FREMONT, Calif. -- Oplink Communications, Inc. (Nasdaq:OPLK), a leading photonic foundry and provider of optical networking components, today reported financial results for the first quarter of fiscal 2006 ended October 2, 2005.

For the first quarter of fiscal 2006, Oplink reported revenues of $10.7 million, which is an increase of 20% over the first quarter of fiscal 2005 and the fourth quarter of fiscal 2005. Net income, prior to any stock option expense as required by Statement of Financial Accounting Standards (SFAS) No. 123 (R), was $157,000, or $0.00 per share, as compared to a net loss of $874,000 or ($0.01) per share reported in the first quarter of fiscal 2005 and net income of $868,000, or $0.01 per share, reported in the fourth quarter of fiscal 2005. Fourth quarter of fiscal 2005 results included a non-recurring benefit of $1.3 million primarily related to the resolution of vendor liabilities.

Including the stock option expense for the first quarter of fiscal 2006, Oplink reported a net loss of $440,000 or $0.00 per share.

Oplink generated $1.8 million in cash from operating activities in the first quarter of fiscal 2006 and closed the quarter with $187.6 million in cash, cash equivalents and short and long-term investments, an increase from the balance at the close of the fourth quarter of fiscal 2005 of $186.1 million.

"Growth in the quarter came as the result of increasing interest in our components and subsystems from a widening range of customers," commented Joe Liu, president and CEO of Oplink. "We continue to have success winning market share from other vendors, as a result of our aggressive pricing, broad and growing product offerings and capabilities, and low-cost, efficient manufacturing facilities.

Oplink Communications Inc.