Record Revenues of $45 Million Driven by High-Growth Product Lines and Customer Diversification
HORSHAM, Pa., June 5, 2008 (PRIME NEWSWIRE) -- Optium Corporation (Nasdaq:OPTM), a leading supplier of high-performance optical subsystems, today reported financial results for the third quarter of fiscal year 2008 ended May 3, 2008.
Revenues for the third quarter of fiscal 2008 were $45.0 million, representing an increase of 30.3% from $34.5 million for the same period in the prior year. Compared to the prior quarter, revenues increased 11.7% from $40.3 million.
Record revenues for the third quarter were driven by sequential growth across all product lines -- 10Gb/s and 40Gb/s, ROADMs and Analog & Cable TV. Revenues from Optium's 40Gb/s and ROADM product lines grew substantially compared to the prior quarter, as Optium continues to broaden its portfolio of 40Gb/s and ROADM offerings while expanding manufacturing capacity to meet customer demand. Revenues from 40Gb/s products grew 29.5% sequentially and ROADM revenues increased by 44% compared to the prior quarter.
"Our third quarter results reflect the benefits accruing from solid execution of the growth initiatives we have focused on for fiscal 2008, including customer diversification and expanding our product portfolio and production capacity to address high-growth segments of the optical communications market," commented Eitan Gertel, Chairman and CEO of Optium Corporation. "Our execution in the third quarter continued to build on these growth initiatives. For example, during the third quarter, we passed our WSS ROADM capacity target of 1,000 units per quarter while continuing to expand our breadth of ROADM offerings, such as our high resolution 50GHz ROADM platform. We continue to expand overall WSS ROADM capacity. In 40Gb/s, we took advantage of being first to market with volumes of our DPSK 300pin module for line side applications, with total 40Gb/s revenues reaching 5% of revenues in the quarter."
In accordance with U.S. generally accepted accounting principles (GAAP), net loss in the third quarter of fiscal 2008 was $(0.7) million, or $(0.03) per share, compared to a net loss of $(0.8) million, or $(0.03) per share, in the prior quarter. Compared to $3.4 million, or $0.13 per diluted share for the same period in the prior year, net income in the third quarter declined primarily as a result of operational expenditures related to the accelerated ramp of Optium's 40Gb/s and ROADM product lines and production capacity in anticipation of future sales, higher levels of stock-based compensation, as well as $614,000 of expenses related to the proposed merger transaction with Finisar Corporation.
Non-GAAP net income for the third quarter of fiscal 2008 was $1.7 million, or $0.07 per diluted share, compared to $1.7 million, or $0.07 per diluted share, in the prior quarter. Note: In evaluating the operating performance of its business, management utilizes non-GAAP financial measures that exclude certain charges and credits required by GAAP that are considered by management to be outside Optium's core operating results. See Appendix A and the non-GAAP reconciliation table below for more information.
Non-GAAP net income for the same period in the prior year was $4.6 million, or $0.17 per diluted share. The decrease in non-GAAP net income from the prior year largely reflects the operational expenditures Optium has made to diversify its product portfolio with the addition of products and capacity expansion targeted at the high-growth 40Gb/s and ROADM markets. Revenues from ROADMs and 40Gb/s products represented 24% of total third quarter revenues, compared to 18% in the prior quarter and 3% for the same period a year ago.
"For the fourth quarter, we expect revenues to be in the range of $47-$49 million driven by continued execution and solid growth trends in the optical communications sector," stated Gertel. "In addition, with a significant portion of our new product line investments well underway, we are more focused than ever on demonstrating continued improvement in profitability.
"During the fourth quarter, we will also be working diligently toward regulatory and shareholder approval of our proposed combination with Finisar Corporation (Nasdaq: FNSR) through an all-stock merger. We currently anticipate closing the transaction during the third calendar quarter," concluded Gertel.
Conference Call Information
The Company will host a conference call to discuss its financial performance and further information regarding its projected results for fiscal 2008 following this release on Thursday, June 5, 2008 at 4:30 p.m. eastern. The dial-in number is (877) 440-5791. A webcast of the call, both live and archived, will also be available through the investor relations section of Optium's website at http://ir.optium.com. A replay of the call will be available through midnight on June 12, 2008 and can be accessed by dialing (719) 457-0820 or (888) 203-1112, access code 1774532.
Optium is a leading designer and manufacturer of high-performance optical subsystems supporting core to the edge applications for use in telecommunications and cable TV network systems. Optium's broad suite of optical transport solutions features fixed and wavelength agile 10Gb/s and 40Gb/s transceivers and subsystems, 10Gb/s pluggable transceivers, cable TV trunking and distribution subsystems and Optium's next generation WSS ROADM product line. Quoted on the NASDAQ Global Market under the symbol "OPTM," Optium is headquartered in Horsham, Pennsylvania and has offices in Sydney, Australia and Nes Ziona, Israel. For more information, visit http://www.optium.com.
Certain statements made in this press release that are not based on historical information are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to, among other things, business outlook of Optium Corporation (the "Company"). These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: risks associated with completion of the pending combination of Optium and Finisar, and if it is consummated, with the operation of the combined company; risks associated with our revenue and other financial forecasts, which may differ materially from our actual results; risks associated with the Company's dependence on a limited number of customers for a significant percentage of its revenues; risks associated with demand patterns from specific customers and for specific products, including higher-end 10Gb/s products and cable TV products; risks associated with the Company's ability to sell a sufficient number of ROADMs to realize the operational benefits expected from the Company's acquisition of LCoS IP assets;; risks associated with changes in the demand for the Company's products and/or aggressive competition, which may force the Company to reduce prices; risks associated with the development and acceptance of new products and product features; risks associated with dependence on a limited number of component suppliers and/or increased demand for components, which could lead to shortages that could disrupt or delay company shipments; risks associated with making significant investments in the expansion of the business and with increased operating and capital expenditures ahead of anticipated revenues; risks associated with the Company's products being dependent upon the ability to anticipate and quickly respond to evolving technologies and customer requirements; risk associated with our foreign operations, including foreign currency exchange risks; risks associated with becoming subject to defending and resolving allegations or claims of infringement of intellectual property rights; risks associated with others infringing on the Company's intellectual property rights; risks associated with the Company's ability to retain existing personnel and recruit and retain qualified personnel; risks associated with rapidly changing technology and the ability of the Company to introduce new products on a timely and cost-effective basis; risks associated with changes in the competitive or regulatory environment in which the Company operates; and other risks. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Optium Corporation undertakes no obligation to update or revise its forward looking statements contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional disclosure regarding these and other risks faced by Optium Corporation, see the disclosure contained in Optium Corporation's public filings with the Securities and Exchange Commission, including the risk factors included in Optium Corporation's Quarterly Report on Form 10-Q, filed March 13, 2008. All filings are available through the SEC's website at www.sec.gov or from Optium Corporation's web site at www.optium.com.
Important Additional Information
In connection with the proposed combination of Finisar Corporation ("Finisar") and Optium announced on May 16, 2008, Finisar plans to file with the Securities and Exchange Commission (the "SEC") a Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus and Optium plans to file with the SEC the same Joint Proxy Statement/Prospectus. The definitive Joint Proxy Statement/Prospectus will be mailed to the stockholders of Finisar and Optium after clearance with the SEC. Each company will also file with the SEC from time to time other documents relating to the proposed combination.
