CHARLTON, Mass., May 7 /PRNewswire/ -- FiberCore, Inc. (Nasdaq: FBCE), a
leading manufacturer and global supplier of optical fiber and preform for the
telecommunication and data communications markets, today announced record
results for the first quarter ended March 31, 2001. The results include the
operations of Xtal FiberCore Brasil S.A., the Company's recently acquired
Brazilian facility, from June 1, 2000.
Sales in the first quarter of 2001 increased 370% to a record
$16.2 million from $3.5 million in the year ago period. Sales benefited from
continued strong market demand from new and existing customers, higher pricing
as well as the inclusion of the Company's Xtal operations; which contributed
$11.4 million to sales in the quarter. Excluding Xtal, sales would have
increased by 40%. Net income was a record $3.0 million, or $0.05 a diluted
share, in the first quarter of 2001. This compares to a net loss of
approximately $496,000, or $0.01 per share, in the year ago quarter.
Gross profit in the quarter grew to $6.6 million, or 40.6% of sales, from
$732,000, or 21.2% of sales, in the year ago period and 39.8% of sales in the
fourth quarter of 2000. FiberCore's gross margin benefited primarily from
higher volumes, better pricing as well as continued manufacturing process
improvements. Operating margin was a record 27.5% for the quarter, among the
highest of all major manufacturers of optical fiber, even with the Company's
comparatively lower sales volume. The Company's strong gross and operating
margins are the result of its highly efficient manufacturing technology and
the successful implementation of its business strategy. Longer term, margins
should benefit as the Company becomes more vertically integrated through
manufacturing more of its own specialized equipment, better controlling the
supply of raw materials and introducing its recently patented Plasma Outside
Vapor Deposition ("POVD") process into production.
Spending on research and development increased by 86% to $440,000 in the
first quarter from $237,000 in the prior year period driven in part by
spending on the POVD process as well as other manufacturing initiatives.
"We are off to an excellent start in 2001, with another record quarter in
both sales and earnings," commented Dr. Mohd Aslami, President and CEO. "At
March 31, 2001, our backlog was a strong $260 million. This is up from
$190 million at year-end and reflects the global diversification of our
revenue stream as well as our position as the only independent fiber supplier.
Since we do not sell cable and therefore do not compete with our customers, as
do many of the major fiber manufacturers, we are becoming a favorite supply
source of independent cablers around the world. This is one reason why, to
date, our sales have been growing as compared to the general weakness
experienced in other sectors of the fiber optic market. Another reason for
our strong results is that our revenue streams are not dependent on the U.S.
telecom long haul sector, which is experiencing the bulk of the slowdown.
With 67% of our current backlog in take-or-pay contracts, we remain confident
in our expectation that sales will double in 2001 and operating profit will
increase at a rate in excess of sales."
"During the quarter we have made continued progress in support of our
major capacity expansion plan. In addition to our planned expansions in Jena,
Germany and Campinas, Brazil, which are underway, we continue to plan for
additional manufacturing facilities in Malaysia, Thailand and the U.S. We are
currently in the process of arranging financing for these facilities, which
are expected to come online in 2002 and beyond."
Dr. Aslami concluded, "We continue to see considerable opportunities for
FiberCore in this strong fiber market and are working diligently to increase
capacity to be able to supply our customers' and partners' expected future
fiber requirements. Our strong customer relationships, new technology
initiatives as well as the experience of our management team make us confident
in our ability to continue to execute on our growth plan."
Dr. Mohd Aslami will be presenting at Kessler Market Intelligence's 5th
Annual Conference on Fiberoptics Markets in Europe, May 15-16, 2001, in Paris,
France. Dr. Aslami will provide information on the continued demand for
multimode optical fiber with a focus on the recent advances in high bandwidth
fiber to support emerging Gigabit and higher network protocols.
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, 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 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
March 31,
2001 2000
(unaudited) (unaudited)
Net sales $16,226 $3,453
Cost of sales 9,635 2,721
Gross profit 6,591 732
Operating expenses:
Selling, general and administrative expenses 1,697 697
Research and development 440 237
Income (loss) from operations 4,454 (202)
Interest expense, net (184) (154)
Other income (expense) - net (151) (82)
Income (loss) before income taxes and
minority interest 4,119 (438)
Provision for income taxes (857) (58)
Earnings (loss) before minority interest 3,262 (496)
Minority interest in income of subsidiary (283) --
Net earnings (loss) $2,979 $(496)
Basic earnings (loss) per share
of common stock $0.05 $(0.01)
Diluted earnings (loss) per share
of common stock $0.05 $(0.01)
Weighted average shares outstanding:
Basic 59,126,674 41,678,243
Diluted 65,676,715 41,678,243
SELECTED BALANCE SHEET DATA: March 31, December 31,
2001 2000
(unaudited) (audited)
Working capital $4,030 $2,047
Total assets 68,701 67,453
Long-term obligations 6,611 9,849
Total liabilities 25,708 28,551
Minority interest 5,033 4,750
Accumulated deficit (16,914) (19,893)
Stockholders' equity 37,960 34,152
SOURCE FiberCore, Inc.
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Related links:
http://www.FiberCoreUSA.com
CONTACT:
Dr. Mohd A. Aslami, President, CEO, or Steven
Phillips, CFO, 508-248-3900, both of FiberCore; General Info,
Alison Ziegler, or Analyst Info, Peter Seltzberg, or Media Info,
David Closs, 212-661-8030, all of The Financial Relations Board
BSMG
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