EX-99 2 form8k033109exhibit99-1.htm

Contact:
Anita Ho
Acting Chief Financial Officer
Alliance Fiber Optic Products, Inc.                                                                                                                  April 22, 2009
Phone: 408-736-6900 x168

AFOP REPORTS 1st QUARTER 2009 RESULTS
12TH CONSECUTIVE PROFITABLE QUARTER;
EXPECTS REVENUE GROWTH IN 2ND QUARTER 2009

Sunnyvale, CA - April 22, 2009 - Alliance Fiber Optic Products, Inc. (NASDAQ: 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 first quarter ended March 31, 2009.


Revenues for the first quarter of 2009 totaled $7,643,000, a 19% decrease from revenues of $9,401,000 recorded in the first quarter of 2008 and 7% decrease compared with revenues of $8,201,000 for the fourth quarter of 2008. The Company recorded net income for the first quarter of 2009 of $302,000. This compares to net income for the fourth quarter of 2008 of $820,000 and $820,000 for the first quarter of 2008.

 

Included in expenses for the quarter ended March 31, 2009 was $28,000 of stock-based compensation charges under FAS 123(R). Included in expenses for the quarter ended March 31, 2008 and the fourth quarter of 2008 were $51,000 and $30,000 of stock-based compensation charges under SFAS 123(R), respectively.

 

Peter Chang, President and Chief Executive Officer, commented, "Despite our revenue decrease in the first quarter reflecting overall economic conditions, we are pleased with our financial performance. We generated quarterly profits over the last twelve quarters and maintained gross margins at or above 30%, while reducing inventory in the quarter ending March 31, 2009."

 

"In addition, we gained new customers and new design wins during the quarter. Based on input from our customers and current backlog, we expect that revenues in the second quarter of 2009 will grow sequentially, instead of declining. With higher revenues in the coming quarter, we expect our gross margin will improve and profits will increase as well." concluded Mr. Chang.

 

Conference Call
Management will host a conference call at 1:30 p.m. Pacific Time on April 22, 2009 to discuss AFOP's first quarter 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 319964. AFOP will also provide a live webcast of its first quarter 2009 conference call at AFOP's website: www.afop.com . An audio replay will be available until May 1, 2009. The dial in for the replay is 877-660-6853. The replay pass-codes (account # 286; conference ID#:  319964) 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 DWDM components and modules, fixed and variable optical attenuators, and depolarizers. 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 future market demand, and our expectations regarding second quarter 2009 results, including our expectations regarding our second quarter 2009 revenues, gross margin and profits, and the basis for our expectations, 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, order trends and customer demand, the timing of customer orders, loss of key customers, ability to ramp new products into volume production, 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 quarterly report on Form 10-K for the year ended December 31, 2008. 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)

 
           
   

Mar. 31,

  

Dec. 31,

  
   

2009

  

2008

  
   

 (Unaudited)

      

ASSETS

 

  

 

  

Current assets:

 

  

 

  
 

Cash and short-term investment

$          23,402

  

$       23,954

  
 

Accounts receivable

5,167

  

4,708

  

Inventories

4,968

5,614
 

Other current assets

492

  

379

  
 

    Total current assets

34,029

  

34,655

  
 
Long-term investments

14,483

13,718
Othrer assets - ARS Right

1,817

2,582
Property and equipment, net

4,357

4,653
           

Other assets

179

  

190

  

         Total assets

$          54,865

  

$       55,798

  
           

LIABILITIES AND STOCKHOLDER'S EQUITY

        

Current liabilities:

        
 

Accounts payable

$            3,410

  

$         3,572

  
 

Accrued expenses and other liabilities 

2,683

  

3,374

  
 

    Total Current liabilities

 6,093

  

  6,946

  
 

Long-term liabilities

 828

  

891

  

         Total liabilities

 6,921

  

 7,837

  
 

 

 

  

 

  

Stockholders' equity

47,944

  

47,961

  
 

    Total liabilities and stockholders' equity

$          54,865

  

$       55,798

  
 

 

 

  

 

  
           


 

 


  

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,
   

2009

  

2008

  

2008
             

Revenues

$       7,643

 

$        8,201

  

$        9,401

             

Cost of revenues

5,345

 

5,662

  

6,455

 

Gross profit

2,298

 

2,539

  

2,946

             

Operating expenses:

          
 

Research and development

729

 

645

  

898

 

Sales and marketing

634

 

485

  

668

 

General and administrative

845

 

812

  

894

 

Total operating expenses

2,208

 

1,942

 

2,460

             

Income from operations

90

 

597

 

486

Interest and other income, net

222

 

319

  

396

Net income before tax

312

 

           916

 

882

Income tax

10

 

96

  

62

Net income

$          302

 

$           820

 

$          820

             

Net income per share:

          
 

Basic

$         0.01

 

$          0.02

 

$         0.02

 

Diluted

$         0.01

 

$          0.02

 

$         0.02

       

 

    

Shares used in per share calculation:

          
 

Basic

41,872

 

41,796

 

41,392

 

Diluted

41,897

 

41,827

 

44,423

             

Included in costs and expenses above:

          

Stock based compensation charges

          
 

Cost of revenue

$           14

 

$            15

  

$            22

 

Research and development

6

 

6

 

10

 

Sales and marketing

4

 

4

  

7

 

General and administrative

4

 

5

  

12

 

Total

$           28

 

$            30

  

$            51