EXHIBIT 99.1
[FIBERCORE INC. LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE
FIBERCORE UPDATES FINANCIAL STATUS
CHARLTON, MA - APRIL 3, 2003 -- FiberCore, Inc. (Nasdaq: FBCE), a leading
manufacturer and global supplier of optical fiber and preform for the
telecommunications and data communications markets, today announced several
recent developments with respect to potential new financing, restructuring, and
liquidity.
While the Company has yet to reach a definitive agreement regarding the terms of
any new financing, the Company is engaged in continuing discussions with several
investor groups. In the meantime, the Company has made progress with respect to
its German operations, where it has successfully re-scheduled approximately 95%
of the obligations owed to creditors in connection with FiberCore Jena AG's
Phase II expansion and operations. Depending upon the success and timing of any
potential new financing, further restructuring (including extensions of debt
payments) may be needed. While some financing had been delayed and/or withdrawn
by German governmental and other financial institutions earlier in the year,
approximately 25% of this financing has been reinstated or replaced over the
past month, thus reducing the amount of new financing required. The Company had
previously restructured and rescheduled most of its bank debt and supplier
obligations at its Brazilian subsidiary, Xtal FiberCore Brasil, S.A.
The Company continues to execute its operational restructuring plan by reducing
operational and administrative costs including staffing reductions. Based on the
March sales level, which is running somewhat below 2002 levels for the same
period, the Company expects to generate a break-even EBITDA, on a consolidated
basis, when the restructuring plan is fully implemented. Going forward, the
Company expects EBITDA to improve if sales increase over the course of the year
and exceed 2002 levels, as the Company anticipates.
Dr Mohd Aslami, CEO and President commented, "This is a very difficult period
for FiberCore as we continue to make every effort to work through our current
liquidity difficulties. Even though March orders and shipments in our multi-mode
business were at record volume levels, weak pricing offset this. As for the
market, the telecommunications industry is still experiencing the worst downturn
in its history. Now, after about a 50% decline in 2002 from 2001 highs, the
worldwide optical fiber market appears poised for an upturn. Industry sources
expect 2003 to be flat to up slightly from 2002, and then anticipate growth
through
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FiberCore, Inc.
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2007. While the growth is expected worldwide, the growth in the U.S. is expected
in the "last mile", which includes fiber-to-the-home applications, where
FiberCore is focused. Moreover, FiberCore's growth is not dependent on the
overly built U.S. telecom long haul segment. With capacity drastically reduced
as a consequence of the sharp decrease in demand over the last two years, prices
should increase as demand steadily increases. This should create a significant
market recovery opportunity for FiberCore, the only pure-play fiber supplier in
the industry."
"To support the Company's return to profitability, FiberCore has significant
available capacity, a solid, global customer base and has developed new
technology improvements, which will contribute to further cost reductions.
Unfortunately, the implementation of this new process technology has been
delayed because of the present financial situation, but our planned
restructuring, when implemented, will allow us to fully utilize the new POVD
facility," concluded Dr. Aslami.
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 or reduced creditworthiness of any significant customers;
and other factors detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
CONTACTS:
AT THE COMPANY: AT FRB | WEBER SHANDWICK:
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Dr. Mohd A. Aslami, President/CEO Alison Ziegler
Robert Lobban, CFO 212/445-8432
508/248-3900
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