CHARLTON, Mass., Aug. 9 /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 results for
the second quarter ended June 30, 2001.
Sales in the second quarter of 2001 increased 182% to a record
$18.1 million from $6.4 million in the year ago period. Sales benefited from
continued strong demand from new and existing customers, higher pricing and
the inclusion of Xtal FiberCore Brasil S.A. from June 1, 2000. Xtal
contributed $12.2 million to sales in the quarter compared to $2.6 million of
sales for last year's second quarter. FiberCore Jena's sales increased by 47%
for the period. Net income was $3.0 million, or $0.05 per diluted share, in
the second quarter of 2001. This compares favorably to a net loss of
approximately $5.3 million, or $0.11 per share, in last year's second quarter.
The net loss in the second quarter of 2000 included non-cash interest charges
of $5.3 million, or $0.11 per share. Excluding this non-cash interest charge,
the second quarter 2000 was basically at breakeven.
Gross profit in the second quarter of 2001 grew to $7.2 million, or
40.0% of sales, from $1.7 million, or 26.4% of sales, in last year's second
quarter. FiberCore's gross margin continued to benefit from strong volumes
and continued manufacturing process improvements.
Operating margin was 25.5% for the quarter compared to 8.1% for last
year's second quarter. Operating margin was down slightly from the first
quarter of 2001 due in part to recent management additions to support the
Company in its planned expansion, as well as increased spending on research
and development. R&D spending increased by 201% to $581,000 in the second
quarter from $193,000 in the prior year period driven, in part, by spending on
our recently patented Plasma Outside Vapor Deposition (POVD) process as well
as other manufacturing initiatives.
For the first six months of 2001, sales more than tripled to $34.3 million
compared with $9.9 million in the first six months of 2000. The prior year
period included only one month of sales from Xtal. Excluding Xtal, the sales
increase for the period would have been 47%. Net income for the first
six months of 2001 was $6.0 million, or $0.09 per diluted share, compared to a
net loss of $5.8 million, or $0.13 per share, during the first six months of
2000. Included in the prior year period were non-cash interest charges of
$5.3 million, or $0.11 per share.
"At June 30, 2001, our backlog grew to over $320 million from $260 million
at the end of the first quarter and $190 million at year-end," commented Dr.
Mohd Aslami, President and CEO. "In addition, 65% of our current backlog is
in take-or-pay contracts, which helps support our long term growth plans."
"In addition to our planned capacity expansions in Jena, Germany, which
are already financed, and in Campinas, Brazil, where funding is ongoing
although at a slower pace, we continue to look for opportunities to enter new
markets that require additional fiber supply. Asia remains a large
opportunity for the Company however, current weakness in the overall fiber
optic market has slowed the bank financing portion of our capacity expansion
plans there. We have been in discussions with entities in several other
countries that will require lower levels of funding from FiberCore, and some
of these projects have the potential to come on stream sooner. In addition,
we are cautiously optimistic that we will be able to complete our current
financing activities at the corporate level within the near term."
Dr. Aslami continued, "The global diversification of our revenue stream
and the lack of dependence on the U.S. telecom long-haul sector has shielded
us from much of the weakness experienced in other sectors of the fiber optic
market to date. However, we have recently begun to see significant softening
in the South American market. While we are confident in our ability to offset
this weakness by shifting sales into other markets, we could see some slowing
in our growth over the short term, and possible delays in our Brazilian
capital expansion program. Additionally, one of our larger South American
customers is currently in breach of its contract with us in the amount of
$5.3 million. We are currently working with this customer on a repayment
plan. Based on recent conversations, we expect to amicably resolve this
situation shortly. This is currently affecting our cash flow in Brazil and,
if not resolved, will impact our ability to simultaneously fund expansion and
ongoing operations. Over the balance of this month, we will be assessing the
impact of these developments on the anticipated results for the second half of
2001 and for 2002 and will provide revised financial guidance at that time.
As a result of this unexpected situation, we have reconfirmed the commitments
from our other major customers."
Dr. Aslami concluded, "As the only independent fiber supplier, meaning we
do not sell cable and therefore do not compete with our customers, we continue
to be viewed as a favored supply source of independent cablers around the
world. These strong customer relationships as well as our new technology
initiatives and recently strengthened management team make us confident in our
ability to continue to execute on our long-term growth plan."
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 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 Six Months Ended
June 30, June 30,
2001 2000 2001 2000
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $18,066 $ 6,413 $34,292 $ 9,866
Cost of sales 10,836 4,723 20,471 7,444
Gross profit 7,230 1,690 13,821 2,422
Operating expenses:
Selling, general and
administrative
expenses 2,037 976 3,734 1,673
Research and
development 581 193 1,021 430
Income from
operations 4,612 521 9,066 319
Interest expense, net (481) (5,589) (665) (5,743)
Other income
(expense) - net 71 109 (80) 27
Income (loss) before
income taxes and
minority interest 4,202 (4,959) 8,321 (5,397)
Provision for income
taxes (937) (337) (1,794) (395)
Earnings (loss) before
minority interest 3,265 (5,296) 6,527 (5,792)
Minority interest in
income of subsidiaries (216) (37) (499) (37)
Net earnings (loss) $ 3,049 $(5,333) $ 6,028 $(5,829)
Basic earnings (loss)
per share of common
stock $ 0.05 $ (0.11) $ 0.10 $ (0.13)
Diluted earnings (loss)
per share of common
stock $ 0.05 $ (0.11) $ 0.09 $ (0.13)
Weighted average
shares outstanding:
Basic 59,565,539 46,458,419 59,263,000 44,176,241
Diluted 65,533,406 46,458,419 65,230,867 44,176,241
SELECTED BALANCE SHEET DATA:
June 30, December 31,
2001 2000
(unaudited) (audited)
Working capital $5,721 $2,047
Total assets 83,622 67,453
Long-term obligations 15,944 9,849
Total liabilities 38,214 28,551
Minority interest 5,249 4,750
Accumulated deficit (13,887) (19,893)
Stockholders' equity 40,159 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, both of FiberCore, Inc., +1-508-248-3900; or General
Info., Alison Ziegler, or Analyst Info., Peter Seltzberg, of The
Financial Relations Board BSMG, +1-212-445-8400
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