AFOP Revises Forecast, Approves Stock Repurchase Program
SUNNYVALE, Calif., Dec. 1, 2011 — Alliance Fiber Optic Products Inc. (AFOP) has revised its forecast for the fourth quarter of 2011, expecting its revenues to be below $11 million. Revenues for the third quarter of 2011 totaled $11.8 million, a 10.5 percent increase over the previous quarter.
The reduction reflects lower order rates caused by a greater-than-expected slowdown of Asian and European customers and worsening effects on the market caused by the flooding in Thailand. AFOP supplies fiber optic components, subsystems and integrated modules for the optical network equipment market. It has manufacturing and product development capabilities in the US, Taiwan and China.
The company also announced that its board of directors has approved a program under which it will begin purchasing up to $6 million of its outstanding shares of common stock. The duration of the repurchase program is open-ended. Under the program, AFOP could purchase shares of common stock from time to time through open market and privately negotiated transactions at prices depending on prevailing market conditions and other factors. The program does not obligate AFOP to repurchase any particular amount of common stock during any period, and the program may be modified or suspended at any time at the company’s discretion. The repurchase will be funded by cash on hand.
Peter C. Chang, CEO and president of AFOP, said that the combination of current market valuations, cash balances and ongoing cash flow generation led the company to believe that the stock repurchase program was an appropriate use of cash.
For more information, visit: www.afop.com