Oplink Communications Inc. (OPLK) reported revenues of $33.6 million for the quarter, up 2.7% from a year ago.
Gross margin came in at 34.5% in the quarter compared with 35.6% in the previous quarter and 30.3% in the year-ago quarter.
Excluding $1.3 million in stock compensation and $0.9 million in amortization of intangible assets, net income was $4.8 million or 22 cents per share compared with a net income of $5.7 million or 26 cents in the second quarter of fiscal 2010.
Including stock-based compensation expense, net income was 16 cents, beating the Zacks Consensus Estimate of 14 cents.
Oplink ended the quarter with cash, equivalents and investments of $184.8 million, up from $168.7 million at the end of fiscal 2009.
Management stated that the company continues to invest in expanding capacity and improving lead times to meet a stronger demand environment.
However, production ramp-up remains challenging due to labor and materials shortage. The company expects to see improvement in the coming quarters.
Going forward, management expects revenues between $35 million and $38 million in the fourth quarter of 2010. Net income per share is projected between 5 cents and 11 cents. Excluding stock-based compensation expense, amortization of intangible assets and other non-cash or non-recurring charges, Oplink projects net income per share between 16 cents and 22 cents.
California-based Oplink provides design, integration and optical manufacturing solutions for optical networking components and subsystems.
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