Oplink Communications Provides Update on Third Quarter Results and Announces Cost Reduction Plan

Apr 02, 2001, 01:00 ET from Oplink Communications, Inc.

    SAN JOSE, Calif., April 2 /PRNewswire/ --
 Oplink Communications, Inc. (Nasdaq: OPLK), designer and manufacturer of
 innovative optical components and integrated modules, today announced that
 revenues for the third quarter ended April 1, 2001 are expected to be
 $36.0 million. Pro forma net loss per share, excluding non-cash charges but
 including a significant provision for excess inventory, is expected to be in
 the range of $0.10-$0.12. Both are below the Company's previous expectations.
     The Company stated that it continues to experience delays in orders from
 its customers, negatively impacting expectations and visibility for the fourth
 fiscal quarter and remainder of calendar year 2001. As a result, the Company
 has implemented cost cutting measures in order to more closely align expenses
 with reduced revenue expectations.
     "Since our last announcement, we have experienced additional unanticipated
 delays in orders from many of our customers, who continue to see reduced or
 deferred capital spending, and are still working through inventory issues,"
 commented Fred Fromm, president of Oplink. "Current macroeconomic conditions
 make visibility for the remainder of the calendar year challenging, and we
 have therefore decided to undertake selected cost reduction measures
 throughout the organization."
     Cost reduction measures included a reduction in work force of
 166 employees in the US, which was implemented last week. These reductions
 occurred primarily in manufacturing operations and selected administrative
 areas. The Company expects to achieve additional savings through normal
 attrition in its China facilities. The Company is also reducing discretionary
 costs in other areas, including travel and general administration.
     Oplink plans to remain focused on developing new products and technologies
 for its diversifying customer base, while tightly controlling its facility
 expansion in China, albeit at a slower pace than previously planned.
     "We continue to believe in the long-term outlook for the fiber-optics
 business, and remain confident that we are taking the appropriate measures to
 achieve operational efficiencies until product demand and sales visibility
 improve," concluded Fromm.
     On April 19, 2001 the Company plans to release final financial results for
 the third quarter ended April 1, 2001, at which time management will further
 discuss these results.
 
     About Oplink Communications
     Oplink designs, manufactures and markets fiber optic networking components
 and integrated optical modules that expand optical bandwidth, amplify optical
 signals, monitor and protect wavelength performance and redirect light signals
 within an optical network. Oplink offers a broad line of products that
 increase the performance of optical networks and enable service providers and
 optical system manufacturers to provide flexible and scalable bandwidth to
 support the exponential increase of data traffic on the Internet. The Company
 supplies products worldwide to telecommunications equipment providers.
     Except for the purely historical information contained herein, this news
 release contains forward-looking statements regarding our expected financial
 results and other matters that involve risks and uncertainties. These risks
 include, but are not limited to, the impact of reductions in work force and
 other restructuring on financial results; the impact of reductions in work
 force on productivity and expected product manufacturing and other plans; the
 widespread downturns in the overall economy in the United States and other
 parts of the world and the telecommunications industry, sudden reductions in
 customer orders, the challenge to effectively manage our inventory levels and
 operating expenses during periods of weakening demand, our reliance upon third
 parties to supply our raw materials and equipment, intense competition in our
 target markets, the need to retain  and motivate key personnel, the
 concentration and success of our manufacturing operations in China, risks
 associated with the protection of our, and possible infringement of others',
 intellectual property and other risks detailed from time to time in our SEC
 filings, including our registration statement on Form S-1, dated
 October 3, 2000, and Form 10-Q, dated February 14, 2001.
     The foregoing information represents Oplink's outlook only as of the date
 of this press release, and Oplink undertakes no obligation to update or revise
 any forward-looking statements, whether as a result of new developments or
 otherwise.
     Additional information may be obtained through Tony Tissot, 408-965-7257,
 corporate communications or investor relations at 408-965-7294. Oplink is
 online at www.oplink.com.
 
 

SOURCE Oplink Communications, Inc.
    SAN JOSE, Calif., April 2 /PRNewswire/ --
 Oplink Communications, Inc. (Nasdaq: OPLK), designer and manufacturer of
 innovative optical components and integrated modules, today announced that
 revenues for the third quarter ended April 1, 2001 are expected to be
 $36.0 million. Pro forma net loss per share, excluding non-cash charges but
 including a significant provision for excess inventory, is expected to be in
 the range of $0.10-$0.12. Both are below the Company's previous expectations.
     The Company stated that it continues to experience delays in orders from
 its customers, negatively impacting expectations and visibility for the fourth
 fiscal quarter and remainder of calendar year 2001. As a result, the Company
 has implemented cost cutting measures in order to more closely align expenses
 with reduced revenue expectations.
     "Since our last announcement, we have experienced additional unanticipated
 delays in orders from many of our customers, who continue to see reduced or
 deferred capital spending, and are still working through inventory issues,"
 commented Fred Fromm, president of Oplink. "Current macroeconomic conditions
 make visibility for the remainder of the calendar year challenging, and we
 have therefore decided to undertake selected cost reduction measures
 throughout the organization."
     Cost reduction measures included a reduction in work force of
 166 employees in the US, which was implemented last week. These reductions
 occurred primarily in manufacturing operations and selected administrative
 areas. The Company expects to achieve additional savings through normal
 attrition in its China facilities. The Company is also reducing discretionary
 costs in other areas, including travel and general administration.
     Oplink plans to remain focused on developing new products and technologies
 for its diversifying customer base, while tightly controlling its facility
 expansion in China, albeit at a slower pace than previously planned.
     "We continue to believe in the long-term outlook for the fiber-optics
 business, and remain confident that we are taking the appropriate measures to
 achieve operational efficiencies until product demand and sales visibility
 improve," concluded Fromm.
     On April 19, 2001 the Company plans to release final financial results for
 the third quarter ended April 1, 2001, at which time management will further
 discuss these results.
 
     About Oplink Communications
     Oplink designs, manufactures and markets fiber optic networking components
 and integrated optical modules that expand optical bandwidth, amplify optical
 signals, monitor and protect wavelength performance and redirect light signals
 within an optical network. Oplink offers a broad line of products that
 increase the performance of optical networks and enable service providers and
 optical system manufacturers to provide flexible and scalable bandwidth to
 support the exponential increase of data traffic on the Internet. The Company
 supplies products worldwide to telecommunications equipment providers.
     Except for the purely historical information contained herein, this news
 release contains forward-looking statements regarding our expected financial
 results and other matters that involve risks and uncertainties. These risks
 include, but are not limited to, the impact of reductions in work force and
 other restructuring on financial results; the impact of reductions in work
 force on productivity and expected product manufacturing and other plans; the
 widespread downturns in the overall economy in the United States and other
 parts of the world and the telecommunications industry, sudden reductions in
 customer orders, the challenge to effectively manage our inventory levels and
 operating expenses during periods of weakening demand, our reliance upon third
 parties to supply our raw materials and equipment, intense competition in our
 target markets, the need to retain  and motivate key personnel, the
 concentration and success of our manufacturing operations in China, risks
 associated with the protection of our, and possible infringement of others',
 intellectual property and other risks detailed from time to time in our SEC
 filings, including our registration statement on Form S-1, dated
 October 3, 2000, and Form 10-Q, dated February 14, 2001.
     The foregoing information represents Oplink's outlook only as of the date
 of this press release, and Oplink undertakes no obligation to update or revise
 any forward-looking statements, whether as a result of new developments or
 otherwise.
     Additional information may be obtained through Tony Tissot, 408-965-7257,
 corporate communications or investor relations at 408-965-7294. Oplink is
 online at www.oplink.com.
 
 SOURCE  Oplink Communications, Inc.