Exhibit 99.1

 

Oplink Reports Third Quarter Fiscal Year 2014 Financial Results

Fremont, Calif., -- April 30, 2014 -- Oplink Communications, Inc. (Nasdaq: OPLK),  a leading provider of optical communication components, intelligent modules and subsystems, today reported its financial results for its third quarter of fiscal year 2014, ended March 30, 2014.

 

Business Outlook for the Quarter Ending June 29, 2014

For the quarter ending June 29, 2014, the Company expects to report revenue of $48 to $52 million and GAAP net income of $0.00 to $0.06 per diluted share.  On a non-GAAP basis, excluding stock compensation, amortization of intangible assets and any other non-cash or non-recurring charges, the Company expects earnings per diluted share of $0.05 to $0.11.

Conference Call Information

Oplink will host a corresponding conference call and live webcast at 1:30 p.m. Pacific Time on April 30, 2014.  The conference call can be accessed by dialing 1-800-762-8779, or 1-480-629-9645 (outside the U.S. and Canada). A live webcast will be available on the Investors section of Oplink's corporate website at www.oplink.com and via replay beginning approximately two hours after the completion of the call until Oplink'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 April 30, 2014 until 11:59 p.m. Pacific Time on May 7, 2014, by dialing 1-800-406-7325 or 1-303-590-3030 (outside the U.S. and Canada) and entering pass code 4680703#.

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.

Cautionary Statement

This press release contains forward-looking statements, including without limitation the statements under the heading "Business Outlook for the Quarter Ending June 29, 2014."  These forward-looking statements involve risks and uncertainties that could cause Oplink's results to differ materially from those expressed or implied by such forward-looking statements, including the following risks and uncertainties: (1) possible reductions in customer orders or delays in shipments of products to customers; (2) potential delays in introduction of new Oplink products; (3) Oplink's reliance on a small number of customers for a substantial portion of its revenues; (4) Oplink's reliance on third parties to supply critical components and materials for its products; (5) intense competition in Oplink's target markets and potential pricing pressure that may arise from changing supply or demand conditions in the industry; (6) risks relating to the new Oplink Connected business, including the risk that the products and services, being new and unproven, may not achieve market acceptance, the risk that Oplink may not be successful in developing adequate sales channels for these products and services, and the risk of write-downs for slow-moving or obsolete inventory ; (7) increasing reliance on sales to datacom customers, which can fluctuate more than sales to our traditional telecom customers; (8) changes in our effective tax rate, which could reduce our net income; and (9) other risks detailed from time to time in Oplink's periodic reports filed with the Securities and Exchange Commission, including the Company's latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The foregoing information represents Oplink's outlook only as of the date of this press release, and Oplink undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

About Oplink

Oplink is a leading provider of optical communication components, intelligent modules and subsystems. We offer advanced solutions in DWDM and CWDM bandwidth creation, optical amplification, switching & routing, wavelength conditioning, monitoring & protection, connectivity and system-level integration, as well as a broad portfolio of optical transceivers for metro WDM, aggregation and access applications. We supply to global leading and emerging telecommunications, data communications and cable TV equipment makers. We are headquartered in Fremont, California and own multiple research and manufacturing facilities in Asia. To learn more about Oplink, visit our web site at www.oplink.com.

(TABLES TO FOLLOW)

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Investor Relations:

Shirley Yin

510-933-7233

ir@oplink.com

 

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OPLINK COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

		March 30,				June 30,
		2014				2013
		(Unaudited)					(1)
ASSETS
Current assets:
Cash and cash equivalents		$	54,472			$	65,014
Short-term investments			97,134				105,829
Accounts receivable, net			37,215				40,735
Inventories			40,269				30,028
Prepaid expenses and other current assets			6,294				7,029
Deferred tax assets			804				809
Total current assets			236,188				249,444
Property, plant and equipment, net			54,048				47,687
Long-term investments			9,274				3,307
Goodwill and intangible assets, net			965				1,146
Deferred tax assets			7,555				7,083
Other assets			13,414				16,504
Total assets		$	321,444			$	325,171
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	12,385			$	18,166
Accrued liabilities and other current liabilities			16,153				13,579
Total current liabilities			28,538				31,745
Non-current liabilities			11,528				10,225
Total liabilities			40,066				41,970
Stockholders' equity			281,378				283,201
Total liabilities and stockholders' equity		$	321,444			$	325,171

 

 

 

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OPLINK COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

		Three Months Ended												Nine Months Ended
		March 30,				December 29,				March 31,				March 30,				March 31,
		2014				2013				2013				2014				2013
		(Unaudited)												(Unaudited)
Revenues		$	48,108			$	50,433			$	44,124			$	153,323			$	134,107
Cost of revenues			34,081				34,487				28,474				105,653				85,298
Gross profit			14,027				15,946				15,650				47,670				48,809
Operating expenses:
Research and development			7,332				6,813				6,281				20,935				17,542
Sales and marketing			4,107				4,011				3,590				11,891				10,150
General and administrative			2,015				2,203				2,174				6,284				6,437
Stock-based compensation expense			1,238				1,158				1,252				4,365				4,160
Amortization of intangible assets			10				24				91				74				273
Net (gain) loss on sale/disposal of assets			48				96				(258	)			221				(270	)
Total operating expenses			14,750				14,305				13,130				43,770				38,292
(Loss) income from operations			(723	)			1,641				2,520				3,900				10,517
Interest and other income, net			819				20				201				871				879
Income before provision for income taxes			96				1,661				2,721				4,771				11,396
Provision for income taxes			620				378				670				1,790				2,526
Net (loss) income		$	(524	)		$	1,283			$	2,051			$	2,981			$	8,870
Net (loss) income per share:
Basic		$	(0.03	)		$	0.07			$	0.11			$	0.16			$	0.47
Diluted		$	(0.03	)		$	0.07			$	0.11			$	0.15			$	0.46
Shares used in per share calculation:
Basic			19,066				19,363				19,029				19,222				19,072
Diluted			19,066				19,534				19,252				19,468				19,370

RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands, except per share amounts)

		Three Months Ended												Nine Months Ended
		March 30,				December 29,				March 31,				March 30,				March 31,
		2014				2013				2013				2014				2013
		(Unaudited)												(Unaudited)
Reconciliation of GAAP net income to non-GAAP net income:
Net (loss) income, GAAP		$	(524	)		$	1,283			$	2,051			$	2,981			$	8,870
Adjustments to measure non-GAAP:
Related to cost of revenues:
Stock-based compensation expense			79				66				81				253				253
Amortization of intangible assets			36				36				36				107				108
Total related to cost of revenues			115				102				117				360				361
Related to operating expenses:
Stock-based compensation expense			1,238				1,158				1,252				4,365				4,160
Amortization of intangible assets			10				24				91				74				273
Total related to operating expenses			1,248				1,182				1,343				4,439				4,433
Gain on sale of equity investments			(344	)			-				-				(344	)			-
Tax effects on non-GAAP adjustments			(225	)			(154	)			(130	)			(731	)			(759	)
Non-GAAP net income		$	270			$	2,413			$	3,381			$	6,705			$	12,905
Net income per share, non-GAAP:
Basic		$	0.01			$	0.12			$	0.18			$	0.35			$	0.68
Diluted		$	0.01			$	0.12			$	0.18			$	0.34			$	0.67
Shares used in per share calculation:
Basic			19,066				19,363				19,029				19,222				19,072
Diluted			19,273				19,534				19,252				19,468				19,370
Reconciliation of GAAP gross profit to non-GAAP gross profit:
GAAP gross profit		$	14,027			$	15,946			$	15,650			$	47,670			$	48,809
Stock compensation expense included in cost of revenues			79				66				81				253				253
Amortization of intangible assets included in cost of revenues			36				36				36				107				108
Non-GAAP gross profit		$	14,142			$	16,048			$	15,767			$	48,030			$	49,170
GAAP gross margin rate			29.2	%			31.6	%			35.5	%			31.1	%			36.4	%
Non-GAAP gross margin rate			29.4	%			31.8	%			35.7	%			31.3	%			36.7	%

 

 

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OPLINK COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

		Nine Months Ended
		March 30,				March 31,
		2014				2013
		(Unaudited)
Cash flows from operating activities:
Net income		$	2,981			$	8,870
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization			6,442				5,436
Amortization of intangible assets			181				381
Stock-based compensation expense			4,618				4,413
Deferred income taxes			(512	)			(221	)
Net gain on sale/disposal of assets and equity investments			(127	)			(343	)
Other			661				425
Change in assets and liabilities			(6,297	)			(1,800	)
Net cash provided by operating activities			7,947				17,161
Cash flows from investing activities:
Net maturities (purchases) of investments			6,516				(19,912	)
Net purchases of property, plant and equipment			(9,792	)			(4,206	)
Business acquisition			-				(1,090	)
Net cash used in investing activities			(3,276	)			(25,208	)
Cash flows from financing activities:
Proceeds from issuance of common stock			1,850				2,240
Repurchase of common stock			(17,088	)			(9,304	)
Net cash used in financing activities			(15,238	)			(7,064	)
Effect of exchange rate changes on cash and cash equivalents			25				11
Net decrease in cash and cash equivalents			(10,542	)			(15,100	)
Cash and cash equivalents, beginning of period			65,014				81,233
Cash and cash equivalents, end of period		$	54,472			$	66,133