| [August 21, 2008] |
 |
Avanex Corporation Announces Fiscal 2008 Fourth Quarter and Year-End Financial Results
FREMONT, Calif. --(Business Wire)-- Avanex Corporation (NASDAQ:AVNXD), a pioneer of intelligent photonic solutions that enable next-generation optical networks, today reported its fiscal 2008 fourth quarter and year-end financial results for the quarter and year ended June 30, 2008.
Net revenue in the fourth quarter of fiscal year 2008 was $51.8 million, an increase of 5 percent from $49.6 million in the third quarter of fiscal year 2008, and an increase of 1 percent from $51.1 million in the same period last year. Net revenue in fiscal year 2008 was $208.1 million, a 2 percent decrease from $212.8 million in the prior fiscal year.
Gross margin in the fourth quarter of fiscal year 2008 was 32 percent, flat with the third quarter of fiscal year 2008, and an increase of 8 percentage points from 24 percent in the same period last year. Gross margins in fiscal year 2008 were 31 percent, up from 18 percent in fiscal year 2007. In the fourth quarter of fiscal year 2008 and full fiscal year of 2008, gross profit increased by over $3.1 million and $3.7 million, respectively, due to the global distribution agreement, arrangements with customers, and a settlement with our former French subsidiary. We do not expect these benefits to continue in fiscal year 2009.
Net income in the fourth quarter of fiscal year 2008 was $1.3 million, or $0.08 per diluted share, compared with net income of $3.3 million, or $0.22 per diluted share in the third quarter of fiscal year 2008. This compares to a net loss of $5.7 million or a net loss of $0.38 per diluted share in the same period last year. Net income in fiscal year 2008 was $4.8 million, or $0.31 per diluted share, compared to a net loss of $30.6 million, or a net loss of $2.16 per diluted share, in the same period last year. All per-share figures in this earnings release take into account the 15-for-1 reverse stock split that the company effected following the close of market on August 12, 2008.
Non-GAAP net income in the fourth quarter of fiscal year 2008 was $1.6 million, or $0.11 per diluted share, compared with non-GAAP net income of $2.9 million, or $0.19 per diluted share, in the third quarter of fiscal year 2008. This compares to non-GAAP breakeven in the same period last year. Fiscal year 2008 non-GAAP net income was $9.0 million, or $0.59 per diluted share, compared to a non-GAAP net loss of $13.5 million, or a net loss of $0.95 per diluted share, in fiscal year 2007.(1)
"We are pleased with our performance during fiscal year 2008," said Giovanni Barbarossa, Interim CEO of Avanex. "The company's focus is to expand our margins, dramatically improve our execution in new product development and strengthen our relationships with key customers."
Q1 FY 2009 Outlook
The company expects revenue to be between $44 million and $48 million and gross margin to be between 20 to 23 percent in the first quarter of fiscal 2009, ending September 30, 2008.
Investor Conference Call
Avanex will host a conference call to discuss fiscal year 2008 fourth quarter and year-end results at 1:30 p.m. PST today. Investors are invited to listen to a live broadcast of the conference call via webcast, which can be accessed by visiting the Avanex Investor Relations website at http://investor.avanex.com/events.cfm. Investors can also listen to the conference call by dialing 913-312-1268 and entering access ID number 6479892.
A replay of the call will be available through an archived webcast at http://investor.avanex.com/events.cfm. An audio replay will be available through 12 AM eastern daylight time on August 28, 2008 and can be accessed by dialing 888-203-1112 and entering access ID number 6479892.
About Avanex
Avanex Corporation is a leading global provider of Intelligent Photonic Solutions(TM) to meet the needs of fiber optic communications networks for greater capacity, longer distance transmissions, improved connectivity, higher speeds and lower costs. These solutions enable or enhance optical wavelength multiplexing, dispersion compensation, switching and routing, transmission, amplification, and include network-managed subsystems. Avanex Corporation was incorporated in 1997 and is headquartered in Fremont, Calif. Avanex Corporation also maintains facilities in Horseheads, N.Y.; Melbourne, Fla.; Shanghai, China; Villebon Sur Yvette, France; San Donato, Italy; and Bangkok Thailand. To learn more about Avanex Corporation, visit our web site at: www.avanex.com.
Forward-looking Statements
This press release contains forward-looking statements including statements regarding expected first quarter of fiscal 2009 outlook and future operating results and our strategies. Actual results could differ materially from those projected in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include general economic conditions, the pace of spending in the telecommunications industry and in particular the optical networks industry, market demand and price of our products, the company's ability to sufficiently anticipate market needs and develop products and enhancements that achieve market acceptance, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, any slowdown or deferral of orders for products or the application of accounting or tax principles in an unanticipated manner.
Finally, please refer to the risk factors contained in the company's SEC filings including the company's Annual Report on Form 10-K filed with the SEC on Sept. 7, 2007, Quarterly Report on Form 10-Q filed with the SEC on May 2, 2008 and subsequent filings with the SEC.
Avanex assumes no obligation and does not intend to update any forward-looking statements, whether as a result of new information, future events or otherwise.
(1) Non-GAAP net income (loss) and non-GAAP net income (loss) per share exclude share-based compensation expenses, gain from legal settlement, amortization of intangibles, restructuring charges (recovery), gain (loss) on disposal of property and equipment, gain (loss) on sale of subsidiary, the operating expenses associated with this subsidiary until the closing, due diligence expenses relating to abandoned acquisition activity, and arbitration expenses. Details on the items excluded from non-GAAP net income (loss) and non-GAAP net income (loss) per share are available in the table entitled, "Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)," following the accompanying financial statements.
Avanex Corporation
CONSOLIDATED BALANCE SHEET
In thousands
(Unaudited)
June 30, March 31, June 30,
2008 2008 2007
--------------------------------
Assets
Current assets:
Cash and cash equivalents $ 14,839 $ 11,184 $ 14,837
Restricted cash 3,776 3,757 3,620
Short-term investments 40,590 38,758 28,942
Accounts receivable, net 39,032 41,072 33,764
Inventories 16,572 15,624 15,188
Due from related party 85 61 14,381
Other current assets 6,629 6,680 5,716
--------------------------------
Total current assets 121,523 117,136 116,448
Property and equipment, net 7,688 7,736 5,900
Intangibles, net 314 370 559
Goodwill 9,408 9,408 9,408
Other assets 2,870 2,758 2,685
--------------------------------
Total assets $ 141,803 $ 137,408 $ 135,000
================================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 33,255 $ 30,662 $ 32,549
Accrued compensation 6,396 5,499 6,091
Accrued warranty 626 700 873
Other accrued expenses and deferred
revenue 6,568 7,105 10,940
Current portion of long-term
obligations 13 10 9
Current portion of accrued
restructuring 2,940 2,518 2,837
--------------------------------
Total current liabilities 49,798 46,494 53,299
Long-term liabilities:
Accrued restructuring 5,043 6,144 8,269
Other long-term obligations 1,520 1,762 1,350
--------------------------------
Total liabilities 56,361 54,400 62,918
--------------------------------
Stockholders' equity:
Common stock 15 15 15
Additional paid-in capital 784,492 783,340 776,112
Accumulated other comprehensive
income 1,285 1,295 1,064
Accumulated deficit (700,350) (701,642) (705,109)
--------------------------------
Total stockholders' equity 85,442 83,008 72,082
--------------------------------
Total liabilities and stockholders'
equity $ 141,803 $ 137,408 $ 135,000
================================
[FEED_C
RLF] Avanex Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
In thousands, except for per share data
(Unaudited)
Three Months Ended Year Ended
--------------------------- -------------------
June 30, March 31, June 30, June 30, June 30,
2008 2008 2007 2008 2007
--------------------------- -------------------
Net revenue:
Third parties $51,748 $49,523 $35,362 $189,821 $151,380
Related parties 74 33 15,736 18,273 61,375
--------------------------- -------------------
Total net revenue 51,822 49,556 51,098 208,094 212,755
Cost of revenue:
Cost of revenue
except for
purchases from
related parties 34,634 33,241 38,971 142,958 174,059
Purchases from
related parties 449 220 28 991 491
--------------------------- -------------------
Total cost of
revenue 35,083 33,461 38,999 143,949 174,550
--------------------------- -------------------
Gross profit 16,739 16,095 12,099 64,145 38,205
Operating expenses:
Research and
development 6,981 7,012 7,511 28,371 25,231
Sales and marketing 4,230 4,407 3,779 16,754 15,261
General and
administrative:
Third parties 4,669 4,621 3,469 18,745 22,663
Related parties - - - - 615
Amortization of
intangibles 56 55 664 771 2,703
Restructuring 137 32 (17) (164) 1,511
(Gain) loss on
disposal of
property and
equipment (24) 1 (484) (23) (527)
(Gain) loss on sale
of subsidiary - (1,996) 3,216 (1,996) 3,216
--------------------------- -------------------
Total operating
expenses 16,049 14,132 18,138 62,458 70,673
--------------------------- -------------------
Income (loss) from
operations 690 1,963 (6,039) 1,687 (32,468)
Interest and other
income 1,049 1,439 (71) 4,100 2,292
Interest and other
expense (70) (68) 889 (152) 35
--------------------------- -------------------
Income (loss) before
income taxes 1,669 3,334 (5,221) 5,635 (30,141)
Income tax benefit
(provision) (377) 2 (464) (876) (464)
--------------------------- -------------------
Net income (loss) $ 1,292 $ 3,336 $(5,685) $ 4,759 $(30,605)
=========================== ===================
Basic net income
(loss) per common
share $ 0.08 $ 0.22 $ (0.38) $ 0.31 $ (2.16)
=========================== ===================
Diluted net income
(loss) per common
share $ 0.08 $ 0.22 $ (0.38) $ 0.31 $ (2.16)
=========================== ===================
Weighted-average
number of shares used
in computing:
Basic net income
(loss) per common
share 15,321 15,294 15,044 15,242 14,196
--------------------------- -------------------
Diluted net income
(loss) per common
share 15,330 15,301 15,044 15,370 14,196
--------------------------- -------------------
Avanex Corporation
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
In thousands, except for per share data
(Unaudited)
Three Months Ended Year Ended
--------------------------- ------------------
June 30, March 31, June 30, June 30, June 30,
2008 2008 2007 2008 2007
-------- --------- ----------------- ---------
Net income (loss), GAAP $ 1,292 $ 3,336 $(5,685) $ 4,759 $(30,605)
Items reconciling GAAP
net income (loss) to
non-GAAP net income
(loss):
Related to cost of
revenue:
Share-based
payments 197 213 257 1,051 1,110
(Gain) from legal
settlement (1,197) - - (1,197) -
--------------------------- ------------------
Total related to
cost of sales (1,000) 213 257 (146) 1,110
--------------------------- ------------------
Related to operating
expenses:
Research and
development -
share-based
payments 340 334 572 2,097 2,291
Sales and marketing
- share-based
payments 242 307 210 884 854
General and
administrative -
share-based
payments 340 429 375 2,007 2,840
Amortization of
intangibles 56 55 664 771 2,703
Restructuring:
Share-based
payments - - - - 13
All other 137 32 (17) (164) 1,498
(Gain) loss on
disposal of
property and
equipment (24) 1 (484) (23) (527)
(Gain) loss on sale
of subsidiary - (1,996) 3,216 (1,996) 3,216
Operating expenses
for subsidiary
until closing - - 941 - 941
Due diligence
expenses related
to abandoned
acquisition
activity - - - 199 2,146
Arbitration
expenses 251 171 - 606 -
--------------------------- ------------------
Total related to
operating
expenses 1,342 (667) 5,477 4,381 15,975
--------------------------- ------------------
Total related
to net income
(loss) 342 (454) 5,734 4,235 17,085
--------------------------- ------------------
Non-GAAP net income
(loss) $ 1,634 $ 2,882 $ 49 $ 8,994 $(13,520)
=========================== ==================
Basic non-GAAP net
income (loss) per
common share $ 0.11 $ 0.19 $ 0.00 $ 0.59 $ (0.95)
=========================== ==================
Diluted non-GAAP net
income (loss) per
common share $ 0.11 $ 0.19 $ 0.00 $ 0.59 $ (0.95)
=========================== ==================
Weighted-average number
of shares used in
computing:
Basic non-GAAP net
income (loss) per
common share 15,321 15,294 15,044 15,242 14,196
--------------------------- ------------------
Diluted non-GAAP net
income (loss) per
common share 15,330 15,301 15,044 15,370 14,196
--------------------------- ------------------
[ Back To TMCnet.com's Homepage ]
|
INDUSTRIES
Activate Email 
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO East, January 20-22, 2010. Miami, FL.
