Applied Optoelectronics Announces Preliminary Fourth Quarter 2016 Results
Expects Results to Exceed Guidance
Schedules Fourth Quarter Conference Call
"We delivered a strong fourth quarter with top and bottom-line results expected to exceed our guidance," said Dr.
Fourth Quarter 2016 Preliminary Unaudited Financial Results+
- Revenue in the range of
$84.5 million to$84.8 million , above the prior outlook of$75.0 million to$79.0 million . - GAAP and non-GAAP gross margin in the range of 37.6% to 38.0%, above the prior non-GAAP outlook of 34.0% to 35.5%.
- GAAP net income after tax in the range from
$13.0 million to$14.0 million and non-GAAP net income after tax in the range from$14.2 million to$15.2 million , above the prior non-GAAP outlook of$8.5 million to$9.5 million . - GAAP fully diluted earnings per share in the range of
$0.70 to$0.75 and non-GAAP fully diluted earnings per share in the range of$0.77 to$0.82 , using a weighted-average fully diluted share count of approximately 18.5 million shares. This is above the prior non-GAAP outlook of$0.46 to$0.51 per share, using approximately 18.6 million shares.
These are preliminary financial results and remain subject to the completion of the company's customary quarterly close and review procedures. Material adjustments may arise between the date of this press release and the dates on which
(+)Please refer to the note below on forward-looking statements and the risks involved with such statements as well as the note on non-GAAP financial measures. The prior outlook referenced above was provided in the company's press release on
Conference Call Information
The company will host a conference call and webcast for analysts and investors on
A live audio webcast of the conference call along with supplemental financial information will also be accessible on the company's website at investors.ao-inc.com. Following the webcast, an archived version will be available on the website for one year. A telephonic replay of the call will be available one hour after the call and will run for five business days and may be accessed by dialing (412) 317-0088 and entering passcode 10098914.
Forward-Looking Information
This press release contains forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include but are not limited to: reduction in the size or quantity of customer orders; change in demand for the company's products due to industry conditions; changes in manufacturing operations; volatility in manufacturing costs; delays in shipments of products; disruptions in the supply chain; change in the rate of design wins or the rate of customer acceptance of new products; the company's reliance on a small number of customers for a substantial portion of its revenues; potential pricing pressure; a decline in demand for our customers' products or their rate of deployment of their products; general conditions in the internet datacenter, CATV, FTTH or Telecom markets; changes in the world economy (particularly in
Non-GAAP Financial Measures
We provide non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP earnings per share to eliminate the impact of items that we do not consider indicative of our overall operating performance. To arrive at our non-GAAP gross profit, we exclude stock-based compensation expense and non-recurring expenses, if any, from our GAAP gross profit. To arrive at our non-GAAP income (loss) from operations, we exclude all amortization of intangible assets, stock-based compensation expense and non-recurring expenses, if any, from our GAAP net income (loss) from operations. Included in our non-recurring expenses for the periods from 1Q16 to 4Q16 are certain consulting fees, items related to the relocation of our plant in
- We believe that elimination of items such as stock-based compensation expense and non-recurring expenses is appropriate because treatment of these items may vary for reasons unrelated to our overall operating performance;
- We believe that non-GAAP measures provide better comparability with our past financial performance, period-to-period results and with our peer companies, many of which also use similar non-GAAP financial measures; and
- We anticipate that investors and securities analysts will utilize non-GAAP measures to evaluate our overall operating performance.
Non-GAAP measures should not be considered as an alternative to gross profit, income (loss) from operations, net income (loss) or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such other non-GAAP measures in the same manner. We have not reconciled the non-GAAP measures included in our guidance to the appropriate GAAP financial measures because the GAAP measures were not accessible on a forward-looking basis. GAAP measures that impact our non-GAAP financial measures may include stock-based compensation expense, non-recurring expenses, amortization of intangible assets, unrealized exchange loss (gain), asset impairment charges, and loss (gain) from disposal of idle assets. These GAAP measures cannot be reasonably predicted and may directly impact our non-GAAP gross margin, our non-GAAP net income and our non-GAAP fully-diluted earnings per share, although changes with respect to certain of these measures may offset other changes. In addition, certain of these measures are out of our control. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.
About
Reconciliation of Net income under GAAP and Non-GAAP | ||||||
(In millions) | ||||||
(Unaudited) | ||||||
Three months ended |
||||||
Low end of range | High end of range | |||||
GAAP net income | $ | 13.0 | $ | 14.0 | ||
Adjustments: | ||||||
Amortization of intangible assets | 0.1 | 0.1 | ||||
Share-based compensation expense | 1.0 | 1.0 | ||||
Other | 0.1 | 0.1 | ||||
Non-GAAP net income | $ | 14.2 | $ | 15.2 | ||
Investor Relations Contacts:The Blueshirt Group , Investor RelationsMaria Riley &Chelsea Lish +1-415-217-7722 ir@ao-inc.com
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