Armin --
I didn't get on the CC but will follow replay.
Just out:
News
To print this story
November 23, 1999 16:31
Ortel Reports Results for Second Fiscal Quarter; Company Returns to Profitability Earlier Than Expected
ALHAMBRA, Calif.--(BUSINESS WIRE)--Nov. 23, 1999--Ortel Corp. (Nasdaq:ORTL) today reported financial results for its second fiscal quarter ended Oct. 31, 1999, in line with the company's announcement on Oct. 11 that revenues and earnings would exceed then-current expectations.
For the current second fiscal quarter, revenues totaled $19.4 million, up 10 percent from $17.7 million, as restated in the second quarter of fiscal year 1999, and up 10 percent from the first quarter of fiscal 2000.
Net income for the current second quarter totaled $253,000, or 2 cents per diluted share, compared with a net loss a year ago of $4.6 million, or 39 cents loss per share. Last year's net loss included $5.5 million (47 cents per share) in after-tax charges and operating losses related to the discontinuance of the pump laser business.
In the current second quarter, investment in research and development rose 49 percent to $3.6 million compared with the same period last year, primarily because of the company's ongoing commitment to maintain its leadership position in broadband CATV and to aggressively pursue emerging opportunities in telecommunications.
For the six months ended Oct. 31, 1999, revenues of $37.1 million were 8 percent higher than restated revenues of $34.2 million in the first half of last fiscal year.
The company recorded a net loss for the first half of fiscal 2000 of $7.8 million, or 58 cents loss per share, which included after-tax charges of $3.8 million related to discontinued wireless operations and other special first-quarter charges totaling $4.0 million after tax.
A year ago, as restated, Ortel recorded income from continuing operations of $2.0 million, or 17 cents per diluted share, and a net loss of $4.4 million, or 37 cents loss per share.
"We are pleased with our return to profitability. The measures we have taken to reposition Ortel as a fiber-optics company focused on two core markets -- broadband CATV and telecommunications -- are clearly producing positive results for the company and for our stockholders," said Stephen R. Rizzone, president, chief executive officer and chairman of the board.
"In addition to stronger sales growth, Ortel's performance in the second quarter benefited from improved manufacturing processes, cycle times and productivity gains. Concurrently, we are investing significant time, energy and resources to build the necessary infrastructure to ensure that the company is poised to meet our growth objectives."
The company reported that it continued to see strong revenue growth from its broadband CATV business, particularly in sales of photo diodes, 1310nm transmitters and analog DWDM 1550nm laser transmitters. Additionally, Ortel registered several design wins and saw increased sampling activity for its new line of telecommunication products.
Prior-period financial statements reflect the restatement of the wireless operations discontinued in the first quarter of fiscal 2000, and the 980nm pump laser operations discontinued in the second quarter of fiscal 1999.
Ortel designs, manufactures and supplies advanced optoelectronic technologies that provide the critical bandwidth and two-way interactivity essential for robust telecommunications and cable-television applications.
Ortel's fiber optics increase the capacity and performance of fiber-optic networks, enabling them to handle ever-increasing volumes of voice, video and data communications.
The company has headquarters in Alhambra, with international operations in Sweden, Germany, France, Singapore and China. For more information, visit Ortel's Web site at ortel.com.
This news release contains forward-looking statements regarding Ortel's results of operations or financial condition. Factors that could cause actual results to differ materially include changes in the capital spending of CATV operators, changes in customer order patterns, introductions of new products by competitors, and other risks identified from time to time in the company's Securities and Exchange Commission filings.
ORTEL CORP.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
Oct. 31, April 30,
1999 1999
(Reclassified/a)
Assets:
Cash and short-term investments $26,355 $24,181
Accounts receivable 10,518 13,404
Inventory 11,439 9,716
Other current assets 7,945 5,970
Current assets -- discontinued operations -- 5,692
Total current assets 56,257 58,963
Equipment and improvements, net 17,046 17,704
Intangible assets and long-term assets 10,752 11,069
Long-term assets -- discontinued operations -- 1,492
Total assets $84,055 $89,228
Liabilities and stockholders' equity:
Total current liabilities $10,976 $10,606
Other liabilities 496 773
Current and long-term liabilities --
discontinued operations 2,909 2,661
Total liabilities 14,381 14,040
Total stockholders' equity 69,674 75,188
Total liabilities and stockholders' equity $84,055 $89,228
/a Certain amounts related to discontinued operations (wireless and
980 pump lasers) have been reclassified to conform to the current-
period presentation.
ORTEL CORP.
Condensed Consolidated Statements of Operations
(In thousands, except per-share amounts)
(Unaudited)
Three months ended Six months ended
Oct. 31, Oct. 31,
1999 1998 1999 1998
(Reclassified/a) (Reclassified/a)
Revenue $19,424 $17,695 $37,085 $34,184
Gross profit 8,086 7,278 14,417 14,631
Operating expenses:
Research and development 3,596 2,415 7,229 5,064
Selling, general and
administrative 4,386 4,314 10,849 7,943
Write-off facility
architectural fees -- -- 745 --
Total operating expenses 7,982 6,729 18,823 13,007
Operating income (loss)
from continuing operations 104 549 (4,406) 1,624
Interest and other income,
net 295 566 458 862
Income (loss) from
continuing operations
before taxes 399 1,115 (3,948) 2,486
Provision (credit) for
income taxes 146 223 (987) 504
Income (loss) from
continuing operations 253 892 (2,961) 1,982
Cumulative effect of
accounting change --
organization cost
write-off, continuing
operations -- -- (989) --
Loss from discontinued
operations and disposal
of discontinued
operations, net of tax -- (5,521) (3,838) (6,404)
Net income (loss) $ 253 $(4,629) $(7,788) $(4,422)
Earnings (loss) per
common share -- basic:
Income (loss) from
continuing operations $ .02 $ .08 $ (.22) $ .17
Discontinued operations -- (.47) (.36) (.54)
Net income (loss) per
share -- basic $ .02 $ (.39) $ (.58) $ (.37)
Earnings (loss) per
common share -- diluted:
Income (loss) from
continuing operations $ .02 $ .08 $ (.22) $ .17
Discontinued operations -- (.47) (.36) (.54)
Net income (loss) per
share -- diluted $ .02 $ (.39) $ (.58) $ (.37)
Average shares -- basic 13,901 11,860 13,550 11,897
Average shares -- diluted 14,813 12,631 14,855 12,720
As percentage of revenue:
Gross profit 41.6% 41.1% 38.9% 42.8%
Research and development 18.5% 13.6% 19.5% 14.8%
Selling, general and
administrative 22.6% 24.3% 29.3% 23.2%
a/ Certain amounts related to discontinued operations (wireless and
980 pump lasers) have been reclassified to conform to the current-
period presentation.
CONTACT: Ortel Corp., Alhambra
Sally Cholko, 626/293-3643
scholko@ortel.com
or
Pondel/Wilkinson Group, Los Angeles
Cecilia A. Wilkinson or E.E. Wang, 310/207-9300
investor@pondel.com
|
