Alliance Fiber Optic Products, Inc. Announces 4th Quarter and Full Year 2000 Results; 4Q'00 Revenues of $8.8 Million 254% Higher Than Year Ago Quarter.Business Editors SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif.--(BUSINESS WIRE)--Feb. 1, 2001 Alliance Fiber Optic Products, Inc. (Nasdaq:AFOP AFOP Alliance Fiber Optic Products, Inc. AFOP Association of Farmworker Opportunity Programs AFOP Association Française des industries de l'Optique et de la Photonique AFOP and for other purposes AFOP acute fibrinous and organizing pneumonia ), a leading supplier of fiber optic components and integrated modules for the optical network equipment market, today reported its fourth quarter and year end results for the period ended December December: see month. 31, 2000. Revenues for the fourth quarter were $8,848,000, a sequential increase of 48% from $5,961,000 recorded in the quarter ended September September: see month. 30, 2000 and a 254% increase over revenues of $2,501,000 recorded in the same period a year ago. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for the fourth quarter was $442,000, or $0.01 per share, based on 34.3 million diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares outstanding. This compares to pro forma net income of $728,000, or $0.02 per share, on 30.6 million diluted shares outstanding, for the third quarter of 2000, and a pro forma net loss of $199,000, or $0.01 per share, on 21.8 million basic shares outstanding, for the fourth quarter of 1999. Revenues for the year 2000 were $22,223,000, a 194% increase over the $7,551,000 in revenues reported for 1999. Pro forma net income for 2000 was $1,020,000, or $0.03 per share, on 29.7 million diluted shares outstanding, compared to a pro forma net loss of $625,000, or $0.03 per share, on 21.5 million basic shares outstanding, for 1999. The pro forma calculations for the fourth and third quarters of 2000 excluded non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for the amortization of stock-based compensation of $3,891,000 and $3,656,000, respectively. In the fourth quarter of 1999, the stock-based compensation charge was $137,000. The number of shares used in the calculation of the pro forma net income or loss per share for each reporting period assumes the conversion of the company's convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". into common stock, if applicable. Such conversion was completed in conjunction with the company's initial public offering in November 2000. Without the pro forma adjustments that eliminate the deferred stock compensation charges and convert preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. into common stock, the company recorded a net loss for the fourth quarter of 2000 of $3,449,000 or $0.20 per share, based on 17.7 million basic shares outstanding. This compares to a net loss attributable to common stockholders of $17,686,000, or $3.34 per share, based on 5.3 million basic shares outstanding for the third quarter of 2000, and a net loss of $336,000, or $0.07 per share, based on 4.8 million basic shares outstanding, for the year ago quarter. The loss for the third quarter of 2000 included a one-time, deemed preferred stock dividend of $14.8 million. Peter Chang Chang (chăng) or Yangtze (yăng`sē`, yäng`dzŭ`), Mandarin Chang Jiang, longest river of China and of Asia, c.3,880 mi (6,245 km) long, rising in the Tibetan highlands, SW Qinghai prov. , President and Chief Executive Officer, commented, "We are very proud of AFOP's accomplishments this past year, particularly in the fourth quarter with the successful completion of our initial public offering, our strong financial results, and the strong customer demand for AFOP's fiber optic components and module solutions." "During the quarter we made progress with our DWDM (Dense WDM) The term given to wavelength division multiplexing (WDM) when significantly more channels were being added. Since WDM is increasingly more "dense" all the time, both terms are used synonymously. See WDM. DWDM - wavelength division multiplexing product line, marked by production order deliveries to telecomm OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers, release of our optical add/drop product family, and multiple evaluation orders with several additional OEMs in the industry," continued Chang. "Also during the fourth quarter we are very pleased to have booked approximately $1 million in new orders with Ciena, Inc. And we have added 25 new customers in the quarter, bringing AFOP's total customer count for the year close to 180. More recently, we booked our first orders from Japan for our fused fuse 1 also fuze n. 1. A cord of readily combustible material that is lighted at one end to carry a flame along its length to detonate an explosive at the other end. 2. fiber products, as well as for DWDM components," continued Chang. "R&D personnel grew by over 50% in the quarter as we continued our focus on new product development programs, and we added an additional 10,000 square foot facility for research and new product development in Sunnyvale, California Sunnyvale ([sʌniveil]) is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley. As of the 2000 census, the city population was 131,760. . We also began manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. at our new facility in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China ahead of schedule. We believe we have set the stage for continued success in 2001 as we expand our customer base and make progress on new product development programs," concluded Chang. On November 20, 2000, AFOP completed an initial public offering of 4,500,000 common shares at $11 per share, raising approximately $43.6 million, net of offering costs. These net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. are being used to expand the company's technology and product offerings, to increase its production to support continued growth, to pay down debt, and for general corporate purposes. Conference Call Management will host a conference call at 2:00 p.m. Pacific Time on February 1, 2001 to discuss AFOP's fourth quarter 2000 financial results. To participate in AFOP's conference call, please call 800/240-7305 at least ten minutes prior to the call in order for the operator to connect you. The confirmation number for the call is 812930. AFOP will also provide a live webcast of its fourth quarter financial conference call at AFOP's Web site www.afop.com. A replay will be available beginning at approximately 5:00 p.m. Pacific Time on February 1, 2001 through 5:00 p.m. Pacific Time on February 8, 2001 on both the AFOP Web site, and by dialing 800/405-2236; confirmation number 812930. 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 Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. systems to the rapidly growing long-haul, metropolitan and last mile access segments of the communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. . AFOP offers a broad product line of passive optical components including interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. systems, couplers and splitters, thin film DWDM components and modules, fixed and variable optical attenuators An optical attenuator is a device used to reduce the power level of an optical signal, either in free space or in an optical fiber. They are commonly used in fiber optic communications. , and depolarizers. AFOP is headquartered in Sunnyvale, California, with manufacturing and product development capabilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Taiwan. AFOP's Web site 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 AFOP's plans for expansion of its customer base, technology and product offerings, and expectations as to continued growth and product development programs, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand for optical components and modules, industry overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. , financial stability in foreign markets, and other risks detailed in AFOP's Prospectus dated November 20, 2000 filed with the SEC and from time to time in AFOP's SEC reports. These forward-looking statements speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . AFOP disclaims any intention or obligation to update or revise any forward-looking statements. For additional information contact AFOP, Inc. at 735 North Pastoria Avenue, Sunnyvale, CA 94085; Tel: 408/736-6900. Fax: 408/736-2466. Email: ir@afop.com. Web site: http://www.afop.com.
ALLIANCE FIBER OPTIC PRODUCTS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
December 31,
2000 1999
---- ----
Assets
Current Assets:
Cash and short-term investments $ 66,677 $ 6,139
Accounts receivable, net 5,302 1,755
Inventories 6,792 1,433
Prepaid expenses and
other current assets 835 142
-------- ---------
Total current assets 79,606 9,469
Property and equipment, net 8,590 2,561
Other assets 329 112
-------- ---------
Total assets $ 88,525 $ 12,142
======== =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,234 $ 1,010
Accrued expenses 2,611 494
Current portion of
long-term liabilities -- 90
-------- ---------
Total current liabilities 5,845 1,594
Long-term liabilities 181 317
Convertible preferred stock -- 9,835
Stockholders' equity 82,499 396
-------- ---------
Total liabilities
and stockholders' equity $ 88,525 $ 12,142
======== =========
ALLIANCE FIBER OPTIC PRODUCTS, INC.
Condensed Consolidated Statements of Operations
(In thousands, except for per share amounts)
Three Months Ended Years Ended
------------------ -----------
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2000 2000 1999 2000 1999
------- ------- ------- ------- -------
Revenues $ 8,848 $ 5,961 $ 2,501 $ 22,223 $ 7,551
Cost of revenues 5,624 3,613 1,592 13,374 4,885
Stock-based
compensation charge 573 269 18 950 26
------- ------- ------- ------- -------
Total cost of
revenues 6,197 3,882 1,610 14,324 4,911
------- ------- ------- ------- -------
Gross profit 2,651 2,079 891 7,899 2,640
Operating expenses:
Research and
development 1,549 823 506 4,280 1,532
Sales and marketing 647 520 307 1,982 968
General and
administrative 936 527 336 2,285 975
Stock-based
compensation charge 3,318 3,387 119 8,181 620
------- ------- ------- ------- -------
Total operating
expenses 6,450 5,257 1,268 16,728 4,095
------- ------- ------- ------- -------
Loss from operations (3,799) (3,178) (377) (8,829) (1,455)
Interest and other
income, net 588 337 27 1,114 117
------- ------- ------- ------- -------
Loss before income
taxes (3,211) (2,841) (350) (7,715) (1,338)
Income tax provision
(benefit) 238 87 (14) 396 (67)
------- ------- ------- ------- -------
Net loss (3,449) (2,928) (336) (8,111) (1,271)
Deemed preferred
stock dividend -- (14,758) -- (14,758) --
------- ------- ------- ------- -------
Net loss attributable
to common
stockholders $ (3,449) $(17,686) $ (336) $(22,869) $ (1,271)
======== ======== ======== ======== ========
Net loss per share
attributable to
common stockholders $ (0.20) $ (3.34) $ (0.07) $ (2.71) $ (0.31)
Shares used in
computing net loss
per share 17,656 5,295 4,800 8,452 4,080
======== ======== ======== ======== ========
Pro-forma results, excluding
stock based compensation and deemed
preferred stock dividend:
Net income (loss) $ 442 $ 728 $ (199) $ 1,020 $ (625)
Net income (loss)
per share $ 0.01 $ 0.02 $ (0.01) $ 0.03 $ (0.03)
Shares used in
computing pro-forma
net income (loss)
per share 34,300 30,600 21,800 29,700 21,500
======== ======== ======== ======== ========
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