FiberCore Reports Record Sales, Earnings and Backlog for Second Quarter
CHARLTON, Mass., Aug 9, 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
results for the second quarter ended June 30, 2001.
Sales in the second quarter of 2001 increased 182% to a record $18.1 million
from $6.4 million in the year ago period. Sales benefited from continued strong
demand from new and existing customers, higher pricing and the inclusion of Xtal
FiberCore Brasil S.A. from June 1, 2000. Xtal contributed $12.2 million to sales
in the quarter compared to $2.6 million of sales for last year's second quarter.
FiberCore Jena's sales increased by 47% for the period. Net income was $3.0
million, or $0.05 per diluted share, in the second quarter of 2001. This
compares favorably to a net loss of approximately $5.3 million, or $0.11 per
share, in last year's second quarter. The net loss in the second quarter of 2000
included non-cash interest charges of $5.3 million, or $0.11 per share.
Excluding this non-cash interest charge, the second quarter 2000 was basically
at breakeven.
Gross profit in the second quarter of 2001 grew to $7.2 million, or 40.0% of
sales, from $1.7 million, or 26.4% of sales, in last year's second quarter.
FiberCore's gross margin continued to benefit from strong volumes and continued
manufacturing process improvements.
Operating margin was 25.5% for the quarter compared to 8.1% for last year's
second quarter. Operating margin was down slightly from the first quarter of
2001 due in part to recent management additions to support the Company in its
planned expansion, as well as increased spending on research and development.
R&D spending increased by 201% to $581,000 in the second quarter from $193,000
in the prior year period driven, in part, by spending on our recently patented
Plasma Outside Vapor Deposition (POVD) process as well as other manufacturing
initiatives.
For the first six months of 2001, sales more than tripled to $34.3 million
compared with $9.9 million in the first six months of 2000. The prior year
period included only one month of sales from Xtal. Excluding Xtal, the sales
increase for the period would have been 47%. Net income for the first six months
of 2001 was $6.0 million, or $0.09 per diluted share, compared to a net loss of
$5.8 million, or $0.13 per share, during the first six months of 2000. Included
in the prior year period were non-cash interest charges of $5.3 million, or
$0.11 per share.
"At June 30, 2001, our backlog grew to over $320 million from $260 million at
the end of the first quarter and $190 million at year-end," commented Dr. Mohd
Aslami, President and CEO. "In addition, 65% of our current backlog is in
take-or-pay contracts, which helps support our long term growth plans."
"In addition to our planned capacity expansions in Jena, Germany, which are
already financed, and in Campinas, Brazil, where funding is ongoing although at
a slower pace, we continue to look for opportunities to enter new markets that
require additional fiber supply. Asia remains a large opportunity for the
Company however, current weakness in the overall fiber optic market has slowed
the bank financing portion of our capacity expansion plans there. We have been
in discussions with entities in several other countries that will require lower
levels of funding from FiberCore, and some of these projects have the potential
to come on stream sooner. In addition, we are cautiously optimistic that we will
be able to complete our current financing activities at the corporate level
within the near term."
Dr. Aslami continued, "The global diversification of our revenue stream and the
lack of dependence on the U.S. telecom long-haul sector has shielded us from
much of the weakness experienced in other sectors of the fiber optic market to
date. However, we have recently begun to see significant softening in the South
American market. While we are confident in our ability to offset this weakness
by shifting sales into other markets, we could see some slowing in our growth
over the short term, and possible delays in our Brazilian capital expansion
program. Additionally, one of our larger South American customers is currently
in breach of its contract with us in the amount of $5.3 million. We are
currently working with this customer on a repayment plan. Based on recent
conversations, we expect to amicably resolve this situation shortly. This is
currently affecting our cash flow in Brazil and, if not resolved, will impact
our ability to simultaneously fund expansion and ongoing operations. Over the
balance of this month, we will be assessing the impact of these developments on
the anticipated results for the second half of 2001 and for 2002 and will
provide revised financial guidance at that time. As a result of this unexpected
situation, we have reconfirmed the commitments from our other major customers."
Dr. Aslami concluded, "As the only independent fiber supplier, meaning we do not
sell cable and therefore do not compete with our customers, we continue to be
viewed as a favored supply source of independent cablers around the world. These
strong customer relationships as well as our new technology initiatives and
recently strengthened management team make us confident in our ability to
continue to execute on our long-term growth plan."
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 or reduced creditworthiness 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 Six Months Ended
June 30, June 30,
2001 2000 2001 2000
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $18,066 $ 6,413 $34,292 $ 9,866
Cost of sales 10,836 4,723 20,471 7,444
Gross profit 7,230 1,690 13,821 2,422
Operating expenses:
Selling, general and
administrative
expenses 2,037 976 3,734 1,673
Research and
development 581 193 1,021 430
Income from
operations 4,612 521 9,066 319
Interest expense, net (481) (5,589) (665) (5,743)
Other income
(expense) - net 71 109 (80) 27
Income (loss) before
income taxes and
minority interest 4,202 (4,959) 8,321 (5,397)
Provision for income
taxes (937) (337) (1,794) (395)
Earnings (loss) before
minority interest 3,265 (5,296) 6,527 (5,792)
Minority interest in
income of subsidiaries (216) (37) (499) (37)
Net earnings (loss) $ 3,049 $(5,333) $ 6,028 $(5,829)
Basic earnings (loss)
per share of common
stock $ 0.05 $ (0.11) $ 0.10 $ (0.13)
Diluted earnings (loss)
per share of common
stock $ 0.05 $ (0.11) $ 0.09 $ (0.13)
Weighted average
shares outstanding:
Basic 59,565,539 46,458,419 59,263,000 44,176,241
Diluted 65,533,406 46,458,419 65,230,867 44,176,241
SELECTED BALANCE SHEET DATA:
June 30, December 31,
2001 2000
(unaudited) (audited)
Working capital $5,721 $2,047
Total assets 83,622 67,453
Long-term obligations 15,944 9,849
Total liabilities 38,214 28,551
Minority interest 5,249 4,750
Accumulated deficit (13,887) (19,893)
Stockholders' equity 40,159 34,152
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SOURCE FiberCore, Inc.
CONTACT: Dr. Mohd A. Aslami, President-CEO, or Robert Lobban, CFO, both
of FiberCore, Inc., +1-508-248-3900; or General Info., Alison Ziegler, or
Analyst Info., Peter Seltzberg, of The Financial Relations Board BSMG,
+1-212-445-8400
URL: fibercoreusa.com
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