New Focus Announces Results, Restructuring Plan
SAN JOSE, Calif., April 27 -- New Focus Inc., a supplier of fiber optic products, announced financial results for its first quarter ended April 1. The results included net revenue that met the revised guidance issued by the company on March 5 and a substantial charge for inventory write-downs and related charges that widened the company's operating loss. The pro forma net loss in the first quarter of 2001, excluding amortization of acquired intangibles, deferred compensation and related income tax effects, was $31.3 million, or $0.44 per share based on 70.5 million basic shares outstanding
"Like many other companies in our industry, we have experienced a downturn in our near-term business prospects due to conditions within the telecommunications industry and the US economy," said Ken Westrick, president and CEO of New Focus, Inc. "In addition to the steps that we took in early March, we are initiating a series of actions that will resize our operations and result in a restructuring charge that will be reflected in our second quarter financial results. These actions will include closure and consolidation of two smaller facilities and additional work force reductions in our US and China operations. We will also accelerate our efforts to move more production, in particular subassemblies for our active products, offshore to Asia. We already produce nearly 100 percent of our passive products at our China facilities. In addition to these longer-range actions, we will cut our capital expenditures and continue to reduce discretionary spending."
MORE FROM PHOTONICS MEDIA