FiberCore Reports Record Results for Fourth Quarter and 2000
CHARLTON, Mass., Mar 29, 2001 /PRNewswire via COMTEX/ -- FiberCore, Inc.
(Nasdaq: FBCE), a leading manufacturer and global supplier of optical fiber and
preform for the telecommunication and data communications markets, today
announced record results for the fourth quarter and year ended December 31,
2000. The results include the operations of Xtal FiberCore S.A., the Company's
recently acquired Brazilian facility, from June 1, 2000.
Sales for the fourth quarter of 2000 increased 224% to a record $13.9 million
from $4.3 million in the fourth quarter of 1999. Sales benefited from continued
strong market demand from new and existing customers, higher pricing, as well as
strong sales from the Company's Brazilian operations. Net income was a record
$2.3 million, or $0.04 per diluted share, in the fourth quarter of 2000. This
compares to a net loss of approximately $41,000, or $0.00 per share, in the
fourth quarter of 1999.
Gross profit in the fourth quarter 2000 grew to $5.5 million, or 39.8% of sales,
from $1.3 million, or 30.4% of sales, in the same 1999 period. FiberCore's gross
margin benefited primarily from higher volumes, a larger than expected draw down
in inventory, better pricing as well as manufacturing process improvements.
For the year, sales more than tripled to $36.9 million from $12.1 million in
1999. The increase includes seven months of sales from Xtal, which amounted to
$21.9 million. Excluding Xtal, the sales increase for 2000 would have been 24%.
Excluding the effect of the previously reported, second and third quarter
non-cash interest charges of $5.4 million, the Company would have reported 2000
net income of $2.7 million, or $0.04 per share. Including the charges, the
reported net loss for the year ended December 31, 2000 was $2.7 million, or
$0.05 per share, compared to a net loss of $2.0 million, or $0.05 per share, in
1999. Cash generated from operations in 2000 was $9.2 million compared to a net
cash use of $348,000 in 1999.
The gross margin in 2000 improved to 32% from 19% in 1999. Margins are expected
to continue to improve from these levels during the course of 2001 primarily
from significantly higher production volume and continued manufacturing
efficiency. Longer term, margins should benefit as the Company becomes more
vertically integrated through manufacturing more of its own specialized
equipment, better controlling the supply of raw materials and introducing its
recently patented Plasma Outside Vapor Deposition ("POVD") process into
production. Spending on research and development increased by 102% to $1.5
million in 2000 from $722,000 in 1999 driven in part by spending on the POVD
process as well as other manufacturing initiatives. Spending on R&D is expected
to double again in 2001.
"It's been an exciting year for FiberCore, culminating in a record fourth
quarter in both sales and earnings," commented Dr. Mohd Aslami, President and
CEO. "As the only independent fiber supplier in the Western Hemisphere and
Europe, we continue to see strong demand and growing backlog. At February 28,
2001, backlog, which is expected to ship over the next three years, was a record
$265 million, up from $190 million at December 31, 2000 and under $13 million at
the end of 1999. Approximately 66% of our current backlog is in take-or-pay
contracts which gives us confidence in our expectation that sales will double in
2001 and profitability and cash flow will continue to improve."
"Supporting our expected growth is a significant, yet controlled capacity
expansion plan. Our expansion in Jena, Germany is expected to be online by the
end of 2001, doubling its multimode capacity to over 500,000 kms in 2002. Xtal's
single-mode capacity in Campinas, Brazil increased to 1,000,000 kms in 2000 from
500,000 in 1999 and is expected to double again by the end of 2001. Capacity is
expected to expand further both in Germany and Brazil beyond the end of 2001.
Longer term, we have plans to open facilities in Malaysia, Thailand and the U.S.
We expect to fund the costs of our expansion plans through long-term borrowings,
government grants, customer and internal financings as well as equity
placements. We are fortunate to have secured over $75 million in financing since
June of 2000 to help fund our growth," added Dr. Aslami.
Dr. Aslami concluded, "The opportunities for FiberCore in this strong fiber
market are considerable. With production based on our current capacity sold out
for the next three years and growth plans in place to help supply our customers'
and partners' expected future fiber requirements, we look forward to another
record year in 2001."
FiberCore will hold a conference call on Friday, March 30 at 10:00 a.m. ET to
discuss its financial results and continuing business plans. Interested parties
are invited to listen to the call live over the Internet at
streetfusion.com . The teleconference may also be accessed by dialing
(800) 553-2506. A replay of the teleconference will be available on
streetfusion.com or by dialing (800) 696-1588, using passcode 982221.
FiberCore, Inc. develops, manufactures and markets single-mode and multimode
optical fiber preforms and optical fiber for the telecommunications and data
communications markets. In addition to its standard multimode and single-mode
fiber, FiberCore also offers various grades of fiber for use in laser-based
systems, to help guarantee high bandwidths and to suit the needs of Feeder Loop
(also known as Metropolitan Area Network), Fiber-to-the Curb, Fiber-to-the Home
and Fiber-to-the Desk applications. Manufacturing facilities are presently
located in Jena, Germany and Campinas, Brazil.
For more information about the company, its products, or shareholder information
please visit our Website at: www.FiberCoreUSA.com or contact us at: Phone -
508-248-3900 or by FAX - 508-248-5588 or E-Mail: sales@FiberCoreUSA.com;
investor_relations@FiberCoreUSA.com .
Except for the historical matters discussed above, the statements in this press
release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. They are
based on the Company's current expectations and are subject to a number of risks
and uncertainties. Actual results may differ materially from those projected as
a result of certain general economic and business conditions; loss of market
share through competition; introduction of competing products by other
companies; changes in Industry capacity; pressure on prices from competition or
from purchasers of the Company's products; availability of qualified personnel;
the delivery of an ability to commission new equipment as scheduled; ability to
obtain required financing; dependence on a limited number of raw material
suppliers; the loss of any significant customers; and other factors detailed
from time to time in the Company's filings with the Securities and Exchange
Commission.
FIBERCORE, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands except share data)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
(unaudited) (unaudited) (audited) (audited)
Net sales $13,865 $4,276 $36,919 $12,126
Cost of sales 8,345 2,974 25,118 9,820
Gross profit 5,520 1,302 11,801 2,306
Operating expenses:
Selling, general and
administrative
expenses 1,733 1,476 5,071 3,237
Research and development 796 308 1,459 722
Income (loss) from
operations 2,991 (482) 5,271 (1,653)
Non-cash interest expense -- -- (5,405) --
Other interest income
(expense), net 492 (356) (427) (952)
Other income (expense),
net 146 (140) 226 (336)
Income (loss) before
income taxes 3,629 (978) (335) (2,941)
(Provision) benefit for
income taxes (1,152) 937 (2,054) 937
Income (loss) before
minority interest 2,477 (41) (2,389) (2,004)
Minority interest in
income of subsidiary (181) -- (308) --
Net income (loss) $2,296 $(41) $(2,697) $(2,004)
Basic earnings (loss)
per share of common
stock $0.04 $0.00 $(0.05) $(0.05)
Diluted earnings (loss)
per share of common
stock $0.04 $0.00 $(0.05) $(0.05)
Weighted average shares
outstanding:
Basic 54,864,838 37,460,650 49,043,882 36,610,544
Diluted 65,427,233 37,460,650 49,043,882 36,610,544
SELECTED BALANCE SHEET DATA:
December 31, 2000 December 31, 1999
(audited) (audited)
Working capital $2,047 $1,041
Total assets 67,453 24,062
Long-term obligations 9,849 9,563
Total liabilities 28,551 14,085
Minority interest 4,750 3,263
Accumulated deficit (19,983) (17,196)
Stockholders' equity 34,152 6,714
SOURCE FiberCore, Inc.
CONTACT: Dr. Mohd A. Aslami, President and CEO, or Steven Phillips, CFO,
both of FiberCore, 508-248-3900; General Info, Alison Ziegler, Analyst Info,
Christie Mazurek, or Media Info, David Closs, all of The Financial Relations
Board BSMG Worldwide, 212-661-8030
URL: fibercoreusa.com
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(C) 2001 PR Newswire. All rights reserved.
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