DECEMBER 8, 2008 --Alliance Fiber Optic Products Inc. (search for AFOP), supplier of fiber-optic components, subsystems, and integrated modules for the optical network equipment market, today announced what it claims are two strengthening events: its planar lightwave circuit (PLC) splitters have completed third-party qualification, and the company has accepted an auction rate securities (ARS) offer from UBS Financial Institute.
In regards to the first announcement, AFOP's PLC Splitters (1x4 and 1x8) successfully completed Independent Test Laboratory qualification to the rigorous FOC GR-1209 and GR-1221 requirements, say company representatives. The components performed superbly across temperature and wavelength, providing low insertion loss, low input polarization sensitivity, excellent uniformity, and low return loss in four- and eight-port configurations. AFOP16- and 32-port PLCs, which use the same technology, also demonstrated superior reliability, says the company, and its OEM-friendly packaging provided the flexibility to meet the broadest design requirements for FTTH applications. All of these devices are all available in AFOP's new QuickPath modular rack cassette packing line.
"We believe the investment in third-party qualification of our connectivity and passive products is a sound investment for AFOP's future," reports Peter Chang, president and CEO of AFOP. "As additional carriers or CATV/ Broadband providers begin FTTX deployments, AFOP is well positioned to gain increasing market share," he adds.
With respect to AFOP's Balance Sheet, on November 11, 2008, AFOP accepted an offer from UBS to repurchase its ARS, at par value, from the investment bank that sold and continues to hold its ARS. The company believes its ARS are eligible to participate in the offer and expects to sell them at par value in exchange for cash during the period of June 30, 2010, through July 2, 2012, or sooner per the offer. The total par value of the company's ARS is $16.3 million.
The investment bank that has made the repurchase offer, UBS, has represented that it has the financial resources to perform its obligations under the offers. However, there can be no guarantee that the investment bank can maintain the financial resources to satisfy its obligations under the repurchase offer.
"With this supportive offer from UBS regarding these highly rated securities, we are further confident in expanding our business, in [the] current economic environment, with our strong balance sheet," Chang contends.