News

29 January 2010

 

Oplink increases margin and profit despite revenue dip

For its fiscal second-quarter 2010 (to end-December 2009), optical networking component, module and subsystem maker Oplink Communications Inc of Fremont, CA, USA has reported revenue of $32.7m, down 13% on $37.6m a year ago and 3% on $33.6m last quarter (though still up on the March 2009 quarter’s low of $30.8m).

Despite the decline, gross margin has risen from 22.7% a year ago and 29.3% last quarter to 33.6%. Operating expenses of $7.9m were roughly level with last quarter, and down from $19.9m a year ago. “We reported solid gross margins while continuing to manage operating costs,” says president & CEO Joe Liu.

Net income rose to $3.1m, up from $1.8m last quarter and a loss of $10.5m a year ago. During the quarter, Oplink generated $8.5m in cash from operations, helping to boost cash, cash equivalents and investments from $168.7m to $188.8m. “We are pleased with our second quarter performance and execution, especially considering ongoing macroeconomic conditions,” comments Liu.

“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,” Liu says. “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.”

For its fiscal third-quarter 2010, Oplink expects revenue of $30–34m.

See related items:

Oplink’s recovery continues from March-quarter low

Oplink goes into profit as revenue rebounds

Oplink’s revenues fall 18%, but cost cutting maintains cash generation

Oplink’s revenues fall 12.5%

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