AFOP Reports 1st Quarter 2006 Results
May 01 2006 - 4:05PM
Business Wire
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, 2006.
The Company's GAAP results reflect the adoption of SFAS 123(R)
regarding the expensing of stock-based compensation. Revenues for
the first quarter of 2006 totaled $5,221,000, a 4% increase from
revenues of $5,006,000 recorded in the first quarter of 2005 and
compared with $5,510,000 for the fourth quarter. The Company
recorded a net loss for the first quarter of 2006 of $373,000, or
$0.01 per share, and improved over a net loss for the first quarter
of 2005 of $812,000, or $0.02 per share. This compares to a net
loss for the fourth quarter of 2005 of $527,000, or $0.01 per
share. Included in the net loss for the quarter ended March 31,
2006 was $77,000 of stock-based compensation charges under SFAS
123(R). There were no deferred stock compensation charges for the
quarter ended March 31, 2005. Peter Chang, President and Chief
Executive Officer, commented, "Our first quarter results reflect
our continued focus on operating efficiencies. Despite a slight
decline in revenues from last quarter, we reduced the net loss by
29% from the previous quarter. When compared to the year ago
period, revenues increased by 4%, our gross margin percentage
improved to 26% as compared to 19%, and the net loss was reduced by
54%, again highlighting our strong focus on expense control. Our
balance sheet remains strong with cash and cash equivalents
essentially unchanged from year-end at $29 million." "Although the
first quarter revenues were slightly below Q4, 2005, we believe the
decline was temporary as orders from those affected customers have
resumed at previous levels. Based on input from our customers, we
expect that revenues will improve by 5 to 10 percent in the second
quarter of 2006. Additionally, as we continue our focus on
operational efficiencies, we are targeting further reduction in the
net loss in the coming quarters," concluded Mr. Chang. Conference
Call Management will host a conference call at 1:30 p.m. Pacific
Time on May 1, 2006 to discuss AFOP's first quarter 2006 financial
results. To participate in AFOP's conference call, please call
877-407-9210 at least ten minutes prior to the call in order for
the operator to connect you. The confirmation number for the call
is 200276. AFOP will also provide a live webcast of its first
quarter 2006 conference call at AFOP's website www.afop.com. An
audio replay will be available until May 8. The dial in for the
replay is 877-660-6853. The replay passcodes (account # 286;
conference ID#: 200276) are both required for the replay. 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 DWDM components and modules, fixed and variable optical
attenuators, and depolarizers. 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. Except for the historical information
contained herein, the matters set forth in this press release,
including statements as to our future prospects, our ability to
control expenses, our ability to improve operational efficiencies,
our order trends and customer activity, and expected revenue growth
and reduction in net loss, 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, the
timing of customer orders, loss of key customers, ability to ramp
new products into volume production, industry-wide shifts in supply
and demand for optical components and modules, industry
overcapacity, failure of cost control initiatives, financial
stability in foreign markets, and other risks detailed from time to
time in our SEC reports, including AFOP's Form 10-K for the year
ended December 31, 2005. 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. -0-
*T ALLIANCE FIBER OPTIC PRODUCTS, INC. Condensed Consolidated
Balance Sheets (in thousands) (Unaudited) Mar. 31, Dec. 31, 2006
2005 ------------ ------------ ASSETS Current assets: Cash and
short-term investments $29,264 $29,407 Accounts receivable 3,186
3,570 Inventories 3,926 3,670 Other current assets 708 634
------------ ------------ Total current assets 37,084 37,281
Property and equipment, net 4,352 4,564 Other assets 132 105
------------ ------------ Total assets $41,568 $41,950 ============
============ LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $2,437 $2,342 Accrued expenses and
other liabilities 2,177 2,428 ------------ ------------ Total
current liabilities 4,614 4,770 Long-term liability 849 859
------------ ------------ Total liabilities 5,463 5,629
Stockholders' equity 36,105 36,321 ------------ ------------ Total
liabilities and stockholders' equity $41,568 $41,950 ============
============ 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, 2006
2005 2005 ---------- ---------- ---------- Revenues $5,221 $5,510
$5,006 Cost of revenues 3,884 4,070 4,075 ---------- ----------
---------- Gross profit 1,337 1,440 931 ---------- ----------
---------- Operating expenses: Research and development 759 816 952
Sales and marketing 586 524 574 General and administrative 763 790
750 ---------- ---------- ---------- Total Operating Expenses 2,108
2,130 2,276 Loss from operations (771) (690) (1,345) Interest and
other income, net 398 163 533 ---------- ---------- ---------- Net
loss $(373) $(527) $(812) ========== ========== ========== Net loss
per share -- basic and diluted $(0.01) $(0.01) $(0.02) Weighted
average shares outstanding 39,771 39,630 39,017 Included in costs
and expenses above: Stock based compensation charges Cost of
revenue $23 $- $- Research and development 14 - - Sales and
marketing 12 - - General and administrative 28 - - ----------
---------- ---------- Total $77 $- $- ========== ==========
========== *T
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