Alliance Fiber Optic Products Inc. (AFOP, Financial) filed Quarterly Report for the period ended 2012-06-30.
Alliance Fiber Optic Products, Inc. has a market cap of $81.8 million; its shares were traded at around $9.25 with a P/E ratio of 19.4 and P/S ratio of 2. Alliance Fiber Optic Products, Inc. had an annual average earning growth of 45.2% over the past 5 years.
Our connectivity products contributed revenues of $16.3 million, or 73.8%, and $15.4 million, or 76.8%, for the six months ended June 30, 2012 and 2011, respectively. Our optical passive products contributed revenues of $5.8 million, or 26.2%, and $4.7 million, or 23.2%, for the six months ended June 30, 2012 and 2011, respectively.
Cost of Revenues. Cost of revenues was $7.6 million and $7.2 million for the three months ended June 30, 2012 and 2011, respectively. Cost of revenues as a percentage of revenues decreased to 66.1% for the three months ended June 30, 2012 from 67.6% for the three months ended June 30, 2011. Cost of revenues was $14.7 million and $13.6 million for the six months ended June 30, 2012 and 2011, respectively. Cost of revenues as a percentage of revenues decreased to 66.7% for the six months ended June 30, 2012 from 67.7% for the six months ended June 30, 2011. The lower percentage cost of revenues for the three and six months ended June 30, 2012 resulted from increased factory utilization due to higher revenues.
Gross Profit. Gross profit increased in dollars to $3.9 million, or 33.9% of revenues, for the three months ended June 30, 2012 from $3.5 million, or 32.4% of revenues, for the same period in 2011. Gross profit increased to $7.4 million, or 33.3% of revenues, for the six months ended June 30, 2012 from $6.5 million, or 32.3% of revenues, for the same period in 2011. For the three and six months ended June 30, 2012, the higher gross profit was due to the higher utilization of our factories as a result of increased volume shipments to our customers. We expect our gross profit as a percentage of revenues will improve with higher production volumes, which we anticipate will result in improved absorption of overhead expenses. However, decreasing average selling prices will negatively impact our gross profit and may offset benefits, if any, from improved absorption.
Sales and Marketing Expenses. Sales and marketing expenses increased to $0.7 million for the three months ended June 30, 2012 from $0.6 million for the same period in 2011. Sales and marketing expenses increased to $1.3 million for the six months ended June 30, 2012 from $1.1 million for the six months ended June 30, 2011. The higher sales and marketing expenses were due to new hire and stock based compensation charges.
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Alliance Fiber Optic Products, Inc. has a market cap of $81.8 million; its shares were traded at around $9.25 with a P/E ratio of 19.4 and P/S ratio of 2. Alliance Fiber Optic Products, Inc. had an annual average earning growth of 45.2% over the past 5 years.
Highlight of Business Operations:
Our connectivity products contributed revenues of $8.5 million, or 74.0%, and $8.1 million, or 76.4%, for the three months ended June 30, 2012 and 2011, respectively. Our optical passive products contributed revenues of $3.0 million, or 26.0%, and $2.5 million, or 23.6%, for the three months ended June 30, 2012 and 2011, respectively.Our connectivity products contributed revenues of $16.3 million, or 73.8%, and $15.4 million, or 76.8%, for the six months ended June 30, 2012 and 2011, respectively. Our optical passive products contributed revenues of $5.8 million, or 26.2%, and $4.7 million, or 23.2%, for the six months ended June 30, 2012 and 2011, respectively.
Cost of Revenues. Cost of revenues was $7.6 million and $7.2 million for the three months ended June 30, 2012 and 2011, respectively. Cost of revenues as a percentage of revenues decreased to 66.1% for the three months ended June 30, 2012 from 67.6% for the three months ended June 30, 2011. Cost of revenues was $14.7 million and $13.6 million for the six months ended June 30, 2012 and 2011, respectively. Cost of revenues as a percentage of revenues decreased to 66.7% for the six months ended June 30, 2012 from 67.7% for the six months ended June 30, 2011. The lower percentage cost of revenues for the three and six months ended June 30, 2012 resulted from increased factory utilization due to higher revenues.
Gross Profit. Gross profit increased in dollars to $3.9 million, or 33.9% of revenues, for the three months ended June 30, 2012 from $3.5 million, or 32.4% of revenues, for the same period in 2011. Gross profit increased to $7.4 million, or 33.3% of revenues, for the six months ended June 30, 2012 from $6.5 million, or 32.3% of revenues, for the same period in 2011. For the three and six months ended June 30, 2012, the higher gross profit was due to the higher utilization of our factories as a result of increased volume shipments to our customers. We expect our gross profit as a percentage of revenues will improve with higher production volumes, which we anticipate will result in improved absorption of overhead expenses. However, decreasing average selling prices will negatively impact our gross profit and may offset benefits, if any, from improved absorption.
Sales and Marketing Expenses. Sales and marketing expenses increased to $0.7 million for the three months ended June 30, 2012 from $0.6 million for the same period in 2011. Sales and marketing expenses increased to $1.3 million for the six months ended June 30, 2012 from $1.1 million for the six months ended June 30, 2011. The higher sales and marketing expenses were due to new hire and stock based compensation charges.
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