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): October 29, 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 October 29, 2014, Alliance
Fiber Optic Products, Inc. issued a press release announcing its financial
results for the quarter ended September 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 October 29, 2014 announcing
third 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: October 29, 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 October 29, 2014 announcing third quarter 2014
results. |
Contact: Keting Lin, IR Associate Alliance Fiber Optic Products,
Inc. 408-736-6900 x188 Email: klin@afop.com |
October 29,
2014
|
AFOP REPORTS THIRD
QUARTER, 2014 FINANCIAL RESULTS
WITH SEQUENTIAL GROWTH GUIDANCE
Sunnyvale, CA October 29,
2014 - Alliance Fiber Optic Products, Inc. (Nasdaq GM: 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, 2014.
Revenues for the third quarter
of 2014 were $18,096,000, a 22% decrease from revenues of $23,074,000 reported
in the third quarter of 2013, and a 25% decrease from revenues of $24,199,000
reported in the second quarter of 2014.
Net income for the quarter
ended September 30, 2014, was $4,303,000, or $0.23 per share, compared to net
income of $5,621,000, or $0.31 per share, for the third quarter of 2013, and net
income of $3,782,000, or $0.20 per share, for the second quarter of 2014.
Included in net income for the third and second quarter of 2014 are income tax
benefit and provision adjustments of $168,000 and $2,134,000 respectively, as a
result of deferred income tax benefit and expenses based on utilization of net
operating loss. Excluding these tax benefit and provision adjustments, net
income in the third quarter of 2014 of $4,135,000, or $0.22 per share, compared
to net income in the second quarter of 2014 of $5,916,000, or $0.32 per
share.
Gross margin for the quarter
ended September 30, 2014 was 39.5%, compared to 38.4% in the year ago quarter
and 40.1% in the second quarter of 2014. Operating margin for the quarter ended
September 30, 2014 was 22.9%, compared to 24.5% in the year ago quarter and
27.1% in the second quarter of 2014.
Non-GAAP net income for the
quarter ended September 30, 2014 decreased to $4,571,000, or $0.25 per share,
compared to non-GAAP net income of $6,184,000, or $0.34 per share, for the third
quarter of 2013, and non-GAAP net income of $6,446,000, or $0.35 per share, for
the second quarter of 2014.
Non-GAAP gross margin for the
quarter ended September 30, 2014 was 39.9%, compared to 38.9% in the year ago
quarter and 40.5% in the second quarter of 2014. Non-GAAP operating margin for
the quarter ended September 30, 2014 was 25.3%, compared to 27.0% in the year
ago quarter and 29.3% in the second quarter of 2014.
Peter Chang, President and
Chief Executive Officer, commented, During the third quarter, we experienced
weakness in normal sales levels across several leading customers without any
noted market share loss. Our understanding is that this reflects a weakening in general market conditions, as some
companies in the optical network market segment have also reported recently. We
adjusted to this shortfall well and continued to deliver strong financial
performance within our industry peer group, with stable gross margins, well
controlled inventory levels, and an improved balance sheet. Most importantly, we
made good progress meeting our customers needs, extending our product
technology and improving our operations.
Regarding forward guidance,
we expect revenues in the fourth quarter of 2014 to be in the range of $19
million to $20 million. With this level of quarterly revenue, we will end the
year of 2014 with another record annual profit and record annual sales as well.
Data bandwidth demands continue to increase and the conversion from copper
technology to fiber technology in data center applications is accelerating. We
are encouraged by growing demands for our products
and the prospect of continuing to deliver record annual sales and profits in the
coming years. concluded Mr. Chang.
Conference
Call
Management will host a
conference call at 1:30 p.m. PT on October, 29, 2014 to discuss AFOPs third
quarter 2014 financial results as well as the outlook for the fourth 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
21291552. AFOP will also provide a live webcast of its third 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, 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 our beliefs regarding
demand for data communications and the acceleration of conversion to fiber
technology, growth in the fiber optics industry, the reasons for decreases in
customer orders, and our expectation regarding future demand for our products
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 rate of
conversion from copper to fiber technology, 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 June 30, 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 Balance Sheets
(in thousands)
(Unaudited)
|
|
Sep.
30, |
|
Dec.
31, |
|
|
2014 |
|
2013 |
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash
and short-term investments |
|
$ |
62,626 |
|
$ |
46,679 |
Accounts
receivable, net |
|
|
10,654 |
|
|
11,566 |
Inventories |
|
|
8,905 |
|
|
10,630 |
Deferred
tax asset |
|
|
3,411 |
|
|
6,036 |
Other
current assets |
|
|
1,604 |
|
|
1,745 |
Total
current assets |
|
|
87,200 |
|
|
76,656 |
|
Long-term
investments |
|
|
10,589 |
|
|
10,453 |
Property and
equipment, net |
|
|
14,529 |
|
|
13,258 |
Other
assets |
|
|
165 |
|
|
198 |
Total
assets |
|
$ |
112,483 |
|
$ |
100,565 |
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
9,345 |
|
$ |
11,657 |
Accrued
expenses and other current liabilities |
|
|
8,240 |
|
|
7,134 |
Total
current liabilities |
|
|
17,585 |
|
|
18,791 |
Long-term
liabilities |
|
|
620 |
|
|
600 |
Total
liabilities |
|
|
18,205 |
|
|
19,391 |
Stockholders'
equity |
|
|
94,278 |
|
|
81,174 |
Total
liabilities and stockholders' equity |
|
$ |
112,483 |
|
$ |
100,565 |
ALLIANCE FIBER OPTIC
PRODUCTS, INC.
Condensed Consolidated Statements of
Operations
(In thousands,
except per share amounts)
(Unaudited)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
Sep.
30, |
|
Jun.
30, |
|
Sep.
30, |
|
Sep.
30, |
|
Sep.
30, |
|
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
Revenues |
|
$ |
18,096 |
|
|
$ |
24,199 |
|
|
$ |
23,074 |
|
|
$ |
67,177 |
|
|
$ |
54,266 |
|
|
Cost
of revenues |
|
|
10,957 |
|
|
|
14,504 |
|
|
|
14,218 |
|
|
|
40,429 |
|
|
|
33,722 |
|
Gross
profit |
|
|
7,139 |
|
|
|
9,695 |
|
|
|
8,856 |
|
|
|
26,748 |
|
|
|
20,544 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
1,068 |
|
|
|
1,067 |
|
|
|
1,024 |
|
|
|
3,243 |
|
|
|
2,696 |
|
Selling,
marketing and administrative |
|
|
1,924 |
|
|
|
2,061 |
|
|
|
2,174 |
|
|
|
6,321 |
|
|
|
5,978 |
|
Total
operating expenses |
|
|
2,992 |
|
|
|
3,128 |
|
|
|
3,198 |
|
|
|
9,564 |
|
|
|
8,674 |
|
|
Income from operations |
|
|
4,147 |
|
|
|
6,567 |
|
|
|
5,658 |
|
|
|
17,184 |
|
|
|
11,870 |
|
Interest and other income, net |
|
|
226 |
|
|
|
186 |
|
|
|
173 |
|
|
|
559 |
|
|
|
469 |
|
Net
income before tax |
|
|
4,373 |
|
|
|
6,753 |
|
|
$ |
5,831 |
|
|
$ |
17,743 |
|
|
$ |
12,339 |
|
Benefit (provision) for income taxes |
|
|
(70 |
) |
|
|
(2,971 |
) |
|
|
(210 |
) |
|
|
(4,643 |
) |
|
|
(586 |
) |
Net
income |
|
$ |
4,303 |
|
|
$ |
3,782 |
|
|
$ |
5,621 |
|
|
$ |
13,100 |
|
|
$ |
11,753 |
|
|
Net
income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.23 |
|
|
$ |
0.20 |
|
|
$ |
0.31 |
|
|
$ |
0.71 |
|
|
$ |
0.67 |
|
Diluted |
|
$ |
0.23 |
|
|
$ |
0.20 |
|
|
$ |
0.30 |
|
|
$ |
0.69 |
|
|
$ |
0.65 |
|
|
Shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,629 |
|
|
|
18,533 |
|
|
|
18,056 |
|
|
|
18,529 |
|
|
|
17,584 |
|
Diluted |
|
|
19,103 |
|
|
|
19,230 |
|
|
|
18,754 |
|
|
|
19,036 |
|
|
|
18,107 |
|
|
Included in costs and expenses above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of revenue |
|
$ |
87 |
|
|
$ |
115 |
|
|
$ |
116 |
|
|
$ |
379 |
|
|
$ |
215 |
|
Research
and development |
|
|
44 |
|
|
|
64 |
|
|
|
71 |
|
|
|
191 |
|
|
|
149 |
|
Selling,
marketing and administrative |
|
|
305 |
|
|
|
351 |
|
|
|
376 |
|
|
|
1,113 |
|
|
|
890 |
|
Total |
|
$ |
436 |
|
|
$ |
530 |
|
|
$ |
563 |
|
|
$ |
1,683 |
|
|
$ |
1,254 |
|
ALLIANCE FIBER OPTIC
PRODUCTS, INC.
Reconciliations from GAAP to Non-GAAP
(In thousands, except
per share amounts)
(Unaudited)
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
Sep. 30, |
|
Jun. 30, |
|
Sep. 30, |
|
Sep. 30, |
|
Sep. 30, |
|
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
Gross Profit
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
gross profit |
|
$ |
7,139 |
|
|
$ |
9,695 |
|
|
$ |
8,856 |
|
|
$ |
26,748 |
|
|
$ |
20,544 |
|
Stock-based compensation expense |
|
|
87 |
|
|
|
115 |
|
|
|
116 |
|
|
|
379 |
|
|
|
215 |
|
Adjusted (non-GAAP) gross profit |
|
$ |
7,226 |
|
|
$ |
9,810 |
|
|
$ |
8,972 |
|
|
$ |
27,127 |
|
|
$ |
20,759 |
|
Adjusted (non-GAAP) gross margin |
|
|
39.9 |
% |
|
|
40.5 |
% |
|
|
38.9 |
% |
|
|
40.4 |
% |
|
|
38.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating expenses |
|
$ |
2,992 |
|
|
$ |
3,128 |
|
|
$ |
3,198 |
|
|
$ |
9,564 |
|
|
$ |
8,674 |
|
Stock-based compensation expense |
|
|
349 |
|
|
|
415 |
|
|
|
447 |
|
|
|
1,304 |
|
|
|
1,039 |
|
Adjusted (non-GAAP) operating expenses |
|
$ |
2,643 |
|
|
$ |
2,713 |
|
|
$ |
2,751 |
|
|
$ |
8,260 |
|
|
$ |
7,635 |
|
|
Income from Operations Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
income from operations |
|
$ |
4,147 |
|
|
$ |
6,567 |
|
|
$ |
5,658 |
|
|
$ |
17,184 |
|
|
$ |
11,870 |
|
Adjustments related to gross profit |
|
|
87 |
|
|
|
115 |
|
|
|
116 |
|
|
|
379 |
|
|
|
215 |
|
Adjustments related to operating expense |
|
|
349 |
|
|
|
415 |
|
|
|
447 |
|
|
|
1,304 |
|
|
|
1,039 |
|
Adjusted (non-GAAP) income from operations |
|
$ |
4,583 |
|
|
$ |
7,097 |
|
|
$ |
6,221 |
|
|
$ |
18,867 |
|
|
$ |
13,124 |
|
Adjusted (non-GAAP) operating margin |
|
|
25.3 |
% |
|
|
29.3 |
% |
|
|
27.0 |
% |
|
|
28.1 |
% |
|
|
24.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
net income |
|
$ |
4,303 |
|
|
$ |
3,782 |
|
|
$ |
5,621 |
|
|
$ |
13,100 |
|
|
$ |
11,753 |
|
Adjustments related to gross profit |
|
|
87 |
|
|
|
115 |
|
|
|
116 |
|
|
|
379 |
|
|
|
215 |
|
Adjustments related to operating expense |
|
|
349 |
|
|
|
415 |
|
|
|
447 |
|
|
|
1,304 |
|
|
|
1,039 |
|
Income tax (benefit) provision adjustments |
|
|
(168 |
) |
|
|
2,134 |
|
|
|
- |
|
|
|
2,625 |
|
|
|
- |
|
Adjusted (non-GAAP) net income |
|
$ |
4,571 |
|
|
$ |
6,446 |
|
|
$ |
6,184 |
|
|
$ |
17,408 |
|
|
$ |
13,007 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,629 |
|
|
|
18,533 |
|
|
|
18,056 |
|
|
|
18,529 |
|
|
|
17,584 |
|
Diluted |
|
|
19,103 |
|
|
|
19,230 |
|
|
|
18,754 |
|
|
|
19,036 |
|
|
|
18,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common
Share - Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
as reported |
|
$ |
0.23 |
|
|
$ |
0.20 |
|
|
$ |
0.31 |
|
|
$ |
0.71 |
|
|
$ |
0.67 |
|
Non-GAAP as adjusted |
|
$ |
0.25 |
|
|
$ |
0.35 |
|
|
$ |
0.34 |
|
|
$ |
0.94 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common Share - Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
as reported |
|
$ |
0.23 |
|
|
$ |
0.20 |
|
|
$ |
0.30 |
|
|
$ |
0.69 |
|
|
$ |
0.65 |
|
Non-GAAP as adjusted |
|
$ |
0.24 |
|
|
$ |
0.34 |
|
|
$ |
0.33 |
|
|
$ |
0.91 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
4,571 |
|
|
$ |
6,446 |
|
|
$ |
6,184 |
|
|
$ |
17,408 |
|
|
$ |
13,007 |
|
Depreciation expense |
|
|
748 |
|
|
|
707 |
|
|
|
592 |
|
|
|
2,139 |
|
|
|
1,512 |
|
Interest income |
|
|
(198 |
) |
|
|
(183 |
) |
|
|
(185 |
) |
|
|
(559 |
) |
|
|
(508 |
) |
Income tax expense |
|
|
238 |
|
|
|
837 |
|
|
|
210 |
|
|
|
2,018 |
|
|
|
586 |
|
Non-GAAP EBITDA |
|
$ |
5,359 |
|
|
$ |
7,807 |
|
|
$ |
6,801 |
|
|
$ |
21,006 |
|
|
$ |
14,597 |
|
Alliance Fiber Optic (NASDAQ:AFOP)
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From Jun 2024 to Jul 2024
Alliance Fiber Optic (NASDAQ:AFOP)
Historical Stock Chart
From Jul 2023 to Jul 2024