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AFOP Reports Improved First Quarter, 2012 Financial Results With Sequential Growth and Guidance
April 23, 2012 --
SUNNYVALE, Calif., April 23, 2012 (GLOBE NEWSWIRE) -- Alliance Fiber Optic Products, Inc. (Nasdaq:AFOP), an innovative supplier of fiber optic components, subsystems and integrated modules for the optical network equipment market, today reported its financial results for the first quarter ended March 31, 2012.
Revenues for the first quarter of 2012 totaled $10,535,000, a 4% increase from revenues of $10,137,000 reported in the previous quarter, and a 12% increase from revenues of $9,450,000 reported in the first quarter of 2011. The Company recorded net income for the first quarter of 2012 of $921,000, or $0.10 per share based on 8.8 million shares outstanding, compared to $707,000, or $0.08 per share based on 8.9 million shares outstanding, for the fourth quarter of 2011. This compares to net income for the first quarter of 2011 of $1,021,000, or $0.12 per share based on 8.8 million shares outstanding.
Included in expenses for the quarter ended March 31, 2012 was $247,000 of stock-based compensation. Included in expenses for the quarter ended December 31, 2011 and the quarter ended March 31, 2011 were $249,000 and $83,000 of stock-based compensation charges.
Peter Chang, President and Chief Executive Officer, commented, "We are pleased with the financial performance and progress AFOP made in the quarter ended March 31, 2012. With strong customer demand across most market segments, we delivered improved quarterly sales and higher margins, and generated increased profits in the quarter. In addition, we lowered our inventory and increased our cash and short-term and long-term investments while conducting our on-going stock repurchase program."
"While macro-economic conditions are uncertain, demand for bandwidth continues to increase and the fiber optic market continues to show signs of recovery from YR2011. Based on input from our customers, we expect revenues in the second quarter of 2012 to be above $11M. Additionally we remain optimistic about our opportunity for revenue growth and profit improvements for the remainder of 2012." concluded Mr. Chang.
Conference Call
Management will host a conference call at 1:30 p.m. Pacific time on April 23, 2012 to discuss AFOP's first quarter 2012 financial results. To participate in AFOP's conference call, please call 877-675-3572 at least ten minutes prior to the call in order for the operator to connect you. The confirmation number for the call is 69605446. AFOP will also provide a live webcast of its first quarter 2012 conference call at AFOP's website, www.afop.com. An audio replay will be available until May 23, 2012. The dial in numberfor the replay is 855-859-2056 or 404-537-3406. The replay conference ID is 69605446.
About AFOP
Founded in 1995, Alliance Fiber Optic Products, Inc. designs, manufactures and markets a broad range of high performance fiber optic components and integrated modules. AFOP's products are used by leading and emerging communications equipment manufacturers to deliver optical networking systems to the long-haul, enterprise, metropolitan and last mile access segments of the communications network. AFOP offers a broad product line of passive optical components including interconnect systems, couplers and splitters, thin film CWDM and DWDM components and modules, optical attenuators, and micro-optics devices. AFOP is headquartered in Sunnyvale, California, with manufacturing and product development capabilities in the United States, Taiwan and China. AFOP's website is located at http://www.afop.com.
The Alliance Fiber Optic Products, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5578
Except for the historical information contained herein, the matters set forth in this press release, including statements as to our expectations regarding future revenue levels, our beliefs regarding our opportunity for revenue growth and profit improvements and the time periods thereof, and our beliefs regarding business conditions, our customer base, and demand for our products are forward looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to general economic conditions and trends, the impact of competitive products and pricing, timely introduction of new technologies, timely design acceptance by our customers, the acceptance of new products and technologies by our customers, customer demand for our products, the timing of customer orders, loss of key customers, ability to ramp new products into volume production, the costs associated with running our operations, industry-wide shifts in supply and demand for optical components and modules, industry overcapacity and demand for bandwith, cost control initiatives, our ability to obtain and maintain operational efficiencies, financial stability in foreign markets, and other risks detailed from time to time in our SEC reports, including AFOP's annual report on Form 10-K for the year ended December 31, 2011. These forward-looking statements speak only as of the date hereof. AFOP disclaims any intention or obligation to update or revise any forward-looking statements.
ALLIANCE FIBER OPTIC PRODUCTS, INC. | ||
Condensed Consolidated Balance Sheets | ||
(in thousands) | ||
Mar. 31 | Dec. 31, | |
2012 | 2011 | |
(Unaudited) | ||
ASSETS | ||
Current assets: | ||
Cash and short-term investments | $ 40,422 | $ 39,588 |
Accounts receivable, net | 7,159 | 6,630 |
Inventories, net | 6,376 | 6,763 |
Other current assets | 1,158 | 714 |
Total current assets | 55,115 | 53,695 |
Long-term investments | 10,141 | 10,098 |
Property and equipment, net | 7,578 | 7,718 |
Other assets | 170 | 162 |
Total assets | $ 73,004 | $ 71,673 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | $ 4,318 | $ 3,647 |
Accrued expenses and other liabilities | 3,453 | 3,721 |
Total current liabilities | 7,771 | 7,368 |
Long-term liability | 696 | 691 |
Total liabilities | 8,467 | 8,059 |
Stockholders' equity | 64,537 | 63,614 |
Total liabilities and stockholders' equity | $ 73,004 | $ 71,673 |
ALLIANCE FIBER OPTIC PRODUCTS, INC. | |||
Condensed Consolidated Statements of Operations | |||
(In thousands, except per share amounts) | |||
(Unaudited) | |||
Three Months Ended | |||
Mar. 31, | Dec. 31, | Mar. 31, | |
2012 | 2011 | 2011 | |
Revenues | $ 10,535 | $ 10,137 | $ 9,450 |
Cost of revenues | 7,091 | 6,998 | 6,415 |
Gross profit | 3,444 | 3,139 | 3,035 |
Operating expenses: | |||
Research and development | 807 | 825 | 718 |
Sales and marketing | 675 | 595 | 550 |
General and administrative | 1,082 | 1,046 | 1,028 |
Total operating expenses | 2,564 | 2,466 | 2,296 |
Income from operations | 880 | 673 | 739 |
Interest and other income, net | 150 | 101 | 129 |
Net income before tax | 1,030 | $ 774 | 868 |
Income tax | 109 | 67 | (153) |
Net income | $ 921 | $ 707 | $ 1,021 |
Net income per share: | |||
Basic | $ 0.10 | $ 0.08 | $ 0.12 |
Diluted | $ 0.10 | $ 0.08 | $ 0.11 |
Shares used in per share calculation: | |||
Basic | 8,846 | 8,910 | 8,823 |
Diluted | 9,085 | 9,081 | 9,258 |
Included in costs and expenses above: | |||
Stock based compensation charges | |||
Cost of revenue | $ 26 | $ 25 | $ 23 |
Research and development | 27 | 27 | 8 |
Sales and marketing | 59 | 60 | 15 |
General and administrative | 135 | 137 | 37 |
Total | $ 247 | $ 249 | $ 83 |
CONTACT: Anita Ho
Acting Chief Financial Officer
Alliance Fiber Optic Products, Inc.
Phone: 408-736-6900 x168
