UNITED
STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
__________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported): July 22, 2015
ALLIANCE FIBER OPTIC
PRODUCTS, INC.
(Exact name of registrant as
specified in its charter)
Delaware |
0-31857 |
77-0554122 |
(State or other jurisdiction |
(Commission |
(IRS Employer |
of incorporation) |
File Number) |
Identification
No.) |
275 Gibraltar Drive, Sunnyvale, California |
|
94089 |
(Address of principal executive
offices) |
|
(Zip
Code) |
Registrants telephone
number, including area code: (408) 736-6900
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions:
☐ |
|
Written communications pursuant to
Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
|
☐ |
|
Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
|
☐ |
|
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
|
|
|
☐ |
|
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
Item 2.02. Results of Operations and Financial
Condition.
The information in this
Current Report is being furnished and shall not be deemed filed for the
purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise
subject to the liabilities of that Section. The information in this Current
Report shall not be incorporated by reference into any registration statement or
other document filed pursuant to the Securities Act of 1933, except as shall be
expressly set forth by specific reference in such a filing.
On July 22, 2015, Alliance
Fiber Optic Products, Inc. issued a press release announcing its financial
results for the quarter ended June 30, 2015. A copy of the earnings release is
furnished herewith as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
Exhibit |
|
Description |
|
99.1 |
|
Press Release dated July 22, 2015 announcing
second quarter 2015 results. |
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 22, 2015 |
|
|
|
|
ALLIANCE FIBER OPTIC PRODUCTS, |
|
INC. |
|
|
|
|
By |
/s/ Anita K. Ho |
|
Name: Anita K. Ho |
|
Title: Acting Chief Financial
Officer |
EXHIBIT INDEX
Exhibit |
|
|
Number |
|
Description |
|
99.1 |
|
Press release dated July 22, 2015 announcing
second quarter 2015 results. |
Contact:
Keting Lin, IR
Associate Alliance Fiber
Optic Products, Inc. 408-736-6900 x188 Email: klin@afop.com |
July 22,
2015 |
AFOP REPORTS RECORD
QUARTERLY SALES IN Q2 2015
GUIDANCE FOR YEAR-OVER-YEAR INCREASES OF 33% IN Q3
2015
Sunnyvale, CA July 22,
2015 - Alliance Fiber Optic Products, Inc. (Nasdaq GM: AFOP), an innovative
supplier of fiber optic components, subsystems and integrated modules for the
fiber optic communication market, today reported its financial results for the
second quarter ended June 30, 2015.
Revenues for the second
quarter of 2015 were $25,045,000, a 16% increase from revenues of $21,663,000
reported in the first quarter of 2015 and a 3% increase from revenues of
$24,199,000 reported in the second quarter of 2014.
Net income for the quarter
ended June 30, 2015 was $5,040,000, or $0.28 per share, compared to net income
of $3,558,000, or $0.20 per share, for the first quarter of 2015, and net income
of $3,782,000, or $0.20 per share, for the second quarter of 2014.
Non-GAAP net income for the
quarter ended June 30, 2015 was $6,705,000, or $0.38 per share, compared to
non-GAAP net income of $5,222,000, or $0.29 per share, for the first quarter of
2015 and non-GAAP net income of $6,446,000, or $0.35 per share, for the second
quarter of 2014.
Gross margin for the
quarter ended June 30, 2015 increased to 42%, compared to 41% in the first
quarter of 2015 and 40% in the year ago quarter. Operating margin for the
quarter ended June 30, 2015 was 27%, compared to 25% in the first quarter of
2015 and 27% in the year ago quarter.
Non-GAAP gross margin for
the quarter ended June 30, 2015 was 43%, compared to 41% in the first quarter of
2015 and 41% in the year ago quarter. Non-GAAP operating margin for the quarter
ended June 30, 2015 was 30%, compared to 27% in the first quarter of 2015 and
29% in the year ago quarter.
Peter Chang, President and
Chief Executive Officer, commented, Thanks to the support of our customers and
particularly the revenue growth from a broader set of OEM customers serving data
center demands, we were able to deliver record quarterly revenue, which exceeded
our previous guidance. With our focus on operational excellence and the higher
quarterly revenue, we further improved our quarterly financial performance with
record levels of gross margin, operating margin, profits and EPS.
More importantly, as
bandwidth demands drive the need for further network investments in both Telecom
and Datacom communications, overall trends in Datacom continue to be
bullish and customer demands remain strong. With the progress we have
made serving our customers and extending our product technology in recent
quarters, we are encouraged by the opportunity for continuous business growth in
the coming years. For the third quarter, we expect revenues to be in the range
of $24 million to $26 million. For the full year of 2015, we expect to deliver
both record revenues and profits. concluded Mr. Chang.
Conference Call
A more detailed review of
second quarter financial results as well as the outlook for the third quarter of
2015 will be provided, when the complete second quarter results are discussed on
a conference call at 1:30 p.m. (Pacific) on July 22, 2015. To participate in
AFOPs conference call, please call 877-675-3572 at least ten minutes prior to
the call in order for the operator to connect you. The confirmation number for
the call is 72362987. AFOP will also provide a live webcast of its second
quarter 2015 conference call at AFOPs website: www.AFOP.com. The webcast replay will be available on AFOPs website 90 minutes after
the live conference call.
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, data center,
metropolitan and last mile access segments of the communications network. AFOP
offers a broad product line of passive optical components including interconnect
systems, splitters, thin film CWDM and DWDM components and modules, and optical
attenuators. 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 expectations regarding future revenue
and profit levels and the time periods thereof, our business prospects, demand
for our products and sources of demand, and our expectations for growth in the
fiber optic industry, 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, trends in demand for bandwidth, 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 for our products,
the timing of customer orders, loss of key customers or customer orders, our
ability to ramp new products into volume production, the mix of products sold
and product pricing, the costs associated with running our operations,
industry-wide shifts in supply and demand for optical components and modules,
the success of cost control efforts, our ability to obtain and maintain
operational efficiencies, financial stability in foreign markets, and other
risks detailed from time to time in our SEC reports, including AFOP's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2015. 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)
|
|
Jun.
30, |
|
Dec.
31, |
|
|
2015 |
|
2014 |
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash
and short-term investments |
|
$ |
57,914 |
|
$ |
54,580 |
Accounts
receivable, net |
|
|
13,442 |
|
|
10,806 |
Inventories |
|
|
10,643 |
|
|
9,305 |
Deferred
tax asset |
|
|
3,332 |
|
|
3,690 |
Other
current assets |
|
|
2,672 |
|
|
2,077 |
Total
current assets |
|
|
88,003 |
|
|
80,458 |
|
Long-term
investments |
|
|
10,727 |
|
|
10,635 |
Property and
equipment, net |
|
|
15,689 |
|
|
13,868 |
Other
assets |
|
|
262 |
|
|
212 |
Total
assets |
|
$ |
114,681 |
|
$ |
105,173 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
12,401 |
|
$ |
9,236 |
Accrued
expenses and other current liabilities |
|
|
8,316 |
|
|
8,699 |
Total
current liabilities |
|
|
20,717 |
|
|
17,935 |
|
|
|
|
|
|
|
Long-term
liabilities |
|
|
1,000 |
|
|
978 |
Total
liabilities |
|
|
21,717 |
|
|
18,913 |
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
92,964 |
|
|
86,260 |
Total
liabilities and stockholders' equity |
|
$ |
114,681 |
|
$ |
105,173 |
ALLIANCE FIBER OPTIC
PRODUCTS, INC.
Condensed Consolidated Statements of
Operations
(In thousands,
except per share amounts)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
Jun.
30, |
|
Mar.
31, |
|
Jun.
30, |
|
Jun.
30, |
|
Jun.
30, |
|
|
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Revenues |
|
$ |
25,045 |
|
|
$ |
21,663 |
|
|
$ |
24,199 |
|
|
$ |
46,708 |
|
|
$ |
49,081 |
|
|
Cost
of revenues |
|
|
14,550 |
|
|
|
12,871 |
|
|
|
14,504 |
|
|
|
27,421 |
|
|
|
29,472 |
|
Gross
profit |
|
|
10,495 |
|
|
|
8,792 |
|
|
|
9,695 |
|
|
|
19,287 |
|
|
|
19,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development |
|
|
1,169 |
|
|
|
1,143 |
|
|
|
1,067 |
|
|
|
2,312 |
|
|
|
2,175 |
|
Selling, marketing
and administrative |
|
|
2,567 |
|
|
|
2,231 |
|
|
|
2,061 |
|
|
|
4,798 |
|
|
|
4,397 |
|
Total
operating expenses |
|
|
3,736 |
|
|
|
3,374 |
|
|
|
3,128 |
|
|
|
7,110 |
|
|
|
6,572 |
|
|
Income from operations |
|
|
6,759 |
|
|
|
5,418 |
|
|
|
6,567 |
|
|
|
12,177 |
|
|
|
13,037 |
|
Interest and other income, net |
|
|
192 |
|
|
|
196 |
|
|
|
186 |
|
|
|
388 |
|
|
|
333 |
|
Income before provision for income taxes |
|
$ |
6,951 |
|
|
$ |
5,614 |
|
|
$ |
6,753 |
|
|
$ |
12,565 |
|
|
$ |
13,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
(1,911 |
) |
|
|
(2,056 |
) |
|
|
(2,971 |
) |
|
|
(3,967 |
) |
|
|
(4,573 |
) |
Net
income |
|
$ |
5,040 |
|
|
$ |
3,558 |
|
|
$ |
3,782 |
|
|
$ |
8,598 |
|
|
$ |
8,797 |
|
|
Net
income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.28 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
Diluted |
|
$ |
0.27 |
|
|
$ |
0.19 |
|
|
$ |
0.20 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
17,822 |
|
|
|
17,872 |
|
|
|
18,533 |
|
|
|
17,847 |
|
|
|
18,478 |
|
Diluted |
|
|
18,422 |
|
|
|
18,296 |
|
|
|
19,230 |
|
|
|
18,406 |
|
|
|
19,116 |
|
|
Included in costs and expenses above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
137 |
|
|
$ |
121 |
|
|
$ |
115 |
|
|
$ |
258 |
|
|
$ |
292 |
|
Research and
development |
|
|
58 |
|
|
|
46 |
|
|
|
64 |
|
|
|
104 |
|
|
|
147 |
|
Selling, marketing
and administrative |
|
|
575 |
|
|
|
329 |
|
|
|
351 |
|
|
|
904 |
|
|
|
808 |
|
Total |
|
$ |
770 |
|
|
$ |
496 |
|
|
$ |
530 |
|
|
$ |
1,266 |
|
|
$ |
1,247 |
|
ALLIANCE FIBER OPTIC
PRODUCTS, INC.
Reconciliations from GAAP to Non-GAAP
(In thousands, except
per share amounts)
(Unaudited)
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
Jun. 30, |
|
Mar. 31, |
|
Jun. 30, |
|
Jun. 30, |
|
Jun. 30, |
|
|
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Gross Profit
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
gross profit |
|
$ |
10,495 |
|
|
|
|
8,792 |
|
|
|
$ |
9,695 |
|
|
|
$ |
19,287 |
|
|
|
$ |
19,609 |
|
|
Stock-based compensation expense |
|
|
137 |
|
|
|
|
121 |
|
|
|
|
115 |
|
|
|
|
258 |
|
|
|
|
292 |
|
|
Adjusted (non-GAAP) gross profit |
|
$ |
10,632 |
|
|
|
$ |
8,913 |
|
|
|
$ |
9,810 |
|
|
|
$ |
19,545 |
|
|
|
$ |
19,901 |
|
|
Adjusted (non-GAAP) gross margin |
|
|
42.5 |
|
% |
|
|
41.1 |
|
% |
|
|
40.5 |
|
% |
|
|
41.8 |
|
% |
|
|
40.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating expenses |
|
$ |
3,736 |
|
|
|
|
3,374 |
|
|
|
$ |
3,128 |
|
|
|
$ |
7,110 |
|
|
|
$ |
6,572 |
|
|
Stock-based compensation expense |
|
|
633 |
|
|
|
|
375 |
|
|
|
|
415 |
|
|
|
|
1,008 |
|
|
|
|
955 |
|
|
Adjusted (non-GAAP) operating expenses |
|
$ |
3,103 |
|
|
|
$ |
2,999 |
|
|
|
$ |
2,713 |
|
|
|
$ |
6,102 |
|
|
|
$ |
5,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
income from operations |
|
$ |
6,759 |
|
|
|
|
5,418 |
|
|
|
$ |
6,567 |
|
|
|
$ |
12,177 |
|
|
|
$ |
13,037 |
|
|
Adjustments related to gross profit |
|
|
137 |
|
|
|
|
121 |
|
|
|
|
115 |
|
|
|
|
258 |
|
|
|
|
292 |
|
|
Adjustments related to operating expense |
|
|
633 |
|
|
|
|
375 |
|
|
|
|
415 |
|
|
|
|
1,008 |
|
|
|
|
955 |
|
|
Adjusted (non-GAAP) income from operations |
|
$ |
7,529 |
|
|
|
$ |
5,914 |
|
|
|
$ |
7,097 |
|
|
|
$ |
13,443 |
|
|
|
$ |
14,284 |
|
|
Adjusted (non-GAAP) operating margin |
|
|
30.1 |
|
% |
|
|
27.3 |
|
% |
|
|
29.3 |
|
% |
|
|
28.8 |
|
% |
|
|
29.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
net income |
|
$ |
5,040 |
|
|
|
|
3,558 |
|
|
|
$ |
3,782 |
|
|
|
$ |
8,598 |
|
|
|
$ |
8,797 |
|
|
Adjustments related to gross profit |
|
|
137 |
|
|
|
|
121 |
|
|
|
|
115 |
|
|
|
|
258 |
|
|
|
|
292 |
|
|
Adjustments related to operating expense |
|
|
633 |
|
|
|
|
375 |
|
|
|
|
415 |
|
|
|
|
1,008 |
|
|
|
|
955 |
|
|
Income tax provision adjustments |
|
|
895 |
|
|
|
|
1,168 |
|
|
|
|
2,134 |
|
|
|
|
2,063 |
|
|
|
|
2,793 |
|
|
Adjusted (non-GAAP) net income |
|
$ |
6,705 |
|
|
|
$ |
5,222 |
|
|
|
$ |
6,446 |
|
|
|
$ |
11,927 |
|
|
|
$ |
12,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
17,822 |
|
|
|
|
17,872 |
|
|
|
|
18,533 |
|
|
|
|
17,847 |
|
|
|
|
18,478 |
|
|
Diluted |
|
|
18,422 |
|
|
|
|
18,295 |
|
|
|
|
19,230 |
|
|
|
|
18,406 |
|
|
|
|
19,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common
Share - Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
0.28 |
|
|
|
$ |
0.20 |
|
|
|
$ |
0.20 |
|
|
|
$ |
0.48 |
|
|
|
$ |
0.48 |
|
|
Non-GAAP as adjusted |
|
$ |
0.38 |
|
|
|
$ |
0.29 |
|
|
|
$ |
0.35 |
|
|
|
$ |
0.67 |
|
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common Share - Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
0.27 |
|
|
|
$ |
0.19 |
|
|
|
$ |
0.20 |
|
|
|
$ |
0.47 |
|
|
|
$ |
0.46 |
|
|
Non-GAAP as adjusted |
|
$ |
0.36 |
|
|
|
$ |
0.29 |
|
|
|
$ |
0.34 |
|
|
|
$ |
0.65 |
|
|
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
6,705 |
|
|
|
$ |
5,222 |
|
|
|
$ |
6,446 |
|
|
|
$ |
11,927 |
|
|
|
$ |
12,837 |
|
|
Depreciation expense |
|
|
680 |
|
|
|
|
658 |
|
|
|
|
707 |
|
|
|
|
1,338 |
|
|
|
|
1,391 |
|
|
Interest income |
|
|
(200 |
) |
|
|
|
(192 |
) |
|
|
|
(183 |
) |
|
|
|
(392 |
) |
|
|
|
(361 |
) |
|
Income tax expense |
|
|
1,016 |
|
|
|
|
888 |
|
|
|
|
837 |
|
|
|
|
1,904 |
|
|
|
|
1,781 |
|
|
Non-GAAP EBITDA |
|
$ |
8,201 |
|
|
|
$ |
6,576 |
|
|
|
$ |
7,807 |
|
|
|
$ |
14,777 |
|
|
|
$ |
15,648 |
|
|
Use of Non-GAAP Financial
Information
The company provides Non-GAAP
gross margin, Non-GAAP operating margin, Non-GAAP net income, Non-GAAP basic and
diluted net income per share and EBITDA as supplemental information. In
computing these non-GAAP financial measures, the company excludes certain items
included under GAAP, including stock-based compensation expense and income tax
provision adjustments. In computing EBITDA, the company also excludes interest
income, provision for (benefit from) income taxes and depreciation
expense.
Management uses these Non-GAAP
financial measures to evaluate the operating performance of the business and aid
in period-to-period comparability. Management also uses the Non-GAAP financial
measures for planning and forecasting and measuring results against its
forecast. Using several measures to evaluate the business allows the company and
investors to assess the companys relative performance. The Non-GAAP financial
measures provided herein may not provide information that is directly comparable
to that provided by other companies in our industry, as other companies may
calculate such financial results differently. The companys Non-GAAP financial
measures are not measurements of financial performance under GAAP, and should
not be considered as alternatives to the financial measures derived in
accordance with GAAP. The company does not consider these Non-GAAP financial
measures to be a substitute for, or superior to, the information provided by
GAAP financial results. A reconciliation of the Non-GAAP financial measures to
the most directly comparable GAAP financial measures is provided in the
financial schedules portion of this press release.
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