SAN JOSE, Calif., Nov. 9, 2011 /PRNewswire/ -- Oclaro, Inc. (Nasdaq: OCLR), a tier-one provider of innovative optical communications and laser solutions, today announced the financial results for its first quarter of fiscal year 2012, which ended October 1, 2011.
“In the first quarter of fiscal 2012, Oclaro’s gross margin and Adjusted EBITDA were at the higher end of our guidance ranges, despite continued soft market conditions which led to an expected sequential decline in revenues,” said Alain Couder, chairman and CEO of Oclaro. “Our results demonstrate that the company’s cost reduction initiatives are gaining traction. We are accelerating our new product momentum and intensifying our focus on our core competencies. In light of the recent Thai floods, our top priority is to restart production in Thailand in order to minimize customer impact. Many of our resources are being redeployed to support the recovery efforts in Thailand. I would like to thank the team at Fabrinet and our employees for their extraordinary efforts to recover operations as quickly as possible.”
Oclaro is also enhancing the flexibility of its business model to better serve its customers, improve its balance sheet and reduce fixed costs. As part of this effort, the company has signed a new supply agreement with Fabrinet with a term through calendar year 2013. In addition, the company is in final negotiations to outsource its Shenzhen assembly and test operations to a major contract manufacturer. The company expects the transaction could generate $30 to $40 million in net cash proceeds to the company when the transaction closes, which the company expects to occur in the first quarter of the calendar year 2012, with additional potential consideration to be received in the future. Oclaro is also finalizing a supply agreement with this contract manufacturer with the goal of reducing product costs over time.
“Outsourcing our Shenzhen final assembly and test manufacturing to a major contract manufacturer will allow us to focus on our differentiating core competencies, strengthen our financial position, and even better serve our customers,” said Couder. “Many of our customers have a long relationship with our potential contract manufacturing partner, and as a result we would expect the transition to be seamless.”
Highlights for First Quarter Fiscal 2012:
- Revenues were $105.8 million for the first quarter of fiscal 2012, compared to revenues of $109.2 million in the fourth quarter of fiscal 2011.
- GAAP gross margin was 23% for the first quarter of fiscal 2012, compared to a GAAP gross margin of 23% in the fourth quarter of fiscal 2011.
- Non-GAAP gross margin was 23% for the first quarter of fiscal 2012, compared to a non-GAAP gross margin of 23% in the fourth quarter of fiscal 2011.
- GAAP operating loss was $10.2 million for the first quarter of fiscal 2012, compared to a GAAP operating loss of $33.6 million in the fourth quarter of fiscal 2011, which included $20 million of impairment charges following the company’s annual review of goodwill.
- Non-GAAP operating loss was $9.6 million, or 9% of revenues, for the first quarter of fiscal 2012, compared to a non-GAAP operating loss of $9.4 million, or 9% of revenues, in the fourth quarter of fiscal 2011.
- Adjusted EBITDA was negative $4.5 million for the first quarter of fiscal 2012, compared to negative $4.7 million in the fourth quarter of fiscal 2011.
- GAAP net loss for the first quarter of fiscal 2012 was $10.2 million, compared to a GAAP net loss of $36.7 million in the fourth quarter of fiscal 2011, which in 2011 included $20 million of impairment charges following the company’s annual review of goodwill.
- Non-GAAP net loss for the first quarter of fiscal 2012 was $11.0 million, compared to a non-GAAP net loss of $10.0 million in the fourth quarter of fiscal 2011.
- Cash, cash equivalents and restricted cash were $51.7 million as of October 1, 2011.
- On July 26, 2011 the company secured an increase in its line of credit from $25 million to $45 million and extended its term through August 1, 2014. As of October 1, 2011, the amount drawn under the line was $19.5 million.
Second Quarter Fiscal 2012 Outlook
Prior to the Thailand flooding, revenues for the second quarter of the 2012 fiscal year were expected to modestly increase. Oclaro’s revenue guidance for the second quarter of fiscal 2012 below reflects the expected $25 million to $30 million in lost revenue as a result of the flooding in Thailand.
The results of Oclaro, Inc. for the second quarter of fiscal 2012, which ends December 31, 2011, are expected to be:
- Revenues in the range of $75 million to $85 million.
- Non-GAAP gross margin in the range of 13% to 17%.
- Adjusted EBITDA in the range of negative $18 million to negative $13 million.
The foregoing guidance is based on current expectations, including the impact to our operations and financial conditions attributable to the flooding in Thailand. These statements are forward looking, and actual results may differ materially. Please see the Safe Harbor Statement in this earnings release for a description of certain important risk factors that could cause actual results to differ, and refer to Oclaro, Inc.'s most recent annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of these risks. Furthermore, our outlook excludes items that may be required by GAAP, including, but not limited to, restructuring and related costs, acquisition or disposal related costs, expenses or income from certain legal actions, settlements and related costs outside our normal course of business, impairments of other long-lived assets, depreciation and amortization, extraordinary items, as well as the expensing of stock options and restricted stock grants. We do not intend to update this guidance as a result of developments occurring after the date of this release.
Conference Call
Oclaro will hold a conference call to discuss financial results for the first quarter of fiscal 2012 today at 2:00 p.m. PT/5:00 p.m. ET. To listen to the live conference call, please dial (480) 629-9665. A replay of the conference call will be available through November 16, 2011. To access the replay, dial (858) 384-5517. The passcode for the replay is 4486381. A webcast of this call and a supplemental presentation will be available in the investor section of Oclaro’s website at www.oclaro.com.
About Oclaro
Oclaro, Inc. (NASDAQ: OCLR) is a tier-one provider of optical communications and laser components, modules and subsystems for a broad range of diverse markets, including telecommunications, industrial, scientific, consumer electronics, and medical. Oclaro is a global leader, dedicated to photonics innovation with cutting-edge research and development (R&D) and chip fabrication facilities in the U.K., Switzerland and Italy, and in-house and contract manufacturing sites in the U.S., Thailand and China. To support its diverse and global customer base, Oclaro maintains design, sales and service organizations in each of the major regions around the world. For more information visit www.oclaro.com.
Copyright 2011. All rights reserved. Oclaro, the Oclaro logo, and certain other Oclaro trademarks and logos are trademarks and/or registered trademarks of Oclaro, Inc. or its subsidiaries in the U.S. and other countries. Information in this release is subject to change without notice.
Safe Harbor Statement
