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Oplink Reports Fourth Quarter Fiscal Year 2013 Financial Results

Oplink Reports Fourth Quarter Fiscal Year 2013 Financial Results

FREMONT, Calif., Aug. 8, 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 fourth quarter of
fiscal year 2013, ended June 30, 2013.

Revenue for the quarter was $49.3 million, an increase of 12% over prior
quarter revenue of $44.1 million and fourth quarter fiscal 2012 revenue of
$44.2 million. GAAP net income was $4.5 million, or $0.23 per diluted share,
up from $2.1 million, or $0.11 per diluted share, in the prior quarter and a
net loss of $5.2 million, or $(0.27) per diluted share, reported for the
fourth quarter of fiscal 2012.

Non-GAAP net income for the fourth quarter was $4.7 million, or $0.24 per
diluted share, compared to $3.4 million, or $0.18 per diluted share, reported
in the prior quarter, and $3.8 million, or $0.19 per diluted share, reported
for the fourth quarter of fiscal 2012. A reconciliation of the non-GAAP
financial measures to their GAAP equivalents is included in the financial
tables accompanying this press release.

For fiscal year 2013, revenue was $183.4 million, compared to $174.9 million
for fiscal 2012. GAAP net income for fiscal 2013 was $13.4 million, or $0.69
per diluted share, compared to a GAAP net loss of $2.6 million, or $(0.13) per
share, for fiscal 2012. Non-GAAP net income for fiscal 2013 was $17.6 million,
or $0.91 per diluted share, compared to non-GAAP net income of $11.4 million,
or $0.57 per diluted share, for fiscal 2012.

"The fourth quarter closed a solid year of financial performance for Oplink,"
said Joe Liu, Chairman and CEO of Oplink. "As we enter fiscal 2014, we are
seeing some signs of increased demand, and we are optimistic that these trends
will continue. We see growth opportunities for our products in both the
telecom and datacom markets and we will continue to work closely with our
customers to bring cost-effective, next generation optical solutions to market
to meet the increasing demand for bandwidth."

Business Outlook for the Quarter Ending September 29, 2013

For the quarter ending September 29, 2013, the Company expects to report
revenue of $51 to $55 million and GAAP net income of $0.11 to $0.17 per
diluted share. 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 $0.18 to $0.24. GAAP and
non-GAAP net income per diluted share for the quarter ending September 29,
2013assume 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 August 8, 2013. The conference call can be accessed by dialing
1-877-941-6010, or 1-480-629-9644 (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
August 8, 2013 until 11:59 p.m. Pacific Time on August 15, 2013, by dialing
1-800-406-7325 or 1-303-590-3030 (outside the U.S. and Canada) and entering
pass code 4633564#.

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 September 29, 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)
                                                            
                                           June 30,           July 1,
                                          2013               2012
                                           (Unaudited)        (1)
ASSETS                                                       
Current assets:                                              
Cash and cash equivalents                 $65,014           $81,233
Short-term investments                     105,829            85,382
Accounts receivable, net                   40,735             33,165
Inventories                                30,028             19,091
Prepaid expenses and other current assets  7,029              8,633
Deferred tax assets                        809                1,609
Total current assets                       249,444            229,113
Property, plant and equipment, net         47,687             45,392
Long-term investments                      3,307              9,606
Goodwill and intangible assets, net        1,146              1,648
Deferred tax assets                        7,083              7,151
Other assets                               16,504             12,279
Total assets                               $325,171          $305,189
                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                         
Current liabilities:                                         
Accounts payable                           $18,166           $11,739
Accrued liabilities and other current      13,579             12,460
liabilities
Total current liabilities                  31,745             24,199
Non-current liabilities                    10,225             8,858
Total liabilities                          41,970             33,057
Stockholders' equity                       283,201            272,132
Total liabilities and stockholders' equity $325,171          $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                Years Ended
                  June 30,   March 31,   July 1,     June 30,     July 1,
                   2013       2013        2012        2013         2012
                  (Unaudited)                        (Unaudited)  (1)
                                                              
Revenues           $49,293   $44,124    $44,245    $183,400    $174,928
Cost of revenues   31,774     28,474      29,062      117,072      118,766
Gross profit       17,519     15,650      15,183      66,328       56,162
Operating                                                      
expenses:
Research and       6,794      6,281       5,348       24,336       21,037
development
Sales and          3,750      3,590       3,084       13,900       10,993
marketing
General and        2,273      2,174       2,033       8,710        12,876
administrative
Stock compensation 1,323      1,252       1,275       5,483        5,438
expense
Amortization of    86         91          91          359          664
intangible assets
Net (gain) loss on
sale/disposal of   (1,377)    (258)       13          (1,647)      (353)
assets
Total operating    12,849     13,130      11,844      51,141       50,655
expenses
Income from        4,670      2,520       3,339       15,187       5,507
operations
Interest and other 1,809      201         130         2,688        539
income, net
Income before
provision for      6,479     2,721      3,469      17,875      6,046
income taxes
Provision for      1,978     670        8,639      4,504        8,628
income taxes
Net income (loss)  $4,501   $2,051    $(5,170)  $13,371    $(2,582)
                                                              
Net income (loss)                                              
per share:
Basic              $0.24    $0.11     $(0.27)   $0.70      $(0.13)
Diluted            $0.23    $0.11     $(0.27)   $0.69      $(0.13)
                                                              
Shares used in per                                             
share calculation:
Basic              19,105     19,029      19,117      19,080       19,302
Diluted            19,390     19,252      19,117      19,388       19,302
                                                              
                                                              
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands, except per share amounts)
                  Three Months Ended                Years Ended
                  June 30,   March 31,   July 1,     June 30,     July 1,
                   2013       2013        2012        2013         2012
Reconciliation of
GAAP net income    (Unaudited)                        (Unaudited)
(loss) to non-GAAP
net income:
Net income (loss), $4,501   $2,051    $(5,170)  $13,371    $(2,582)
GAAP
Adjustments to                                                 
measure non-GAAP:
Related to cost of                                             
revenues:
Stock compensation 91         81          76          344          366
expense
Amortization of    35         36          36          143          644
intangible assets
Total related to   126        117         112         487          1,010
cost of revenues
                                                              
Related to
operating                                                      
expenses:
Legal settlement  --         --          --          --           3,317
Stock compensation 1,323      1,252       1,275       5,483        5,438
expense
Amortization of    86         91          91          359          664
intangible assets
Total related to   1,409      1,343       1,366       5,842        9,419
operating expenses
                                                              
Gain on sale of    (1,761)    --          --          (1,761)      --
equity investments
Tax adjustments    --         --          8,143       --           8,143
(2)
Tax effects on
non-GAAP           430        (130)       (686)       (329)        (4,635)
adjustments
                                                              
Non-GAAP net       $4,705   $3,381    $3,765    $17,610    $11,355
income
                                                              
Net income per                                                 
share, non-GAAP:
Basic              $0.25    $0.18     $0.20     $0.92      $0.59
Diluted            $0.24    $0.18     $0.19     $0.91      $0.57
                                                              
Shares used in per                                             
share calculation:
Basic              19,105     19,029      19,117      19,080       19,302
Diluted            19,390     19,252      19,587      19,388       19,897
                                                              
Reconciliation of
GAAP gross profit                                              
to non-GAAP gross
profit:
GAAP gross profit  $17,519  $15,650   $15,183   $66,328    $56,162
Stock compensation
expense included   91         81          76          344          366
in cost of
revenues
Amortization of
intangible assets  35         36          36          143          644
included in cost
of revenues
Non-GAAP gross     $17,645  $15,767   $15,295   $66,815    $57,172
profit
                                                              
GAAP gross margin  35.5%      35.5%       34.3%       36.2%        32.1%
rate
Non-GAAP gross     35.8%      35.7%       34.6%       36.4%        32.7%
margin rate
                                                              
(1) The condensed consolidated statement of operations for the year ended July
1, 2012 has been derived from audited financial statements at that date.
                                                              
(2) The adjustment recorded in the fourth quarter of fiscal 2012 was related
to the deferred tax implications of the transfer of certain intercompany
liabilities. As a result of the transfer, certain deferred tax assets will
not be realized by the US entity.


OPLINK COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                           Years Ended
                                           June 30,             July 1,
                                            2013                 2012
                                           (Unaudited)          (1)
Cash flows from operating activities:                           
Net income (loss)                           $13,371             $(2,582)
Adjustments to reconcile net income (loss) to net cash provided  
by operating activities:
Depreciation and amortization               7,233                6,359
Amortization of intangible assets           502                  1,308
Stock compensation expense                 5,827                5,804
Deferred income taxes                       1,084                9,168
Net gain on sale/disposal of assets and     (3,481)              (353)
equity investments
Other                                       810                  (99)
Change in assets and liabilities            (5,604)              4,015
Net cash provided by operating activities   19,742              23,620
                                                               
Cash flows from investing activities:                           
Net (purchases) maturities of investments   (25,208)             40,088
Net purchases of property, plant and        (7,564)              (11,664)
equipment
Net sales (purchases) of cost or equity     3,782                (200)
investments
Business acquisition                        (1,090)              --
Net cash (used in) provided by investing    (30,080)             28,224
activities
                                                               
Cash flows from financing activities:                           
Proceeds from issuance of common stock     3,487                4,166
Repurchase of common stock                  (8,320)              (26,402)
Other                                       (1,205)              (1,002)
Net cash used in financing activities       (6,038)              (23,238)
                                                               
Effect of exchange rate changes on cash and 157                  (17)
cash equivalents
Net (decrease) increase in cash and cash    (16,219)             28,589
equivalents
Cash and cash equivalents, beginning of     81,233               52,644
period
Cash and cash equivalents, end of period    $65,014             $81,233
                                                               
(1)The condensed consolidated statement of cash flows for the year ended July
1, 2012 has been derived from audited financial statements at that date.

CONTACT: Investor Relations:
         Shirley Yin
         510-933-7233
         ir@oplink.com
 
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