EX-99 2 form8k01282010exhibit.htm

Contact:                               

Anita Ho
Acting Chief Financial Officer
Alliance Fiber Optic Products, Inc.                                                                                                           January 28, 2010
Phone: 408-736-6900 x168


 

AFOP REPORTS ANNUAL RESULTS - 2009 ENDS WITH IMPROVED 4th QUARTER

 

Sunnyvale, CA – January 28, 2010 - Alliance Fiber Optic Products, Inc. (Nasdaq CM: 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 fourth quarter and year ended December 31, 2009.

Revenues for the fourth quarter of 2009 totaled $7,517,000, an 8% increase from revenues of $6,951,000 reported in the previous quarter, and are lower than the revenues of $8,201,000 reported in the fourth quarter of 2008. The Company recorded net income for the fourth quarter of 2009 of $428,000, or $0.01 per share based on 42.2 million shares outstanding, compared to $271,000, or $0.01 per share based on 42.0 million shares outstanding, for the third quarter of 2009. This compares to net income for the fourth quarter of 2008 $820,000 , or $0.02 per share based on 41.8 million shares outstanding.

Revenues for fiscal year 2009 were $29,834,000, compared with the revenues of $38,754,000 in fiscal year 2008. The Company recorded a net profit for fiscal year 2009 of $ 1,433,000 or $0.03 per share based on 42.0 million shares outstanding. This compared with a net profit of $4,066,000 or $0.10 per share for the previous year. On an annual operating income basis, the Company generated $751,000 in fiscal year 2009.

Included in expenses for the quarter ended December 31, 2009 was $33,000 of stock-based compensation charges under SFAS 123(R), compared to $30,000 of stock-based compensation charges for the quarter ended December 31, 2008. Included in expenses for the year ended December 31, 2009 was $112,000 of stock-based compensation charges under SFAS 123(R), compared to $161,000 of stock-based compensation charges for the year ended December 31, 2008.

Peter Chang, President and Chief Executive Officer, commented, “We persevered through a challenging 2009 and ended with sequential growth in the fourth quarter. Despite our year over year revenue decline, we were pleased that we are able to manage each quarter in 2009 with positive operating profits and positive net profits through our continued progress in technology and manufacturing excellence.”

“Our balance sheet was strong in 2009. At the end of 2009, inventory improved from the previous year and most importantly, our cash and short-term investments, together with our ARS Right, increased to $42.2 million.”

“We are proud of our achievements in a difficult year, and we enter this next decade with confidence as we are financially sound, are experiencing increasing interest in our expanding product portfolio, and are growing our base of customers throughout the world. We expect that revenues for the coming quarter will continue the recent sequential growth pattern. Additionally, with our continued focus on operational efficiencies, we expect to generate profits from operations in the coming quarters of 2010, while continuing to invest in growth opportunities for our business.” concluded Mr. Chang.

Conference Call
Management will host a conference call at 1:30 p.m. Pacific Time on January 28, 2010 to discuss AFOP’s fourth quarter and f iscal year 2009 financial results.  To participate in AFOP’s conference call, please call 877-407-9210 at least ten minutes prior to the call in order for the operator to connect you.  The confirmation number for the call is 341735.  AFOP will also provide a live webcast of its fourth quarter and fiscal year 2009 conference call at AFOP’s website www.afop.com .  An audio replay will be available until February 11, 2010.  The dial in number for the replay is 877-660-6853 or 201-612-7415.  The replay passcodes (account # 286; conference ID#: 341735) are both required for the replay. 

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, our ability to generate profits from operations and the time periods thereof, our beliefs regarding business conditions, our customer base, our product portfolio, our ability to continue to focus on our operational efficiencies or our successes in doing so, and our ability to continue to invest in growth opportunities, 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, 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, ability to ramp new products into volume production, the costs associated with running our operations, industry-wide shifts in supply and demand for optical components and modules, industry overcapacity, failure of cost control initiatives, financial stability in foreign markets, and other risks detailed from time to time in our SEC reports, including AFOP's Form 10-Q for the quarter ended September 30, 2009. 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)
   

Dec 31,

  

Dec. 31,
   

2009

  

2008

ASSETS

 

    

Current assets:

      
 

Cash and short-term investments

$     40,492

  

$    23,954
 

Other current asset - ARS Right

1,779

  

-

 

Accounts receivable

4,952

 

4,708
 

Inventories

4,984

  

5,614
 

Other current assets

515

  

379

 

    Total current assets

52,722

  

34,655

 

Long-term investments

-

 

13,718

Other asset - ARS Right

-

 

2,582

Property and equipment, net

4,434

  

4,653

Other assets

233

  

190
 

    Total assets

$     57,389

  

$    55,798
         
         

LIABILITIES AND STOCKHOLDERS' EQUITY

      

Current liabilities:

      
 

Accounts payable

$       3,701

  

$      3,572
 

Accrued expenses and other liabilities

3,936

  

3,374

 

    Total current liabilities

7,637

  

6,946

     

 
 

Long-term liabilities

813

  

891

 

    Total liabilities

8,450

  

7,837

 

Stockholders' equity

48,939

  

47,961

   

 

    
 

    Total liabilities and stockholders' equity

$     57,389

  

 $    55,798

         


 

ALLIANCE FIBER OPTIC PRODUCTS, INC.

                     Condensed Consolidated Statements of Operations

                        (In thousands, except per share amounts)

                        (Unaudited)
                     
   

Three Months Ended

  

Twelve Months Ended
   

Dec. 31

  

Sept. 30,

  

Dec. 31

  

Dec. 31

  

Dec. 31
   

2009

  

2009

  

2008

  

2009

  

2008
                     

Revenues

$   7,517

  

$    6,951

  

$   8,201

  

$   29,834

  

$   38,754
                     

Cost of revenues

5,151

  

4,686

  

5,662

  

20,504

  

26,589
 

Gross profit

2,366

  

2,265

  

2,539

  

9,330

  

12,165
                     

Operating expenses:

                  
 

Research and development

760

  

721

  

645

  

2,972

  

3,322
 

Sales and marketing

535

  

530

  

485

  

2,276

  

2,406
 

General and administrative

817

  

899

  

812

  

3,331

  

3,487
 

     Total operating expenses

2,112

  

2,150

  

1,942

  

8,579

  

9,215

Income from operations

254

  

115

  

597

  

751

  

2,950

Interest and other income, net

196

  

176

  

319

  

766

  

1,315

Net income before tax

$      450

  

$       291

  

$     916

  

$     1,517

 

$     4,265

Income tax

22

  

20

  

96

  

84

  

199

Net income

$      428

  

$       271

  

$     820

  

$     1,433

  

$     4,066
                     

Net income per share:

                  

     Basic

$     0.01

  

$      0.01

  

$       0.02

 

$       0.03

  

$       0.10

     Diluted

$     0.01

  

$      0.01

  

$       0.02

 

$       0.03

  

$       0.10
                     

Weighted average shares outstanding:

                  

     Basic

42,213

 

42,035

  

41,796

 

42,026

  

41,601

     Diluted

42,876

  

42,607

  

41,827

  

42,279

  

41,657
                     

Included in costs and expenses above:

                  

Stock based compensation charges

                  
 

Cost of revenue

$        12

  

$         12

  

$         15

  

$          49

  

$          74

 

Research and development

5

  

6

  

6

  

22

  

32
 

Sales and marketing

3

  

1

  

4

  

10

  

22
 

General and administrative

13

 

10

  

5

  

31

  

33
 

     

Total

$        33

 

$         29

  

$         30

  

$        112

  

$       161