OCPI Reports Flat Q2 Revenues

CHATSWORTH, Calif. -- Optical Communication Products, Inc. (Nasdaq: OCPI), a manufacturer of fiber optic subsystems and modules for metropolitan area, local area and storage area networks, today reported financial results for the quarter ended March 31, 2003, which is the second quarter of OCP's fiscal year ending September 30, 2003. Revenue for the second quarter of fiscal 2003 was $9.6 million, an increase of 1.8% compared with $9.4 million for the first quarter of fiscal 2003, and no change compared to the second quarter of fiscal 2002. The net loss for the second quarter of 2003 was $1.7 million, compared to a net loss of $1.1 million for the first quarter of fiscal 2003 and net income of $63,000 for the second quarter of fiscal 2002. The loss per diluted share for the second quarter of fiscal 2003 was $0.02 per share, compared with a loss per diluted share of $0.01 for the first quarter of fiscal 2003 and net income per diluted share of $0.00 for the second quarter of fiscal 2002. During the second quarter of 2002, the Company utilized approximately $554,000 of inventory materials in production that had previously been written down to zero, the net of income tax effect to net loss was a benefit of $366,000. Revenue for the six months ended March 31, 2003 was $19.0 million, an increase of 2.7% from $18.5 million for the same period in fiscal 2002. The net loss for the six months ended March 31, 2003 was $2.9 million, compared to net income of $246,000 for the same period in fiscal 2002. The loss per diluted share for the six months ended March 31, 2003 was $0.03 per share compared with income per diluted share of $0.00 for same period in fiscal 2002. "Our revenue this quarter is approximately the same as the previous quarter, reflecting the fact that our business still remains negatively impacted by the continuing weak demand in the fiber optic communications industry. Our increased net operating loss is an effect of our continuing commitment to expand our R&D and Sales and Marketing team," said Dr. Muoi Van Tran, OCP's Chairman and CEO. "OCP's financial position remained strong at March 31, 2003 with approximately $140 million in cash, cash equivalents and marketable securities. We believe that we are moving in the right direction to strengthen OCP's market position when the fiber optics communication market rebounds." The current economic environment and downturn in the telecommunications industry continues to limit the company's visibility with respect to its long-term revenue forecasts. In the short-term, revenue in the third quarter ending June 30, 2003 is expected to be within the range of $8 million to $10 million. Optical Communication Products Inc. (OCPI)