AFOP Reports 1st Quarter 2007 Results
April 24 2007 - 3:05PM
Business Wire
Alliance Fiber Optic Products, Inc. (NASDAQ:AFOP), an innovative
supplier of fiber optic components, subsystems and integrated
modules for the optical network equipment market, today reported
its financial results for the first quarter ended March 31, 2007.
Revenues for the first quarter of 2007 totaled $6,701,000, a 28%
increase from revenues of $5,221,000 recorded in the first quarter
of 2006. This compares with revenues of $7,746,000 for the fourth
quarter of 2006. The Company recorded net income for the first
quarter of 2007 of $389,000, or $0.01 per share, and improved over
a net loss for the first quarter of 2006 of ($373,000), or ($0.01)
per share. This compares with net income for the fourth quarter of
2006 of $653,000, or $0.02 per share. Included in net income for
the quarter ended March 31, 2007 was $ 124,000 of stock-based
compensation charges under FAS 123(R). Included in expenses for the
quarters ended March 31, 2006 and December 31, 2006 were $77,000
and $106,000 of stock-based compensation charges under SFAS 123(R)
respectively. Peter Chang, President and Chief Executive Officer,
commented, �Despite a challenging first quarter due to customer
inventory consolidation, I am satisfied with our financial results.
When compared to the year ago period, revenues increased by 28% and
our gross margin percentage continued improving to above 31%. In
addition, in spite of our sales decline sequentially, operating
profits declined by only $120,000. Our new product sales and
operating efficiency contributed to such improvements. Our
operating cash flow was again positive and our balance sheet
remains strong with cash and cash equivalents over $31M.� �I am
particularly pleased with the progress we made in strategic markets
like FTTX and Broadband. In the first quarter, we began to receive
new volume orders for our outdoor SCOUTTM products for FTTX
deployment. Based on current order activities, we expect that
revenues will grow 15% sequentially in the second quarter of 2007.
Additionally, as we continue our focus on operational efficiencies,
we are targeting higher net profits in the coming quarters,�
concluded Mr. Chang. Conference Call Management will host a
conference call at 1:30 p.m. Pacific Time on April 24, 2007 to
discuss AFOP�s first quarter 2007 financial results. To participate
in AFOP�s conference call, please call 877-407-9210 at least ten
minutes prior to the call in order for the operator to connect you.
The confirmation number for the call is 236629. AFOP will also
provide a live webcast of its first quarter 2007 conference call at
AFOP�s website www.afop.com. An audio replay will be available
until May 1. The dial in for the replay is 877-660-6853. The replay
pass codes (account # 286; conference ID#: 236629) are both
required for the replay. About AFOP Founded in 1995, Alliance Fiber
Optic Products, Inc. designs, manufactures and markets a broad
range of high performance fiber optic components and integrated
modules. AFOP's products are used by leading and emerging
communications equipment manufacturers to deliver optical
networking systems to the long-haul, enterprise, metropolitan and
last mile access segments of the communications network. AFOP
offers a broad product line of passive optical components including
interconnect systems, couplers and splitters, thin film DWDM
components and modules, fixed and variable optical attenuators, and
depolarizers. AFOP is headquartered in Sunnyvale, California, with
manufacturing and product development capabilities in the United
States, Taiwan and China. AFOP's website is located at
http://www.afop.com. Except for the historical information
contained herein, the matters set forth in this press release,
including statements as to our future prospects, our beliefs
regarding factors contributing to quarterly results, our ability to
control expenses, our ability to improve operational efficiencies,
our order trends and customer activity, and expected revenue growth
and increased net profits, are forward looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including, but not limited to
general economic conditions and trends, the impact of competitive
products and pricing, timely introduction of new technologies,
timely design acceptance by our customers, the acceptance of new
products and technologies by our customers, customer demand, the
timing of customer orders, loss of key customers, ability to ramp
new products into volume production, industry-wide shifts in supply
and demand for optical components and modules, industry
overcapacity, failure of cost control initiatives, financial
stability in foreign markets, and other risks detailed from time to
time in our SEC reports, including AFOP's Form 10-K for the year
ended December 31, 2006. These forward-looking statements speak
only as of the date hereof. AFOP disclaims any intention or
obligation to update or revise any forward-looking statements.
ALLIANCE FIBER OPTIC PRODUCTS, INC. Condensed Consolidated Balance
Sheets (In thousands) (Unaudited) � Mar. 31 Dec. 31, 2007� 2006� �
ASSETS Current assets: Cash and short-term investments $ 31,221� $
31,178� Accounts receivable 4,406� 4,009� Inventories 4,943� 4,465�
Other current assets 597� 601� Total current assets 41,167� 40,253�
� Property and equipment, net 4,166� 4,264� � Other assets 170�
176� � � Total assets $ 45,503� $44,693� � LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,637�
$ 2,950� Accrued expenses and other liabilities 2,469� 2,909� Total
current liabilities 6,106� 5,859� � Long-term liability 908� 930�
Total liabilities 7,014� 6,789� � Stockholders' equity 38,489�
37,904� � � Total liabilities and stockholders' equity $ 45,503�
$44,693� ALLIANCE FIBER OPTIC PRODUCTS, INC. Condensed Consolidated
Statements of Operations (In thousands, except per share amounts)
(Unaudited) � � Three Months Ended Mar. 31, Dec. 31, Mar. 31, 2007�
2006� 2006� � Revenues $ 6,701� $ 7,746� $ 5,221� � Cost of
revenues 4,602� 5,473� 3,884� Gross profit 2,099� 2,273� 1,337� �
Operating expenses: Research and development 689� 798� 759� Sales
and marketing 569� 571� 586� General and administrative 861� 805�
763� Total operating expenses 2,119� 2,174� 2,108� � Income (loss)
from operations (20) 99� (771) Interest and other income, net 409�
554� 398� � � � Net income (loss) $ 389� $ 653� $ (373) � Net
income (loss) per share: Basic $ 0.01� $ 0.02� $ (0.01) Diluted $
0.01� $ 0.01� $ (0.01) � Shares used in per share calculation:
Basic 40,539� 40,400� 39,771� Diluted 44,664� 45,196� 39,771� �
Included in costs and expenses above: Stock based compensation
charges Cost of revenue $ 51� $ 44� $ 23� Research and development
20� 19� 14� Sales and marketing 12� 10� 12� General and
administrative 41� 33� 28� Total $ 124� $ 106� $ 77�
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