UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 23, 2012
ALLIANCE FIBER OPTIC PRODUCTS,
INC.
(Exact name of registrant as
specified in its charter)
Delaware | 0-31857 | 77-0554122 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File Number) | Identification No.) |
275 Gibraltar Drive, Sunnyvale, California | 94089 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (408) 736-6900
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
£ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
£ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
£ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
£ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
The information in this Current Report is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.
On October 23, 2012, Alliance Fiber Optic Products, Inc. issued a press release announcing its financial results for the quarter ended September 30, 2012. A copy of the earnings release is furnished herewith as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
Exhibit | Description | ||
99.1 | Press Release dated October 23, 2012 announcing third quarter 2012 results. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: October 23, 2012
ALLIANCE FIBER OPTIC PRODUCTS, INC. | |||
By | /s/ Anita K. Ho | ||
Name: | Anita K. Ho | ||
Title: | Acting Chief Financial Officer |
EXHIBIT INDEX
Exhibit | |||
Number | Description | ||
99.1 | Press release dated October 23, 2012 announcing third quarter 2012 results. |
Contact: | |
Anita Ho | |
Acting Chief Financial Officer | |
Alliance Fiber Optic Products, Inc. | Oct 23, 2012 |
Phone: 408-736-6900 x168 |
AFOP REPORTS IMPROVED THIRD QUARTER,
2012 FINANCIAL RESULTS
WITH RECORD 2012 ANNUAL SALES GUIDANCE
Sunnyvale, CA October 23, 2012 - 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 third quarter ended September 30, 2012.
Revenues for the third quarter of 2012 totaled $12,390,000, a 8% increase from revenues of $11,527,000 reported in the previous quarter, and a 5% increase from revenues of $11,778,000 reported in the third quarter of 2011. The Company recorded net income for the third quarter of 2012 of $1,892,000, or $0.22 per share based on 8.8 million shares outstanding, compared to $1,232,000, or $0.14 per share based on 8.8 million shares outstanding, for the second quarter of 2012. This compares to net income for the third quarter of 2011 of $1,454,000, or $0.16 per share based on 8.9 million shares outstanding.
Included in expenses were stock-based compensation amounts of $268,000 for the quarter ended September 30, 2012, $271,000 for the quarter ended June 30, 2012 and $259,000 for the quarter ended September 30, 2011.
Peter Chang, President and Chief Executive Officer, commented, We are very pleased with the financial performance and progress AFOP made in the quarter ended September 30, 2012. With strong customer demand, we delivered quarterly sales higher than our original guidance. Through efficiency improvements and favorable product mix, we achieved higher gross margins and generated higher profits than previous quarters. Our Q3 earnings per share increased more than 50% from the Q2 level. In addition, our cash and short-term and long-term investments increased to about $53 million, while we continued our on-going stock repurchase program.
Based on input from our customers, we expect sales in the remaining quarter of 2012 to be at a similar level as Q3 and result in another record year for AFOP in revenue and operating profits. concluded Mr. Chang.
Conference Call
Management will host a conference call at 1:30 p.m. (Pacific)
on October 23, 2012 to discuss AFOPs third quarter 2012 financial results.
please call 877-675-3572 at least ten minutes prior to the call in order for the
operator to connect you. The confirmation number for the call is 31422947. AFOP
will also provide a live webcast of its third quarter 2012 conference call at
AFOPs website: www.afop.com. The webcast replay will be available on AFOPs
website 90 minutes after the live conference call.
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 beliefs regarding our opportunity for revenue growth and profit improvements and the time periods thereof 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, trends in demand for bandwith, 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, our ability to ramp new products into volume production, the mix of products sold and product pricing, the costs associated with running our operations, industry-wide shifts in supply and demand for optical components and modules, industry overcapacity and demand for bandwith, cost control initiatives, our ability to obtain and maintain operational efficiencies, 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-Q for the quarter ended June 30, 2012. 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)
Sept. 30, | Dec. 31, | |||||
2012 | 2011 | |||||
ASSETS | (Unaudited) | |||||
Current assets: | ||||||
Cash and short-term investments | $ | 42,663 | $ | 39,588 | ||
Accounts receivable | 8,292 | 6,630 | ||||
Inventories | 7,302 | 6,763 | ||||
Other current assets | 1,770 | 714 | ||||
Total current assets | 60,027 | 53,695 | ||||
Long-term investments | 10,229 | 10,098 | ||||
Property and equipment, net | 7,346 | 7,718 | ||||
Other assets | 211 | 162 | ||||
Total assets | $ | 77,813 | $ | 71,673 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 6,239 | $ | 3,647 | ||
Accrued expenses and other current liabilities | 4,273 | 3,721 | ||||
Total current liabilities | 10,512 | 7,368 | ||||
Long-term liabilities: | ||||||
Other long-term liabilities | 596 | 691 | ||||
Total liabilities | 11,108 | 8,059 | ||||
Stockholders' equity | 66,705 | 63,614 | ||||
Total liabilities and stockholders' equity | $ | 77,813 | $ | 71,673 |
ALLIANCE FIBER OPTIC PRODUCTS,
INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
Sept. 30 | Jun. 30 | Sept. 30 | Sept. 30 | Sept. 30 | ||||||||||||
2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenues | $ | 12,390 | $ | 11,527 | $ | 11,778 | $ | 34,452 | $ | 31,883 | ||||||
Cost of revenues | 7,979 | 7,618 | 7,963 | 22,688 | 21,580 | |||||||||||
Gross profit | 4,411 | 3,909 | 3,815 | 11,764 | 10,303 | |||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 819 | 839 | 834 | 2,465 | 2,356 | |||||||||||
Sales and marketing | 614 | 662 | 595 | 1,951 | 1,711 | |||||||||||
General and administrative | 1,079 | 1,120 | 1,052 | 3,281 | 3,095 | |||||||||||
Total operating expenses | 2,512 | 2,621 | 2,481 | 7,697 | 7,162 | |||||||||||
Income from operations | 1,899 | 1,288 | 1,334 | 4,067 | 3,141 | |||||||||||
Interest and other income, net | 194 | 160 | 149 | 504 | 452 | |||||||||||
Net income before tax | $ | 2,093 | $ | 1,448 | $ | 1,483 | $ | 4,571 | $ | 3,593 | ||||||
Income tax | 201 | 216 | 29 | 526 | (131 | ) | ||||||||||
Net income | $ | 1,892 | $ | 1,232 | $ | 1,454 | $ | 4,045 | $ | 3,724 | ||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.22 | $ | 0.14 | $ | 0.16 | $ | 0.46 | $ | 0.42 | ||||||
Diluted | $ | 0.21 | $ | 0.14 | $ | 0.16 | $ | 0.45 | $ | 0.41 | ||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 8,790 | 8,820 | 8,883 | 8,819 | 8,853 | |||||||||||
Diluted | 8,988 | 9,000 | 9,040 | 9,000 | 9,119 | |||||||||||
Included in costs and expenses above: | ||||||||||||||||
Stock based compensation charges | ||||||||||||||||
Cost of revenue | $ | 28 | $ | 32 | $ | 28 | $ | 86 | $ | 74 | ||||||
Research and development | 32 | 33 | 29 | 92 | 48 | |||||||||||
Sales and marketing | 65 | 64 | 63 | 188 | 117 | |||||||||||
General and administrative | 143 | 142 | 139 | 420 | 274 | |||||||||||
Total | $ | 268 | $ | 271 | $ | 259 | $ | 786 | $ | 513 |