News Article
Oclaro gross profits soar over 150 percent
The provider and innovator of optical communications solutions has announced revenues of $96.6 million in the first quarter of fiscal 2014, compared with $95.4 million in the first quarter of fiscal 2013
Oclaro, Inc., has announced the financial results for its first quarter of fiscal year 2014, which ended September 28th, 2013.
As previously disclosed, on September 12th, 2013, Oclaro completed the sale of its Zurich business to II-VI, Inc. In addition, on November 1st, 2013, the sale of Oclaro's Amplifier and Micro-Optics business to II-VI was completed.
The following financial results for the first quarter of fiscal 2014 include a full quarter of Amplifier sales and approximately eleven weeks of Zurich sales.
· Revenues were $138.9 million in the first quarter of fiscal 2014, compared with $136.1 million in the fourth quarter of fiscal 2013.
· Adjusted EBITDA was negative $15.5 million in the first quarter of fiscal 2014, compared with negative $21.1 million in the fourth quarter of fiscal 2013.
"Our results for the first quarter of fiscal 2014 were in line with our expectations and demonstrate evidence of our progress," said Greg Dougherty, CEO, Oclaro. "As a company, we are focused on creating a culture that delivers on the commitments we make. We have now completed the first phase of our turnaround plan by closing our previously announced sales of our Zurich and Amplifier businesses."
He continued, "We have started the restructuring process, which has required some hard choices and decisions, including a reduction of our global workforce, the closing of additional sites and a simplification of our organisation structure. While our work will take several quarters to complete, I am pleased with our progress so far. I am enthusiastic about the potential for Oclaro in the future as we emerge from our restructuring process a more focused and stronger company."
Results for the First Quarter of Fiscal 2014
Except where expressly noted, all reported results and second quarter fiscal 2014 guidance exclude the results from the Zurich and Amplifier and Micro-Optics businesses, and are reclassified to discontinued operations in the financial tables.
Revenues were $96.6 million for the first quarter of fiscal 2014, compared with revenues of $95.4 million in the fourth quarter of fiscal 2013.
Non-GAAP gross margin was 13% for the first quarter of fiscal 2014, compared with a non-GAAP gross margin of 7% in the fourth quarter of fiscal 2013.
GAAP Results for the First Quarter of Fiscal 2014
Gross margin was 12% for the first quarter of fiscal 2014, compared with a GAAP gross margin of 6% in the fourth quarter of fiscal 2013.
Operating loss was $31.7 million for the first quarter of fiscal 2014. This compares with an operating loss of $42.8 million for the fourth quarter of fiscal 2014, which included $18.9 million of flood-related income, net of expenses, and an impairment of goodwill and intangible assets of $26.2 million.
GAAP net income for the first quarter of fiscal 2014 was $33.3 million, and included approximately $63.5 million related to the discontinued operations. This compares with a net loss of $47.4 million in the fourth quarter of fiscal 2013.
Adjusted EBITDA was negative $19.7 million for the first quarter of fiscal 2014, compared with negative $22.4 million in the fourth quarter of fiscal 2013.
Cash, cash equivalents, restricted cash, and short-term investments were $94.7 million at September 29th, 2013.
Second Quarter Fiscal Year 2014 Outlook
Revenues for the second quarter of fiscal 2014, which ends December 28th, 2013, are anticipated to be in the range of $92 million to $102 million. Non-GAAP gross margin is expected to be between 10% and 14% and adjusted EBITDA to be in the range of negative $20 million to negative $15 million.
The outlook for the second quarter of fiscal 2014 does not include approximately $7 million of revenue and associated results from the Amplifier business, which was sold on November 1st, 2013.
The foregoing guidance is based on current expectations.
Management Appointment
The company also announced today that Mike Fernicola has been appointed Principal Accounting Officer, effective November 8th, 2013. Fernicola, will report directly to Pete Mangan CFO, and has more than 15 years of public accounting and corporate finance experience. He most recently served as Corporate Controller for Aptina Imaging, Inc from 2010 to 2013.
Conference Call
Oclaro held a conference call to discuss financial results for the first quarter of fiscal year 2014 last week. A replay of the conference call will be available through November 14th, 2013. To access the replay, dial (858) 384-5517. The passcode for the replay is 4646347.
A webcast of this call and a supplemental presentation is also available in the investor section of Oclaro's website at www.oclaro.com.
As previously disclosed, on September 12th, 2013, Oclaro completed the sale of its Zurich business to II-VI, Inc. In addition, on November 1st, 2013, the sale of Oclaro's Amplifier and Micro-Optics business to II-VI was completed.
The following financial results for the first quarter of fiscal 2014 include a full quarter of Amplifier sales and approximately eleven weeks of Zurich sales.
· Revenues were $138.9 million in the first quarter of fiscal 2014, compared with $136.1 million in the fourth quarter of fiscal 2013.
· Adjusted EBITDA was negative $15.5 million in the first quarter of fiscal 2014, compared with negative $21.1 million in the fourth quarter of fiscal 2013.
"Our results for the first quarter of fiscal 2014 were in line with our expectations and demonstrate evidence of our progress," said Greg Dougherty, CEO, Oclaro. "As a company, we are focused on creating a culture that delivers on the commitments we make. We have now completed the first phase of our turnaround plan by closing our previously announced sales of our Zurich and Amplifier businesses."
He continued, "We have started the restructuring process, which has required some hard choices and decisions, including a reduction of our global workforce, the closing of additional sites and a simplification of our organisation structure. While our work will take several quarters to complete, I am pleased with our progress so far. I am enthusiastic about the potential for Oclaro in the future as we emerge from our restructuring process a more focused and stronger company."
Results for the First Quarter of Fiscal 2014
Except where expressly noted, all reported results and second quarter fiscal 2014 guidance exclude the results from the Zurich and Amplifier and Micro-Optics businesses, and are reclassified to discontinued operations in the financial tables.
Revenues were $96.6 million for the first quarter of fiscal 2014, compared with revenues of $95.4 million in the fourth quarter of fiscal 2013.
Non-GAAP gross margin was 13% for the first quarter of fiscal 2014, compared with a non-GAAP gross margin of 7% in the fourth quarter of fiscal 2013.
GAAP Results for the First Quarter of Fiscal 2014
Gross margin was 12% for the first quarter of fiscal 2014, compared with a GAAP gross margin of 6% in the fourth quarter of fiscal 2013.
Operating loss was $31.7 million for the first quarter of fiscal 2014. This compares with an operating loss of $42.8 million for the fourth quarter of fiscal 2014, which included $18.9 million of flood-related income, net of expenses, and an impairment of goodwill and intangible assets of $26.2 million.
GAAP net income for the first quarter of fiscal 2014 was $33.3 million, and included approximately $63.5 million related to the discontinued operations. This compares with a net loss of $47.4 million in the fourth quarter of fiscal 2013.
Adjusted EBITDA was negative $19.7 million for the first quarter of fiscal 2014, compared with negative $22.4 million in the fourth quarter of fiscal 2013.
Cash, cash equivalents, restricted cash, and short-term investments were $94.7 million at September 29th, 2013.
Second Quarter Fiscal Year 2014 Outlook
Revenues for the second quarter of fiscal 2014, which ends December 28th, 2013, are anticipated to be in the range of $92 million to $102 million. Non-GAAP gross margin is expected to be between 10% and 14% and adjusted EBITDA to be in the range of negative $20 million to negative $15 million.
The outlook for the second quarter of fiscal 2014 does not include approximately $7 million of revenue and associated results from the Amplifier business, which was sold on November 1st, 2013.
The foregoing guidance is based on current expectations.
Management Appointment
The company also announced today that Mike Fernicola has been appointed Principal Accounting Officer, effective November 8th, 2013. Fernicola, will report directly to Pete Mangan CFO, and has more than 15 years of public accounting and corporate finance experience. He most recently served as Corporate Controller for Aptina Imaging, Inc from 2010 to 2013.
Conference Call
Oclaro held a conference call to discuss financial results for the first quarter of fiscal year 2014 last week. A replay of the conference call will be available through November 14th, 2013. To access the replay, dial (858) 384-5517. The passcode for the replay is 4646347.
A webcast of this call and a supplemental presentation is also available in the investor section of Oclaro's website at www.oclaro.com.
