Avanex Corporation (NASDAQ: AVNX), a pioneering provider of
intelligent photonic solutions that enable next-generation optical
networks, today reported its fiscal 2009 second quarter financial
results for the quarter ended December 31, 2008.
Net revenue in the second quarter of fiscal 2009 was $38.0
million, a decrease of 16.1 percent from $45.3 million in the first
quarter of fiscal 2009, and a decrease of 26.9 percent from $52.0
million in the same period last year.
Gross margin in the second quarter of fiscal 2009 was 15.4%, a
decrease from 17.2% in the first quarter of fiscal 2009, and a
decrease from 31.0% in the same period last year.
Net loss in the second quarter of fiscal 2009 was $16.8 million,
or ($1.08) per diluted share, compared with net loss of $9.6
million, or ($0.63) per diluted share in the first quarter of
fiscal 2009. This compares to net income of $86,000, or $0.01 per
diluted share in the same period last year. During the second
quarter of fiscal 2009, the company wrote-off $9.6 million relating
to goodwill and intangibles.
Non-GAAP net loss in the second quarter of fiscal 2009 was $6.2
million, or ($0.40) per diluted share, compared with net loss of
$5.9 million, or ($0.38) per diluted share, in the first quarter of
fiscal 2009. This compares to non-GAAP net income of $2.4 million,
or $0.15 per diluted share in the same period last year.*
"While the company is continuing to face challenges in light of
the current macro-economic environment, we are taking action by
reducing our workforce by 5% and scaling back on other
discretionary expenses. We believe that the proposed merger with
Bookham, Inc. announced last week, will improve our market
position," said Giovanni Barbarossa, CEO and President of
Avanex.
Q3 FY 2009 Outlook
The company expects revenue to be between $24 million and $31
million in the third quarter of fiscal 2009, ending March 31, 2009.
Given the current recessionary macro-economic environment, there is
less visibility than typical, and accordingly, the company�s
guidance range is broader than normal.
Investor Conference Call
Avanex will host a conference call to discuss fiscal 2009 second
quarter 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 913-312-1298.
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 February
12, 2009 and can be accessed by dialing 888-203-1112 (domestic) or
719-457-0820 (international) and entering access ID number
3498701.
Future Investor Conference
Avanex will be presenting at The Thomas Weisel Partners
Technology and Telecom Conference on Wednesday, February 11, 2009
at 9:10 a.m. Pacific Time. The conference will be held at the
Fairmount Hotel in San Francisco. The live webcast will be
available via a link on the Investor Relations page of the Avanex
web site at www.avanex.com. A replay of the webcast will be
available for 30 days following the live presentation.
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, California. Avanex Corporation also
maintains facilities in Horseheads, New York; 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 third quarter of fiscal 2009 outlook
and future operating results, the benefits of the business
combination transaction involving Bookham and Avanex, competitive
and market position 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, risks relating to the
consummation of the contemplated merger, including the risk that
required stockholder approval might not be obtained in a timely
manner or at all or that other closing conditions are not
satisfied, the failure to realize synergies and cost-savings from
the transaction or delay in realization thereof, the businesses or
employees of Bookham and Avanex not be combined and integrated
successfully, or such combination may take longer, be more
difficult, time-consuming or costly to accomplish than expected,
and operating costs and business disruption following the merger,
including adverse effects on employee retention and on our business
relationships with third parties.
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. 5, 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.
Additional Information and Where to Find It
This communication is being made in respect of the proposed
business combination involving Bookham and Avanex. In connection
with the proposed transaction, Bookham and Avanex plan to file
documents with the SEC, including the filing by Bookham of a
Registration Statement on Form S-4 containing a Joint Proxy
Statement/Prospectus and each of Bookham and Avanex plan to file
with the SEC other documents regarding the proposed transaction.
Investors and security holders of Bookham and Avanex are urged to
carefully read the Joint Proxy Statement/Prospectus (when
available) and other documents filed with the SEC by Bookham and
Avanex because they will contain important information about the
proposed transaction. Investors and security holders may obtain
free copies of these documents (when they are available) and other
documents filed with the SEC at the SEC�s web site at www.sec.gov
and by contacting Bookham Investor Relations at (408) 404-5400 or
Avanex Investor Relations at (510) 897-4188. Investors and security
holders may obtain free copies of the documents filed with the SEC
on Bookham�s website at www.bookham.com or Avanex�s website at
www.avanex.com or the SEC�s website at www.sec.gov. Bookham, Avanex
and their respective directors and executive officers may be deemed
participants in the solicitation of proxies with respect to the
proposed transaction. Information regarding the interests of these
directors and executive officers in the proposed transaction will
be included in the Joint Proxy Statement/Prospectus described
above. Additional information regarding the directors and executive
officers of Bookham is also included in Bookham�s proxy statement
for its 2008 Annual Meeting of Stockholders, which was filed with
the SEC on September 18, 2008, and additional information regarding
the directors and executive officers of Avanex is also included in
Avanex�s proxy statement for its 2008 Annual Meeting of
Stockholders, which was filed with the SEC on October 14, 2008,
respectively.
* Non-GAAP net income (loss) and non-GAAP net income (loss) per
share exclude share-based compensation expenses, amortization of
intangibles, impairment of goodwill and intangibles, restructuring
charges, due diligence expenses related 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)
� �
December 31,
2008
September 30,
2008
June 30,
2008
Assets Current assets: Cash and cash equivalents $ 13,897 $
13,712 $ 14,839 Restricted cash 3,803 3,792 3,776 Short-term
investments 19,550 32,162 40,590 Accounts receivable, net 30,197
34,068 39,032 Inventories 19,528 19,281 15,979 Due from related
party 123 141 85 Other current assets � 7,021 � � 7,276 � � 6,486 �
Total current assets 94,119 110,432 120,787 Property and equipment,
net 8,906 8,994 7,688 Intangibles, net - 260 314 Goodwill - 9,408
9,408 Other assets � 3,094 � � 3,325 � � 2,870 � Total assets $
106,119 � $ 132,419 � $ 141,067 � �
Liabilities and
Stockholders' Equity Current liabilities: Accounts payable $
24,371 $ 33,673 $ 33,255 Accrued compensation 3,811 3,887 6,272
Accrued warranty 350 476 626 Other accrued expenses and deferred
revenue 6,885 6,110 6,003 Current portion of long-term obligations
12 12 13 Current portion of accrued restructuring � 3,068 � � 4,809
� � 2,940 � Total current liabilities 38,497 48,967 49,109
Long-term liabilities: Accrued restructuring 3,613 4,260 5,043
Other long-term obligations � 1,364 � � 1,411 � � 1,520 � Total
liabilities � 43,474 � � 54,638 � � 55,672 � Contingencies �
Stockholders� equity: Common stock 16 16 15 Additional paid-in
capital 788,204 786,721 784,492 Accumulated other comprehensive
income 1,269 1,074 1,277 Accumulated deficit � (726,844 ) �
(710,030 ) � (700,389 ) Total stockholders� equity � 62,645 � �
77,781 � � 85,395 � Total liabilities and stockholders� equity $
106,119 � $ 132,419 � $ 141,067 �
Avanex Corporation
CONSOLIDATED STATEMENTS OF
OPERATIONS - GAAP
In thousands, except for per
share data
(Unaudited)
� �
Three Months Ended December 31,
2008
�
September 30,
2008
December 31,
2007
Net revenue: Third parties $ 37,924 $ 45,213 $ 47,155 Related
parties � 77 � � 61 � � 4,852 � Total net revenue 38,001 45,274
52,007 � Cost of revenue: Cost of revenue except for purchases from
related parties 31,864 37,040 35,567 Purchases from related parties
� 295 � � 461 � � 321 � Total cost of revenue � 32,159 � � 37,501 �
� 35,888 � Gross profit 5,842 7,773 16,119 � Operating expenses:
Research and development 6,037 6,685 7,604 Sales and marketing
2,827 4,052 4,202 General and administrative 3,777 4,888 4,980
Amortization of intangibles 53 54 101 Restructuring 157 2,319 2
Impairment of goodwill and intangibles � 9,615 � � - � � - � Total
operating expenses � 22,466 � � 17,998 � � 16,889 � Loss from
operations (16,624 ) (10,225 ) (770 ) Interest and other income
(expense), net � (179 ) � (172 ) � 1,083 � Income (loss) before
income taxes (16,803 ) (10,397 ) 313 Income tax benefit (provision)
� (11 ) � 756 � � (227 ) Net income (loss) $ (16,814 ) $ (9,641 ) $
86 � � Basic net income (loss) per common share $ (1.08 ) $ (0.63 )
$ 0.01 � Diluted net income (loss) per common share $ (1.08 ) $
(0.63 ) $ 0.01 � � Weighted-average number of shares used in
computing: Basic net income (loss) per common share � 15,564 � �
15,355 � � 15,235 � Diluted net income (loss) per common share �
15,564 � � 15,355 � � 15,460 �
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 December 31,
2008
�
September 30,
2008
December 31,
2007
� Net income (loss), GAAP $ (16,814 ) $ (9,641 ) $ 86 � Items
reconciling GAAP net income (loss) to non-GAAP net income (loss):
Related to cost of revenue: Share-based payments 261 284 319 (Gain)
from legal settlement � - � � - � � - Total related to cost of
sales � 261 � � 284 � � 319 Related to operating expenses: Research
and development - share-based payments 241 326 698 Sales and
marketing - share-based payments 296 527 208 General and
administrative - share-based payments (28 ) 263 561 Amortization of
intangibles 53 54 101 Restructuring 157 2,319 2 Impairment of
goodwill and intangibles 9,615 - - Due diligence expenses related
to abandoned acquisition activity - - 199 Arbitration expenses � -
� � � 185 Total related to operating expenses � 10,334 � � 3,489 �
� 1,954 Total related to net income (loss) � 10,595 � � 3,773 � �
2,273 � Non-GAAP net income (loss) $ (6,219 ) $ (5,868 ) $ 2,359 �
Basic non-GAAP net income (loss) per common share $ (0.40 ) $ (0.38
) $ 0.15 Diluted non-GAAP net income (loss) per common share $
(0.40 ) $ (0.38 ) $ 0.15 � Weighted-average number of shares used
in computing: Basic non-GAAP net income (loss) per common share �
15,564 � � 15,355 � � 15,235 Diluted non-GAAP net income (loss) per
common share � 15,564 � � 15,355 � � 15,460
Avanex (NASDAQ:AVNX)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Avanex (NASDAQ:AVNX)
Historical Stock Chart
Von Jun 2023 bis Jun 2024