Not-so-good news for OPLK -- in addition to which, FYI, their lockup expires today (140 Million shares being released -- more than 91% of the total shares outstanding. Ouch!)...
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Monday April 2, 6:30 am Eastern Time
Oplink Communications Provides Update on Third Quarter Results and Announces Cost Reduction Plan
SAN JOSE, Calif., April 2 /PRNewswire/ -- Oplink Communications, Inc.
(Nasdaq: OPLK - news), designer and manufacturer of innovative optical
components and integrated modules, today announced that revenues for the third
quarter ended April 1, 2001 are expected to be $36.0 million. Pro forma net loss
per share, excluding non-cash charges but including a significant provision for
excess inventory, is expected to be in the range of $0.10-$0.12. Both are below
the Company's previous expectations.
The Company stated that it continues to experience delays in orders from its
customers, negatively impacting expectations and visibility for the fourth fiscal
quarter and remainder of calendar year 2001. As a result, the Company has
implemented cost cutting measures in order to more closely align expenses with
reduced revenue expectations.
``Since our last announcement, we have experienced additional unanticipated
delays in orders from many of our customers, who continue to see reduced or
deferred capital spending, and are still working through inventory issues,''
commented Fred Fromm, president of Oplink. ``Current macroeconomic
conditions make visibility for the remainder of the calendar year challenging, and
we have therefore decided to undertake selected cost reduction measures
throughout the organization.''
Cost reduction measures included a reduction in work force of 166 employees in
the US, which was implemented last week. These reductions occurred primarily
in manufacturing operations and selected administrative areas. The Company
expects to achieve additional savings through normal attrition in its China
facilities. The Company is also reducing discretionary costs in other areas,
including travel and general administration.
Oplink plans to remain focused on developing new products and technologies for
its diversifying customer base, while tightly controlling its facility expansion in
China, albeit at a slower pace than previously planned.
``We continue to believe in the long-term outlook for the fiber-optics business, and remain confident that we are
taking the appropriate measures to achieve operational efficiencies until product demand and sales visibility
improve,'' concluded Fromm.
On April 19, 2001 the Company plans to release final financial results for the third quarter ended April 1, 2001,
at which time management will further discuss these results.
About Oplink Communications
Oplink designs, manufactures and markets fiber optic networking components and integrated optical modules
that expand optical bandwidth, amplify optical signals, monitor and protect wavelength performance and
redirect light signals within an optical network. Oplink offers a broad line of products that increase the
performance of optical networks and enable service providers and optical system manufacturers to provide
flexible and scalable bandwidth to support the exponential increase of data traffic on the Internet. The Company
supplies products worldwide to telecommunications equipment providers.
Except for the purely historical information contained herein, this news release contains forward-looking
statements regarding our expected financial results and other matters that involve risks and uncertainties.
These risks include, but are not limited to, the impact of reductions in work force and other restructuring on
financial results; the impact of reductions in work force on productivity and expected product manufacturing and
other plans; the widespread downturns in the overall economy in the United States and other parts of the world
and the telecommunications industry, sudden reductions in customer orders, the challenge to effectively
manage our inventory levels and operating expenses during periods of weakening demand, our reliance upon
third parties to supply our raw materials and equipment, intense competition in our target markets, the need to
retain and motivate key personnel, the concentration and success of our manufacturing operations in China,
risks associated with the protection of our, and possible infringement of others', intellectual property and other
risks detailed from time to time in our SEC filings, including our registration statement on Form S-1, dated
October 3, 2000, and Form 10-Q, dated February 14, 2001. |
