NUFO CC Feb 5,2002
Q4 RESULTS
Rev 9.4 mil down from 15.8 mil in Q3, 33.9 Q4 2002
Guidance 12 to 15 mil.
Deferred 2 mil in net rev., will be recognized at later date
Loss 20 cent per share, 74 mil shares out
Charge 0.2 mil in order cancellation fees, 1.5 mil favorable 1 time gain
14 to 17 mil loss projected in Q
Sluggish demand, deferred 2 mil till next year effected results
Cost cutting help us keep in range of loss for Q
lowered cost structure by 5 mil in Q
16 mil in total cost reduction projected
Lowered burn rate to 6 mil, down from 30 to 32 mil last Q
295 mil in cash, down from 301 mil
Cap Ex 1 mil in Q
Cap Ex in 2H 2001 10 mil
Outlook: limited due to difficult telecom industry
Plan to close California site in Q3 2002. Transfer to other facilities
Seeking to preserve capital and reduce burn rate
Q1: 9 to 12 mil rev, 1/3 maybe all of deferred 2.4 mil.
loss 14 to 16 mil or 19 to 20 cent per share.
not provision for additional inventory write downs and order cancellations
Q1 burn rate 10 to 13 mil,
reduction in AR, NR engineering cost etc .. helped in Q4, no recurrence in Q1
In Jan NUFO talked about the telecom component market, very few leading edge supplier and 400 wanna be's. NUFO is a wanna be. Looking to merge and acquire to get larger.
Invest in tunable lasers, high speed RF electronics, wavelength management passive components, photonic tools
Adoption for tunable products continue to be pushed out, required partnerships to build stronger market position
P/L items
Rev 9.4 mil, down 6.4 ml Q-Q
Q3 level of 15.8 mil ,still loss 16.7 mil dollars
At 9.4 mil in Q4, we loss 16 mil, 22 cents
cut cost 5.7 mil in Q, ahead 3 mil in Q
GAAP results, 59,7 mil charge due to assests impairment and restructuring.
12 mil in restructuring charge. Rest due good will write off. 12.3 in intangibles at year end
Want to reduce from 32 mil to 16 mil per Q burn rate
Telecom 4.4 mil down 9.7 mil Q-q
Photonic Tool 5.0 down from 6 mil
Telecom 2.9 mil active, 1.5 passive
Q3 7.2 active ,2.7 passive
no 10 percent customer, some in high single digits
82 per USA, 18 per Intl
Q3: 51 per USA, 49 Intl
DSO 45 days, unchanged.
Inventory Q3 10.8, down to 9.2 in Q4
Cash per share $3.88 , $3.97 last Q
Cap Ex 0.8 mil in Q
4.1 mil in depreciation
Q: Color on deferred rev? Area?
A: Deferred rev, recognize on shipment for product under production, new products recognized on delivery. most active parts and new product, 50 per drop in test and measurement business.weak amp demand reason for the drop.
Q: 7 mil to capture on the cost saving?
A: Want 6 mil in saving by Q4. Now have 9.3 mil in Q4 , so we are ahead. Want 25 per of rest in 1H of year. Accelerated in Q4 so don't expect much in 1H.
Q: Op Ex up next Q?
A: Add 1 mil back in total expense for company, includes manufacturing
Q: Acq strategy? Impact? Dilute? Stock? Cash?
A: Acq's will be accretive. Having difficult with cash and stock as stock is depressed right now. looking for developed companies, brand name, management teams etc ...
Q: Color on 50 per drop in test and measurement?
A: Changed OEM tunable platform. Was only for A. Now can be used by more manufacturers. Despite good product offering, demand is down.
Q: Run rate for break even?
A: If 16 mil in Op Ex then break even is 25 mil per Q.
Requires M+A to gain this level.
Q: A working through inventory, when will they order again?
A: No idea. Perhaps end of Q2.
Q: How many customers shipped to?
A: 25 per of rev in 4 customers. More than 1/2 from photonic tools. 300 customer for those tools. No idea how many active in Q.
Q: Indication percent of Q1 rev in backlog?
A: 50 percent of rev in backlog. Varies by product area.
Q: Utilization rate of fab?
A: Closing Camarillo site, leaves San Jose and China. Low util rate. Very under used
Q: M+A activity? Any spin off of product lines?
A: No plans, but concept is on table. Mostly merger or acq right now.
Q: Tunable lasers? Development status?
A: Sampling right now 1 st gen, highest power over total C band tuning range, Only 20 milliwatt over total C band product on market, customer require size and cost reduction before wide spread deployment. Wide scale deployment earliest is 2003. Pushing development of next gen product as a result. Several customers asking for small scale production.
Q: Competitive landscape, VCSEL, DFB and DVR???
A: Imcumbent DFB competing product to our tunable laser.
Q: Partnership for transponder development?
A: Working with many companies, no more color at this time
Q: Deferred rev, included in rev backlog for next Q?
A: Does not. Assume high side includes recognition of all deferred. Low side 1/3 of that deferred rev recognized.
Q: Any concern about epoxy in optical path in passive business?
A: Not sure what is being referred to. Never experience problem in relibility and test with epoxy in products. Highest yield off shore.
Q: head count?
A: 900 total. 300 China, 600 USA, going for 700 going forward.
Q: Cash flow break even point?
A: Break even lower than profit level due to depreciation. 20 to 22 mil range.
Q: New package for OFC ready?
A: No.
Q: Identified acq targets?
A: Talked with 40 companies to date. Still talking to 6. 2 for sure are targets, rest not sure. Still hard to close. Should be a few months for first.
[Harry: This company is a mess. It has no clear strategy or has no clear strategy it wants to share. That fact that it considers itself a wanna be as opposed to a leader is a death nell for this company. It has more than 10 Q's of cash but their product road map and the lack of identification of potential growth areas means you want to stay away from this company.] |
