Opnext Reports Fourth Quarter and Full Year Unaudited Operating Results

FREMONT, Calif.--(Business Wire)--
Opnext, Inc. (NASDAQ:OPXT),a global leader in the design and manufacturing of
optical modules and components, today announced unaudited financial results for
the fourth quarter and full year ended March 31, 2009.

Financial Highlights for the Fourth Quarter Ended March 31, 2009:

* Sales increased $13.1 million, or 18.6%, to $83.6 million compared to $70.5
million for the quarter ended December 31, 2008. Sales for the quarter included
$37.8 million from StrataLight Communications, Inc. ("StrataLight"), which was
acquired on January 9, 2009. Sales of 40Gbps products increased $34.6 million to
$39.7 million as a result of the acquisition of StrataLight, while sales of
10Gbps and below products decreased $18.8 million, or 31.3%, to $41.2 million,
and sales of industrial and commercial products decreased $2.7 million, or
50.0%, to $2.7 million. The decline in sales of 10Gbps and below products
occurred in all major product categories except XFP products.
* Sales increased $10.9 million, or 15.0%, compared to $72.7 million for the
quarter ended March 31, 2008, as a result of the acquisition of StrataLight.
Sales of 40Gbps products increased $29.9 million as a result of the acquisition
of StrataLight, while sales of 10Gbps and below products decreased $17.3
million, or 29.6%, and sales of industrial and commercial products decreased
$1.7 million, or 38.6%.
* Sales to Alcatel-Lucent, Cisco and Nokia Siemens Networks ("NSN") represented
68.5% of total sales, as compared to 62.8% for the quarter ended December 31,
2008, and 65.5% for the quarter ended March 31, 2008, giving pro forma effect to
the acquisition of StrataLight. As compared to both periods, declines in sales
to Alcatel-Lucent and Cisco were offset by increased sales to NSN during the
quarter ended March 31, 2009.
* Gross margin was 8.7% as compared to 22.1% for the quarter ended December 31,
2008. Gross margin includes a 460 basis point negative effect from non-cash
charges and costs associated with the acquisition of StrataLight. Excluding
these effects as well as the impact from stock-based compensation expense,
non-GAAP gross margin was 13.5% as compared to 22.3% for the quarter ended
December 31, 2008. The decrease in non-GAAP gross margin includes a 530 basis
point negative effect from a charge to discontinue certain early generation
10Gbps multimode fiber products, a 480 basis point negative effect from
unfavorable foreign currency exchange fluctuations and hedging programs, as well
as the negative effects of lower 10Gbps and below and industrial and commercial
product sales volumes, lower average selling prices, and lower optical chip and
TOSA yields that have since been remedied. These effects were partially offset
by benefits from lower excess and obsolete inventory charges, cost reductions
and higher relative margins from the sale of StrataLight products.
* Operating loss was $118.9 million for the quarter ended March 31, 2009, as
compared to operating losses of $15.5 million and $0.8 million for the quarters
ended December 31, 2008 and March 31, 2008, respectively. The loss for the
quarter ended March 31, 2009 primarily resulted from $98.8 million of non-cash
charges and costs related to the acquisition of StrataLight, while the quarter
ended December 31, 2008 included a $5.7 million goodwill impairment charge.
Excluding these items as well as stock-based compensation and class action
related litigation expenses, non-GAAP operating loss was $18.5 million for the
quarter ended March 31, 2009, compared to a non-GAAP operating loss of $7.7
million for the quarter ended December 31, 2008, and a non-GAAP operating profit
of $0.2 million for the quarter ended March 31, 2008. The increase in operating
loss from the quarter ended December 31, 2008 and the change to an operating
loss from the quarter ended March 31, 2008 primarily resulted from lower 10Gbps
and below and industrial and commercial product sales volumes, unfavorable
foreign currency fluctuations and hedging programs and a charge to discontinue
certain early generation 10Gbps multimode fiber products, partially offset by
the benefits from the inclusion of StrataLight`s operating results, lower excess
and obsolete inventory charges and the reversal of bonus and bad debt accruals
recorded earlier in the current year.
* Net loss was $118.8 million, or $(1.39) per fully diluted share, as compared
to a net loss of $14.5 million, or $(0.23) per fully diluted share, for the
quarter ended December 31, 2008, and net income of $0.9 million, or $0.01 per
fully diluted share, for the quarter ended March 31, 2008. Net loss per fully
diluted share for the quarter ended March 31, 2009 includes a $0.04 negative
effect from foreign currency exchange fluctuations and hedging programs.
* Non-GAAP net loss for the quarter ended March 31, 2009, which excludes
non-cash charges and costs related to the acquisition of StrataLight and stock
based compensation and class action related litigation expenses, was $18.5
million, or $(0.22) per fully diluted share, including $0.05 per fully diluted
share resulting from a charge to discontinue certain early generation 10Gbps
multimode fiber products.
* Cash and cash equivalents decreased by $37.1 million to $168.9 million at
March 31, 2009, as compared to $206.0 million at December 31, 2008, primarily as
a result of $26.2 million used in connection with the acquisition of
StrataLight. Cash used in operations was $13.1 million. Working capital improved
by $8.8 million primarily resulting from an $18.2 million reduction in inventory
partially offset by lower accounts payable and accrued expenses. During the
quarter, short-term debt increased $6.6 million, while $2.6 million was used to
pay capital lease obligations and $1.7 million was used to fund additional
capital investments.

Financial Highlights for the Year Ended March 31, 2009

* Sales increased $35.1 million, or 12.4%, to $318.6 million as compared to
$283.5 million for the year ended March 31, 2008, primarily as a result of
increased sales of 40Gbps solutions, as a result of the acquisition of
StrataLight, and XFP and 300pin tunable modules, partially offset by lower
demand for 40Gbps, Xenpak and 300pin fixed wavelength modules. Sales of 40Gbps
products increased $32.0 million to $61.7 million primarily due to the
acquisition of StrataLight, while sales of 10Gbps and below products increased
$3.1 million, or 1.3%, to $238.1 million, and industrial and commercial product
sales remained unchanged at $18.8 million.
* Sales to Alcatel-Lucent, Cisco, and NSN represented 57.8% of total sales for
the year ended March 31, 2009, and 65.5% of total sales for each of the years
ended March 31, 2009 and 2008, giving pro forma effect to the acquisition of
StrataLight. As compared to the prior year, increases in sales to Cisco and NSN
were offset by a decrease in sales to Alcatel-Lucent.

* Gross margin decreased to 23.4% from 34.0% in the year ended March 31, 2008,
primarily as a result of lower sales volumes, the negative effect from
unfavorable foreign currency fluctuations and hedging programs, and a charge to
discontinue certain early generation 10Gbps multimode fiber products as well as
higher excess and obsolete inventory charges.
* Operating loss of $132.1 million decreased from operating profit of $9.3
million in the prior year. The decrease included $99.0 million of non-cash
charges and costs related to the acquisition of StrataLight in January 2009, a
$12.6 million negative effect from unfavorable foreign currency fluctuations and
hedging programs as well as a $5.7 million goodwill impairment charge recorded
earlier in the year.
* Net loss was $129.6 million, or $(1.86) per fully diluted share, as compared
to net income of $17.0 million, or $0.26 per fully diluted share, for the year
ended March 31, 2008. Net loss included $1.42 per fully diluted share of
non-cash charges and costs associated with the acquisition of StrataLight in
January 2009, as well as an $0.18 per fully diluted share negative effect from
unfavorable foreign currency fluctuations and hedging programs, and an $0.08 per
fully diluted share negative effect associated with a goodwill impairment charge
recorded earlier in the year.
* Cash and cash equivalents decreased by $52.8 million to $168.9 million at
March 31, 2009, as compared to $221.7 million at March 31, 2008, primarily as a
result of the use of $28.4 million in connection with the acquisition of
StrataLight. Cash used in operations was $10.4 million. Working capital improved
by $3.0 million primarily as a result of a $21.3 million reduction in inventory
partially offset by lower accounts payable. During the year, $9.1 million was
used to pay capital lease obligations and $4.2 million was used to fund
additional capital investments.

Market Observations and Guidance:

Commenting on recent market conditions, Opnext, Inc. President and Chief
Executive Officer, Gilles Bouchard said, "During our fourth quarter, we
continued to see deteriorating demand from our customers, in part due to their
efforts to manage inventory levels in this difficult economic environment. In
this light, the actions announced on April 1 were designed to address our fixed
cost structure and are critical to Opnext`s ability to restore profitability and
positive cash flow from operations."

"We remain focused on cash preservation and working capital management,
execution of our fixed cost reductions, supply chain actions to reduce variable
costs, and closure of critical design wins, while continuing to invest in future
products and technologies," continued Mr. Bouchard. "We are confident we will
emerge from this downturn as a stronger company, better positioned in the
industry, and offering our customers a compelling value proposition, as we
address their demands for greater bandwidth and higher network speeds."

"We expect our June quarter to reflect continued market softness. While we
foresee some rebound in 10G sales as the effects from inventory adjustments
taper off, we also anticipate that 40G sales will return to more normalized
levels after the spike in demand in the March quarter following a major product
transition. With that in mind, we expect revenues to be in the range of $80 to
$90 million for our first fiscal quarter ending June 30, 2009," concluded Mr.
Bouchard.

Forward-looking Statements:

Statements made in this press release include forward-looking statements,
including, but not limited to, those related to future revenues, growth of
revenues, market position, acceptance of certain Opnext products, management`s
expectations with respect to the company`s initiatives, return to profitability
and positive cash flow, position for future growth, the general market outlook
and the outlook for the industry. These statements involve risks and
uncertainties that may cause actual results to differ materially from those set
forth in these statements. Among other things:

* projected sales for the quarter ending June 30, 2009, as well as the general
outlook for the future, are based on preliminary estimates, assumptions and
projections that management believes to be reasonable at this time, but are
beyond management`s control; and
* the market in which Opnext operates is volatile, implementation of operating
strategies may not achieve the desired impact relative to changing market
conditions and the success of these strategies will depend on the effective
implementation of our strategies while minimizing organizational disruption.

In addition to the factors set forth elsewhere in this release, other factors
that could cause the Company`s future, including future financial position and
results from operations, to differ from current expectations include: the impact
of rapidly changing technologies; the impact of competition on product
development and pricing; the ability of Opnext to source critical parts and to
react to changes in general industry and market conditions, including regulatory
developments; expenses associated with litigation; rights to intellectual
property; market trends and the adoption of industry standards; the ability of
Opnext to integrate, and realize the value from, the acquisition of StrataLight;
and consolidations within or affecting the optical modules and components
industry. These factors are not intended to be an all-encompassing list of risks
and uncertainties that may affect the Company`s business. Additional information
regarding these and other factors can be found in Opnext`s reports filed with
the Securities and Exchange Commission, including the Company`s Annual Report on
Form 10-K filed on June 16, 2008, as amended, and the Company`s Form 10-Q filed
on February 9, 2009. In providing forward-looking statements, the Company
expressly disclaims any obligation to update these statements, publicly or
otherwise, whether as a result of new information, future events or otherwise,
except to comply with applicable federal and state securities laws.

Conference Call:

Opnext management will conduct a conference call at 6:00 a.m. PT, today,
Tuesday, May 19, 2009 to discuss these results in detail. You may participate in
this conference call by dialing 877-853-4940 (United States) or 706-645-9149
(International) prior to the start of the call and providing the Opnext, Inc.
name and Conference ID# 98773238. A replay of the conference call can be
accessed starting approximately two hours after the call through Tuesday, May
26, 2009 by dialing 800-642-1687 (United States) or 706-645-9291 (International)
and using the Conference ID# 98773238. A live webcast of the call will be
accessible on the Investor Relations section of the Company website at
http://www.opnext.com. A replay of the webcast will be available following the
conclusion of the call on the webcast archive page of the Investor Relations
section.

(OPXT-G)

About Opnext:

Opnext (NASDAQ: OPXT) optical technologies add the spark of innovation to a
world of new applications, from the latest communications networks to
high-demand consumer electronics. The Company`s industry expertise,
future-focused thinking and commitment to research and development combine in
bringing to market the industry`s largest portfolio of 10G and 40G next
generation products and solutions. Formed out of Hitachi, Opnext has built on
more than 30 years experience in advanced technology to establish its broad
portfolio of solutions and solid reputation for excellence in service. For
additional information, visit www.opnext.com.

Opnext, Inc.

Condensed Consolidated Balance Sheets
(In thousands)

March, 31
2009 2008
Assets (unaudited)
Current assets:
Cash and cash equivalents $ 168,909 $ 221,686
Trade receivables, net 63,961 55,443
Inventories 101,610 90,297
Prepaid expenses and other current assets 3,708 3,639
Total current assets 338,188 371,065
Property, plant, and equipment, net 71,966 55,488
Purchased intangibles 39,239 -
Goodwill - 5,698
Other assets 371 208
Total assets $ 449,764 $ 432,459
Liabilities and shareholders` equity
Current liabilities:
Trade payables $ 38,356 $ 45,531
Accrued expenses 33,190 14,184
Short-term debt 20,243 20,060
Capital lease obligations 11,388 7,414
Total current liabilities 103,177 87,189
Capital lease obligations 21,402 18,843
Other long-term liabilities 4,648 3,349
Total liabilities 129,227 109,381
Total shareholders` equity 320,537 323,078
Total liabilities and shareholders` equity $ 449,764 $ 432,459

Opnext, Inc.

Condensed Consolidated Statements of Operations
(In thousands, except per share data)

Three months ended Twelve months ended

March 31,
March 31,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited)
Sales $ 83,626 $ 72,684 $ 318,555 $ 283,498
Cost of sales 75,017 48,785 242,782 187,123
Amortization of acquired developed technology 1,321 - 1,321 -
Gross margin 7,288 23,899 74,452 96,375
Research and development expenses 22,022 10,745 54,043 38,324
Selling, general and administrative expenses 20,818 13,431 63,483 48,291
Impairment of goodwill 61,983 - 67,681 -
Acquired in-process research and development 15,700 - 15,700 -
Amortization of purchased intangibles 5,540 - 5,540 -
Loss on disposal of property and equipment 131 543 122 502
Operating (loss) income (118,906) (820) (132,117) 9,258
Interest income, net 59 1,578 2,748 8,534
Other income, (expense), net 32 121 (187) (744)
(Loss) income before income taxes (118,815) 879 (129,556) 17,048
Income tax (expense) benefit (16) 71 (16) -
Net (loss) income $ (118,831) $ 950 $ (129,572) $ 17,048
Net (loss) income per share:
Basic $ (1.39) $ 0.01 $ (1.86) $ 0.26
Diluted $ (1.39) $ 0.01 $ (1.86) $ 0.26
Weighted average number of shares used in computing net (loss) income per share:
Basic 85,527 64,640 69,775 64,598
Diluted 85,527 64,669 69,775 64,633

Opnext, Inc.

Condensed Consolidated Statements of Cash Flows
(In thousands)

Three Months Ended March 31, Year Ended March 31,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited)
Cash flows from operating activities
Net (loss) income $ (118,831 ) $ 950 $ (129,572 ) $ 17,048
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization 5,047 2,600 14,385 10,615
Impairment of goodwill 61,983 - 67,681 -
In-process research and development 15,700 - 15,700 -
Amortization of purchased intangibles 6,861 - 6,861 -
Compensation expense associated with the StrataLight Employee Liquidity Bonus Plan 5,766 - 5,766 -
Compensation expense associated with stock option issuances 1,483 979 5,644 3,337
Loss on disposal of property, plant and equipment 131 543 122 502
Changes in assets and liabilities, net of acquisition of business 8,779 (3,311 ) 2,987 (19,977 )
Net cash (used in) provided by operating activities (13,081 ) 1,761 (10,426 ) 11,525
Cash flows from investing activities
Capital expenditures (1,683 ) (1,523 ) (4,157 ) (5,071 )
Acquisition of business, net of cash acquired (26,243 ) - (28,425 ) -
Net cash used in investing activities (27,926 ) (1,523 ) (32,582 ) (5,071 )
Cash flows from financing activities
Borrowings on short-term debt 6,586 20,060 - 20,060
Payments on capital lease obligations (2,622 ) (1,701 ) (9,101 ) (5,452 )
Restricted shares repurchased (40 ) (94 ) (67 ) (94 )
Net proceeds from initial public offering - (105 ) - (105 )
Exercise of stock options - 7 6 23
Net cash provided by (used in) financing activities 3,924 18,167 (9,162 ) 14,432
Effect of foreign exchange rates on cash and cash equivalents (5 ) (111 ) (607 ) 1,014
(Decrease) increase in cash and cash equivalents (37,088 ) 18,294 (52,777 ) 21,900
Cash and cash equivalents at beginning of period 205,997 203,392 221,686 199,786
Cash and cash equivalents at end of period $ 168,909 $ 221,686 $ 168,909 $ 221,686

Non-cash financing activities
Capital lease obligations incurred $ (2,214 ) $ (2,940 ) $ (15,384 ) $ (11,825 )

Opnext Non-GAAP Financial Measures

Management excludes certain charges and expenses from its gross margin and
operating (loss) income GAAP financial measures for the purpose of assessing the
Company's operating performance. Accordingly, the Company provides these
non-GAAP measures to its investors as supplemental information, in addition to
the GAAP presentation, in an effort to provide greater transparency and insight
into management's method of analysis. The Company also provides non-GAAP net
(loss) income and net (loss) income per share financial measures to demonstrate
the impact of its non-GAAP operating performance measures on these financial
measures.

The basis for excluding the following non-GAAP adjustments related to the
acquisition of StrataLight is as follows:

Goodwill impairment: On January 9, 2009, the Company completed its acquisition
of StrataLight. Subsequent to the Company entering into the definitive merger
agreement with respect to the acquisition, there were significant indicators to
require an interim goodwill impairment analysis, including a significant
decrease in the Company`s market capitalization and a significant deterioration
in the macroeconomic environment. Based upon the goodwill analysis conducted,
the Company recorded a $62.0 million impairment charge which represented the
full amount of goodwill recorded from the StrataLight acquisition. This non-cash
charge is non-recurring and, therefore, the Company believes it is not
indicative of its core operating performance.

Acquired in-process research and development: In connection with the acquisition
of StrataLight, the Company acquired in-process research and development. These
amounts were expensed on the acquisition date, as the acquired technologies had
not yet reached technological feasibility and had no future alternative uses.
Acquired in-process research and development charges are non-cash and
non-recurring and, therefore, the Company believes they are not indicative of
its core operating performance.

StrataLight Employee Liquidity Bonus Plan ("ELBP"): As part of the acquisition
of StrataLight, the Company assumed the costs of an employee bonus plan
providing certain employees and directors of StrataLight with a portion of the
merger consideration in the form of cash payments and the Company`s stock. The
plan vests and awards were or will be distributed twenty-five percent (25%) on
January 31, 2009, fifty percent (50%) on October 31, 2009 and twenty-five
percent (25%) on January 31, 2010. The associated expense will be recognized
over the distribution period. The Company believes these acquisition related
expenses are not indicative of its core operating performance.

Amortization of intangible assets and fair-value adjustment of acquired
inventory: In connection with the acquisition of StrataLight, the Company
acquired certain intangible assets related to developed product technology,
order backlog and customer relationships, as well as inventory that were
recorded at fair-value. The useful lives of the intangible assets range up to
five years and the intangible assets are being amortized on a straight-line
basis over their respective useful lives. The increase from historical cost to
fair-value of acquired inventory is being realized as the goods are sold. The
Company believes these acquisition related expenses are not indicative of its
core operating performance.

Business integration costs: During the quarter ended December 31, 2008, the
Company began to incur costs associated with the integration of StrataLight. The
Company believes these acquisition related expenses are not indicative of its
core operating performance.

Restructuring activities: As a result of the acquisition of StrataLight, the
Company`s headcount in Silicon Valley increased significantly. Accordingly, the
Company decided to relocate its corporate headquarters from Eatontown, NJ to
Fremont, CA. During the quarter ended March 31, 2009,the Company completed the
relocation of its corporate headquarters and incurred workforce related charges,
such as severance payments, retention bonuses and employee relocation costs
related to a formal restructuring plan and building costs for facilities not
required for ongoing operations. The Company believes these acquisition related
expenses are not indicative of its core operating performance.

The basis for excluding the following non-GAAP adjustments is as follows:

Goodwill impairment: On June 4, 2003, the Company acquired 100% of the
outstanding shares of Pine Photonics Communication Inc. ("Pine"). This
acquisition expanded the Company`s product line of SFP transceivers with data
rates less than 10 Gbps that are sold to telecommunications and data
communications customers. During the quarter ended December 31, 2008, there were
sufficient indicators to require an interim goodwill impairment analysis,
including a significant decrease in the Company`s market capitalization and a
significant deterioration in the macroeconomic environment largely caused by the
widespread unavailability of business and consumer credit. Based upon the
interim goodwill analysis conducted, the Company recorded a $5.7 million
impairment charge that represented the full amount of goodwill recorded at the
time of the Pine acquisition. This non-cash charge is non-recurring and,
therefore, the Company believes it is not indicative of its core operating
performance.

Stock-based compensation expense: The Company adopted SFAS 123R effective April
1, 2006, and records compensation expense related to its stock-based awards.
Depending upon the size, timing and the terms of the awards, the related
non-cash compensation expense may vary significantly. The Company believes these
non-cash expenses are not indicative of its core operating performance.

Litigation expenses: During the quarter ended June 30, 2008, the Company began
to incur costs associated with the defense of a class action claim. The Company
believes the claim is non-recurring and the related expenses are not indicative
of its core operating performance.

Opnext, Inc.
Unaudited Supplemental Earnings Reconciliation
(In thousands, except per share data)
Three Months Ended Twelve Months Ended Three Months

Ended
March 31, March 31, March 31, March 31, December 31,
2009 2008 2009 2008 2008
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin:
Gross margin - GAAP $ 7,288 $ 23,899 $ 74,452 $ 96,375 $ 15,582
Gross margin % - GAAP 8.7 % 32.9 % 23.4 % 34.0 % 22.1 %
Adjustments:
Acquired inventory mark-up 1,764 - 1,764 - -
Amortization of acquired developed technology 1,321 - 1,321 - -
ELBP compensation expense 761 - 761 - -
Stock-based compensation 158 58 456 259 133
Gross margin - Non-GAAP $ 11,292 $ 23,957 $ 78,754 $ 96,634 $ 15,715
Gross margin % - Non-GAAP 13.5 % 33.0 % 24.7 % 34.1 % 22.3 %

Three Months Ended Twelve Months Ended Three Months

Ended
March 31, March 31, March 31, March 31, December 31,
2009 2008 2009 2008 2008
Reconciliation of GAAP Operating (Loss) Income to Non-GAAP Operating (Loss) Income:
Operating (loss) income - GAAP $ (118,906 ) $ (820 ) $ (132,117 ) $ 9,258 $ (15,471 )
Operating (loss) income % - GAAP (142.2 )% (1.1 )% (41.5 )% 3.3 % (21.9 )%
Adjustments:
Goodwill impairment 61,983 - 67,681 - 5,698
In-process research and development 15,700 - 15,700 - -
ELBP compensation expense 10,950 - 10,950 - -
Amortization of purchased intangibles 6,860 - 6,860 - -
Acquired inventory mark-up 1,764 - 1,764 - -
Stock-based compensation 1,482 979 5,643 3,337 1,584
Restructuring 1,056 - 1,056 - -
Integration costs 518 - 744 - 226
Litigation expenses 55 - 831 - 276
Operating (loss) income - Non-GAAP $ (18,538 ) $ 159 $ (20,888 ) $ 12,595 $ (7,687 )
Operating (loss) income % - Non-GAAP (22.2 )% 0.2 % (6.6 )% 4.4 % (10.9 )%

Three Months Ended Twelve Months Ended Three Months

Ended
March 31, March 31, March 31, March 31, December 31,
2009 2008 2009 2008 2008
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net (Loss) Income:
Net (loss) income - GAAP $ (118,831 ) $ 950 $ (129,572 ) $ 17,048 $ (14,538 )
Net (loss) income % - GAAP (142.1 )% 1.3 % (40.7 )% 6.0 % (20.6 )%
Adjustments:
Goodwill impairment 61,983 - 67,681 - 5,698
In-process research and development 15,700 - 15,700 - -
ELBP compensation expense 10,950 - 10,950 - -
Amortization of purchased intangibles 6,860 - 6,860 - -
Acquired inventory mark-up 1,764 - 1,764 - -
Stock-based compensation 1,482 979 5,644 3,337 1,584
Restructuring 1,056 - 1,056 - -
Integration costs 518 - 744 - 226
Litigation expenses 55 - 831 - 276
Net (loss) income - Non-GAAP $ (18,463 ) $ 1,929 $ (18,342 ) $ 20,385 $ (6,754 )
Net (loss) income % - Non-GAAP (22.1 )% 2.7 % (5.8 )% 7.2 % (9.6 )%

Net (loss) income per share - GAAP:
Basic $ (1.39 ) $ 0.01 $ (1.86 ) $ 0.26 $ (0.23 )
Diluted $ (1.39 ) $ 0.01 $ (1.86 ) $ 0.26 $ (0.23 )
Net (loss) income per share - Non-GAAP:
Basic $ (0.22 ) $ 0.03 $ (0.26 ) $ 0.32 $ (0.10 )
Diluted $ (0.22 ) $ 0.03 $ (0.26 ) $ 0.32 $ (0.10 )
Shares
Basic 85,527 64,640 69,775 64,598 64,612
Diluted 85,527 64,668 69,775 64,633 64,612

Opnext, Inc.
Doug Dean
Investor Relations
732-544-3212
ddean@opnext.com

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