Oplink Picks Up OCP And Powers To Profit
Oplink Communications, Inc., has posted a profit of $13.2 million in its fiscal year 2007, despite costs incurred during extended wrangling over its purchase of Optical Communication Products (OCP) from Furukawa Electric.
Fremont, California, headquartered Oplink also recorded a net profit of $3 million in the three months to June 30, after initial costs from acquiring the 58.2 percent controlling stake in OCP on June 5.
Oplink expects outstanding merger fees to bring the quarter to September 30 down to breakeven levels, and will try to purchase the remainder of OCP s stock on December 30, which, if successful, will result in a loss for that quarter.
In the quarter ended June 30, OCP s revenue rose 4.6 percent from the prior quarter to $17.2 million, whilst Oplink s independent revenue rose 11 percent to $30.6 million in the same period, and the expanded Oplink anticipates this trend continuing.
“OCP is one of the leaders in supplying active components and subsystems for metro applications and, combined with Oplink s leadership in passive subsystems, we expect to increase our market share and competitive position in this industry, " said Joe Liu, Oplink's CEO and president.
Oplink s profit figures also include a portion of OCP s $8.6 million loss in the June quarter. OCP s gross margin bounced back slightly to 6.6 percent, from -3.5 percent in the prior quarter.
OCP incurred $1.1 million in costs associated with moving some of the company s manufacturing to a Chinese contract manufacturer, SAE Magnetics (H.K.) Limited, a wholly owned subsidiary of TDK.
Its OCP Asia subsidiary, based in Taiwan, also contributed $3.2 million of the total OCP loss, on the basis of $3.3 million in sales.
OCP Asia was formerly Gigacomm, bought by OCP to provide it with a different supplier of semiconductor lasers when its sole source was its former owner, Furukawa.
Prior to the OCP purchase Oplink performed all of its manufacturing at two Chinese sites, in Zhuhai and Shanghai, and therefore must feel confident about using this experience in improving the performance of OCP's Asian sites.