Unaudited) (Unaudited) (Unaudited)  (Unaudited)
           
Revenues $ 43,328 $ 43,377 $ 52,025 $ 86,705 $ 101,665
Cost of revenues 29,977 29,257 32,916 59,234 66,435
Gross profit 13,351 14,120 19,109 27,471 35,230
Operating expenses:          
Research and development 5,049 4,975 3,992 10,024 7,391
Sales and marketing 2,508 2,588 2,482 5,096 4,940
General and administrative 6,344 2,609 1,895 8,953 3,763
Stock compensation expense  1,169 1,752 1,127 2,921 2,668
Amortization of intangible assets 166 316 451 482 902
Gain on sale/disposal of assets (8) (377) (83) (385) (83)
Total operating expenses 15,228 11,863 9,864 27,091 19,581
(Loss) income from operations (1,877) 2,257 9,245 380 15,649
Interest and other income, net  203 113 54 316 111
(Loss) income before provision for income taxes  (1,674)  2,370  9,299  696  15,760
Benefit (provision) for income taxes  181  (1,147)  (811)  (966) (1,692)
Net (loss) income   $ (1,493)  $ 1,223  $ 8,488  $ (270)  $ 14,068
           
Net (loss) income per share:          
Basic  $ (0.08)  $ 0.06  $ 0.43  $ (0.01)  $ 0.72
Diluted  $ (0.08)  $ 0.06  $ 0.41  $ (0.01)  $ 0.69
           
Shares used in per share calculation:          
Basic 19,185 19,707 19,556 19,446 19,441
Diluted 19,185 20,349 20,602 19,446 20,463
           
           
 
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands, except per share amounts)
  Three Months Ended  Six Months Ended
  January 1,  2012 October 2,  2011 January 2, 2011 January 1, 2012 January 2, 2011
Reconciliation of GAAP net (loss) income to non-GAAP net income:          
Net (loss) income, GAAP  $ (1,493)  $ 1,223  $ 8,488  $ (270)  $ 14,068
Adjustments to measure non-GAAP:          
Related to cost of revenues:          
Stock compensation expense  89 109 102 198 219
Amortization of intangible assets 161 411 575 572 1,150
Total related to cost of revenues 250 520 677 770 1,369
           
Related to operating expenses:          
Legal settlement  3,317 -- -- 3,317 --
Stock compensation expense  1,169 1,752 1,127 2,921 2,668
Amortization of intangible assets 166 316 451 482 902
Total related to operating expenses 4,652 2,068 1,578 6,720 3,570
           
Tax effects on non-GAAP adjustments (1,424) (695) -- (2,119) --
           
Non-GAAP net income   $ 1,985  $ 3,116  $ 10,743  $ 5,101  $ 19,007
           
Net income per share, non-GAAP:          
Basic  $ 0.10  $ 0.16  $ 0.55  $ 0.26  $ 0.98
Diluted  $ 0.10  $ 0.15  $ 0.52  $ 0.25  $ 0.93
           
Shares used in per share calculation:          
Basic 19,185 19,707 19,556 19,446 19,441
Diluted 19,716 20,349 20,602 20,075 20,463
           
           
Reconciliation of GAAP gross profit to non-GAAP gross profit:          
GAAP gross profit  $ 13,351  $ 14,120  $ 19,109  $ 27,471  $ 35,230
Stock compensation expense included in cost of revenues 89 109 102 198 219
Amortization of intangible assets included in cost of revenues 161 411 575 572 1,150
Non-GAAP gross profit  $ 13,601  $ 14,640  $ 19,786  $ 28,241  $ 36,599
           
GAAP gross margin rate  30.8% 32.6% 36.7% 31.7% 34.7%
Non-GAAP gross margin rate  31.4% 33.8% 38.0% 32.6% 36.0%
 
OPLINK COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(In thousands)
     
  Six Months Ended
  January 1, 2012 January 2, 2011
  (Unaudited)
Cash flows from operating activities:    
Net (loss) income  $ (270) $ 14,068
Adjustments to reconcile net (loss) income to  net cash provided by operating activities:    
Depreciation and amortization 3,007 2,709
Amortization of intangible assets 1,046 2,052
Stock compensation expense  3,118 2,887
Deferred income taxes 624 --
Gain on sale/disposal of assets (385) (83)
Other 207 475
Change in assets and liabilities 4,454 (9,139)
Net cash provided by operating activities  11,801  12,969
     
Cash flows from investing activities:    
Net maturity of investments 13,684 20,308
Net purchases of property, plant and equipment (5,415) (3,802)
Purchase of cost investment (200) --
Net cash provided by investing activities  8,069 16,506
     
Cash flows from financing activities:    
Proceeds from issuance of common stock  866 4,855
Repurchase of common stock (19,703) (6,534)
Net cash used in financing activities (18,837) (1,679)
     
Effect of exchange rate changes on cash and cash equivalents (150) 206
Net increase in cash and cash equivalents 883 28,002
Cash and cash equivalents, beginning of period 52,644 40,711
Cash and cash equivalents, end of period $ 53,527 $ 68,713
CONTACT: Investor Relations:

         Erica Abrams

         415-217-5864

         erica@blueshirtgroup.com



         Matthew Hunt

         415-489-2194

         matt@blueshirtgroup.com
Source: Oplink Communications, Inc.

News Provided by Acquire Media

Close window | Back to top