Exhibit 99.1
MONDAY AUGUST 14, 4:38 PM EASTERN TIME
PRESS RELEASE
FIBERCORE REPORTS REVISED SECOND QUARTER EARNINGS
CHARLTON, Mass.--(BUSINESS WIRE)--Aug. 14, 2000--FiberCore, Inc. (OTC BB: FBCE -
news) FiberCore, a leading manufacturer of optical fiber and preform for the
telecommunication and data communications markets, with production facilities in
Jena, Germany and Campinas, Brazil today announced a revision of its previously
reported second quarter net loss. The change, which has no effect on the net
equity of the company, is attributable to a $5.3 million, non-cash adjustment to
account for convertible securities with deemed beneficial conversion features.
There is no change to the previously reported income from operations.
The accounting treatment provides for an increase of $5.3 million to paid-in
capital that is offset by an increase to interest expense. The charge to
interest expense flows through net income. The adjustment arose during the
preparation of the company's second quarter report to the SEC in connection with
the $6 million convertible note that was issued to Crescent International as
part of their $30 million equity line commitment that closed on June 9, 2000.
The $6 million was used to partially fund the acquisition of Xtal in Brazil.
Under the terms of the June 9th agreement, the company could issue up to $7.5
million in convertible notes. On July 5, 2000, the Company issued another
convertible note for the remaining $1.5 million. The $1.5 million convertible
note issuance gave rise to an $88 thousand accounting adjustment that will be
reflected in the company's third quarter results.
"This accounting treatment does not affect the net equity, the future
operations, and the cash position of the company. As for the business itself, we
are operating in a strong fiber market, and the expectation that the company
will report income from operations for the year remains unchanged," said Dr.
Mohd Aslami, President and CEO of FiberCore, Inc.
The results of consolidated operations of the Company as previously reported and
as revised are as follows:
Results of operations as previously reported:
($000)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
---- ---- ---- ----
Sales $ 6,413 $ 2,371 $ 9,866 $ 5,026
Gross profit $ 1,690 $ 425 $ 2,422 $ 743
Income (loss) from
operations $ 521 $ (390) $ 319 $ (727)
Net Loss $ (16) $ (719) $ (512) $(1,374)
Loss per share $(0.000) $(0.020) $(0.012) $(0.038)
Results of operations as revised:
($000)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
---- ---- ---- ----
Sales $ 6,413 $ 2,371 $ 9,866 $ 5,026
Gross profit $ 1,690 $ 425 $ 2,422 $ 743
Income (loss) from
operations $ 521 $ (390) $ 319 $ (727)
Net Loss $(5,333) $ (719) $(5,829) $(1,374)
Loss per share $ (0.11) $ (0.02) $ (0.13) $ (0.04)
For more information about the Company, its products, or shareholder information
please visit our Website at: www.FiberCoreUSA.com or contact us at: Phone -
(508) 248-3900 or by FAX - (508) 248-5588 or E-Mail [email protected]
Except for the historical matters discussed above, the statements in this press
release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those projected as a result of certain
general economic and business conditions; loss of market share through
competition; introduction of competing products by other companies; changes in
industry capacity; pressure on prices from competition or from purchasers of the
Company's products; availability of qualified personnel; ability to obtain
required financing; dependence on a limited number of suppliers; the loss of any
significant customers; and other factors detailed from time to time in the
Company's filings with the Securities and Exchange Commission. Contact:
FiberCore, Inc.
Charles DeLuca, 508-248-3900
[email protected]
