AFOP Reports Quarterly Year-Over-Year Revenue Increases of 86%; Guidance for Year-Over-Year Increases of 80% in Fourth Quarte...
October 24 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 third quarter ended September 30,
2013.
Revenues for the third quarter of 2013 totaled $23,074,000, an
86% increase from revenues of $12,390,000 reported in the third
quarter of 2012, and a 21% increase from revenues of $19,039,000
reported in the previous quarter. The Company recorded net income
for the third quarter of 2013 of $5,621,000, or $0.31 per share,
based on 18.1 million shares outstanding, compared to $1,892,000,
or $0.11 per share, based on 17.6 million shares outstanding for
the third quarter of 2012. This compares to net income for the
second quarter of 2013 of $4,282,000, or $0.24 per share, based on
17.5 million shares outstanding.
Included in expenses was stock-based compensation of $563,000
for the quarter ended September 30, 2013, $268,000 for the quarter
ended September 30, 2012 and $411,000 for the quarter ended June
30, 2013.
Peter Chang, President and Chief Executive Officer, commented,
"With the growing demand in data communication, we continued making
progress in the business in the last quarter, and delivered record
quarterly revenue exceeding the previous guidance. In addition,
profit margins improved and resulted in record profits. The balance
sheet continued to strengthen with improved inventory turns and a
higher net cash balance."
"Data bandwidth demands continue to increase and the next growth
cycle in the fiber optics industry is emerging. While we are
pleased with delivering record financial performance for this year,
we are excited with the business prospects in the coming years.
Even with year-end seasonal effects in the fourth quarter of 2013,
we expect revenues in the quarter to be at a similar level, between
$21.5M and $23.5M, which would represent 77% to 93% growth on a
year over year basis. With this range of quarterly revenue, we
believe we will end the year of 2013 with record sales and record
profits as well," concluded Mr. Chang.
Conference Call
Management will host a conference call at 1:30 p.m. (Pacific) on
October 24, 2013 to discuss AFOP's third quarter 2013 financial
results. 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 75814791. AFOP will also provide a live
webcast of its third 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, margins,
and sales and the time periods thereof and our beliefs regarding
demand for data communications and growth in the fiber optics
industry 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 bandwith, 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 bandwith, 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 June 30,
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) |
|
|
|
|
Sept. 30, |
Dec. 31, |
|
2013 |
2012 |
|
(Unaudited) |
|
ASSETS |
|
|
Current assets |
|
|
Cash and short-term investments |
$45,674 |
$33,275 |
Accounts receivable, net |
12,365 |
8,046 |
Inventories, net |
10,236 |
6,933 |
Deferred tax asset |
1,234 |
1,234 |
Other current assets |
2,122 |
1,166 |
Total current assets |
71,631 |
50,654 |
|
|
|
Long-term investments |
10,408 |
10,274 |
Property and equipment, net |
10,292 |
7,708 |
Deferred tax asset |
2,468 |
2,468 |
Other assets |
197 |
249 |
Total assets |
$94,996 |
$71,353 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$12,242 |
$6,591 |
Accrued expenses and other
liabilities |
6,038 |
4,115 |
Total current liabilities |
18,280 |
10,706 |
|
|
|
Long-term liability |
604 |
616 |
Total liabilities |
18,884 |
11,322 |
|
|
|
Stockholders' equity |
76,112 |
60,031 |
Total liabilities and stockholders'
equity |
$94,996 |
$71,353 |
The condensed consolidated balance sheets and statements of
operations reflect the 2-for-1 split of Common Stock in the form of
a stock dividend effected on August 30, 2013.
ALLIANCE FIBER OPTIC
PRODUCTS, INC. |
Condensed Consolidated
Statements of Operations |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
Sept. 30 |
Jun. 30 |
Sept. 30 |
Sept. 30 |
Sept. 30 |
|
2013 |
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
|
Revenues |
$ 23,074 |
$ 19,039 |
$ 12,390 |
$ 54,266 |
$ 34,452 |
|
|
|
|
|
|
Cost of revenues |
14,218 |
11,759 |
7,979 |
33,722 |
22,688 |
Gross profit |
8,856 |
7,280 |
4,411 |
20,544 |
11,764 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Research and development |
1,024 |
859 |
819 |
2,696 |
2,465 |
Sales and marketing |
835 |
791 |
614 |
2,338 |
1,951 |
General and administrative |
1,339 |
1,185 |
1,079 |
3,640 |
3,281 |
Total operating expenses |
3,198 |
2,835 |
2,512 |
8,674 |
7,697 |
Income from operations |
5,658 |
4,445 |
1,899 |
11,870 |
4,067 |
Interest and other income, net |
173 |
163 |
194 |
469 |
504 |
Net income before taxes |
$ 5,831 |
$ 4,608 |
$ 2,093 |
$ 12,339 |
$ 4,571 |
Income tax |
(210) |
(326) |
(201) |
(586) |
(526) |
Net income |
$ 5,621 |
$ 4,282 |
$ 1,892 |
$ 11,753 |
$ 4,045 |
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
$ 0.31 |
$ 0.24 |
$ 0.11 |
$ 0.67 |
$ 0.23 |
Diluted |
$ 0.30 |
$ 0.23 |
$ 0.11 |
$ 0.65 |
$ 0.22 |
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
Basic |
18,056 |
17,498 |
17,581 |
17,584 |
17,638 |
Diluted |
18,754 |
18,413 |
17,977 |
18,107 |
18,000 |
|
|
|
|
|
|
Included in costs and expenses above: |
|
|
|
|
|
Stock based compensation charges |
|
|
|
|
|
Cost of revenue |
$ 116 |
$ 64 |
$ 28 |
$ 215 |
$ 86 |
Research and development |
71 |
46 |
32 |
149 |
92 |
Sales and marketing |
132 |
96 |
65 |
295 |
188 |
General and administrative |
244 |
205 |
143 |
595 |
420 |
Total |
$ 563 |
$ 411 |
$ 268 |
$ 1,254 |
$ 786 |
CONTACT: Anita Ho
Acting Chief Financial Officer
Alliance Fiber Optic Products, Inc.
Phone: 408-736-6900 x168
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