Peter Chang, AFOP’s President and Chief Executive Officer commented, In line with what appears to be an industry trend, AFOP has recently experienced a slowdown in shipments due primarily to a lower level of new orders. While overall demand for our products remains significantly higher than it was in the year ago quarter, order rates have slowed from the rates we experienced in recent quarters due to a lowered level of spending by our customers. In addition, the visibility on our future revenues has become somewhat limited as our customers face these same industry issues with their own customers. Given the current uncertain market environment, we believe it is appropriate at this time to be more cautious in our guidance.
The Company’s revised guidance for the first quarter’s net revenue is $7 to $7.5 million with pro forma net income of $.00 to $.01 per share. For the full year 2001, the Company’s revised guidance includes revenues of approximately $40 million and pro forma net income of $.03 to $.05 per share.
Despite our revised guidance, we remain very confident in our ability to be a premier supplier of leading edge components and integrated photonic solutions that are the building blocks for the fiber optic industry. We have entered 2001 financially strong, making progress in key product development areas, improving manufacturing efficiencies, and with a salesforce focused on delivering next generation solutions to our diversified and growing customer base, concluded Mr. Chang.
