Oplink Cancels EZconn Deal

Oplink and EZconn Corporation have agreed to terminate all agreements relating to Oplink's proposed acquisition of EZconn

January 19, 2005

1 Min Read

FREMONT, Calif. -- Oplink Communications, Inc. (Nasdaq: OPLK), a leading Photonic Foundry and provider of optical networking components, today announced that Oplink and EZconn Corporation have agreed to terminate all agreements relating to Oplink's proposed acquisition of EZconn, due to recent market changes and competitive circumstances. The companies have entered into a settlement agreement whereby EZconn will pay $2.0 million in termination fees to Oplink. Oplink incurred expenses of approximately $1.0 million in connection with the terminated transaction.

"Oplink will continue to focus on building our portfolio of solutions and specifically its "Fiber-to-the-X" (FTTX) ODM/OEM business in its Shanghai facilities," commented Joe Liu, president and CEO of Oplink. "We remain optimistic about our long-term prospects and our position as a leading supplier of optical networking technologies to the telecommunications industry."

Oplink also stated that it expects revenue for the second quarter ended January 2, 2005 to be in the range of $8.0 to $8.1 million. The Company expects to report a net loss in the range of $0.01 to $0.02 per share, which is below previous projections. During the second quarter, Oplink experienced a decline in sales from selected customers as a result of manufacturing-related problems at its China facilities. The Company believes these problems have since been addressed and remedied.

Oplink Communications Inc.

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