CHARLTON, Mass., Oct. 16 /PRNewswire/ -- FiberCore, Inc. (Nasdaq: FBCE), a
leading manufacturer and global supplier of optical fiber and preform for the
telecommunications and data communications markets, today announced it has
recently concluded negotiations with one of its larger South American
customers, which had been in breach of its contract, and has reached agreement
on all disputed issues.
The agreement calls for the payment of all outstanding accounts receivable
in installments during the fourth quarter and for shipments to the customer to
resume by year-end. The agreement also provides for the extension of the
contract into 2004 and 2005 with volume increases under certain conditions.
"We are pleased that we were able to amicably resolve this situation with
one of our key customers," commented Dr. Mohd Aslami, President and CEO.
"Unfortunately, this contract situation combined with the general softening in
the South American market has had a significant negative impact on our
shipments and operating results for the third quarter. While final results
are not yet available, we expect revenues of approximately $8.5 million for
the third quarter. For the year 2001, we now expect to report revenue growth
of 50% to 65% over last year. While these growth rates are lower than had
been previously anticipated, we are still very satisfied with our growth and
operating performance, given the challenging state of the global
telecommunications market."
Dr. Aslami added, "FiberCore has not been immune to the sudden slowdown in
the single-mode fiber market. With the reduction in demand, primarily in
South America, we are also seeing a general reduction in pricing for single-
mode fiber. While we are continuing the process of shifting single-mode fiber
shipments from South America to markets in the Far East where demand is much
stronger, it has taken longer to accomplish than expected due to product
qualification procedures with new customers. As a result, we will not see the
positive results of these actions until the fourth quarter, when we expect
sales to rebound from third quarter levels."
Dr. Aslami concluded, "In 2002, we still expect our single-mode fiber
capacity to be sold out based on contracts and orders. Furthermore, our
multimode fiber business, which represents approximately 35% of our revenue,
continues to be strong and our multimode fiber capacity remains sold out in
2002 as well."
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.
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, or Analyst Info., Peter Seltzberg of FRB
Weber Shandwick, +1-212-445-8400
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