CHARLTON, Mass., April 1 /PRNewswire-FirstCall/ -- FiberCore, Inc.
(Nasdaq: FBCE), a leading manufacturer and global supplier of optical fiber
and preform for the telecommunication and data communications markets, today
announced results for the fourth quarter and year ended December 31, 2001.
For 2001, sales increased by 42% to $52.4 million from $36.9 million in
2000. The prior year period includes only seven months of sales from Xtal.
Excluding Xtal, the increase in sales for the period was 33%. Net income for
2001 was $0.5 million, or $0.01 per share, compared to a net loss of
$2.7 million, or $0.05 per share in 2000. Included in the prior year period
are non-cash, interest charges of $5.4 million, or $0.11 per share.
Gross profit for the year was $16.3 million, or 31% of sales, in 2001 as
compared to $11.8 million, or 32% of sales, in 2000. The gross margin was 40%
during the first six months of 2001 and subsequently declined to an average of
14% in the second half of the year as the effects of the industry slowdown
were felt both in reduced shipments and lower prices. At $5.4 million,
operating income was essentially the same as in 2000, but showed a decline as
a percent of sales from 14% to 10%. Net income was negatively impacted by
higher interest expenses associated with the Company's expansion program and
by a high effective tax rate. This high effective tax rate is due to the
inability of the Company to offset foreign income and related taxes against
U.S. losses and related tax benefits at this time.
Sales in the fourth quarter of 2001 decreased by 33% to $9.2 million from
$13.9 million in the year ago period, but increased by 5% over third quarter
levels despite declining prices. Sales were negatively impacted at the
Company's Xtal FiberCore Brasil S.A. facility during the last 6 months of 2001
by a breach of contract situation with one of its larger South American
customers, as well as by a downturn in the overall South American market. The
Company was able to offset some of the reduction in sales through increased
exports during the quarter. Sales revenue for FiberCore Jena ("FCJ") declined
by 10% compared to the same period in 2000, although volume shipments
increased by 11%.
The Company reported a net loss of $3.3 million, or $0.05 per diluted
share, in the fourth quarter of 2001. This compares to a net profit of
approximately $2.3 million, or $0.04 per diluted share, in the year ago
quarter.
Gross profit in the quarter was a negative $0.6 million, compared to a
gross profit of $5.5 million, or 40% of sales, in the year ago period.
FiberCore's gross margin was severely impacted by continuing price declines in
single-mode fiber as well as by lower production levels as the Company reduced
inventories during the period.
R&D spending decreased by 16% to $665,000 in the fourth quarter from
$796,000 in the prior year period. However, the Company continued its
investment in the development of its recently patented Plasma Outside Vapor
Deposition (POVD) process as well as other manufacturing initiatives, all
intended to reduce production costs.
Dr. Aslami, President and CEO commented, "The second half of 2001, and the
fourth quarter in particular, was difficult for FiberCore as we were no longer
able to escape the softness that has been prevalent throughout our industry
for most of 2001. With the sudden reduction in capital expenditures by the
telecom carriers and the related high levels of inventory being maintained by
the major fiber and cable manufacturers, we experienced declines in both
demand and pricing during the quarter, particularly in our single-mode fiber
business in South America. This, along with the customer situation in South
America, led to increased inventories and temporary reductions in production
during the third quarter at Xtal. We have since been able to reduce our
inventories, but due to pricing pressures have chosen to operate at reduced
production levels in Brazil. To offset some of the decline in the single mode
business, we have been shifting more production into multi-mode fiber. We
anticipate that to the extent this trend continues, a higher percentage of our
revenue will be attributable to multi-mode fiber in 2002."
"At December 31, 2001, our backlog was $292 million, up from $190 million
at year-end 2000. Approximately $48 million of this is scheduled for shipment
in 2002, although this is subject to change depending on business conditions
and new orders booked during 2002. The reduction in the backlog from
$350 million at the end of the third quarter resulted from fourth quarter
shipments made as well as re-pricing, as provided for in our contractual
agreements. During this difficult period, our customers have not cancelled
any contracts, although we have worked with them on rescheduling shipments to
better suit their requirements. We believe that this lack of cancellations is
due to our strong customer relationships and that our customers continue to
recognize the importance of having an independent fiber supplier to their
long-term growth," added Dr. Aslami.
"As the industry works to better equalize supply and demand, prices should
begin to stabilize in the coming months. While lower fiber prices will
continue to impact 2002 at the gross margin level, this will be partially
offset by our continued investment in technology and manufacturing process
improvements. Despite the current industry slowdown, we remain bullish on the
long term growth in the industry and continue to anticipate strong growth in
the future for FiberCore," concluded Dr. Aslami.
FiberCore, Inc. develops, manufactures and markets single-mode and
multimode optical fiber preforms and optical fiber for the telecommunications
and data communications markets. In addition to its standard multimode and
single-mode fiber, FiberCore also offers various grades of fiber for use in
laser-based systems up to 10 gigabits/sec, to help guarantee high bandwidths
and to suit the needs of Feeder Loop (also known as Metropolitan Area
Network), Fiber-to-the Curb, Fiber-to-the Home and Fiber-to-the Desk
applications. Manufacturing facilities are presently located in Jena, Germany
and Campinas, Brazil.
For more information about the company, its products, or shareholder
information please visit our Website at: http://www.FiberCoreUSA.com or contact us
at: Phone - 508-248-3900 or by FAX - 508-248-5588 or E-Mail:
sales@FiberCoreUSA.com; investor_relations@FiberCoreUSA.com
Except for the historical matters discussed above, the statements in this
press release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. They are
based on the Company's current expectations and are subject to a number of
risks and uncertainties. Actual results may differ materially from those
projected as a result of certain general economic and business conditions;
loss of market share through competition; introduction of competing products
by other companies; changes in industry capacity; pressure on prices from
competition or from purchasers of the Company's products; availability of
qualified personnel; the delivery of an ability to commission new equipment as
scheduled; ability to obtain required financing; dependence on a limited
number of raw material suppliers; the loss or reduced creditworthiness of any
significant customers; and other factors detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
FIBERCORE, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands except share data)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
(unaudited) (unaudited) (audited) (audited)
Net sales $9,247 $13,865 $52,362 $36,919
Cost of sales 9,879 8,345 36,084 25,118
Gross profit (loss) (632) 5,520 16,278 11,801
Operating expenses:
Selling, general and
administrative expenses 2,480 1,733 8,692 5,071
Research and development 665 796 2,189 1,459
Income (loss) from
operations (3,777) 2,991 5,397 5,271
Interest expense, net (419) 492 (2,028) (5,832)
Other income (expense)
- net 1,944 146 484 226
Income (loss) before
income taxes and
minority interest (2,252) 3,629 3,853 (335)
Provision for income
taxes (903) (1,152) (3,006) (2,054)
Earnings (loss) before
minority interest (3,155) 2,477 847 (2,389)
Minority interest in
(income) loss of
subsidiaries (152) (181) (367) (308)
Net earnings (loss) $(3,307) $2,296 $480 $(2,697)
Basic earnings (loss)
per share of common
stock $(0.05) $0.04 $0.01 $(0.05)
Diluted earnings (loss)
per share of common
stock $(0.05) $0.04 $0.01 $(0.05)
Weighted average
shares outstanding:
Basic 59,071,451 54,864,838 58,074,724 49,043,882
Diluted 59,071,451 65,427,233 63,885,536 49,043,882
SELECTED BALANCE SHEET DATA: December 31, December 31,
2001 2000
(audited) (audited)
Working capital (Deficiency) $(1,319) $2,047
Total assets 92,983 67,453
Long-term obligations 22,475 9,849
Total liabilities 49,491 28,551
Minority interest 5,117 4,750
Accumulated deficit (19,413) (19,893)
Stockholders' equity 38,375 34,152
SOURCE FiberCore, Inc.
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Related links:
http://www.FiberCoreUSA.com
CONTACT:
Dr. Mohd A. Aslami, President-CEO, or Robert
Lobban, CFO, of FiberCore, Inc., +1-508-248-3900, or General
Info., Alison Ziegler, Analyst Info., Peter Seltzberg, or Media
Info., Judith Sylk-Siegel, of FRB Weber Shandwick,
+1-212-445-8400
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