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5 November 2008


Oplink controlling costs during near-term economic concerns

For its fiscal first-quarter 2009 (to end-September 2008), photonic component, module and subsystem maker Oplink Communications Inc of Fremont, CA, USA has reported revenues of $43m, down on $49m a year ago but up from $37.3m last quarter.

Net loss was $3.4m ($0.16 per share), compared to $791,000 ($0.04 per share) last quarter and income of $1.3m a year ago ($0.06 per share).

However, non-GAAP results (excluding a $4.1m provision for excess and obsolete inventory) saw net income of $3.2m, up from $2.8m last quarter.

“We reported revenue slightly above the outlook we provided last quarter [of $38-42m] and continued to generate cash from operations [of $4.3m],” says president Tom Keegan. Oplink closed the quarter with cash, cash equivalents and short and long-term investments of $146.7m.

“While we remain optimistic about long-term demand for our products, we are cautious about the near-term impact of economic conditions on telecom capital expenditures and our revenue,” says Keegan. “We have begun closely controlling expenses to ensure that our costs align with near-term revenue as we enter this challenging period.”

For fiscal first-quarter 2009 (to end-December 2008), Oplink expects revenues to fall to $34-38m, yet net loss per share should be cut to $0.03-0.07.

Keegan says that, in the near term, Oplink will continue to work towards future design wins with its traditional passive customers and releasing new, more competitive transceiver designs. “Despite the near-term challenges, we remain confident in the long-term prospects for our business,” he adds.

See related item:

Oplink’s earnings rebound as revenue falls less than expected

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