News

15 August 2008

 

Oplink’s earnings rebound as revenue falls less than expected

For its fiscal fourth-quarter 2008, optical networking component, module and subsystem maker Oplink Communications Inc of Fremont, CA, USA has reported revenue of $37.3m, flat on $37.2m a year ago and down 8.6% on last quarter’s $40.8m.

However, this is slightly above May’s guidance of $33-37m, which attributed the drop to continued reduced sales of reconfugrable optical add-drop multiplexers (ROADMs), softness in orders from Europe, and transferring the manufacturing of Optical Communication Products Inc (OCP) of Woodland Hills, CA, USA (acquired last year) to China, where Oplink has facilities in Zhuhai and Shanghai.

Net loss has been cut from $3.9m last quarter to just $791,000 (compared to net income of $3m a year ago). On a non-GAAP basis (excluding transitional costs for contract manufacturing and fees relating to the OCP merger), net income is up from $2.5m last quarter to $2.8m (though still down from $5.6m a year ago). Cash, cash equivalents and investments rose from $138.3m to $142.1m during the quarter.

“We are pleased to report revenue slightly above the outlook we provided last quarter, improved gross margins and increased operating efficiencies,” says president and CEO Joe Liu.

For fiscal 2008, revenue was $176.3m, up from $107.5m for fiscal 2007, which only included one month of results from OCP, of which Oplink acquired a majority stake in June 2007 and which became a 100% owned subsidiary in October. Net loss was $6.8m, compared to net income of $13.2m for fiscal 2007.

Excluding transitional costs for contract manufacturing and expenses incurred by OCP relating to its acquisition, non-GAAP net income was $13.9m, down from $19.5m for fiscal 2007.

“We had good sales activity for our passive components through our traditionally large customers and are building our pipeline for future periods,” says Liu of fiscal Q4. “Demand for our active components was strong and, with our offshore manufacturing transition nearly completed, we are now shifting our focus to customer interactions and design-win activities,” he adds. “We remain confident in the long-term opportunity for the consolidated business as we move into fiscal year 2009.”

For fiscal first-quarter 2009 (to end-September 2008), Oplink expects revenue to rise to $38-42m.

Also Oplink’s board of directors has approved a new program authorizing the repurchase of up to $20m of common stock. Repurchases will be made in open market or privately negotiated transactions, and funded from available working capital. “This share repurchase program communicates our long-term confidence in our business and is a good use of our capital at this time,” states Liu.

Oplink announces senior management changes

Oplink says that, at the end of 2008, Joe Liu will resign as CEO and assume the position of executive vice chairman. Current president Thomas P. Keegan will become CEO. Len LeBlanc will remain chairman of the board.

Keegan was appointed president in May after serving as VP of business development and general counsel over the past year. His career spans more than two decades in business and law, and includes experience working with and advising technology companies and international enterprises doing business in Asia and the USA. As a fluent Mandarin speaker, he has extensive first-hand knowledge of the challenges and opportunities facing technology companies operating in Taiwan and China, says the firm.

Also, Peter Lee, VP of marketing, PLM and strategic planning, has been promoted to chief operating officer. In addition, Dr Shawn Lin, senior director of technical marketing and customer support, has been promoted to VP of marketing. “Shawn has been a major contributor to the success of our OMS [optical manufacturing solutions] business,” says Liu. “With the promotions of Peter and Shawn, we will build on our leadership positions in our core business lines of passive components, OMS and transceivers,” he adds.

See related items:

Oplink appoints president and general counsel

Oplink hit by dip in ROADM and European sales

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