Oplink revenues increased 12% from $7.2M in Q1 to $8.1M, and up 60% from 2Q03 for a net loss of $2.1M, down from $14.4M in 2Q03

January 23, 2004

4 Min Read

SAN JOSE, Calif. -- Oplink Communications, Inc. (Nasdaq:OPLK), a leading Photonic Foundry and provider of optical networking components, today reported financial results for the second quarter and the first six months of fiscal 2004 ended December 31, 2003.

For the second quarter of fiscal 2004, Oplink reported revenues of $8.1 million, which represents an increase of 12% over revenues of $7.2 million reported in the first quarter of fiscal 2004 and an increase of 60% over revenues of $5.0 million reported in the second quarter of fiscal 2003. Loss from continuing operations was $2.1 million, or $0.01 per share, for the second quarter of fiscal 2004, as compared to a loss from continuing operations of $2.4 million, or $0.02 per share, reported in the first quarter of fiscal 2004, and $12.0 million, or $0.07 per share, in the second quarter of fiscal 2003.

Net loss for the second quarter of fiscal 2004 improved to $2.1 million, or $0.01 per share, as compared to a net loss of $2.3 million, or $0.02 per share, reported in the first quarter of fiscal 2004, and a net loss of $14.4 million, or $0.09 per share, reported in the second quarter of fiscal 2003. Net loss for the second quarter of fiscal 2004 includes certain net charges totaling $1.2 million, which consists of in-process research and development costs related to the acquisition on November 3, 2003 of RedClover Networks, Inc. and non-cash compensation charges offset by income from discontinued operation. Net loss for the first quarter of fiscal 2004 includes certain net charges totaling $1.6 million, which consists of non-cash compensation charges, amortization of intangible assets and $890,000 of expenses associated with the exploration of strategic business opportunities included in general and administrative expenses offset by income from discontinued operation. Net loss for the second quarter of fiscal 2003 includes net charges totaling $9.6 million, which consists of restructuring and other charges, loss from discontinued operation, merger fees and amortization of intangible assets offset by net amortization of deferred stock recovery. The foregoing net loss results also include revenue associated with the unexpected utilization of fully reserved inventory of $240,000, $515,000 and $530,000 in the second quarter of fiscal 2004, the first quarter of fiscal 2004 and the second quarter of fiscal 2003, respectively.

At December 31, 2003, Oplink had $188.7 million in cash, cash equivalents and, short and long-term investments.

"We are very satisfied with our financial performance in the second quarter, and encouraged by recent increases in telecommunication spending activity," commented Joe Liu, president and CEO of Oplink. "In addition to posting solid revenue increases in the quarter, we continued to make good progress at improving profitability and managing cash. Our Optical Manufacturing Solutions (OMS) business grew in the quarter, representing approximately 50% of revenue, and we were pleased to report higher sales activity with newer customers that we believe may represent potential future opportunities.

"Looking ahead, we continue to be optimistic about our long-term market opportunity as the industry begins to shows signs of recovery. We plan to continue to seek strategic technologies which will broaden our portfolio of offerings and expand our OMS capabilities, while providing Oplink's low-cost, highly technical manufacturing capabilities," concluded Mr. Liu.

For the six-month period ended December 31, 2003, Oplink reported revenues of $15.3 million and a net loss of $4.4 million, or $0.03 per share. This compares to revenues of $11.0 million and a net loss of $23.1 million, or $0.14 per share, reported for the six-month period ended December 31, 2002. For the six months ended December 31, 2003 net loss includes net charges of $2.8 million, which consists of non-cash compensation charges, in-process research and development costs, amortization of intangible assets and $890,000 of expenses associated with the exploration of strategic business opportunities included in general and administrative expenses offset by income from discontinued operation. For the six months ended December 31, 2002 net loss includes net charges of $11.7 million, which consists of restructuring costs and other charges, loss from discontinued operation, merger fees, net non-cash compensation expenses and amortization of intangible assets.

Oplink Communications Inc.

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