AFOP Reports Tax Related Adjustments to Previously Reported Results
March 09 2015 - 9:00AM
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
during the preparation of its 2014 US tax return and 10-K, the
company determined that it under-booked by approximately $2,553,000
"Benefit (provision) for Income taxes" related to stock based
compensation expenses.
AFOP previously reported, in its preliminary financial
statements on February 04, 2015, GAAP net income was $17,061,000,
"Benefit (provision) for Income Taxes" was $5,311,000, and diluted
earnings per share was $0.90 for the full year. Those figures now
are $14,508,000, $7,864,000 and $0.77, respectively, for the full
year. Non-GAAP net income and diluted earnings per share as
reported in the preliminary financial results on February 04, 2015,
remain the same at $22,063,000 and $1.17, respectively, for the
full year. Please refer to the reconciliation table between GAAP
and non-GAAP in the release, and the 10-K for complete results,
which will be filed on time before March 16, 2015.
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.
ALLIANCE FIBER OPTIC
PRODUCTS, INC. |
Reconciliations from
GAAP to Non-GAAP |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
Previously Reported |
With Adjustments |
|
Year
Ended |
|
|
Dec. 31, |
Dec. 31, |
|
2014 |
2014 |
Gross Profit
Reconciliation |
|
|
GAAP gross profit |
$ 34,217 |
$ 34,217 |
Stock-based compensation expense |
492 |
492 |
Adjusted (non-GAAP) gross profit |
$ 34,709 |
$ 34,709 |
Adjusted (non-GAAP) gross margin |
40.4% |
40.4% |
|
|
|
Operating Expense
Reconciliation |
|
|
GAAP operating expenses |
$ 12,614 |
$ 12,614 |
Stock-based compensation expense |
1,669 |
1,669 |
Adjusted (non-GAAP) operating expenses |
$ 10,945 |
$ 10,945 |
|
|
|
Income from Operations
Reconciliation |
|
|
GAAP income from operations |
$ 21,603 |
$ 21,603 |
Adjustments related to gross profit |
492 |
492 |
Adjustments related to operating expense |
1,669 |
1,669 |
Adjusted (non-GAAP) income from
operations |
$ 23,764 |
$ 23,764 |
Adjusted (non-GAAP) operating margin |
27.6% |
27.6% |
|
|
|
Net
Income Reconciliation |
|
|
GAAP net income |
$ 17,061 |
$ 14,508 |
Adjustments related to gross profit |
492 |
492 |
Adjustments related to operating expense |
1,669 |
1,669 |
Income tax (benefit) provision
adjustments |
2,841 |
5,394 |
Adjusted (non-GAAP) net income |
$ 22,063 |
$ 22,063 |
|
|
|
Weighted average shares outstanding |
|
|
Basic |
18,488 |
18,488 |
Diluted |
18,935 |
18,935 |
|
|
|
Net Income per Common Share -
Basic: |
|
|
GAAP as reported |
$ 0.92 |
$ 0.78 |
Non-GAAP as adjusted |
$ 1.19 |
$ 1.19 |
|
|
|
Net Income per Common Share -
Diluted: |
|
|
GAAP as reported |
$ 0.90 |
$ 0.77 |
Non-GAAP as adjusted |
$ 1.17 |
$ 1.17 |
|
|
|
Non-GAAP EBITDA |
|
|
Non-GAAP net income |
$ 22,063 |
$ 22,063 |
Depreciation expense |
2,798 |
2,798 |
Interest income |
(755) |
(755) |
Income tax expense |
2,470 |
2,470 |
Non-GAAP EBITDA |
$ 26,576 |
$ 26,576 |
Use of Non-GAAP Financial Information
The company provides Non-GAAP gross margin, Non-GAAP net income,
Non-GAAP basic and diluted net income per share and EBITDA as
supplemental information. In computing these non-GAAP financial
measures, the company excludes certain items included under GAAP,
including stock-based compensation expense and income tax provision
adjustments. In computing EBITDA, the company also excludes
interest income, provision for (benefit from) income taxes and
depreciation expense.
Management uses these Non-GAAP financial measures to evaluate
the operating performance of the business and aid in
period-to-period comparability. Management also uses the Non-GAAP
financial measures for planning and forecasting and measuring
results against its forecast. Using several measures to evaluate
the business allows the company and investors to assess the
company's relative performance. The Non-GAAP financial measures
provided herein may not provide information that is directly
comparable to that provided by other companies in our industry, as
other companies may calculate such financial results differently.
The company's Non-GAAP financial measures are not measurements of
financial performance under GAAP, and should not be considered as
alternatives to the financial measures derived in accordance with
GAAP. The company does not consider these Non-GAAP financial
measures to be a substitute for, or superior to, the information
provided by GAAP financial results. A reconciliation of the
Non-GAAP financial measures to the most directly comparable GAAP
financial measures is provided in the financial schedules portion
of this press release.
CONTACT: Keting Lin, IR Associate
Alliance Fiber Optic Products, Inc.
Phone: 408-736-6900 x188
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