UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): July 28, 2014
ALLIANCE FIBER OPTIC
PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Delaware |
0-31857 |
77-0554122 |
(State or other
jurisdiction |
(Commission |
(IRS
Employer |
of
incorporation) |
File Number) |
Identification
No.) |
275
Gibraltar Drive, Sunnyvale, California |
94089 |
(Address of principal
executive offices) |
(Zip
Code) |
Registrants telephone number,
including area code: (408) 736-6900
Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions:
o |
|
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR
230.425) |
|
|
|
o |
|
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12) |
|
|
|
o |
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
|
|
|
o |
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
Item 2.02. Results of Operations and Financial
Condition.
The information in this Current Report is being furnished and shall not
be deemed filed for the purposes of Section 18 of the Securities Exchange Act
of 1934, or otherwise subject to the liabilities of that Section. The
information in this Current Report shall not be incorporated by reference into
any registration statement or other document filed pursuant to the Securities
Act of 1933, except as shall be expressly set forth by specific reference in
such a filing.
On July 28, 2014, Alliance Fiber Optic
Products, Inc. issued a press release announcing its financial results for the
quarter ended June 30, 2014. A copy of the earnings release is furnished
herewith as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
Exhibit |
|
Description |
|
99.1 |
|
Press Release dated July 28, 2014 announcing
second quarter 2014 results. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: July 28, 2014
ALLIANCE FIBER
OPTIC PRODUCTS, |
INC. |
|
|
By |
|
/s/ Anita K. Ho |
Name:
|
Anita K.
Ho |
Title: |
Acting Chief
Financial Officer |
EXHIBIT INDEX
Exhibit |
|
|
|
Number |
|
Description |
|
99.1 |
|
Press release
dated July 28, 2014 announcing second quarter 2014
results. |
Contact: |
|
|
Keting Lin, IR
Associate |
|
Alliance Fiber
Optic Products, Inc. |
July 28, 2014 |
408-736-6900
x188 |
|
Email:
klin@afop.com |
|
AFOP REPORTS 27% YEAR
OVER YEAR REVENUE INCREASE IN Q2 2014
Sunnyvale, CA July 28,
2014 - Alliance Fiber Optic Products, Inc. (Nasdaq GM: AFOP), an innovative
supplier of fiber optic components, subsystems and integrated modules for the
fiber optic communication market, today reported its financial results for the
second quarter ended June 30, 2014.
Revenues for the second
quarter of 2014 were $24,199,000, a 27% increase from revenues of $19,039,000
reported in the second quarter of 2013, and a 3% decrease from revenues of
$24,882,000 reported in the first quarter of 2014.
Net income for the quarter
ended June 30, 2014, was $3,782,000, or $0.20 per share, compared to net income
of $4,282,000, or $0.24 per share, for the second quarter of 2013, and net
income of $5,015,000, or $0.27 per share, for the first quarter of 2014.
Included in net income for the second quarter of 2014 and the first quarter of
2014 are income tax provision adjustments of $2,134,000 and $659,000
respectively, as a result of deferred income tax expenses based on utilization
of net operating loss. Excluding these tax provision adjustments, net income in
the second quarter of 2014 increased to $5,916,000, or $0.32 per share, compared
to net income of $4,282,000, or $0.24 per share, for the second quarter of 2013,
and net income of $5,674,000 or $0.31 per share for the first quarter of
2014.
Gross margin for the
quarter ended June 30, 2014 increased to 40.1%, compared to 38.2% in the year
ago quarter and 39.8% in the first quarter of 2014. Operating margin for the
quarter ended June 30, 2014 increased to 27.1%, compared to 23.4% in the year
ago quarter and 26.0% in the first quarter of 2014.
Non-GAAP net income for the
quarter ended June 30, 2014 increased to $6,446,000, or $0.35 per share,
compared to non-GAAP net income of $4,693,000, or $0.27 per share, for the
second quarter of 2013, and non-GAAP net income of $6,391,000, or $0.35 per
share, for the first quarter of 2014.
Non-GAAP gross margin for
the quarter ended June 30, 2014 was 40.5%, compared to 38.9% in the year ago
quarter and 40.6% in the first quarter of 2014. Non-GAAP operating margin for
the quarter ended June 30, 2014 was 29.3%, compared to 25.5% in the year ago
quarter and 28.9% in the first quarter of 2014.
Peter Chang, President and
Chief Executive Officer, commented, Although our second quarter revenues fell
short of our previous guidance, due to lower than expected demand from one key
customer, sales in the second quarter increased 27% from the year ago
quarter. We are encouraged by increased
sales to our telecom customers and European customers during the quarter. In
addition, our income from operations in the first six months of 2014 doubled
from the first six months of 2013.
Regarding forward
guidance, based on input from our customers and current orders, we expect
revenues in the third quarter to be at a similar level to the second quarter.
Despite relatively flat revenues in these three quarters, we continue being
encouraged by the prospect of emerging business growth in the coming years,
because of increasing data bandwidth demands driving the next growth cycle in
the fiber optics industry. In the meantime, we expect to deliver record annual
sales and profits in this fiscal year. concluded Mr.
Chang.
Conference Call
Management will host a
conference call at 1:30 p.m. PT on July 28, 2014 to discuss AFOPs second
quarter 2014 financial results as well as the outlook for the third quarter of
2014. 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
71715763. AFOP will also provide a live webcast of its second quarter 2014
conference call at AFOPs website: www.afop.com. The webcast replay will be
available on AFOPs 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, data center,
metropolitan and last mile access segments of the communications network. AFOP
offers a broad product line of passive optical components including interconnect
systems, splitters, thin film CWDM and DWDM components and modules, and optical
attenuators. 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 sales and
profit levels and the time periods thereof, our business prospects, demand for
our products and sources of demand, and our expectations for growth in the fiber
optic 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 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 or customer orders, 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, 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, 2014. 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 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, |
|
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
Revenues |
|
$ |
24,199 |
|
|
$ |
24,882 |
|
|
$ |
19,039 |
|
|
$ |
49,081 |
|
|
$ |
31,192 |
|
|
Cost
of revenues |
|
|
14,504 |
|
|
|
14,968 |
|
|
|
11,759 |
|
|
|
29,472 |
|
|
|
19,504 |
|
Gross
profit |
|
|
9,695 |
|
|
|
9,914 |
|
|
|
7,280 |
|
|
|
19,609 |
|
|
|
11,688 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
1,067 |
|
|
|
1,108 |
|
|
|
859 |
|
|
|
2,175 |
|
|
|
1,672 |
|
Selling,
marketing and administrative |
|
|
2,061 |
|
|
|
2,336 |
|
|
|
1,976 |
|
|
|
4,397 |
|
|
|
3,804 |
|
Total operating expenses |
|
|
3,128 |
|
|
|
3,444 |
|
|
|
2,835 |
|
|
|
6,572 |
|
|
|
5,476 |
|
|
Income from operations |
|
|
6,567 |
|
|
|
6,470 |
|
|
|
4,445 |
|
|
|
13,037 |
|
|
|
6,212 |
|
|
Interest and other income, net |
|
|
186 |
|
|
|
147 |
|
|
|
163 |
|
|
|
333 |
|
|
|
296 |
|
Net
income before tax |
|
|
6,753 |
|
|
$ |
6,617 |
|
|
$ |
4,608 |
|
|
$ |
13,370 |
|
|
$ |
6,508 |
|
|
Benefit (provision) for income taxes |
|
|
(2,971 |
) |
|
|
(1,602 |
) |
|
|
(326 |
) |
|
|
(4,573 |
) |
|
|
(376 |
) |
Net
income |
|
$ |
3,782 |
|
|
$ |
5,015 |
|
|
$ |
4,282 |
|
|
$ |
8,797 |
|
|
$ |
6,132 |
|
|
Net
income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.20 |
|
|
$ |
0.27 |
|
|
$ |
0.24 |
|
|
$ |
0.48 |
|
|
$ |
0.35 |
|
Diluted |
|
$ |
0.20 |
|
|
$ |
0.26 |
|
|
$ |
0.23 |
|
|
$ |
0.46 |
|
|
$ |
0.34 |
|
|
Shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,533 |
|
|
|
18,422 |
|
|
|
17,498 |
|
|
|
18,478 |
|
|
|
17,344 |
|
Diluted |
|
|
19,230 |
|
|
|
19,070 |
|
|
|
18,414 |
|
|
|
19,116 |
|
|
|
18,118 |
|
|
Included in costs and expenses above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
115 |
|
|
$ |
176 |
|
|
$ |
64 |
|
|
$ |
292 |
|
|
$ |
99 |
|
Research
and development |
|
|
64 |
|
|
|
83 |
|
|
|
46 |
|
|
|
147 |
|
|
|
79 |
|
Selling,
marketing and administrative |
|
|
351 |
|
|
|
458 |
|
|
|
301 |
|
|
|
808 |
|
|
|
513 |
|
Total |
|
$ |
530 |
|
|
$ |
717 |
|
|
$ |
411 |
|
|
$ |
1,247 |
|
|
$ |
691 |
|
ALLIANCE FIBER OPTIC
PRODUCTS, INC.
Condensed
Consolidated Balance Sheets
(in thousands)
(Unaudited)
|
|
Jun.
30, |
|
Dec.
31, |
|
|
2014 |
|
2013 |
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and
short-term investments |
|
$ |
55,961 |
|
$ |
46,679 |
Accounts
receivable, net |
|
|
14,914 |
|
|
11,566 |
Inventories |
|
|
9,198 |
|
|
10,630 |
Deferred
tax asset |
|
|
3,243 |
|
|
6,036 |
Other
current assets |
|
|
1,546 |
|
|
1,745 |
Total current assets |
|
|
84,862 |
|
|
76,656 |
|
Long-term
investments |
|
|
10,543 |
|
|
10,453 |
Property and
equipment, net |
|
|
14,547 |
|
|
13,258 |
Other
assets |
|
|
180 |
|
|
198 |
Total assets |
|
$ |
110,132 |
|
$ |
100,565 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
11,386 |
|
$ |
11,657 |
Accrued
expenses and other current liabilities |
|
|
8,595 |
|
|
7,134 |
Total current liabilities |
|
|
19,981 |
|
|
18,791 |
|
|
|
|
|
|
|
Long-term
liabilities |
|
|
622 |
|
|
600 |
Total liabilities |
|
|
20,603 |
|
|
19,391 |
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
89,529 |
|
|
81,174 |
Total liabilities and stockholders' equity |
|
$ |
110,132 |
|
$ |
100,565 |
ALLIANCE FIBER OPTIC
PRODUCTS, INC.
Reconciliations from GAAP to Non-GAAP
(In thousands, except per share
amounts)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
Jun.
30, |
|
Mar.
31, |
|
|
Jun.
30, |
|
Jun.
30, |
|
Jun.
30, |
|
|
2014 |
|
2014 |
|
|
2013 |
|
2014 |
|
2013 |
Gross Profit Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
9,695 |
|
|
|
$ |
9,914 |
|
|
|
$ |
7,280 |
|
|
|
$ |
19,609 |
|
|
|
$ |
11,688 |
|
|
Stock-based compensation expense |
|
|
115 |
|
|
|
|
176 |
|
|
|
|
64 |
|
|
|
|
292 |
|
|
|
|
99 |
|
|
Adjusted (non-GAAP) gross
profit |
|
$ |
9,810 |
|
|
|
$ |
10,090 |
|
|
|
$ |
7,344 |
|
|
|
$ |
19,901 |
|
|
|
$ |
11,787 |
|
|
Adjusted (non-GAAP) gross margin |
|
|
40.5 |
|
% |
|
|
40.6 |
|
% |
|
|
38.9 |
|
% |
|
|
40.6 |
|
% |
|
|
37.8 |
|
% |
Operating Expense
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating expenses |
|
$ |
3,128 |
|
|
|
$ |
3,444 |
|
|
|
$ |
2,835 |
|
|
|
$ |
6,572 |
|
|
|
$ |
5,476 |
|
|
Stock-based compensation
expense |
|
|
415 |
|
|
|
|
541 |
|
|
|
|
347 |
|
|
|
|
955 |
|
|
|
|
592 |
|
|
Adjusted (non-GAAP) operating
expenses |
|
$ |
2,713 |
|
|
|
$ |
2,903 |
|
|
|
$ |
2,488 |
|
|
|
$ |
5,617 |
|
|
|
$ |
4,884 |
|
|
Income from
Operations Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
income from operations |
|
$ |
6,567 |
|
|
|
$ |
6,470 |
|
|
|
$ |
4,445 |
|
|
|
$ |
13,037 |
|
|
|
$ |
6,212 |
|
|
Adjustments related to gross
profit |
|
|
115 |
|
|
|
|
176 |
|
|
|
|
64 |
|
|
|
|
292 |
|
|
|
|
99 |
|
|
Adjustments related to operating
expense |
|
|
415 |
|
|
|
|
541 |
|
|
|
|
347 |
|
|
|
|
955 |
|
|
|
|
592 |
|
|
Adjusted (non-GAAP) income from
operations |
|
$ |
7,097 |
|
|
|
$ |
7,187 |
|
|
|
$ |
4,856 |
|
|
|
$ |
14,284 |
|
|
|
$ |
6,903 |
|
|
Adjusted (non-GAAP) operating margin |
|
|
29.3 |
|
% |
|
|
28.9 |
|
% |
|
|
25.5 |
|
% |
|
|
29.1 |
|
% |
|
|
22.1 |
|
% |
Net Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
net income |
|
$ |
3,782 |
|
|
|
$ |
5,015 |
|
|
|
$ |
4,282 |
|
|
|
$ |
8,797 |
|
|
|
$ |
6,132 |
|
|
Adjustments related to gross
profit |
|
|
115 |
|
|
|
|
176 |
|
|
|
|
64 |
|
|
|
|
292 |
|
|
|
|
99 |
|
|
Adjustments related to operating
expense |
|
|
415 |
|
|
|
|
541 |
|
|
|
|
347 |
|
|
|
|
955 |
|
|
|
|
592 |
|
|
Income tax provision
adjustments |
|
|
2,134 |
|
|
|
|
659 |
|
|
|
|
- |
|
|
|
|
2,793 |
|
|
|
|
- |
|
|
Adjusted (non-GAAP) net income |
|
$ |
6,446 |
|
|
|
$ |
6,391 |
|
|
|
$ |
4,693 |
|
|
|
$ |
12,837 |
|
|
|
$ |
6,823 |
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,533 |
|
|
|
|
18,422 |
|
|
|
|
17,498 |
|
|
|
|
18,478 |
|
|
|
|
17,344 |
|
|
Diluted |
|
|
19,230 |
|
|
|
|
19,070 |
|
|
|
|
18,414 |
|
|
|
|
19,116 |
|
|
|
|
18,118 |
|
|
Net Income per Common Share -
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
0.20 |
|
|
|
$ |
0.27 |
|
|
|
$ |
0.24 |
|
|
|
$ |
0.48 |
|
|
|
$ |
0.35 |
|
|
Non-GAAP as adjusted |
|
$ |
0.35 |
|
|
|
$ |
0.35 |
|
|
|
$ |
0.27 |
|
|
|
$ |
0.69 |
|
|
|
$ |
0.39 |
|
|
Net Income per Common
Share - Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
as reported |
|
$ |
0.20 |
|
|
|
$ |
0.26 |
|
|
|
$ |
0.23 |
|
|
|
$ |
0.46 |
|
|
|
$ |
0.34 |
|
|
Non-GAAP as adjusted |
|
$ |
0.34 |
|
|
|
$ |
0.34 |
|
|
|
$ |
0.25 |
|
|
|
$ |
0.67 |
|
|
|
$ |
0.38 |
|
|
Non-GAAP EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
6,446 |
|
|
|
$ |
6,391 |
|
|
|
$ |
4,693 |
|
|
|
$ |
12,837 |
|
|
|
$ |
6,823 |
|
|
Depreciation expense |
|
|
707 |
|
|
|
|
684 |
|
|
|
|
468 |
|
|
|
|
1,391 |
|
|
|
|
921 |
|
|
Interest income |
|
|
(183 |
) |
|
|
|
(178 |
) |
|
|
|
(164 |
) |
|
|
|
(361 |
) |
|
|
|
(323 |
) |
|
Income tax expense |
|
|
837 |
|
|
|
|
944 |
|
|
|
|
326 |
|
|
|
|
1,781 |
|
|
|
|
376 |
|
|
Non-GAAP EBITDA |
|
$ |
7,807 |
|
|
|
$ |
7,841 |
|
|
|
$ |
5,323 |
|
|
|
$ |
15,648 |
|
|
|
$ |
7,797 |
|
|
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 the 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 companys relative performance. The Non-GAAP
financial measures provided herein may not provide information that is directly
comparable to that provided by other companies in the companys industry, as
other companies may calculate such financial results differently. The companys
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.
Alliance Fiber Optic (NASDAQ:AFOP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Alliance Fiber Optic (NASDAQ:AFOP)
Historical Stock Chart
From Jul 2023 to Jul 2024