New Focus, Inc., (Nasdaq: NUFO), a supplier of innovative fiber optic products for next-generation optical networks under the Smart Optics for Networks brand, announced lower revenue guidance for its fiscal year ending December 30, 2001. The company also announced an expected revenue range for its first quarter ending April 1, 2001 and outlined action plans to reduce the rate of production in both its U.S. and China operations.
Noting a widespread softening in the U.S. economy and the telecommunications industry, New Focus lowered guidance for its fiscal 2001 net revenue to $170-190 million. Previous revenue guidance for fiscal 2001, released in conjunction with the company's fourth quarter earnings press release on January 30, 2001, was $240 million. For fiscal year 2000 New Focus reported net revenue of $80.4 million.
The company indicated that first quarter 2001 net revenue is now expected to be $38-41 million. The company's previous guidance did not specify a revenue estimate for the first quarter of 2001. Net revenue in the fourth quarter of 2000 was approximately $43 million based on the pro-forma combined results of New Focus, JCA Technology, Inc., and Globe Y. Technology, Inc., consisting of $34 million for New Focus, $7 million for JCA, and $2 million for Globe Y. New Focus completed its acquisitions of JCA and Globe Y on January 16 and February 15, 2001, respectively. For the first quarter of 2000 New Focus reported net revenue of $9.8 million.
The company will slow the rate of production in its U.S. and China factories to bring production in line with the lower unit demand now anticipated for the first half of 2001. To accomplish this goal, the company will immediately furlough approximately 260 direct production employees currently in training at its operations in Shenzhen, China. The company will further lower production output through the adjustment of work schedules at its China manufacturing facilities. The company will also immediately reduce its U.S. workforce by approximately 70 people, predominantly direct labor employees. Prior to these workforce reductions, the company's operations in China employed approximately 1,200 people, while the company's U.S. operations employed approximately 900 people. The company will continue to hire selectively in the engineering, sales and marketing, and administrative functions.
About New Focus:
New Focus designs, manufactures and markets innovative fiber optic products for next-generation optical networks. For more information, visit www.newfocus.com.