Tuesday December 19, 4:43 pm Eastern Time
Press Release
SOURCE: New Focus, Inc.
New Focus Expands Customer Base and Accelerates Manufacturing
Capacity Expansion
SANTA CLARA, Calif., Dec. 19 /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 that volume shipments to a new customer will account
for a high single-digit percentage of the company's revenue in the fourth quarter ending December 31, 2000. The company also announced that it would
expand its current production facilities in the People's Republic of China (PRC) in response to continuing strong demand for its products.
``New Focus is now shipping our next-generation fiber optic components to five customers that have substantial presence in the optical networking arena.
During the first half of 2000 Alcatel USA, Corning Incorporated and Corvis Corporation were the primary customers for our fiber optic components. We
added Ciena Corporation to this list last quarter. We added our fifth customer this quarter and expect that this company will account for 10% of our revenue
in the near future. At this customer's request, we are withholding the company's name until we are required to report the name under the rules of the Securities
and Exchange Commission. The two new additions to our customer base in the second half of this year, coupled with growing demand from our existing
customers, has triggered a recent decision to increase our manufacturing capacity beyond our previously announced plans,'' said Ken Westrick, president and
chief executive officer of New Focus, Inc.
Agilent Technologies remains a significant customer and purchases high-performance tunable laser modules, not components, from New Focus. Agilent
incorporates these modules into a product family of test and measurement equipment. Agilent, Alcatel, Corning, and Corvis on a combined basis accounted
for approximately 50% of the company's $46.5 million in revenue during the first nine months of 2000.
``Our capacity expansion plan is centered on our second and larger manufacturing facility in Shenzhen, PRC. We recently completed the first phase of the
fit-up of this facility in September, adding 75,000 square feet to our available manufacturing space. We commenced production in a portion of this completed
space this quarter and expect to fully utilize this space by the end of the second quarter of 2001. To keep pace with anticipated demand we are now initiating
the second and final phase of the fit-up of this facility that will expand our manufacturing space by an additional 75,000 square feet in the second half of
2001,'' said Westrick.
New Focus has expanded its manufacturing capacity aggressively during the course of this fiscal year. In January 2000 all manufacturing activities were
conducted within 15,000 square feet at the company's first facility in Santa Clara, California. Since January, New Focus has opened one new facility in San
Jose, California and two manufacturing plants in Shenzhen, PRC. In early 2001 the company will open a second facility in San Jose, California. The company
previously announced that it would have 159,000 square feet of manufacturing space available in the first quarter of 2001 as a result of these earlier building
expansion plans. The recent decision to fit-up the final phase of the second Shenzhen plant will increase the company's worldwide manufacturing space to
234,000 square feet in the second half of 2001, a fifteenfold increase over the first quarter of 2000.
Forward-Looking Statements:
This press release contains predictions, estimates and other forward-looking statements regarding product demand from previously existing and more recent
customers, anticipated additions to manufacturing capacity, and capacity utilization. These statements are subject to risks and uncertainties and actual results
may differ materially from any future performance suggested. The risks and uncertainties include the supply-demand conditions in the company's markets, the
company's ability to deliver products that satisfy customer requirements with price-performance characteristics comparable to or better than the competition,
the company's ability to capture and retain new customers, and the company's ability to successfully execute on aggressive manufacturing ramps, particularly
in its new facilities in the PRC. Successful execution of such production ramps in turn depends on the company's ability to timely fit up manufacturing facilities,
rapidly hire and train large numbers of people, and successfully complete customer qualifications of new production sites. Other risk factors that may affect
the company's financial performance are listed in the company's S-1 registration statement for its follow-on public offering on file with the SEC. New Focus
undertakes no obligation to publicly release any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
About New Focus:
New Focus, Inc. designs, manufactures and markets innovative fiber optic products for next-generation optical networks. The company's Smart Optics for
Networks(TM) products enhance the performance of next-generation optical networks by enabling higher channel counts, faster data rates, longer reach
lengths, new service capabilities, and lower costs of ownership. Founded in 1990, the company remains a leader in the creation of advanced optical products
for the commercial and research marketplaces. The company is headquartered in Santa Clara, California and has operations in San Jose, California, Madison,
Wisconsin, and Shenzhen, People's Republic of China that employ nearly 1,500 people.
For more information about New Focus visit the company's Internet home page at newfocus.com, call our Investors Relations Department at
408-919-2700, or e-mail us at investor@newfocus.com. |
