Oclaro Announces Record Profitability in Fourth Quarter Fiscal 2010

Date Announced: 30 Jul 2010

44% Fourth Quarter FY 2010 over Fourth Quarter FY 2009 Pro-Forma Revenue Growth

SAN JOSE, Calif., July 29 /PRNewswire-FirstCall/ -- Oclaro, Inc. (Nasdaq:OCLR - News), a provider of optical components, modules and subsystems, today announced the financial results for its fourth quarter and fiscal year 2010, which ended July 3, 2010.

“We are proud to have been profitable on a non-GAAP operating income basis for our first year as Oclaro, our adjusted EBITDA has increased each quarter, and our operating margins continue to trend upwards,” said Alain Couder, president and CEO of Oclaro. “Our technology differentiation and product breadth are creating new opportunities for Oclaro; and so we believe our growth will continue through 2010 and that calendar 2011 is shaping up to be a strong growth year.”

Highlights for Fourth Quarter Fiscal 2010:
• GAAP revenues were $112.7 million for the fourth quarter of fiscal 2010, compared to $101.2 million in the third quarter of fiscal 2010. Telecom revenues were up over 13% compared to the prior quarter.
• GAAP gross margin was 30% for the fourth quarter of fiscal 2010, compared to 28% in the third quarter of fiscal 2010.
• Non-GAAP gross margin was 31% for the fourth quarter of fiscal 2010, exceeding the 30% target announced during the April 2009 merger of Bookham, Inc. and Avanex Corporation. Non-GAAP gross margin was 28% in the third quarter of fiscal 2010.
• GAAP operating income was $8.6 million for the fourth quarter of fiscal 2010, compared to $33,000 in the third quarter of fiscal 2010.
• Non-GAAP operating income was $9.6 million, or 8.5% of revenues, for the fourth quarter of fiscal 2010, exceeding the 5% of revenues target announced during the April 2009 merger of Bookham and Avanex. Non-GAAP operating income was $3.2 million, or 3.2% of revenues, in the third quarter of fiscal 2010.
• Adjusted EBITDA was $12.3 million for the fourth quarter of fiscal 2010, compared to $5.8 million in the third quarter of fiscal 2010, an increase of well over 100%.
• GAAP net income for the fourth quarter of fiscal 2010 was $10.6 million, compared $0.2 million in the third quarter of fiscal 2010.
• Non-GAAP net income for the fourth quarter of fiscal 2010 was $11.5 million, compared to $3.4 million in the third quarter of fiscal 2010.
• Cash, cash equivalents, restricted cash and short-term investments were $111.6 million as of July 3, 2010. This includes $77.1 million received in the Company’s May follow-on offering of common stock.
• The Company acquired Mintera Corporation in a deal announced and closed July 21, 2010. Oclaro has a target model for the high speed transmission business of Mintera of gross margins of 40% to 45% and non-GAAP operating margins of 20% to 25%.

Highlights for Fiscal Year 2010:
• GAAP revenues were $392.5 million for fiscal 2010, compared to $210.9 million in fiscal 2009.
• GAAP gross margin was 28% for fiscal 2010, compared to 22% in fiscal 2009. Non-GAAP gross margin was 28% for fiscal 2010, compared to 23.5% in fiscal 2009
• GAAP operating income was $4.8 million for fiscal 2010, compared to a GAAP operating loss of $34.8 million in fiscal 2009.
• Non-GAAP operating income was $15.7 million for fiscal 2010, compared to a non-GAAP operating loss of $12.4 million in fiscal 2009.
• Adjusted EBITDA was $26.5 million for fiscal 2010, compared to negative $1.0 million in fiscal 2009.
• GAAP net income for fiscal 2010 was $12.4 million, compared to a GAAP net loss of $32.2 million in fiscal 2009.
• Non-GAAP net income for fiscal 2010 was $16.5 million, compared to a non-GAAP net loss of $3.3 million in fiscal 2009.

First Quarter Fiscal 2011 Outlook:
The results of Oclaro, Inc. for the first quarter of fiscal 2011, which ends October 2, 2010, are expected to be:
• Revenues in the range of $120 million to $126 million. This includes approximately $3 million to $4 million of revenues from Mintera.
• Non-GAAP gross margin in the range of 31% to 33%.
• Adjusted EBITDA in the range of $12.5 million to $15.5 million.

For full details, visit Oclaro.