Oplink Reports Third Quarter Fiscal Year 2013 Financial Results

Oplink Reports Third Quarter Fiscal Year 2013 Financial Results

FREMONT, Calif., May 2, 2013 (GLOBE NEWSWIRE) -- Oplink Communications, Inc.
(Nasdaq:OPLK), a leading provider of design, integration and optical
manufacturing solutions (OMS) for optical networking components, modules and
subsystems, today reported its financial results for its third quarter of
fiscal year 2013, ended March 31, 2013.

Revenues for the quarter were $44.1 million and GAAP net income was $2.1
million, or $0.11 per diluted share. This compares to revenues of $45.1
million and a GAAP net income of $3.5 million, or $0.18 per diluted share,
reported in the prior quarter, and revenues of $44.0 million and GAAP net
income of $2.9 million, or $0.14 per diluted share, reported in the same
period of the prior year.

Non-GAAP net income for the third quarter was $3.4 million, or $0.18 per
diluted share, as compared to $4.6 million, or $0.24 per diluted share,
reported in the prior quarter, and $2.5 million, or $0.13 per diluted share,
reported in the same period of the prior year.

Oplink generated $7.0 million in cash from operations and closed the quarter
with cash, cash equivalents and short-term and long-term investments of $176.5
million.

"We are pleased with the performance in our optics business, particularly
considering the overall market climate for telecommunication," said Joe Liu,
Chairman and CEO of Oplink. "We continue to work closely with customers on
design-in opportunities as they develop future datacom and telecom products.
The progress we are making in our Mobile Interactive business is encouraging
and we are optimistic about the growth opportunity in this area over time."

Business Outlook for the Quarter Ending June 30, 2013

For the quarter ending June 30, 2013, the Company expects to report revenues
between $43 million and $47 million and GAAP net income per diluted share of
approximately $0.11 to $0.17. 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
approximately $0.18 to $0.24. GAAP and non-GAAP net income per diluted share
for the quarter ending June 30, 2013 include a gain of approximately $1.2
million resulting from the sale of a portion of the Company's Taiwan
facilities and assume an effective tax rate of 20%.

Conference Call Information

Oplink will host a corresponding conference call and live webcast at 2:00 p.m.
Pacific Time on May 2, 2013. The conference call can be accessed by dialing
1-877-941-8418, or 1-480-629-9809 (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
May 2, 2013 until 11:59 p.m. Pacific Time on May 9, 2013, by dialing
1-800-406-7325 or 1-303-590-3030 (outside the U.S. and Canada) and entering
pass code 4615466#.

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.

Oplink believes that providing these non-GAAP measures to its investors
provides investors the benefit of viewing Oplink's performance using the same
financial metrics that the management team uses in making many key decisions
and evaluating how Oplink's "core operating performance" and its results of
operations may look in the future. Oplink defines "core operating performance"
as its on-going performance in the ordinary course of its operations. Items
that are non-recurring or do not involve cash expenditures, such as one-time
tax benefits or charges, impairment charges, restructuring charges,
amortization of intangible assets and non-cash compensation related to stock
and options, are not included in Oplink's view of "core operating
performance."

About Oplink

Incorporated in 1995, Oplink is a leading provider of design, integration and
optical manufacturing solutions (OMS) for optical networking components,
modules and subsystems. Oplinkoffers advanced and cost-effective
optical-electrical components and subsystem manufacturing through its
facilities in Zhuhai andShanghai, China. In addition,Oplink maintains
optical-centric front-end design, application, and customer service functions
at its offices inFremont, Californiaand has research facilities in Zhuhai
andWuhan, China and Hsinchu Science-Based Industrial Park
inTaiwan.Oplink'scustomers include telecommunications, data communications
and cable TV equipment manufacturers around the globe.Oplinkis committed to
providing fully customized, photonic foundry services incorporating its
subsystems manufacturing capabilities. To learn more aboutOplink, visit its
web site at:http://www.oplink.com/.

Cautionary Statement

This press release contains forward-looking statements, including without
limitation the statements under the heading "Business Outlook for the Quarter
Ending June 30, 2013." 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 Mobile Interactive 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) changes in our
effective tax rate, which could reduce our net income; and (8) 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.

                                                                           
OPLINK COMMUNICATIONS, INC.                                
CONDENSED CONSOLIDATED BALANCE SHEETS                     
(In thousands)                                                              
                                                          
                                           March 31,        July 1,
                                          2013             2012
                                           (Unaudited)      (1)
ASSETS                                                     
Current assets:                                            
Cash and cash equivalents                 $66,133         $81,233
Short-term investments                     107,322          85,382
Accounts receivable, net                   40,853           33,165
Inventories                                20,782           19,091
Prepaid expenses and other current assets  7,556            8,633
Deferred tax assets                        1,478            1,609
Total current assets                       244,124          229,113
Property, plant and equipment, net         45,004           45,392
Long-term investments                      3,054            9,606
Goodwill and intangible assets, net        1,268            1,648
Deferred tax assets                        7,652            7,151
Other assets                               12,825           12,279
Total assets                               $313,927        $305,189
                                                          
LIABILITIES AND STOCKHOLDERS' EQUITY                       
Current liabilities:                                       
Accounts payable                           $13,111         $11,739
Accrued liabilities and other current      16,099           12,460
liabilities
Total current liabilities                  29,210           24,199
Non-current liabilities                    9,431            8,858
Total liabilities                          38,641           33,057
Stockholders' equity                       275,286          272,132
Total liabilities and stockholders' equity $313,927        $305,189
                                                          
(1) The July 1, 2012 condensed consolidated balance sheet has been        
derived from audited consolidated financial statements at that date.

                                                                               
OPLINK
COMMUNICATIONS,                                             
INC.
CONDENSED
CONSOLIDATED                                                
STATEMENTS OF
OPERATIONS
(In thousands, except per share amounts)                                        
               Three Months Ended                 Nine Months Ended
                March 31,   December    April 1,   March 31,   April 1,
               2013        30,         2012        2013        2012
                            2012
               (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                                                           
Revenues        $44,124    $45,099    $43,978    $134,107   $130,683
Cost of         28,474      28,570      30,470      85,298      89,704
revenues
Gross profit    15,650      16,529      13,508      48,809      40,979
Operating                                                   
expenses:
Research and    6,281       5,829       5,665       17,542      15,688
development
Sales and       3,590       3,348       2,813       10,150      7,909
marketing
General and     2,174       2,109       1,890       6,437       10,843
administrative
Stock
compensation    1,252       1,045       1,242       4,160       4,163
expense
Amortization of
intangible      91          91          91          273         573
assets
(Gain) loss on
sale/disposal   (258)       (5)         19          (270)       (366)
of assets
Total operating 13,130      12,417      11,720      38,292      38,810
expenses
Income from     2,520       4,112       1,788       10,517      2,169
operations
Interest and
other income,   201         412         93          879         408
net
Income before
provision       2,721      4,524      1,881      11,396     2,577
(benefit) for
income taxes
Provision
(benefit) for   670        1,068      (977)      2,526       (11)
income taxes
Net income     $2,051    $3,456    $2,858    $8,870    $2,588
                                                           
Net income per                                              
share:
Basic           $0.11     $0.18     $0.15     $0.47     $0.13
Diluted         $0.11     $0.18     $0.14     $0.46     $0.13
                                                           
Shares used in
per share                                                   
calculation:
Basic           19,029      19,107      19,200      19,072      19,364
Diluted         19,252      19,277      19,795      19,370      19,982
                                                           
RECONCILIATION
OF GAAP
FINANCIAL
MEASURES TO                                                 
NON-GAAP
FINANCIAL
MEASURES
(unaudited, in thousands, except per share amounts)                             
               Three Months Ended                 Nine Months Ended
Reconciliation  March 31,   December    April 1,   March 31,   April 1,
of GAAP net     2013        30,         2012        2013        2012
income to                  2012
non-GAAP net    (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
income:
Net income,     $2,051    $3,456    $2,858    $8,870    $2,588
GAAP
Adjustments to
measure                                                     
non-GAAP:
Related to cost                                             
of revenues:
Stock
compensation    81          49          92          253         290
expense
Amortization of
intangible      36          36          36          108         608
assets
Total related
to cost of      117         85          128         361         898
revenues
                                                           
Related to
operating                                                   
expenses:
Legal           --          --          --          --          3,317
settlement
Stock
compensation    1,252       1,045       1,242       4,160       4,163
expense
Amortization of
intangible      91          91          91          273         573
assets
Total related
to operating    1,343       1,136       1,333       4,433       8,053
expenses
                                                           
Tax effects on
non-GAAP        (130)       (112)       (1,830)     (759)       (3,949)
adjustments
                                                           
Non-GAAP net    $3,381    $4,565    $2,489    $12,905   $7,590
income
                                                           
Net income per
share,                                                      
non-GAAP:
Basic           $0.18     $0.24     $0.13     $0.68     $0.39
Diluted         $0.18     $0.24     $0.13     $0.67     $0.38
                                                           
Shares used in
per share                                                   
calculation:
Basic           19,029      19,107      19,200      19,072      19,364
Diluted         19,252      19,277      19,716      19,370      19,982
                                                           
Reconciliation
of GAAP gross
profit to                                                   
non-GAAP gross
profit:
GAAP gross      $15,650   $16,529   $13,508   $48,809   $40,979
profit
Stock
compensation
expense         81          49          92          253         290
included in
cost of
revenues
Amortization of
intangible
assets included 36          36          36          108         608
in cost of
revenues
Non-GAAP gross  $15,767   $16,614   $13,636   $49,170   $41,877
profit
                                                           
GAAP gross      35.5%       36.7%       30.7%       36.4%       31.4%
margin rate
Non-GAAP gross  35.7%       36.8%       31.0%       36.7%       32.0%
margin rate

                                                                
                                                                           
OPLINK COMMUNICATIONS, INC.                                      
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                 
(In thousands)                                                              
                                                       Nine Months Ended
                                                       March 31, April 1,
                                                        2013      2012
                                                       (Unaudited)       
Cash flows from operating activities:                            
Net income                                              $8,870   $2,588
Adjustments to reconcile net income to net cash                  
provided by operating activities:
Depreciation and amortization                           5,436     4,632
Amortization of intangible assets                       381       1,173
Stock compensation expense                             4,413     4,452
Deferred income taxes                                   (221)     623
Gain on sale/disposal of assets                         (270)     (366)
Other                                                   305       113
Change in assets and liabilities                        (1,753)   3,521
Net cash provided by operating activities               17,161   16,736
                                                                
Cash flows from investing activities:                            
Net (purchases) maturities of investments               (20,230)  7,254
Net purchases of property, plant and equipment          (4,206)   (10,352)
Sales (purchases) of cost or equity investments         318       (200)
Business acquisition                                    (1,090)   --
Net cash used in investing activities                  (25,208)  (3,298)
                                                                
Cash flows from financing activities:                            
Proceeds from issuance of common stock                 2,240     1,296
Repurchase of common stock                              (9,304)   (21,145)
Net cash used in financing activities                   (7,064)   (19,849)
                                                                
Effect of exchange rate changes on cash and cash        11        10
equivalents
Net decrease in cash and cash equivalents               (15,100)  (6,401)
Cash and cash equivalents, beginning of period          81,233    52,644
Cash and cash equivalents, end of period                $66,133  $46,243

CONTACT: Investor Relations:
         Erica Abrams
         415-217-5864
         erica@blueshirtgroup.com