AFOP Reports Quarterly Year-Over-Year Increases of 248% in Net Income and 65% in Revenue; Guidance for Record Revenues in Thi...
July 23 2013 - 4:05PM
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 second quarter ended June 30, 2013.
Revenues for the second quarter of 2013 totaled $19,039,000, a
65% increase from revenues of $11,527,000 reported in the second
quarter of 2012, and a 57% increase from revenues of $12,153,000
reported in the previous quarter. The Company recorded net income
for the second quarter of 2013 of $4,282,000, or $0.49 per share,
based on 8.75 million shares outstanding, compared to $1,232,000,
or $0.14 per share, based on 8.8 million shares outstanding for the
second quarter of 2012. This compares to net income for the first
quarter of 2013 of $1,850,000, or $0.22 per share, based on 8.6
million shares outstanding.
Included in expenses was stock-based compensation of $411,000
for the quarter ended June 30, 2013, $271,000 for the quarter ended
June 30, 2012 and $280,000 for the quarter ended March 31,
2013.
Peter Chang, President and Chief Executive Officer, commented,
"We are very pleased with the exceptional financial performance and
progress AFOP made in the quarter ended June 30, 2013. With
excellent efforts by our Asia operations, we managed unexpected
demand increases and delivered much higher than originally guided
quarterly revenues. With our focus on operational excellence, we
continued to improve gross margins to a record level above 38%,
which resulted in a 132% increase in profits based on our 57%
revenue growth from the previous quarter. In addition, our balance
sheet becomes stronger with improved inventory turn and a higher
net cash balance."
"More importantly, customer demand remains strong. Therefore, we
expect revenues to increase to another record level, between $19.5M
and $20.5M, in the third quarter of 2013. With higher revenues and
our continued focus on operational efficiency, we expect our gross
margins and profit will improve in the quarter as well." concluded
Mr. Chang.
Conference Call
Management will host a conference call at 1:30 p.m. Pacific Time
on July 23, 2013 to discuss AFOP's second quarter 2013 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 11703727. AFOP will also provide a live webcast of its second
quarter 2013 conference call at AFOP's website, www.afop.com. The
webcast replay will be available on AFOP's website 90 minutes after
the live conference call.
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.
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, profits and
margins and the time periods thereof, our operational excellence,
its impact on margins, and our ability to sustain the same, and our
expectations regarding customer demand, 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, trends in
demand for bandwidth, 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, our ability
to ramp new products into volume production, the mix of products
sold and product pricing, the costs associated with running our
operations, industry-wide shifts in supply and demand for optical
components and modules, industry overcapacity and demand for
bandwidth, the success of 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 quarterly report on Form 10-Q for
the quarter ended March 31, 2013. 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) |
|
|
|
|
Jun. 30 |
Dec. 31, |
|
2013 |
2012 |
|
(Unaudited) |
|
ASSETS |
|
|
Current assets: |
|
|
Cash and short-term investments |
$ 38,440 |
$ 33,275 |
Accounts receivable, net |
11,260 |
8,046 |
Inventories, net |
9,349 |
6,933 |
Deferred tax asset |
1,234 |
1,234 |
Other current assets |
1,714 |
1,166 |
Total current assets |
61,997 |
50,654 |
|
|
|
Long-term investments |
10,363 |
10,274 |
Property and equipment, net |
8,502 |
7,708 |
Deferred tax asset |
2,468 |
2,468 |
Other assets |
212 |
249 |
Total assets |
$ 83,542 |
$ 71,353 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
Current liabilities: |
|
|
Accounts payable |
$ 10,552 |
$ 6,591 |
Accrued expenses and other
liabilities |
5,099 |
4,115 |
Total current liabilities |
15,651 |
10,706 |
|
|
|
Long-term liability |
588 |
616 |
Total liabilities |
16,239 |
11,322 |
|
|
|
Stockholders' equity |
67,303 |
60,031 |
Total liabilities and stockholders'
equity |
$ 83,542 |
$ 71,353 |
|
|
|
ALLIANCE FIBER OPTIC
PRODUCTS, INC. |
Condensed Consolidated
Statements of Operations |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
Six Months Ended |
|
Jun. 30, |
Mar. 31, |
Jun. 30, |
Jun. 30, |
Jun. 30, |
|
2013 |
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
|
Revenues |
$ 19,039 |
$ 12,153 |
$ 11,527 |
$ 31,192 |
$ 22,062 |
|
|
|
|
|
|
Cost of revenues |
11,759 |
7,745 |
7,618 |
19,504 |
14,709 |
Gross profit |
7,280 |
4,408 |
3,909 |
11,688 |
7,353 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Research and development |
859 |
813 |
839 |
1,672 |
1,646 |
Sales and marketing |
791 |
712 |
662 |
1,503 |
1,337 |
General and administrative |
1,185 |
1,116 |
1,120 |
2,301 |
2,202 |
Total operating expenses |
2,835 |
2,641 |
2,621 |
5,476 |
5,185 |
|
|
|
|
|
|
Income from operations |
4,445 |
1,767 |
1,288 |
6,212 |
2,168 |
Interest and other income, net |
163 |
133 |
160 |
296 |
310 |
Net income before tax |
$ 4,608 |
$ 1,900 |
$ 1,448 |
$ 6,508 |
$ 2,478 |
Income tax |
(326) |
(50) |
(216) |
(376) |
(325) |
Net income |
$ 4,282 |
$ 1,850 |
$ 1,232 |
$ 6,132 |
$ 2,153 |
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
$ 0.49 |
$ 0.22 |
$ 0.14 |
$ 0.71 |
$ 0.24 |
Diluted |
$ 0.47 |
$ 0.21 |
$ 0.14 |
$ 0.68 |
$ 0.24 |
|
|
|
|
|
|
Shares used in per share calculation: |
|
|
|
|
|
Basic |
8,749 |
8,595 |
8,820 |
8,672 |
8,833 |
Diluted |
9,207 |
8,906 |
9,000 |
9,059 |
9,020 |
|
|
|
|
|
|
Included in costs and expenses above: |
|
|
|
|
|
Stock based compensation charges |
|
|
|
|
|
Cost of revenue |
$ 64 |
$ 35 |
$ 32 |
$ 99 |
$ 58 |
Research and development |
46 |
33 |
33 |
79 |
60 |
Sales and marketing |
96 |
66 |
64 |
162 |
123 |
General and administrative |
205 |
146 |
142 |
351 |
277 |
Total |
$ 411 |
$ 280 |
$ 271 |
$ 691 |
$ 518 |
CONTACT: Anita Ho
Acting Chief Financial Officer
Alliance Fiber Optic Products, Inc.
Phone: 408-736-6900 x168
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