Oplink Communications, Inc. (Nasdaq: OPLK), a leading provider of design, integration and optical manufacturing solutions (OMS) for optical networking components, modules and subsystems, today reported its financial results for its fiscal 2010 second quarter, ended December 31, 2009.
Revenues for the quarter were $32.7 million, compared to $33.6 million reported for the first quarter of fiscal 2010. GAAP net income for the second quarter of fiscal 2010 increased to $3.1 million, or $0.14 per diluted share, compared to a GAAP net income of $1.8 million, or $0.09 per diluted share, reported for the first quarter of fiscal 2010.
Non-GAAP net income for the second quarter of fiscal 2010 increased to $5.7 million, or $0.26 per diluted share, compared to non-GAAP net income of $4.4 million, or $0.21 per diluted share, reported for the first quarter of fiscal 2010. Second quarter of fiscal 2010 non-GAAP results exclude $1.6 million in stock compensation and $945,000 in amortization of intangible assets. First quarter of fiscal 2010 non-GAAP results exclude $1.6 million in stock compensation and $946,000 in amortization of intangibles.
Oplink generated $8.5 million in cash from operations during the second quarter, and closed the period with cash, cash equivalents and investments of $188.8 million.
“We are pleased with our second quarter performance and execution, especially considering ongoing macroeconomic conditions,” commented Joe Liu, President and CEO of Oplink. “We reported solid gross margins while continuing to manage operating costs. In the coming quarter, we expect telecommunications spending to continue to be constrained and will experience some seasonality and the impact of a shorter manufacturing period, including the Chinese New Year. We remain committed to providing customers with the highest-quality design, integration and manufacturing of optical components and expect to achieve market share gains as carrier spending normalizes.”
Business Outlook for the Quarter Ending March 31, 2010
The Company expects to report revenues in the range of $30 million and $34 million and GAAP net income per diluted share in the range of $0.05 to $0.11. On a non-GAAP basis, excluding stock compensation, amortization of intangible assets and other non-cash or non-recurring charges, Oplink expects earnings per diluted share for the period to be in the range of $0.16 to $0.22.
Conference Call Information
The Company will host a conference call and live webcast at 2:00 p.m. Pacific Time today, January 28, 2010. To access the conference call, dial 877-941-8416 or 480-629-9808 (outside the U.S. and Canada). The webcast will be available live on the Investor Relations section of the Company’s corporate website at http://investor.oplink.com and via replay beginning approximately two hours after the completion of the call until the Company’s announcement of its financial results for the next quarter. An audio replay of the call will also be available to investors beginning at approximately 5:00 p.m. Pacific Time on January 28, 2010 until 11:59 p.m. Pacific Time on February 4, 2010, by dialing 800-406-7325 or 303-590-3030 (outside the U.S. and Canada) and entering pass code 4199755#.
Non-GAAP Financial Measures
In this earnings release and during the earnings conference call and webcast as described above, Oplink will discuss certain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A reconciliation between non-GAAP and GAAP measures can be found in the accompanying tables. Oplink believes that, while these non-GAAP measures are not a substitute for GAAP results, they provide a basis for evaluating the Company’s cash requirements for ongoing operating activities. These non-GAAP measures have been reconciled to the nearest GAAP measure as required under Securities and Exchange Commission rules.
Incorporated in 1995, Oplink is a leading provider of design, integration and optical manufacturing solutions (OMS) for optical networking components, modules and subsystems. Oplink offers advanced and cost-effective optical-electrical components and subsystem manufacturing through its facilities in Zhuhai and Shanghai, China. In addition, Oplink maintains optical-centric front-end design, application, and customer service functions at its offices in Fremont and Calabasas, California and has research facilities in Zhuhai and Wuhan, China and Hsinchu Science-Based Industrial Park in Taiwan. Oplink’s customers include telecommunications, data communications and cable TV equipment manufacturers around the globe. Oplink is committed to providing fully customized, photonic foundry services incorporating its subsystems manufacturing capabilities. To learn more about Oplink, visit its web site at: http://www.oplink.com/ .