SAN JOSE, Calif. -- New Focus, Inc., (Nasdaq: NUFO - news), a leading supplier of innovative fiber optic products for next-generation optical networks under the Smart Optics for Networks(TM) brand, today announced preliminary financial results for its second quarter ended July 1, 2001. Based on these preliminary results the company expects that its actual second quarter results will fall short of the company's published guidance. The company will report its actual second quarter financial results and hold a conference call to review the company's performance on July 25, 2001 after the close of the market. The company expects to report net revenue of approximately $27 million for the second quarter. The pro forma net loss for the second quarter, excluding a restructuring charge and amortization charges related to deferred stock compensation, goodwill and other intangibles, is expected to fall within the range of $18-21 million, or $0.25-0.29 per share. On April 25, 2001 the company projected net revenue of $28-32 million and a pro forma net loss, exclusive of an anticipated restructuring charge and amortization charges related to deferred stock compensation, goodwill and other intangibles, of $8-12 million for the second quarter of 2001. The preliminary pro forma net loss for the second quarter includes an estimated charge of $7-9 million related primarily to additional inventory write-downs and order cancellation charges. This charge is based on a weaker demand outlook for the company's products resulting from the current difficult conditions in the telecommunications market. The $18-21 million pro forma net loss for the second quarter excludes an estimated $5 million restructuring charge for previously announced work force reductions and planned facility closures. "Despite difficult conditions within our markets we nearly met the low end of our published revenue guidance for the second quarter. As expected, revenue from passive products declined sharply on a sequential basis between the first and second quarters, and we expect lower revenues from this product family during the second half of this year. The second quarter pro forma net loss will exceed the high end of our published guidance due mainly to the unanticipated charge for additional inventory write-downs and order cancellation fees. Our balance sheet remains strong with a cash balance of approximately $340 million at the end of the June quarter. This level of cash reserves provides us with the resources and flexibility to weather the challenging times facing the fiber optics industry," said Ken Westrick, president and chief executive officer of New Focus, Inc. New Focus Inc.