Fiber Optic Products' CEO Discusses Q1 2014 Results

Alliance Fiber Optic Products Inc. (AFOP) Q1 2014 Earnings Conference Call April 24, 2014 4:30 PM ET

Operator

Good afternoon, and welcome to the Alliance Fiber Optic Products, Incorporated First Quarter 2014 Conference Call. Thank you for joining us on today’s conference call to discuss AFOP’s first quarter 2014 financial results. This call is also being webcast by accessing on the Investor Relations page at AFOP.com and a replay will be available on AFOP’s website 90 minutes after the live conference call.

Today’s call is being hosted by Peter Chang, President and Chief Executive Officer; and Dave Hubbard, Executive Vice President of Sales and Marketing. Before I turn the call over to Mr. Chang, I’d like to make the following Safe Harbor statements.

During the course of this conference call Peter or David may discuss expectations and make projections or other forward-looking statements as to the company’s ability to improve financial results, focus on cost control and operational efficiency, develop products and technologies that customers desire, make prudent R&D investments, the features and benefits of the company’s products, market opportunities, and the company’s future prospects.

We would like to caution participants that these statements and all other statements made by management on this call that are not historical facts involve a number of risks and uncertainties that could cause actual results to differ materially, including, but not limited to, general economic conditions and trends, the impact of competitive products and pricing, timely design acceptance by our customers, the level of order cancellations, the need for and magnitude of future inventory write-downs or impairment charges, timely introduction of new technologies, ability to develop new products, and to ramp new products into volume production, industry-wide shifts in supply and demand for optical components and modules, industry overcapacity, failure of cost control initiatives, financial stability in foreign markets and other risks detailed in our SEC reports including AFOP’s most recent Form 10-Q for the year-ended December 31, 2013.

During the course of this conference call Peter or David may discuss expectations and make projections or other forward-looking statements as to the company’s ability to improve financial results, focus on cost control and operational efficiency, develop products and technologies that customers desire, make prudent R&D investments, the features and benefits of the company’s products, market opportunities, and the company’s future prospects.

We would like to caution participants that these statements and all other statements made by management on this call that are not historical facts involve a number of risks and uncertainties that could cause actual results to differ materially, including, but not limited to, general economic conditions and trends, the impact of competitive products and pricing, timely design acceptance by our customers, the level of order cancellations, the need for and magnitude of future inventory write-downs or impairment charges, timely introduction of new technologies, ability to develop new products, and to ramp new products into volume production, industry-wide shifts in supply and demand for optical components and modules, industry overcapacity, failure of cost control initiatives, financial stability in foreign markets and other risks detailed in our SEC reports including AFOP’s most recent Form 10-Q for the year-ended December 31, 2013.

More importantly, AFOP operating and financial performances achieved new milestones in gross margins, operating margins, operating profit and profit. In addition, our balance sheet continued to grow stronger, this improvement and a greater performance in fact were on this strengths of our strategy and our executions over the long run and our customers in marketing formation and our commitment to improving shareholder value in AFOP. I want to thank all joined our growing list of valued customers and our exceptional teams for their accomplishments and our investors for their confidence in AFOP.

And now, let me turn the call to David to review the progress in each product area in more detail in the quarter. Following that, I will go into more details on the financials and forward guidance.