EX-99.1 2 exhibit99-1.htm PRESS RELEASE DATED APRIL 22, 2010 ANNOUNCING FIRST QUARTER 2010 RESULTS. exhibit99-1.htm
Contact:
 
Anita Ho  
Acting Chief Financial Officer  
Alliance Fiber Optic Products, Inc. April 22, 2010
Phone: 408-736-6900 x168  

AFOP REPORTS IMPROVED FIRST QUARTER, 2010 RESULTS
WITH 10% SEQUENTIAL GROWTH GUIDANCE
 
Sunnyvale, CA – April 22, 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 first quarter ended March 31, 2010.
 
Revenues for the first quarter of 2010 totaled $8,406,000, a 12% increase from revenues of $7,517,000 reported in the previous quarter, and a 10% increase from revenues of $7,643,000 reported in the first quarter of 2009. The Company recorded net income for the first quarter of 2010 of approximately $641,000, or $0.02 per share based on 42.5 million shares outstanding, compared to $428,000, or $0.01 per share based on 42.2 million shares outstanding, for the fourth quarter of 2009. This compares to net income for the first quarter of 2009 of $302,000, or $0.01 per share based on 41.9 million shares outstanding.
 
Included in expenses for the quarter ended March 31, 2010 was approximately $33,000 of stock-based compensation, compared to $28,000 of stock-based compensation charges for the quarter ended March 31, 2009.
 
Peter Chang, President and Chief Executive Officer, commented, “We are pleased to begin the new decade with a demanding and growing quarter. Besides sequential revenue growth and improved gross margin, operating profits and net profits, we have seen many encouraging activities with our key customers. Even with more capital investment to meet increasing customer demands during the quarter, our balance sheet remains strong. At the end of the first quarter, our cash and short-term investments, together with our ARS Right, was about $41 million, after the cash dividend payment in January, 2010.”
 
“Going forward, we feel that demand remains strong across all our businesses. Based on current backlog, we expect that revenues for the coming quarter will grow by ten percent. Additionally, with our continued focus on operational efficiencies, we are optimistic about both revenue and profit growth in the remainder of 2010.” concluded Mr. Chang.
 
Conference Call
Management will host a conference call at 1:30 p.m. Pacific Time on April 22, 2010 to discuss AFOP’s first quarter 2010 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 349010. AFOP will also provide a live webcast of its first quarter 2010 conference call at AFOP’s website www.afop.com. An audio replay will be available until May 5, 2010. The dial in number for the replay is 877-660-6853 or 201-612-7415. The replay passcodes (account # 286; conference ID#: 349010) 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 and profit levels, and growth, and the potential timing thereof, our beliefs regarding business conditions, our customer base and customer demand, our expectations regarding current or future orders and the impact of those orders on our business, and our ability to continue to focus on our operational efficiencies or our successes in doing so, 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 quarterly report on Form 10-K for the year ended December 31, 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)
 
  Mar. 31       Dec. 31,
  2010 2009
  (Unaudited)    
ASSETS        
Current assets:        
       Cash and short-term investments $ 39,418 $ 40,493
       Other current asset - ARS   1,762   1,778
       Accounts receivable   5,430   4,952
       Inventories   5,861   4,984
       Other current assets   615   515
              Total current assets   53,086   52,722
 
Property and equipment, net   4,797   4,434
Other assets   126   233
              Total assets $ 58,009 $ 57,389
 
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
       Accounts payable $ 4,611 $ 3,701
       Accrued expenses and other liabilities   2,804   3,936
              Total current liabilities   7,415   7,637
           
Long-term liability   812   813
              Total liabilities   8,227   8,450
           
Stockholders' equity   49,782   48,939
              Total liabilities and stockholders' equity $ 58,009 $    57,389
 

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,
  2010 2009 2009
Revenues $ 8,406 $ 7,517 $ 7,643
 
Cost of revenues   5,711   5,151   5,345
       Gross profit   2,695   2,366   2,298
 
Operating expenses:            
       Research and development   709   760   729
       Sales and marketing   561   535   634
       General and administrative   933   817   845
              Total operating expenses   2,203   2,112   2,208
 
Income from operations   492   254   90
Interest and other income, net   150   196   222
Net income before tax   642 $ 450   312
Income tax   1   22   10
Net income $ 641 $ 428 $ 302
 
Net income per share:            
       Basic $ 0.02 $ 0.01 $ 0.01
       Diluted $ 0.01 $ 0.01 $ 0.01
 
Shares used in per share calculation:            
       Basic      42,467      42,213      41,872
       Diluted   43,241   42,876   41,897
 
Included in costs and expenses above:            
Stock based compensation charges            
       Cost of revenue $ 12 $ 12 $ 14
       Research and development   5   5   6
       Sales and marketing   4   3   4
       General and administrative   12   13   4
              Total $ 33 $ 33 $ 28