Alliance Fiber Optic Products, Inc. (Nasdaq: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 first quarter ended March 31, 2015.
Revenues for the first quarter of 2015 were $21,663,000, a 15%
increase from revenues of $18,809,000 reported in the fourth
quarter of 2014 and a 13% decrease from revenues of $24,882,000
reported in the first quarter of 2014.
Net income for the quarter ended March 31, 2015 $2,926,000, or
$0.16 per share, compared to net income of $1,409,000, or $0.08 per
share, for the fourth quarter of 2014, and net income of
$5,015,000, or $0.27 per share, for the first quarter of 2014.
Included in net income for the first quarter of 2015 and the fourth
quarter of 2014 was income tax expense of approximately $1,800,000
and $2,768,000 respectively.
Non-GAAP net income for the quarter ended March 31, 2015 was
$5,222,000, or $0.29 per share, compared to, non-GAAP net income of
$4,655,000, or $0.25 per share, for the fourth quarter of 2014 and
non-GAAP net income of $6,391,000, or $0.35 per share, for the
first quarter of 2014.
Gross margin for the quarter ended March 31, 2015 increased to
41%, compared to 40% in the fourth quarter of 2014 and 40% in the
year ago quarter. Operating margin for the quarter ended March 31,
2015 was 25%, compared to 23% in the fourth quarter of 2014 and 26%
in the year ago quarter.
Non-GAAP gross margin for the quarter ended March 31, 2015 was
41%, compared to 40% in the fourth quarter of 2014 and 41% in the
year ago quarter. Non-GAAP operating margin for the quarter ended
March 31, 2015 was 27%, compared to 26% in the fourth quarter of
2014 and 29% in the year ago quarter.
Peter Chang, President and Chief Executive Officer, commented,
"Thanks to the support of our customers and the effort by our Asia
operations, we were able to deliver quarterly revenue within our
previous guidance, during a normally slower season which includes
the Chinese New Year holiday. With our focus on operational
excellence, we further improved our quarterly financial performance
with record gross margin and continued quarterly profits."
"More importantly, customer demand remains strong, as bandwidth
demands continue to increase, driving the next growth cycle in the
fiber optics industry. With the progress we have made serving our
customers and extending our product technology in recent quarters,
we are encouraged by the prospect of business growth in the coming
years. Based on input from our customers and current orders, we
expect revenues in the coming quarter to be in the range of $22.5
million to $24.5 million. With this strong beginning, we are
encouraged by the prospect of delivering both record revenues and
record profits for the year of 2015," concluded Mr. Chang.
Conference Call
Management will host a conference call at 1:30 p.m. PT on April,
22, 2015 to discuss AFOP's first quarter 2015 financial results as
well as the outlook for the second quarter of 2015. 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 20387216. AFOP will also provide a live webcast of its first
quarter 2015 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,
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 revenue 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, 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 Annual Report on Form 10-K for the year
ended December 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
Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
Mar. 31, |
Dec. 31, |
|
2015 |
2014 |
ASSETS |
|
|
Current assets: |
|
|
Cash and short-term
investments |
$ 52,544 |
$ 54,580 |
Accounts receivable, net |
14,160 |
10,806 |
Inventories |
10,266 |
9,305 |
Deferred tax asset |
1,890 |
3,690 |
Other current assets |
2,465 |
2,077 |
Total current assets |
81,325 |
80,458 |
|
|
|
Long-term investments |
10,681 |
10,635 |
Property and equipment, net |
14,319 |
13,868 |
Other assets |
221 |
212 |
Total assets |
$ 106,546 |
$ 105,173 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 10,340 |
$ 9,236 |
Accrued expenses and other
current liabilities |
9,085 |
8,699 |
Total current liabilities |
19,425 |
17,935 |
|
|
|
Long-term liabilities |
900 |
978 |
Total liabilities |
20,325 |
18,913 |
|
|
|
Stockholders' equity |
86,221 |
86,260 |
Total liabilities and
stockholders' equity |
$ 106,546 |
$ 105,173 |
|
|
|
|
ALLIANCE FIBER OPTIC
PRODUCTS, INC. |
Condensed Consolidated
Statements of Operations |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
Mar. 31, |
Dec. 31, |
Mar. 31, |
|
2015 |
2014 |
2014 |
|
|
|
|
Revenues |
$ 21,663 |
$ 18,809 |
$ 24,882 |
|
|
|
|
Cost of revenues |
12,871 |
11,339 |
14,968 |
Gross profit |
8,792 |
7,470 |
9,914 |
|
|
|
|
Operating expenses: |
|
|
|
Research and development |
1,143 |
1,096 |
1,108 |
Selling, marketing and
administrative |
2,231 |
1,954 |
2,336 |
Total operating expenses |
3,374 |
3,050 |
3,444 |
|
|
|
|
Income from operations |
5,418 |
4,420 |
6,470 |
Interest and other income, net |
196 |
209 |
147 |
Income before benefit (provision) for income
taxes |
$ 5,614 |
$ 4,629 |
$ 6,617 |
Benefit (provision) for income
taxes |
(2,688) |
(3,220) |
(1,602) |
Net income |
$ 2,926 |
$ 1,409 |
$ 5,015 |
|
|
|
|
Net income per share |
|
|
|
Basic |
$ 0.16 |
$ 0.08 |
$ 0.27 |
Diluted |
$ 0.16 |
$ 0.08 |
$ 0.26 |
|
|
|
|
Weighted average shares
outstanding |
|
|
|
Basic |
17,872 |
18,366 |
18,422 |
Diluted |
18,295 |
18,727 |
19,070 |
|
|
|
|
Included in costs and expenses above: |
|
|
|
Stock-based compensation expense |
|
|
|
Cost of revenue |
$ 121 |
$ 113 |
$ 176 |
Research and development |
46 |
44 |
83 |
Selling, marketing and
administrative |
329 |
321 |
458 |
Total |
$ 496 |
$ 478 |
$ 717 |
|
|
|
|
ALLIANCE FIBER OPTIC
PRODUCTS, INC. |
Reconciliations from
GAAP to Non-GAAP |
(In thousands, except
per share amounts) |
(Unaudited) |
|
|
|
|
|
Three Months
Ended |
|
Mar. 31, |
Dec. 31, |
Mar. 31, |
|
2015 |
2014 |
2014 |
Gross Profit
Reconciliation |
|
|
|
GAAP gross profit |
$ 8,792 |
$ 7,470 |
$ 9,914 |
Stock-based compensation expense |
121 |
113 |
176 |
Adjusted (non-GAAP) gross profit |
$ 8,913 |
$ 7,583 |
$ 10,090 |
Adjusted (non-GAAP) gross margin |
41.1% |
40.3% |
40.6% |
|
|
|
|
Operating Expense
Reconciliation |
|
|
|
GAAP operating expenses |
$ 3,374 |
$ 3,050 |
$ 3,444 |
Stock-based compensation expense |
375 |
365 |
541 |
Adjusted (non-GAAP) operating expenses |
$ 2,999 |
$ 2,685 |
$ 2,903 |
|
|
|
|
Income from Operations
Reconciliation |
|
|
|
GAAP income from operations |
$ 5,418 |
$ 4,420 |
$ 6,470 |
Adjustments related to gross profit |
121 |
113 |
176 |
Adjustments related to operating expense |
375 |
365 |
541 |
Adjusted (non-GAAP) income from
operations |
$ 5,914 |
$ 4,898 |
$ 7,187 |
Adjusted (non-GAAP) operating margin |
27.3% |
26.0% |
28.9% |
|
|
|
|
Net
Income Reconciliation |
|
|
|
GAAP net income |
$ 2,926 |
$ 1,409 |
$ 5,015 |
Adjustments related to gross profit |
121 |
113 |
176 |
Adjustments related to operating expense |
375 |
365 |
541 |
Income tax (benefit) provision
adjustments |
1,800 |
2,768 |
659 |
Adjusted (non-GAAP) net income |
$ 5,222 |
$ 4,655 |
$ 6,391 |
|
|
|
|
Weighted average shares outstanding |
|
|
|
Basic |
17,872 |
18,366 |
18,422 |
Diluted |
18,295 |
18,727 |
19,070 |
|
|
|
|
Net Income per Common Share -
Basic: |
|
|
|
GAAP as reported |
$ 0.16 |
$ 0.08 |
$ 0.27 |
Non-GAAP as adjusted |
$ 0.29 |
$ 0.25 |
$ 0.35 |
|
|
|
|
Net Income per Common Share -
Diluted: |
|
|
|
GAAP as reported |
$ 0.16 |
$ 0.08 |
$ 0.26 |
Non-GAAP as adjusted |
$ 0.29 |
$ 0.25 |
$ 0.34 |
|
|
|
|
Non-GAAP EBITDA |
|
|
|
Non-GAAP net income |
$ 5,222 |
$ 4,655 |
$ 6,391 |
Depreciation expense |
658 |
658 |
684 |
Interest income |
(192) |
(197) |
(178) |
Income tax expense |
888 |
452 |
944 |
Non-GAAP EBITDA |
$ 6,576 |
$ 5,568 |
$ 7,841 |
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.
408-736-6900 x188
Email: klin@afop.com
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