Oclaro second quarter revenues increase to $159.5 million

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Jan 31 2013

Oclaro, Inc. (NASDAQ: OCLR), a provider of optical components, modules and subsystems, today announced the financial results for its second quarter of fiscal year 2013, which ended December 29, 2012.

"Our financial results for the second quarter of fiscal 2013 demonstrate the progress we are making after the merger," said Alain Couder, chairman and CEO. "Our revenues were at the top-end of guidance and we have successfully executed to the planned synergies on schedule. We also took action to strengthen our balance sheet. Looking ahead, market and economic conditions remain uncertain in a typically softer March quarter. As a result, our efforts will remain focused on reducing operating expenses and improving margin, as well as capitalizing on our new product introductions and strong customer relationships to maximize revenues."

Results for the Second Quarter of Fiscal 2013:

Oclaro closed its merger with Opnext, Inc. on July 23, 2012. The financial results for the second quarter of fiscal 2013 include a full quarter of operating results of Opnext. The financial results for the first quarter of fiscal 2013 include approximately ten weeks of operating results of Opnext since the closing of the merger. Results for the second quarter of fiscal 2012 were pre-merger Oclaro and do not include the operating results of Opnext.

Revenues were $159.5 million for the second quarter of fiscal 2013, compared with revenues of $148.8 million in the first quarter of fiscal 2013. Pro forma combined revenues for the first quarter of fiscal 2013, including Opnext for the full quarter, were $160.2 million.
GAAP gross margin was 13% for the second quarter of fiscal 2013, compared with a GAAP gross margin of 12% in the first quarter of fiscal 2013.
Non-GAAP gross margin was 15% for the second quarter of fiscal 2013, compared with a non-GAAP gross margin of 13% in the first quarter of fiscal 2013.
GAAP operating loss was $6.7 million for the second quarter of fiscal 2013, which included a $25.0 million gain on the sale of assets related to our interleaver product line and our thin film filter business. This compares with a GAAP operating loss of $47.4 million in the first quarter of fiscal 2013.
Non-GAAP operating loss was $23.1 million for the second quarter of fiscal 2013, compared with a non-GAAP operating loss of $29.4 million in the first quarter of fiscal 2013.
GAAP net loss for the second quarter of fiscal 2013 was $12.2 million, and included a $25.0 million gain on the sale of assets related to our interleaver product line and our thin film filter business. This compares with a GAAP net loss of $9.4 million in the first quarter of fiscal 2013, which included a gain on bargain purchase of $39.5 million related to the acquisition of Opnext.
Non-GAAP net loss for the second quarter of fiscal 2013 was $25.2 million, and excluded a $25.0 million gain on the sale of assets related to our interleaver product line and our thin film filter business. This compares with a non-GAAP net loss of $31.1 million in the first quarter of fiscal 2013, which excluded a gain on bargain purchase of $39.5 million related to the acquisition of Opnext.
Adjusted EBITDA was negative $13.2 million for the second quarter of fiscal 2013, compared with negative $20.6 million in the first quarter of fiscal 2013.
Cash, cash equivalents and restricted cash were $96.0 million at December 29, 2012. On January 23, 2013, Silicon Valley Bank (SVB) and Wells Fargo entered into a Joinder Agreement pursuant to the Second Amended and Restated Credit Agreement, dated as of November 2, 2012. Pursuant to the Joinder Agreement, SVB agreed to become an additional Lender under the Credit Agreement, and the Lenders agreed to increase the revolving credit facility under the Credit Agreement from $50 million to $80 million.

Third Quarter Fiscal Year 2013 Outlook

The results of Oclaro for the third quarter of fiscal 2013, which ends March 30, 2013, are expected to be: