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): April 22, 2015
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:
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425) |
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
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 April 22, 2015, Alliance Fiber Optic Products, Inc. issued a press release announcing
its financial results for the quarter ended March 31, 2015. 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 April 22, 2015 announcing first quarter 2015 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: April 22, 2015
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 April 22, 2015 announcing first quarter 2015 results. |
Contact: |
|
|
|
Keting Lin, IR Associate Alliance Fiber
Optic Products, Inc. 408-736-6900 x188 Email:
klin@afop.com |
April 22,
2015 |
AFOP REPORTS IMPROVED
FINANCIAL RESULTS IN Q1 2015
WITH GUIDANCE FOR CONSECUTIVE SEQUENTIAL
INCREASES IN Q2 2015
Sunnyvale, CA April 22, 2015
- 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 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 AFOPs 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 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 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 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 our 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.
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