Oplink Reports Third Quarter Fiscal 2009 Financial Results

Oplink Communications, Inc. (Nasdaq:OPLK), a leading provider of photonic components, intelligent modules and subsystem solutions, today reported financial results for its third quarter of fiscal 2009 which ended March 31, 2009.

Revenue for the quarter was $30.8 million, compared to revenue of $37.6 million reported for the second quarter of fiscal 2009. GAAP net loss for the third quarter was $114,000, or $0.01 per share. This compares to a GAAP net loss of $10.5 million, or $0.51 per share, reported for the second quarter of fiscal 2009.

Non-GAAP net income for the quarter was $2.1 million, or $0.10 per diluted share, which excludes $1.3 million in stock-based compensation and $950,000 in amortization of intangibles. This compares to non-GAAP net income of $2.6 million, or $0.12 per diluted share, reported in the prior quarter, which excluded $10.8 million in goodwill impairment and other costs, $1.4 million in stock-based compensation and $954,000 in amortization of intangibles, reported in the prior quarter.

Oplink generated $13.0 million in cash from operations during the quarter and closed the quarter with cash, cash equivalents and short and long-term investments of $157.1 million, an increase of $10.3 million from the prior quarter.

"We continue to place a high emphasis on generating positive cash flow,” commented Joe Liu, President and CEO of Oplink. "Despite the decline in revenue, we were able to generate cash from operations during the quarter due to our ability to scale our cost structure to respond to changes in demand. Looking forward, design-in activity with customers remains high, and we believe that revenue may be stabilizing at current levels. We remain optimistic about Oplink’s long-term prospects and our ability to build on our position as the leading passive optical supplier.”

June Quarter Business Outlook

For the quarter ending June 30, 2009, the Company expects to report revenues of between $28 million and $32 million and GAAP net loss per share of approximately $0.03 to $0.08. On a non-GAAP basis, excluding stock-based compensation, amortization of intangible assets, restructuring charges and other non-cash or non-recurring charges, if any, the Company expects earnings per diluted share for the quarter ending June 30, 2009 of approximately $0.05 to $0.10.

Conference Call Information

The Company will host a conference call and live webcast at 2:00 p.m. Pacific Time today, April 23, 2009. To access the conference call, dial 800-257-1927 or 303-262-2053 (outside the U.S. and Canada). The webcast will be available live on the Investor Relations section of the Company’s corporate website at http://investor.oplink.com and via replay beginning approximately two hours after the completion of the call until the Company’s announcement of its financial results for the next quarter. An audio replay of the call will also be available to investors beginning at approximately 4:00 p.m. Pacific Time on April 23, 2009 until 11:59 p.m. Pacific Time on April 30, 2009, by dialing 800-405-2236 or 303-590-3000 (outside the U.S. and Canada) and entering pass code 11130531#.

Non-GAAP Financial Measures

In this earnings release and during the earnings conference call and webcast as described above, Oplink will discuss certain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A reconciliation between non-GAAP and GAAP measures can be found in the accompanying tables. Oplink believes that, while these non-GAAP measures are not a substitute for GAAP results, they provide a basis for evaluating the Company’s cash requirements for ongoing operating activities. These non-GAAP measures have been reconciled to the nearest GAAP measure as required under Securities and Exchange Commission rules.

About Oplink

Incorporated in 1995, Oplink is a leading provider of design, integration and optical manufacturing solutions (OMS) for optical networking components, modules and subsystems. The Company offers advanced and cost-effective optical-electrical components and subsystem manufacturing through its facilities in Zhuhai and Shanghai, China. In addition, Oplink maintains optical-centric front-end design, application, and customer service functions at its offices in Fremont and Calabasas, California and has research facilities in Zhuhai and Wuhan, China and Hsinchu Science-Based Industrial Park in Taiwan. The Company's customers include telecommunications, data communications and cable TV equipment manufacturers around the globe. Oplink is committed to providing fully customized, Photonic Foundry services incorporating its subsystems manufacturing capabilities. To learn more about Oplink, visit its web site at: http://www.oplink.com/.

Cautionary Statement

This news release contains forward-looking statements, including without limitation the guidance given for anticipated results for the fourth quarter of fiscal year 2009, that involve risks and uncertainties that may cause results to differ substantially from expectations. These risks include, but are not limited to, the potential for a further and sustained downturn in the telecommunications industry or the overall economy in the United States and other parts of the world, possible further reductions in customer orders, Oplink’s reliance upon third parties to supply components and materials for its products, intense competition in Oplink’s target markets and potential pricing pressure that may arise from changing supply or demand conditions in the industry, and other risks detailed from time to time in Oplink’s periodic reports filed with the Securities and Exchange Commission, including the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

The foregoing information represents Oplink’s outlook only as of the date of this press release, and Oplink undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.