OCTOBER 27, 2009 -- Oclaro Inc. (NASDAQ: OCLR), a provider of optical components, modules, and subsystems, has announced the financial results for its first quarter of fiscal 2010, which ended Sept. 26, 2009.
"In the first full quarter after our merger with Avanex we have generated positive non-GAAP operating profit. We're quite proud of this accomplishment," says Alain Couder, president and chief executive officer of Oclaro. "This was driven by increasing revenues and improving our gross margins to 26%. As a result, Oclaro was cash-flow positive in the September quarter, excluding $6.5 million of net deal related expenditures."
Highlights for fiscal 1Q10:
- GAAP revenues were $85.1 million for fiscal 1Q10, compared to $66.9 million in fiscal 4Q09
- GAAP revenues for 4Q09 exclude revenues from the company's New Focus business of $5.1 million
- As a result of the July 4, 2009 transfer of the New Focus business to Newport Corp. in exchange for its Spectra-Physics laser diode business and $3.0 million in cash, the historical results of New Focus are presented as discontinued operations in the GAAP financial statements
- GAAP gross margin was 26% for 1Q10, compared to 25% in 4Q09, which included only two months of Avanex Corp. results
- Non-GAAP revenues were $85.1 million for 1Q10, compared to $72.0 million for 4Q09, which included only two months of revenues of Avanex Corp.
- Non-GAAP revenues for 4Q09 would have been $78.1 million including all three months of Avanex's revenues
- Non-GAAP revenues include the revenues of New Focus, which is treated as a discontinued operation in Oclaro's GAAP financial statements
- A reconciliation table of non-GAAP measures to the most comparable GAAP measures is included in the financial tables section (see investor page)
- Non-GAAP gross margin was 26% for 1Q10, compared to 25% for 4Q09
- Non-GAAP gross margin for 4Q09 would have been approximately 21% had the company included the results of Avanex for the entire quarter and excluded certain non-recurring credits
- Non-GAAP gross margin excludes $0.2 million of stock-based compensation in 1Q10 and $0.3 million in 4Q09
- Non-GAAP operating income was $1.3 million for 1Q10, compared to a non-GAAP operating loss of $2.0 million in
- Adjusted EBITDA was positive $3.8 million for 1Q10, compared to positive $0.7 million in 4Q09
- GAAP net loss for 1Q10 was $0.5 million, compared to a GAAP net loss of $14.6 million in 4Q09
- Cash, cash equivalents, restricted cash, and short-term investments were $52.5 million as of Sept. 26, 2009 compared to $58.0 million at the end of the prior quarter
- On Sept. 30, 2009, Oclaro regained compliance with NASDAQ listing rule 5450(a)(1) based on the closing price of its common stock exceeding $1.00 for at least 10 consecutive business days
"Revenues were up, we are moving beyond the integration phase of Oclaro, and we still have more synergies to come," says Couder. "While visibility still remains fairly short term, our pipeline suggests the extent of our December revenue growth opportunities may be supply constrained, which is reflected in our guidance range. Regardless, by delivering on this guidance, we believe we have a reasonable chance of generating cash in the December quarter."
The results of Oclaro for 2Q10, which ends Jan. 2, 2010, are expected to be:
- Revenues in the range of $87 million to $92 million
- Non-GAAP gross margin in the range of 25% to 28%
- Adjusted EBITDA in the range of $3.0 million to $7.0 million
The second quarter of fiscal 2010 will include 14 weeks of operations, compared to 13 weeks for the first quarter of fiscal 2010, due to the company's fiscal year calendar. Its second-quarter guidance includes the effects of the additional week on its results of operations.
Visit Oclaro's investor relations page