San Jose, Calif., October 22, 2002 -- Oplink Communications, Inc. (Nasdaq: OPLK), a leading designer and manufacturer of innovative optical technologies, today reported financial results for the three-month period ended September 30, 2002.
For the first quarter of fiscal 2003, Oplink reported revenues of $6.0 million and a GAAP net loss of $8.7 million, or $0.05 per share, as compared to revenues of $7.7 million and a GAAP net loss of $8.2 million, or $0.05 per share, reported in the fourth quarter of fiscal 2002. On a pro forma basis, Oplink reported a net loss of $6.8 million, or $0.04 per share, in the first quarter, excluding an aggregate of $1.9 million for the amortization of deferred compensation and intangibles assets, and costs associated with the terminated merger between Oplink and Avanex as detailed in the attached tables. This compares to a pro forma net loss of $4.7 million, or $0.03 per share reported in the fourth quarter of 2002, excluding $3.5 million for the amortization of deferred compensation and intangible assets, costs associated with the terminated merger of Oplink and Avanex, restructuring and other special charges and gain on sale of excess fixed assets as detailed in the notes of the attached tables.
The Company also continued to reduce pro-forma operating expenses and control cash burn, closing the first quarter with $221 million in cash and short-term investments.
"I am enthusiastic about the opportunity to again work with Oplink during this pivotal stage in its lifecycle," commented Joe Liu, President and CEO of Oplink. "I strongly believe that today's telecom environment dictates the need for a more entrepreneurial approach to how we operate our business and identify market opportunities.
"Despite the difficult climate for fiber optic communications, we have continued to dramatically restructure our business to align costs with lower revenue levels. At the same time, we have enhanced our engineering and R&D capabilities and improved our development and manufacturing efforts through the relocation of these functions to China. Our priority is serving our customers by delivering low-cost, high quality products," continued Liu.
"As we look ahead, we intend to focus on our core engineering and manufacturing capabilities for near-term revenue, while seeking new opportunities to apply our technologies in other market segments. We will keep a strong emphasis on managing costs and increasing efficiencies across the organization, all the while controlling cash burn to help ensure our market position as demand resumes."
Nasdaq Delisting Notice
In addition, the Company announced that it has received a Nasdaq Staff Determination indicating that it no longer meets the requirements for the continued listing of its common stock on the Nasdaq National Market, and that its securities, therefore, are subject to delisting from the Nasdaq National Market. The notification is based on the failure by the Company to maintain a minimum bid price of $1.00 as required by Nasdaq listing maintenance standards set forth in Marketplace Rule 4450(a)(5). The Company intends to request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff's determination; however, there can be no assurance that the Listing Qualifications Panel will grant the Company's request for continued listing. The Company's common stock will continue to be listed on the Nasdaq National Market pending a final ruling.
The Company is exploring various alternatives to avoid delisting of its common stock. The Company may seek to transfer its securities to the Nasdaq SmallCap Market, which makes available an extended grace period for the minimum $1.00 bid price requirement, or may effect a reverse stock split (subject to stockholder approval). The Company has filed a definitive proxy statement with the SEC seeking, among other matters, stockholder approval for a proposal that would permit the Board of Directors to effect, at its sole discretion, a reverse split of its common stock.
Conference Call Information
The Company will host a corresponding conference call and live Webcast at 2:00 p.m. Pacific Time on October 22, 2002. The Webcast will be available live on the Company'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 4:00 p.m. Pacific Time on October 22, by dialing 800-405-2236 and entering pass code 503360.
Oplink designs, manufactures and markets fiber optic components and integrated 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 increase of data traffic on the Internet and other public and private networks. The Company markets its products worldwide to telecommunications equipment providers.
Oplink was incorporated in 1995 and is headquartered in San Jose, California. The company's primary manufacturing facility is in Zhuhai, China.
To learn more about Oplink, visit its web site at: http://www.oplink.com/.
This news release contains forward-looking statements, including statements regarding our business and market opportunities, our ability to effectively restructure our business, manage costs and enhance our engineering and R&D capabilities, and the continued listing of our common stock on the Nasdaq Stock Market, that involve risks and uncertainties. These risks include, but are not limited to, the impact of personnel changes on Oplink's employees and customers, the widespread downturns in the overall economy in the United States and other parts of the world and the telecommunications industry, possible continued 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 and 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 possibility of delisting of Oplink's common stock from the Nasdaq National Market, 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 annual report filed on Form 10-K for the fiscal year ended June 30, 2002.
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.