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21 August 2007


Oplink’s revenues grow more than 80% year-on-year

For its fiscal fourth-quarter 2007 (to end-June), photonic component, module and subsystem maker Oplink Communications Inc of Fremont, CA, USA has reported revenue of $37.2m, up 35% on $27.6m last quarter and 120% on $16.9m a year ago.

Of this, $6.6m has been accrued since 5 June’s acquisition, from The Furukawa Electric Co Ltd, of its 58% stake in Optical Communication Products Inc of Woodland Hills, CA, USA (net of the outstanding 42% minority interest which, on 19 June, Oplink agreed to acquire - subject to approval by at least two-thirds of the corresponding shareholders at a meeting early in the December quarter). Discounting OCP, the $30.6m in Oplink revenue is up 11% on last quarter and 81% on a year ago.

Excluding about $1.5m in stock-based compensation expense, $1.5m in expenses from acquiring OCP and $216,000 in transitional costs for contract manufacturing (net of an $807,000 adjustment to reflect the 42% minority interest), consolidated net income was $5.4m (slightly up on $5.3m last quarter and double the $2.7m a year ago).

Fiscal 2007 revenue was $107.5m (up 96% on $54.8m in fiscal 2006). This includes $100.9m from Oplink’s business (up 84%). Excluding expenses, consolidated net income was $19.0m.

“We closed the acquisition of our majority interest in OCP, taking the first steps to substantially broaden our portfolio of offerings,” says president and CEO Joe Liu. Combined with Oplink’s passives and subsystems, Liu expects OCP’s active components and subsystems for metro applications to increase its market share and competitive position in the industry.

“We intend to continue to improve the efficiency of our operations with the acquisition of the majority interest in OCP and thus realize substantial cost savings over time,” Liu adds. “There are many opportunities ahead of us as a combined company, and we expect to further enhance our product portfolio, cost efficiency, quality and competitive market position.”

For the quarter to end-September, Oplink expects revenue to rise to $46-50m.

*After five years as controller (responsible for reporting and managing financial operations, then being named VP finance and acting chief financial office on 21 June following the resignation of Bruce D. Horn), Shirley Yin has been promoted to chief financial officer.


OCP reverses decline as it shifts manufacturing to China

For its fiscal third-quarter 2007 (to end June), Optical Communication Products Inc has reported revenue of $17.2m (up 4.6% on $16.4m last quarter and 15% on $14.9m a year ago), reversing the declines of previous quarters. Also, during the quarter, order backlog rose from $7.7m to $11.0m.

Operating expenses have been cut from $18.0m last quarter to $10.9m, despite the costs of transitioning manufacturing to China rising from $851,000 to $1.1m (some product lines entered manufacturing in July; more will be transferred in September, with initial customer shipments beginning in October). The rise in transitional costs is due mainly to the accrual of severance benefits and costs from the initial production of inventory approaching the planned workforce reduction this quarter. Also, net loss has been halved, from $17.1m last quarter to $8.6m.

During the quarter, OCP’s board of directors approved a resolution to sell the firm’s land and building in Woodland Hills, CA (value at $19.7m). It expects to sell the property within 12 months.

See related items:

OCP elects Oplink CEO as non-executive chairman

Oplink signs definitive agreement to acquire remaining shares of OCP

Oplink closes purchase of Furukawa’s stake in OCP and agrees to acquire remaining shares

Furukawa packs OCP’s board to facilitate its sale to Oplink

Court denies Oplink’s request to expedite proceedings against OCP

OCP losses worsen as it gears for China manufacturing transfer

Oplink files suit to challenge OCP’s ‘poison pill’

Oplink grows revenues 20%; agrees to acquire majority stake in OCP