Ortel Reports Second Fiscal Quarter Results
Company Returns to Profitability Earlier Than Expected --
Alhambra, CA. Ortel Corporation (Nasdaq:ORTL) today reported financial results for its second fiscal quarter ended October 31, 1999, in line with the company s announcement on October 11 that revenues and earnings would exceed then-current expectations.
For the current second fiscal quarter, revenues totaled $19.4 million, up 10 percent from $17.7 million, as restated in the second quarter of fiscal year 1999, and up 10 percent from the first quarter of fiscal 2000. Net income for the current second quarter totaled $253,000, or $0.02 per diluted share, compared with a net loss a year ago of $4.6 million, or $0.39 loss per share. Last year s net loss included $5.5 million ($0.47 per share) in after-tax charges and operating losses related to the discontinuance of the pump laser business.
In the current second quarter, investment in research and development rose 49 percent to $3.6 million compared with the same period last year, primarily due to the company s ongoing commitment to maintain its leadership position in broadband CATV and to aggressively pursue emerging opportunities in telecommunications.
For the six months ended October 31, 1999, revenues of $37.1 million were 8 percent higher than restated revenues of $34.2 million in the first half of last fiscal year. The company recorded a net loss for the first half of fiscal 2000 of $7.8 million, or $0.58 loss per share, which included after-tax charges of $3.8 million related to discontinued wireless operations and other special first-quarter charges totaling $4.0 million after tax. A year ago, as restated, Ortel recorded income from continuing operations of $2.0 million, or $0.17 per diluted share, and a net loss of $4.4 million, or $0.37 loss per share.
"We are pleased with our return to profitability. The measures we have taken to reposition Ortel as a fiberoptics company focused on two core markets -- broadband CATV and telecommunications -- are clearly producing positive results for the company and for our stockholders," said Stephen R. Rizzone, president, chief executive officer and chairman of the board. "In addition to stronger sales growth, Ortel s performance in the second quarter benefited from improved manufacturing processes, cycle times and productivity gains. Concurrently, we are investing significant time, energy and resources to build the necessary infrastructure to ensure that the company is poised to meet our growth objectives."
The company reported that it continued to see strong revenue growth from its broadband CATV business, particularly in sales of photodiodes, 1310nm transmitters and analog DWDM 1550nm laser transmitters. Additionally, Ortel also registered several design wins and saw increased sampling activity for its new line of telecommunication products.
Prior-period financial statements reflect the restatement of the wireless operations discontinued in the first quarter of fiscal 2000, and the 980nm pump laser operations discontinued in the second quarter of fiscal 1999.
This news release contains forward-looking statements regarding Ortel s results of operations or financial condition. Factors that could cause actual results to differ materially include changes in the capital spending of CATV operators, changes in customer order patterns, introductions of new products by competitors, and other risks identified from time to time in the company s SEC filings.
Ortel Corporation designs, manufactures and supplies advanced optoelectronic technologies that provide the critical bandwidth and two-way interactivity essential for robust telecommunications and cable television applications. Ortel s fiber optics increase the capacity and performance of fiberoptic networks enabling them to handle ever-increasing volumes of voice, video and data communications. The company is headquartered in Alhambra, California with international operations in Sweden, Germany, France, Singapore and China. For more information please visit Ortel s Web site at http://www.ortel.com.
Contact:
Sally Cholko, Manager, Investor Relations Ortel Corporation 626.293.3643
scholko@ortel.com
Cecilia A. Wilkinson/E. E. Wang Pondel/Wilkinson Group 310.207.9300
investor@pondel.com
Sally Cholko, Manager, Investor Relations Ortel Corporation 626.293.3643
scholko@ortel.com
Cecilia A. Wilkinson/E.
E. Wang Pondel/Wilkinson Group 310.207.9300
investor@pondel.com
E-mail: investor@pondel.com
