Not much of a forward looking statement, but they plan to focus on their fiber business which must mean they hope it will improve.
Still, pretty lackluster results. It seems to me that HLIT has broken away from Ortel, but in the past it seemed like a good or bad report from Ortel reflected on HLIT.
Regards,Mark
Ortel Reports Year-End Results; Fiber- Optics Business Shows Year-Over-Year Revenue Growth and Remains Profitable; Wireless Operations to Be Sold
Business Wire - June 02, 1999 16:31
ALHAMBRA, Calif.--(BUSINESS WIRE)--June 2, 1999--Ortel Corp. (Nasdaq:ORTL) Wednesday reported financial results for its fiscal fourth quarter and year ended April 30, 1999.
The company also announced its intention to sell its wireless operations in order to further focus on its fiber-optic business.
For the 1999 fiscal year, Ortel reported a loss from its continuing fiber-optic and wireless operations of $670,000, or 6 cents per share, on revenues of $72.1 million. A year ago, Ortel had income from continuing operations of $4.1 million, or 36 cents per share.
As previously announced, Ortel discontinued its 980nm pump-laser product in the second quarter of fiscal 1999. After giving effect to the loss from this discontinued operation in fiscal 1999 of $5.4 million, or 45 cents per share, and $1.4 million, or 12 cents per share, in fiscal 1998, Ortel reported a net loss for fiscal 1999 of $6.0 million, or 51 cents per share, compared with net income in fiscal 1998 of $2.7 million, or 24 cents per share, on revenues of $75.9 million.
Fiscal 1999 fourth-quarter consolidated results reflect a net loss of $486,000, or 4 cents per share, on revenues of $16.9 million, compared with a net loss in the fourth quarter last year of $1.0 million, or 9 cents per share, on revenues of $16.0 million. Included in the 1998 fiscal fourth quarter is a net loss from the discontinued pump-laser operations of $576,000, or 5 cents per share.
For the full year, Ortel's fiber-optics operations (consisting of broadband, satellite communications and telecommunications) reflected year-over-year revenue gains and remained profitable.
Although total revenue for fiscal year 1999 was 5 percent lower than fiscal year 1998, fiber-optics revenue increased 2 percent and represented 90 percent of total revenue. In the fourth quarter, total revenue increased 6 percent over the corresponding prior-year quarter, while fiber-optics revenue rose 15 percent.
"Our core strengths in linear and high-speed fiber optics have significant new and expanding applications in broadband, satellite communications and telecommunications that we intend to pursue aggressively," said Wim H.J. Selders, president and chief executive officer.
"These prospects validate our commitment to more tightly focus Ortel's assets and resources on our historic strength and leadership in fiber optics. While we believe demand for wireless coverage products will increase, the sale of Ortel's wireless operations is an additional step toward assuring our undivided attention in achieving greater returns from our considerable fiber-optics technology assets."
International sales for the year of $27.4 million decreased 27 percent from fiscal 1998, primarily because of reduced revenue from Asia and South America. In the fiscal 1999 fourth quarter, international sales totaled $7.7 million, a 14 percent increase from the corresponding prior-year period.
Ortel also announced that the 1999 annual meeting of stockholders will be held at 9 a.m. Pacific Time on Friday, Sept. 24, at the company's headquarters, 2015 W. Chestnut St., Alhambra, Calif.
Ortel is a bandwidth-enabling company that designs, manufactures and supplies advanced solutions to original-equipment manufacturers for the transmission of audio, video and data.
The company applies its core technology strengths in semiconductor optoelectronics, fiber-optic transmission and radio- frequency electronics to enhance capacity, increase bandwidth, facilitate Internet access, improve quality and lower costs for broadband cable-television networks, as well as for satellite and telecommunications applications.
The company has headquarters in Alhambra and international operations in Sweden, Germany, France, Singapore and China. For more information, visit Ortel's Web site at ortel.com.
This news release contains forward-looking statements regarding Ortel's results of operations or financial condition. Factors that could cause actual results to differ materially include changes in the capital spending of CATV operators, changes in customer order patterns, introductions of new products by competitors, and other risks identified from time to time in the company's Securities and Exchange Commission filings.
ORTEL CORP.
Condensed Consolidated Statements of Operations
(In thousands, except per-share amounts)
(Unaudited) (Audited)
Three months ended Year ended
April 30, April 30,
1999 1998 1999 1998
(Reclassified/a) (Reclassified/a)
Revenue $16,935 $16,017 $72,059 $75,927
Gross profit 6,631 6,009 27,968 31,862
Operating expenses:
Research and
development 3,237 2,983 12,374 11,662
Selling, general and
administrative 5,162 4,681 18,729 16,408
Total operating
expenses 8,399 7,664 31,103 28,070
Operating income (loss)
from continuing
operations (1,768) (1,655) (3,135) 3,792
Interest and other
income, net 333 1,051 1,470 1,862
Income (loss) from
continuing operations
before income taxes (1,435) (604) (1,665) 5,654
Provision (credit) for
income taxes (949) (140) (995) 1,517
Income (loss) from
continuing operations (486) (464) (670) 4,137
Loss from discontinued
operations and disposal
of discontinued
operations, net of tax -- (576) (5,358) (1,400)
Net income (loss) $ (486) $(1,040) $(6,028) $ 2,737
Earnings (loss) per
common share -- basic:
Income (loss) from
continuing
operations $ (.04) $ (.04) $ (.06) $ .36
Discontinued
operations -- (.05) (.45) (.12)
Net income (loss) per
share -- basic $ (.04) $ (.09) $ (.51) $ .24
Average shares -- basic 11,976 11,707 11,876 11,634
As percentage of revenue:
Gross profit 39.2% 37.5% 38.8% 42.0%
Research and
development 19.1% 18.6% 17.2% 15.4%
Selling, general and
administrative 30.5% 29.2% 26.0% 21.6%
/a Certain amounts related to discontinued operations have been
reclassified to conform to the current-period presentation.
ORTEL CORP.
Condensed Consolidated Balance Sheets
(Audited)
(In thousands)
April 30,
1999 1998
(Reclassified/a)
Assets:
Cash and short-term investments $23,771 $28,668
Accounts receivable 14,548 12,819
Other receivable 684 1,415
Inventory 13,443 10,492
Current assets -- discontinued operations -- 936
Other current assets 6,162 4,127
Total current assets 58,608 58,457
Equipment and improvements, net 18,424 19,492
Intangible assets 2,123 2,581
Long-term assets -- discontinued operations -- 1,009
Other assets 9,718 8,802
Total assets $88,873 $90,341
Liabilities and stockholders' equity:
Total current liabilities $12,962 $ 9,294
Other liabilities 723 2,263
Total stockholders' equity 75,188 78,784
Total liabilities and stockholders' equity $88,873 $90,341
/a Certain amounts related to discontinued operations have been
reclassified to conform to the current-period presentation.
CONTACT: Ortel Corp., Alhambra
Sally Cholko, 626/293-3643
scholko@ortel.com
or
Pondel/Wilkinson Group, Los Angeles
Cecilia A. Wilkinson, 310/207-9300
investor@pondel.com
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