Exhibit 99.1
Press Release
FIBERCORE REPORTS RECORD RESULTS FOR FIRST QUARTER
CHARLTON, Mass., May 7 /PRNewswire/ -- FiberCore, Inc. (Nasdaq: FBCE - news), a
leading manufacturer and global supplier of optical fiber and preform for the
telecommunication and data communications markets, today announced record
results for the first quarter ended March 31, 2001. The results include the
operations of Xtal FiberCore Brasil S.A., the Company's recently acquired
Brazilian facility, from June 1, 2000.
Sales in the first quarter of 2001 increased 370% to a record $16.2 million from
$3.5 million in the year ago period. Sales benefited from continued strong
market demand from new and existing customers, higher pricing as well as the
inclusion of the Company's Xtal operations; which contributed $11.4 million to
sales in the quarter. Excluding Xtal, sales would have increased by 40%. Net
income was a record $3.0 million, or $0.05 a diluted share, in the first quarter
of 2001. This compares to a net loss of approximately $496,000, or $0.01 per
share, in the year ago quarter.
Gross profit in the quarter grew to $6.6 million, or 40.6% of sales, from
$732,000, or 21.2% of sales, in the year ago period and 39.8% of sales in the
fourth quarter of 2000. FiberCore's gross margin benefited primarily from higher
volumes, better pricing as well as continued manufacturing process improvements.
Operating margin was a record 27.5% for the quarter, among the highest of all
major manufacturers of optical fiber, even with the Company's comparatively
lower sales volume. The Company's strong gross and operating margins are the
result of its highly efficient manufacturing technology and the successful
implementation of its business strategy. Longer term, margins should benefit as
the Company becomes more vertically integrated through manufacturing more of its
own specialized equipment, better controlling the supply of raw materials and
introducing its recently patented Plasma Outside Vapor Deposition ("POVD")
process into production.
Spending on research and development increased by 86% to $440,000 in the first
quarter from $237,000 in the prior year period driven in part by spending on the
POVD process as well as other manufacturing initiatives.
"We are off to an excellent start in 2001, with another record quarter in both
sales and earnings," commented Dr. Mohd Aslami, President and CEO. "At March 31,
2001, our backlog was a strong $260 million. This is up from $190 million at
year-end and reflects the global diversification of our revenue stream as well
as our position as the only independent fiber supplier. Since we do not sell
cable and therefore do not compete with our customers, as do many of the major
fiber manufacturers, we are becoming a favorite supply source of independent
cablers around the world. This is one reason why, to date, our sales have been
growing as compared to the general weakness experienced in other sectors of the
fiber optic market. Another reason for our strong results is that our revenue
streams are not dependent on the U.S. telecom long haul sector, which is
experiencing the bulk of the slowdown. With 67% of our current backlog in
take-or-pay contracts, we remain confident in our expectation that sales will
double in 2001 and operating profit will increase at a rate in excess of sales."
"During the quarter we have made continued progress in support of our major
capacity expansion plan. In addition to our planned expansions in Jena, Germany
and Campinas, Brazil, which are underway, we continue to plan for additional
manufacturing facilities in Malaysia, Thailand and the U.S. We are currently in
the process of arranging financing for these facilities, which are expected to
come online in 2002 and beyond."
Dr. Aslami concluded, "We continue to see considerable opportunities for
FiberCore in this strong fiber market and are working diligently to increase
capacity to be able to supply our customers' and partners' expected future fiber
requirements. Our strong customer relationships, new technology initiatives as
well as the experience of our management team make us confident in our ability
to continue to execute on our growth plan."
Dr. Mohd Aslami will be presenting at Kessler Market Intelligence's 5th Annual
Conference on Fiberoptics Markets in Europe, May 15-16, 2001, in Paris, France.
Dr. Aslami will provide information on the continued demand for multimode
optical fiber with a focus on the recent advances in high bandwidth fiber to
support emerging Gigabit and higher network protocols.
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: 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 of any significant customers; and other factors detailed
from time to time in the Company's filings with the Securities and Exchange
Commission.
FIBERCORE, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands except share data)
Three Months Ended
March 31,
2001 2000
(unaudited) (unaudited)
Net sales $16,226 $3,453
Cost of sales 9,635 2,721
Gross profit 6,591 732
Operating expenses:
Selling, general and administrative expenses 1,697 697
Research and development 440 237
Income (loss) from operations 4,454 (202)
Interest expense, net (184) (154)
Other income (expense) - net (151) (82)
Income (loss) before income taxes and
minority interest 4,119 (438)
Provision for income taxes (857) (58)
Earnings (loss) before minority interest 3,262 (496)
Minority interest in income of subsidiary (283) --
Net earnings (loss) $2,979 $(496)
Basic earnings (loss) per share
of common stock $0.05 $(0.01)
Diluted earnings (loss) per share
of common stock $0.05 $(0.01)
Weighted average shares outstanding:
Basic 59,126,674 41,678,243
Diluted 65,676,715 41,678,243
SELECTED BALANCE SHEET DATA: March 31, December 31,
2001 2000
(unaudited) (audited)
Working capital $4,030 $2,047
Total assets 68,701 67,453
Long-term obligations 6,611 9,849
Total liabilities 25,708 28,551
Minority interest 5,033 4,750
Accumulated deficit (16,914) (19,893)
Stockholders' equity 37,960 34,152