New Focus Announces Strong Third Quarter Financial Results And Raises Revenue Expectations
SANTA CLARA, Calif., Oct. 25 /PRNewswire/ -- New Focus, Inc., (Nasdaq: NUFO - news), a leading supplier of innovative fiber optic products for next-generation optical networks under the Smart Optics for Networks(TM) brand, today announced financial results for its third fiscal quarter ended October 1, 2000. The company reported strong sequential revenue growth in both its fiber optic and photonics tool businesses for the third quarter. The company also announced higher revenue guidance for fiscal years 2000 and 2001 based on the revenue momentum established over the past two quarters.
Third Quarter Review:
Net revenue for the third quarter of 2000 was $22.2 million, a sequential increase of 54% over the $14.5 million in revenue for the company's second fiscal quarter ended July 2, 2000. Third quarter revenue from the company's fiber optic products totaled $14.9 million, up 76% from $8.5 million in the second quarter of 2000. Third quarter revenue from the company's photonics tool products totaled $7.3 million, up 22% from $6.0 million in the second quarter of 2000. Net revenue for the third quarter of 1999 was $6.7 million composed of $2.0 million from fiber optic products and $4.7 million from photonics tool products.
On a pro forma basis, the net loss for the third quarter of 2000, excluding a non-cash charge for the amortization of deferred stock compensation, was $1.3 million, or $0.02 per share based on 58.1 million shares outstanding. This net loss was less than the pro forma net loss of $6.6 million, or $0.13 per share based on 52.4 million shares outstanding in the second quarter of 2000. The pro forma net loss for the third quarter of 1999 was $1.8 million, or $0.05 per share based on 34.1 million shares outstanding. The number of shares used for the pro forma net loss per share calculation for each reporting period assumes the conversion of the company's convertible preferred stock into common stock, if applicable. Such conversion was completed in conjunction with the company's initial public offering in May 2000. The deferred stock compensation charges excluded from the third and second quarters of 2000 were $5.9 million and $7.5 million, respectively. The deferred stock compensation charge in the third quarter of 1999 was negligible.
Without the pro forma adjustments to eliminate the deferred stock compensation charges and to convert the company's preferred stock into common stock, the net loss for the third quarter of 2000 was $7.1 million, or $0.12 per share based on 58.1 million shares outstanding. The net loss for the second quarter of 2000 was $14.1 million, or $0.45 per share based on 31.7 million shares outstanding. For the third quarter of 1999 the net loss was $1.8 million, or $0.74 per share based on 2.5 million shares outstanding.
``Our third quarter financial results reflected solid internal execution against our capacity expansion plan and continuing strong customer demand for our fiber optic and photonics tool products. Our first offshore manufacturing facility in Shenzhen, China ramped successfully into volume production of passive devices during the third quarter and achieved manufacturing yields comparable to our U.S. manufacturing operations. Increased unit volumes, coupled with improved manufacturing efficiencies, raised our gross margin to 22.5% in the third quarter from 9.7% in the second quarter. Additionally, we strengthened our balance sheet by raising nearly $440 million through a follow-on public offering in August. This additional funding will support the acceleration of manufacturing capacity at our second larger manufacturing facility in Shenzhen. During the recently completed quarter we began shipments to Ciena Corporation and expect to develop further momentum through the addition of another new customer in the upcoming quarter,'' said Ken Westrick, president and chief executive officer of New Focus, Inc....
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