OCP Reports Q2

Optical Communication products announces second quarter fiscal 2007 results

May 15, 2007

2 Min Read

WOODLAND HILLS, Calif. -- Optical Communication Products, Inc. (NASDAQ GMS: OCPI), a leading manufacturer of fiber optic components, today announced its financial results for the second quarter of fiscal 2007 ended March 31, 2007.

Second Quarter Financial Results

Revenue for the second quarter ended March 31, 2007 was $16.4 million, a decrease of 10.6% compared with revenue of $18.3 million for the second quarter of fiscal 2006, and a decrease of 3.7% compared with revenue of $17.0 million for the first quarter of fiscal 2007. Backlog at March 31, 2007 was $7.7 million as compared to $7.0 million at December 31, 2006.

Gross margin for the second quarter of fiscal 2007 was negative 3.5% compared with 34.7% for the second quarter of fiscal 2006 and 18.8% for the first quarter of fiscal 2007. The negative gross margin for the second quarter of fiscal 2007 reflects a lower average selling price (ASP), lower margin products, and a non-cash inventory reserve charge of $3.2 million to adjust current inventories on hand to market value.

Operating expenses for the second quarter of fiscal 2007 totaled $18.0 million and included (i) $851,000 in transition costs associated with the planned move of the Company's manufacturing to China, and (ii) a non-cash goodwill impairment charge of $8.5 million or $0.07 per share on a fully diluted basis. Second quarter fiscal 2007 total operating expenses of $18.0 million compares to total operating expenses of $5.6 million for the second quarter of fiscal 2006 and total operating expenses of $9.0 million (including transition charges of $460,000) for the first quarter of fiscal 2007. The increased transition charges quarter-over-quarter were due primarily to the accrual of severance benefits as the Company approaches its planned workforce reduction during the fourth quarter of fiscal 2007. In accordance with Statement of Financial Accounting Standards (SFAS) No. 123(R), "Share-Based Payment," the Company recorded stock-based compensation expense of $460,000, $248,000 and $282,000, for the second quarter of fiscal 2007, the second quarter of fiscal 2006 and the first quarter of fiscal 2007, respectively.

Optical Communication Products Inc. (OCP) (Nasdaq: OCPI)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like