Oplink Reports First Quarter Fiscal 2010 Financial Results

Oplink Communications, Inc. (Nasdaq:OPLK), a leading provider of design, integration and optical manufacturing solutions (OMS) for optical networking components, modules and subsystems, today reported its financial results for its fiscal 2010 first quarter, ended September 30, 2009.

Revenues for the quarter increased to $33.6 million, compared to $32.4 million reported for the fourth quarter of fiscal 2009. GAAP net income for the first quarter of fiscal 2010 increased to $1.8 million, or $0.09 per diluted share, compared to GAAP net income of $249,000, or $0.01 per diluted share, reported for the fourth quarter of fiscal 2009.

Non-GAAP net income for the first quarter of fiscal 2010 increased to $4.4 million, or $0.21 per diluted share, compared to non-GAAP net income of $3.1 million, or $0.15 per diluted share, reported for the fourth quarter of fiscal 2009. First quarter of fiscal 2010 non-GAAP results exclude $1.6 million in stock compensation and $946,000 in amortization of intangible assets. Fourth quarter of fiscal 2009 non-GAAP results exclude $1.2 million in stock compensation, $952,000 in amortization of intangibles, and a $725,000 loss on the sale of assets.

Oplink generated $9.1 million in cash from operations during the first quarter, and closed the quarter with cash, cash equivalents and short-term investments of $178.7 million.

"We are pleased to report results that are ahead of the outlook we provided,” commented Joe Liu, President and CEO of Oplink. "We are winning more advanced OMS business in part based on our component expertise and industry leadership. Oplink has become one of the leading providers of advanced photonic sub-systems product engineering and manufacturing solutions for global long-haul, metro-core and edge equipment companies. Our reputation for executing customer needs positions us to benefit as telecom spending resumes.”

Business Outlook

For the quarter ending December 31, 2009, the Company expects to report revenues between $31 million and $35 million and GAAP net income per diluted share of approximately $0.06 to $0.12. On a non-GAAP basis, excluding stock compensation, amortization of intangible assets and other non-cash or non-recurring charges, if any, the Company expects earnings per diluted share for the quarter ending December 31, 2009 of approximately $0.18 to $0.24.

Conference Call Information

The Company will host a conference call and live webcast at 2:00 p.m. Pacific Time today, October 29, 2009. To access the conference call, dial 877-941-8418 or 480-629-9809 (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 5:00 p.m. Pacific Time on October 29, 2009 until 11:59 p.m. Pacific Time on November 5, 2009, by dialing 800-406-7325 or 303-590-3030 (outside the U.S. and Canada) and entering pass code 4173946#.

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. Oplink 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. Oplink'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 second quarter of fiscal year 2010, 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 sustained continuation and/or worsening of the current downturn in the telecommunications industry or the overall economy in the United States and other parts of the world, possible 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.