Hmmmm...Seems that we were right all along about this POS!!!
biz.yahoo.com
Alliance Fiber Optic Products, Inc. Revises 2Q'01 Outlook
Takes Inventory Charge
Conference Call Today at 2:00 pm Pacific Time
SUNNYVALE, Calif.--(BUSINESS WIRE)--June 28, 2001--Alliance Fiber Optic Products, Inc. (NASDAQ: AFOP - news), a supplier of fiber optic components and integrated modules for the optical network equipment market, today announced that revenues and earnings for the second quarter ending June 30, 2001 will be lower than previously estimated. The company also announced an inventory write-down and a continuing cost reduction program.
The company currently expects second quarter revenues to be approximately $4.5 to $5.0 million compared with first quarter revenues of $7.4 million. As a result, the company expects a pro forma net loss of between $1.5 and $2.0 million, or approximately $.05 per share. In addition, the company will write down approximately $6 to 6.5 million of inventory. These estimates are subject to further analysis and review. The pro forma loss mentioned above excludes non-cash stock-based compensation charges and the additional inventory charges.
Peter Chang, AFOP's President and Chief Executive Officer commented, ``These results reflect the overall market conditions in our industry. Our DWDM product line in particular has not performed as we originally expected. We are therefore lowering our 12-month DWDM revenue estimates, and will write down inventory not needed to satisfy these new estimates. Furthermore, we are continuing to take actions to bring our overall operations more in line with our current revenue levels. These actions include reducing our production capacity in all locations, the consolidation of manufacturing shifts, and our ongoing efforts to reduce discretionary spending. Because of the challenging business environment we are currently facing, we expect quarterly revenues for the remainder of this year to remain at approximately the level of the second quarter.''
``Despite our revised outlook, we remain financially strong with approximately $57 million in cash and investments. We are making progress in key product development areas as evidenced by our SpectraMux CWDM product introduced earlier this month, our switchable optical drop/add (SODA) subsystems that will be demonstrated at the NFOEC next month, and three U.S. patents we have been awarded, in particular for our DWDM process.'' concluded Mr. Chang.
AFOP's second quarter 2001 earnings release date is scheduled for July 26, 2001. |
