##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


FOR ANNUAL AND TRANSITION REPORTS


PURSUANT TO SECTION 13 OR 15(d) OF THE


SECURITIES EXCHANGE ACT OF 1934


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended July 3, 2005                                                      
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

Commission File Number 000-31581





OPLINK COMMUNICATIONS, INC.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | No. 77-0411346                          
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)
|                                                                  
|46335 Landing Parkway, Fremont, CA                                 |  | 94538                                   
|(Address of principal executive offices)                           |  | (Zip Code)                              

Registrants telephone number, including area code:


(510) 933-7200


Securities registered pursuant to Section 12(b) of the
Act:


Not Applicable


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, $0.001 Par Value Per Share


þ o


þ


þ o


o o


,




Documents Incorporated by Reference:












---










OPLINK COMMUNICATIONS, INC.


Form 10-K


July 3, 2005


TABLE OF CONTENTS


|              |  |                                                                                                                      |  |  |    |  |  | 
|------------- |  | -------------------------------------------------------------------------------------------------------------------- |  |  | -- |  |  | 
|PART I       
|Item 1        |  | Business                                                                                                             |  |  | 2  | 
|Item 2        |  | Properties                                                                                                           |  |  | 28 | 
|Item 3        |  | Legal Proceedings                                                                                                    |  |  | 28 | 
|Item 4        |  | Submission of Matters to a Vote of Security
    Holders                                                              |  |  | 29 | 
|PART II      
|Item 5        |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |  | 30 | 
|Item 6        |  | Selected Financial Data                                                                                              |  |  | 31 | 
|Item 7        |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |  | 33 | 
|Item 7A       |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |  |  | 51 | 
|Item 8        |  | Financial Statements and Supplementary
    Data                                                                      |  |  | 53 | 
|Item 9        |  | Changes In and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  |  | 53 | 
|Item 9A       |  | Controls and Procedures                                                                                              |  |  | 53 | 
|Item 9B       |  | Other Information                                                                                                    |  |  | 54 | 
|PART III     
|Item 10       |  | Directors and Executive Officers of the
    Registrant                                                               |  |  | 54 | 
|Item 11       |  | Executive Compensation                                                                                               |  |  | 54 | 
|Item 12       |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |  |  | 54 | 
|Item 13       |  | Certain Relationships and Related
    Transactions                                                                   |  |  | 54 | 
|Item 14       |  | Principal Accountant Fees and Services                                                                               |  |  | 54 | 
|PART IV      
|Item 15       |  | Exhibits and Financial Statement
    Schedules                                                                       |  |  | 55 | 
|EXHIBIT 10.30
|EXHIBIT 10.31
|EXHIBIT 21.1 
|EXHIBIT 23.1 
|EXHIBIT 23.2 
|EXHIBIT 31.1 
|EXHIBIT 31.2 
|EXHIBIT 32.1 
|EXHIBIT 32.2 



1



---



##### Table of Contents






Part I


This report on Form 10-K contains forward-looking
statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, including, without limitation,
statements regarding our expectations, beliefs, intentions or
future strategies that are signified by the words
expect, anticipate, intend,
believe, estimate or assume
or similar language. All forward-looking statements included in
this document are based on information available to us on the
date hereof, and we assume no obligation to update any such
forward-looking statements. Actual results could differ
materially from those projected in the forward-looking
statements. In evaluating our business, you should carefully
consider the information set forth below and under the captions
Risk Factors contained in Item 1 and
Managements Discussion and Analysis of Financial
Condition and Results of Operations contained in
Item 7. We caution you that our business and financial
performance are subject to substantial risks and uncertainties.
We undertake no obligation to update publicly any
forward-looking statements, whether as a result of new
information, future events or otherwise.







|        |         
|------- | --------
|Item 1. | Business

Overview












2



---



##### Table of Contents





www.sec.gov




Products and Technologies






| |                            
| | ---------------------------
| | Bandwidth Creation Products



Wavelength Expansion Products.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Dense Wavelength Division Multiplexers. A dense
    wavelength division multiplexer, or DWDM, is a solution for
    scalable, reliable, protocol independent bandwidth creation. A
    DWDM multiplexer is an integrated optical module or subsystem
    that combines two or more wavelengths for transmission over a
    single fiber (multiplexing) or separates these wavelengths
    (demultiplexing) at the receiving end. Our DWDM module and
    subsystem solutions are derived from an array of high
    performance technologies including thin film filters and arrayed
    wave guides, or AWGs. Our solutions are available in a variety
    of channel spacings.

3



---



##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Coarse Wavelength Division Multiplexers. A coarse
    wavelength division multiplexer, or CWDM, is a solution for
    cost-effective bandwidth creation in the access, cable TV and
    metro environments. A CWDM multiplexer is an integrated optical
    module or subsystem that combines two or more wavelengths, at a
    channel spacing that is many times wider than for standard DWDM
    channel spacing for transmission over a single fiber
    (multiplexing) or separates these wavelengths
    (demultiplexing) at the receiving end.                                              
|
| |  | Band Wavelength Division Multiplexers. Band wavelength
    division multiplexer, or BWDM, products help manage multiple
    International Telecommunication Union, or ITU, channels within
    Mux/ Demux or Optical Add/ Drop applications. Our BWDMs pass a
    band of channels while isolating the channels adjacent to the
    band of channels sent. BWDM products facilitate the design of
    flexible (pay as you grow) low loss architectures as well as
    enable the design of complex mesh and ring networks. We offer a
    variety of BWDM products at 50, 100 and 200 GHz spacing.
|
| |  | DWDM Interleavers. A DWDM interleaver is an optical
    component that combines light signals from two simultaneous
    sources over a single fiber, which effectively doubles the
    capacity of the optical network system, or separates a single
    light source into multiple signals.                                                                                                                                                                                                                                                                                                       

Optical Amplification Products.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Gain Blocks. Gain blocks are integrated optical subsystem
    building blocks consisting of fiber and fiber optic components
    used in fiber optic amplifiers to boost the amplitude of an
    incoming optical signal.                                                                                                                                                                                                                       
|
| |  | EDFAs. Erbium Doped Fiber Amplifiers are optical
    subsystems that employ gain blocks, advanced electronics,
    firmware and software to control the optical gain of an incoming
    optical signal.                                                                                                                                                                                                                                         
|
| |  | WDM Pump/ Signal Combiners. Micro-optic WDM pump/signal
    combiners are components that provide power for the optical
    amplifier. They are used to efficiently combine light signals
    with pump laser sources. Pump lasers are active optical
    components used in optical amplifiers such as EDFAs to amplify
    or regenerate light signals that naturally suffer loss while
    traveling over distance within an optical network.
|
| |  | Integrated Hybrid Components. Optical amplifier systems
    can combine optical components, including isolators, tap
    couplers and WDM pump/signal combiners. The main advantage of
    hybrid components is that they minimize the amplifier package
    size, increase reliability and reduce manufacturing cost.                                                                                                                          
|
| |  | WDM Pump Combiners. WDM pump combiners are used to
    increase the power of an optical amplifier by combining multiple
    pump lasers into one common pump source for amplification.                                                                                                                                                                                                                                                          
|
| |  | Polarization Beam Combiners. Polarization beam combiners
    are optical components that combine two of the same or different
    wavelengths with opposing polarization to increase the power
    output of the optical amplifier.                                                                                                                                                                                                             
|
| |  | Gain Flattening Filters. Gain flattening filters are used
    to ensure signals are amplified by equal amounts. Our thin film
    filter technology, or the technology in which layers of thin
    film separate optical                                                                                                                                                                                                                        

4



---



##### Table of Contents



| |   |                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | signals, employs multiple layers of optical materials on glass
    to adjust optical output at different wavelengths to meet the
    needs of next-generation high power amplifiers.                                                                                                                                    
|
| |  | Isolators. Isolators are fiber optic devices that
    transmit light in only one direction, thus preventing a
    reflected light signal from returning to its laser source.
    Reflected light can interfere with a lasers process and
    create noise, which can impair system performance in optical
    networks.
|
| |  | Tap Couplers. Tap couplers transfer optical signals
    between fibers. They are widely used for system monitoring
    purposes and have very low insertion loss, or the power loss
    incurred when adding additional components to a fiber cable.                                                                    



| |                              
| | -----------------------------
| | Bandwidth Management Products



Wavelength Performance Monitoring and Protection
Products.






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Supervisory Channel WDM. Our supervisory channel WDM is
    an integrated component that separates the network supervisory
    channel from the signal channel that is used in monitoring the
    network performance.                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Integrated WDM Monitor Arrays. Our integrated WDM monitor
    arrays convert optical signals into electrical signals for
    network selective wavelength power monitoring. This module
    combines multiple network performance monitoring functions in a
    single module and integrates WDM filters and third-party photo
    detectors, a device supplied by other optical component
    manufacturers that receives a light signal in an optical network
    and converts it into an electrical signal. These integrated
    modules allow communications service providers to monitor
    whether or not wavelengths are being transmitted properly
    through the network.
|
| |  | Integrated Tap Monitor Arrays. Our integrated tap monitor
    arrays convert optical signals into electrical signals for
    network signal power monitoring. This module integrates a tap
    coupler, a device that splits the light power, and third-party
    photo detectors, a device supplied by other optical component
    manufacturers that receives a light signal in an optical network
    and converts it into an electrical signal. These integrated
    modules allow communications service providers to monitor
    whether or not optical signals are being transmitted properly
    through the network.                                                       
|
| |  | Wavelength Protection Subsystems. Our multi-channel
    wavelength protection subsystems are integrated solutions that
    combine tap couplers, splitters, switches, electronics,
    firmware, software and third-party photo detectors. These
    subsystems integrate network switching protection functions and
    monitor optical signal quality such as optical power in response
    to unexpected disruption in the optical network. They provide
    redundant path protection with fast routing and switching with
    network fault management and diagnostic capability.                                                                                              

Optical Switching and Routing Products.


5



---



##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Switches. Optical switches are devices that can direct
    optical signals to different end destinations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Optical Add/ Drop Multiplexers. Optical add/drop
    multiplexers, or OADMs, are used when part of the information
    from an optical signal carried on the network is demultiplexed,
    or dropped, at an intermediate point and different information
    is multiplexed, or added, for subsequent transmission. The
    remaining traffic passes through the multiplexer without
    additional processing. The OADM is typically used for rerouting
    a number of specific optical wavelengths with different end
    destinations. OADMs can also include other optical components
    such as optical conditioning products or optical monitoring
    products for increased functionality.
|
| |  | Reconfigurable OADMs. Reconfigurable OADMs combine OADM
    functionality, optical wavelength selective switching and
    conditioning products, electronic circuitry, integrated firmware
    and software to add remote configuration and provisioning
    flexibility to the network by allowing the dynamic add/drop of
    variable optical wavelengths having different amplitudes with
    different end destinations.                                                                                                                                                                                                                                                                        
|
| |  | Circulators. Circulators consist of sophisticated
    micro-optic components that are used to direct optical signals
    between different fibers. Circulators are also used in optical
    amplifying applications and used in DWDM fiber grating based
    wavelength expansion products.                                                                                                                                                                                                                                                                                                                                                                                                          

Wavelength Conditioning Products.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Variable Optical Attenuators. Variable optical
    attenuators, or VOAs, are optical devices that reduce the power
    of the optical signal in DWDM networks to ensure that all
    optical signals within a network have equal power. The amount of
    power reduction of a particular optical signal can be adjusted
    to match the power of other optical signals in the network
    thereby enhancing network performance and service quality.                                                                                     
|
| |  | Variable Multiplexers. Variable Multiplexers combine
    multiple ITU channel signals along with the function of
    adjusting the power level. The subsystems attenuate the power
    level of individual ITU signal to achieve equalization of
    the spectrum or blocking specific channel.                                                                                                                                                                                                                                            
|
| |  | Dynamic Band Equalization Products. Dynamic band
    equalization products monitor and adjust power levels of
    multiple bands of ITU channels. These subsystems separate
    multiple ITU channels into bands of channels, and then monitor
    and control the power levels of these bands through standard
    telecommunication interfaces such as RS232 and then multiplex
    these multiple bands onto a single fiber. They are used for
    power equalization in various parts of the network including
    metro and long haul.

Customers






6



---



##### Table of Contents





Backlog




Marketing, Sales and Customer Support




Product Development






7



---



##### Table of Contents



Manufacturing












Quality




Competition






| |   |                                                                       
| | - | ----------------------------------------------------------------------
| |  | selling price;                                                        
|
| |  | the quality of our manufacturing processes;                           
|
| |  | the breadth of our product line;                                      
|
| |  | availability, performance and reliability of our products;            
|
| |  | our ability to participate in the growth of emerging
    technologies;
|
| |  | the ability to win designs through prototyping;                       

8



---



##### Table of Contents





| |   |                                                                                 
| | - | --------------------------------------------------------------------------------
| |  | the compatibility of our products with existing communications
    networks; and
|
| |  | manufacturing capacity and capability.                                          





Intellectual Property








et al.




9



---



##### Table of Contents



Employees




Financial Information About Geographic Areas




|          |               |                      |   |        |        |  |   |        |        |  |   |       |        | 
|--------- | ------------- | -------------------- | - | ------ | ------ |  | - | ------ | ------ |  | - | ----- | ------ | 
|          |               | Years Ended June 30, |  
|          |               |                      |  
|          |               | 2005                 |   |        | 2004   |  |   | 2003   |       
|          |               |                      |   |        |        |  |   |        |       
|Revenues: |               |                      |   |        |        |  |   |        |        |  |   |      
|          | United States |                      | $ | 5,323  |        |  | $ | 3,534  |        |  | $ | 9,751 |       
|          | Europe        |                      |   | 6,905  |        |  |   | 6,063  |        |  |   | 4,308 |       
|          | Asia          |                      |   | 11,255 |        |  |   | 8,998  |        |  |   | 7,244 |       
|          | Canada        |                      |   | 10,872 |        |  |   | 15,733 |        |  |   | 1,440 |       
|          |               |                      |   |        |        |  |   |        |       
|          |               | Totals               |   | $      | 34,355 |  |   | $      | 34,328 |  |   | $     | 22,743 | 
|          |               |                      |   |        |        |  |   |        |       



|                           |        |          |        |        |      |   |        |        | 
|-------------------------- | ------ | -------- | ------ | ------ | ---- | - | ------ | ------ | 
|                           |        | June 30, |       
|                           |        |          |       
|                           |        | 2005     |        |        | 2004 |  
|                           |        |          |        |        |      |  
|United States              |        | $        | 7,037  |        |      | $ | 4,500  |       
|Peoples Republic of China |        |          | 18,260 |        |      |   | 21,926 |       
|                           |        |          |        |        |      |  
|                           | Totals |          | $      | 25,297 |      |   | $      | 26,426 | 
|                           |        |          |        |        |      |  

Executive Officers




|                      |  |     |    |  |          |                                                
|--------------------- |  | --- | -- |  | -------- | -----------------------------------------------
|Name                  |  | Age |    |  | Position
|                      |  |     |    |  |         
|Joseph Y. Liu         |  |     | 54 |  |          | Chief Executive Officer, President and Director
|Bruce D. Horn         |  |     | 54 |  |          | Chief Financial Officer and Treasurer          
|Chi-Min (James) Cheng |  |     | 59 |  |          | General Manager, China/Macau                   
|River Gong            |  |     | 42 |  |          | Vice President, Sales                          

Joseph Y. Liu


Bruce D. Horn


10



---



##### Table of Contents





Chi-Min (James) Cheng


River Gong


Directors




|                   |  |     |    |  |          |                                                
|------------------ |  | --- | -- |  | -------- | -----------------------------------------------
|Name               |  | Age |    |  | Position
|                   |  |     |    |  |         
|Joseph Y. Liu      |  |     | 54 |  |          | Chief Executive Officer, President and Director
|Herbert Chang      |  |     | 43 |  |          | Chairman of the Board of Directors             
|Chieh Chang        |  |     | 53 |  |          | Director                                       
|Jesse W. Jack      |  |     | 69 |  |          | Director                                       
|Leonard J. LeBlanc |  |     | 64 |  |          | Director                                       

Joseph Y. Lius


Herbert Chang


Chieh Chang


Jesse W. Jack


Leonard J. LeBlanc


11



---



##### Table of Contents





RISK FACTORS






| |                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have incurred significant losses, and our failure to
    increase our revenues while controlling costs and operating
    expenses could prevent us from achieving profitability.





| |                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend upon a small number of customers for a
    substantial portion of our revenues, and any decrease in
    revenues from, or loss of, these customers without a
    corresponding increase in revenues from other customers would
    harm our operating results.



12



---



##### Table of Contents









| |                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because none of our customers are obligated to purchase
    our products, they may cancel or defer their purchases at any
    time and on short notice, which could harm our operating
    results.





| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | may stop purchasing our products or defer their purchases at any
    time without penalty;
|
| |  | are free to purchase products from our competitors;                                       
|
| |  | are not required to make minimum purchases; and                                           
|
| |  | may cancel orders that they place with us.                                                





| |                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our quarterly revenues and operating results are difficult
    to predict and may continue to fluctuate significantly from
    quarter to quarter and, therefore, may vary from public market
    analysts or investors expectations, which could
    cause our stock price to drop.





| |   |                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | economic downturn and uncertainty of the fiber optic industry;                                                                                                                                                                                                                                                                   
|
| |  | economic conditions specific to the communications and related
    industries and the development and size of the markets for our
    products;                                                                                                                                                                                  
|
| |  | fluctuations in demand for, and sales of, our products;                                                                                                                                                                                                                                                                          
|
| |  | our inability to cut costs quickly in the event of market or
    demand downturns, due to the fact that a high percentage of our
    expenses, including those related to manufacturing, engineering,
    research and development, sales and marketing and general and
    administrative functions, is fixed in the short term;
|
| |  | changes in customer, geographic or product mix and the average
    selling prices of our products;                                                                                                                                                                                                                               
|
| |  | cancellations or delays of orders or shipment rescheduling by
    our customers;                                                                                                                                                                                                                                                 

13



---



##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the ability of our manufacturing operations in China to timely
    produce and deliver products in the quantity and of the quality
    our customers require;                                                                                                                                                      
|
| |  | the availability of raw materials used in our products or
    increases in the price of these raw materials;                                                                                                                                                                                                       
|
| |  | our ability to successfully improve our manufacturing
    capabilities and achieve acceptable production yields in our
    facilities in China;                                                                                                                                                                    
|
| |  | the tendency of communications equipment suppliers to
    sporadically place large orders with short lead times;                                                                                                                                                                                                   
|
| |  | competitive factors, including introductions of new products,
    new technologies and product enhancements by competitors,
    consolidation of competitors in the fiber optic components and
    subsystems market and pricing pressures;                                                                        
|
| |  | our ability to develop, introduce, manufacture and ship new and
    enhanced optical networking products in a timely manner and in
    production quantities without defects or other quality issues;                                                                                                              
|
| |  | with respect to new products, a mismatching of research and
    development expenses and sales and marketing expenses that are
    incurred in one quarter with revenues that are not recognized,
    if at all, until a subsequent quarter when the new products are
    introduced and commercially accepted; and
|
| |  | costs associated with, and the outcomes of, any intellectual
    property or other litigation to which we are, or may become, a
    party.                                                                                                                                                                         





| |                                                                                                                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we fail to effectively manage our manufacturing
    capability, produce products that meet our customers
    quality requirements and achieve acceptable production yields in
    China, we may not be able to deliver sufficient quantities of
    products that meet all of our customers order requirements
    in a timely manner, which would harm our operating
    results.









14



---



##### Table of Contents









| |   |                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a potential lack of availability of qualified management and
    manufacturing personnel;                                                                                                                               
|
| |  | our ability to maintain quality;                                                                                                                                                                                        
|
| |  | our ability to effectively manage headcount, particularly if we
    undertake to expand our manufacturing operations;                                                                                                   
|
| |  | our ability to procure the necessary raw materials and equipment
    on a timely basis; and                                                                                                                             
|
| |  | our ability to quickly and efficiently implement an adequate set
    of financial controls to effectively track and control inventory
    levels and inventory mix and to accurately predict inventory
    requirements.





| |                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our products may have defects that are not detected until
    full deployment of a customers equipment, which could
    result in a loss of customers, damage to our reputation and
    substantial costs.





| |   |                                                                 
| | - | ----------------------------------------------------------------
| |  | loss of customers;                                              
|
| |  | loss of or delay in revenues;                                   
|
| |  | loss of market share;                                           
|
| |  | damage to our brand and reputation;                             
|
| |  | inability to attract new customers or achieve market acceptance;
|
| |  | diversion of development resources;                             
|
| |  | increased service and warranty costs;                           
|
| |  | legal actions by our customers; and                             
|
| |  | increased insurance costs.                                      



15



---



##### Table of Contents





| |                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on the growth and success of the communications
    industry, which has experienced a significant economic downturn
    as well as rapid consolidation and realignment, including
    outsourced manufacturing, and may not continue to demand fiber
    optic products at historical rates.













| |                                                                                                                                                                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because we depend on third parties to supply some of our
    raw materials and equipment, we may not be able to obtain
    sufficient quantities of these materials and equipment, or these
    materials may become unavailable due to technological changes,
    which could limit our ability to fill customer orders and harm
    our operating results.



16



---



##### Table of Contents







| |                                                                                                                                                                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Failure to maintain effective internal controls in
    accordance with Section 404 of the Sarbanes-Oxley Act of
    2002 could adversely affect our business and operating results,
    impair the reliability of our financial statements, cause us to
    delay filing our periodic reports with the SEC, harm our
    reputation and adversely affect our stock price.





| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | Changes in existing financial accounting standards or
    practices may adversely affect our results of operations.





| |                                                                                                                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We compete in a highly competitive industry, and if we are
    unable to compete successfully or develop new products and
    product enhancements that achieve market acceptance, our
    revenues could decline, which would harm our operating
    results.



17



---



##### Table of Contents















| |                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Disruption to commercial activities in the United States
    or in other countries, particularly in China, may adversely
    impact our results of operations, our ability to raise capital
    or our future growth.





| |   |                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | disruptions to commercial activities or damage to our facilities
    as a result of natural disasters, political unrest, war,
    terrorism, labor strikes, and work stoppages;

18



---



##### Table of Contents





| |   |                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------
| |  | difficulties and costs of staffing and managing foreign
    operations with personnel who have expertise in optical network
    technology;
|
| |  | unexpected changes in regulatory or certification requirements
    for optical systems or networks;                                        
|
| |  | disruptions in the transportation of our products and other
    risks related to the infrastructure of foreign countries;                  
|
| |  | economic instability.                                                                                                                      
|
| |  | any future outbreak of severe acute respiratory syndrome, avian
    influenza and other epidemics or illnesses; and                        
|
| |  | power shortages at our manufacturing facilities in China, which
    may lead to production delays.                                         









| |                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------
| | We are exposed to currency rate fluctuations and exchange
    controls that could adversely impact our operating
    results.



19



---



##### Table of Contents















| |                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If tax benefits available to our subsidiaries located in
    China are reduced or repealed or our China subsidiaries fail to
    meet the requirements for utilizing such tax benefits, our
    financial condition and operating results could suffer.



20



---



##### Table of Contents







| |                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our wavelength expansion products have accounted for a
    majority of our revenues, and our revenues could be harmed if
    the price of, or demand for, these products further declines or
    if these products fail to achieve broader market
    acceptance.





| |                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The optical networking component industry is experiencing
    declining average selling prices, which could cause our gross
    margins to decline and harm our operating results.





| |                                                                                                   
| | --------------------------------------------------------------------------------------------------
| | If we are unable to protect our proprietary technology,
    our ability to succeed will be harmed.





| |                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be involved in intellectual property disputes in
    the future, which will divert managements attention and
    could cause us to incur significant costs and prevent us from
    selling or using the challenged technology.



21



---



##### Table of Contents











| |   |                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | obtain from the owner of the infringed intellectual property
    right a license to sell or use the relevant technology, which
    license may not be available on reasonable terms, or at all;
|
| |  | stop selling, incorporating or using our products that use the
    challenged intellectual property;                                                                                           
|
| |  | pay substantial money damages; or                                                                                                                                                              
|
| |  | redesign the products that use the technology.                                                                                                                                                 





| |                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------
| | If we are unable to successfully integrate acquired
    businesses or technologies, our operating results may be
    harmed.





| |   |                                                           
| | - | ----------------------------------------------------------
| |  | additional operating expenses without additional revenues;
|
| |  | potential dilutive issuances of equity securities;        
|
| |  | the incurrence of debt and contingent liabilities;        
|
| |  | amortization of other intangibles;                        
|
| |  | research and development write-offs; and                  
|
| |  | other acquisition-related expenses.                       

22



---



##### Table of Contents







| |                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are the target of a securities class action complaint
    and are at risk of securities class action litigation, which
    will likely result in substantial costs and divert management
    attention and resources.





| |                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our lengthy and variable qualification and sales cycle
    requires us to incur substantial costs to make a sale, and if
    the sale does not occur then we will have incurred these
    expenses without obtaining increased sales.







| |                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on key personnel to manage our business
    effectively in a rapidly changing market, and if we are unable
    to retain our key employees and hire additional personnel, our
    ability to sell our products could be harmed.



23



---



##### Table of Contents









| |                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because some of our third-party sales representatives and
    distributors carry products of one or more of our competitors,
    they may not recommend our products over competitors
    products.





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Our failure to comply with governmental regulations could
    subject us to liability.







24



---



##### Table of Contents









| |                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------
| | Recently enacted and proposed changes in securities laws
    and regulations have increased and are likely to continue to
    increase our costs.



RISKS RELATED TO OUR COMMON STOCK




| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | Insiders continue to have substantial control over us,
    which may negatively affect your investment.





| |                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because of the early stage of our business and the rapid
    changes taking place in the fiber optics industry, we expect to
    experience significant volatility in our stock price, which
    could cause you to lose all or part of your investment.



25



---



##### Table of Contents







| |   |                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------
| |  | economic downturn in the fiber optics industry;                                                                                         
|
| |  | preannouncement of financial results;                                                                                                   
|
| |  | quarterly variations in our operating results;                                                                                          
|
| |  | changes in financial estimates by securities analysts and our
    failure to meet estimates;                                            
|
| |  | changes in market values of comparable companies;                                                                                       
|
| |  | announcements by us or our competitors of new products or of
    significant acquisitions, strategic partnerships or joint
    ventures;
|
| |  | any loss by us of a major customer;                                                                                                     
|
| |  | the outcome of, and costs associated with, any litigation to
    which we are or may become a party;                                    
|
| |  | additions or departures of key management or engineering
    personnel; and                                                             
|
| |  | future sales of our common stock.                                                                                                       





| |                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Provisions of our charter documents and Delaware law and
    other arrangements may have anti-takeover effects that could
    prevent any change in control, which could negatively affect
    your investment.





| |   |                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------
| |  | issue preferred stock with rights senior to those of the common
    stock without any further vote or action by the stockholders;            
|
| |  | provide for a classified board of directors;                                                                                                 
|
| |  | eliminate the right of the stockholders to call a special
    meeting of stockholders;                                                       
|
| |  | eliminate the right of stockholders to act by written
    consent; and                                                                       
|
| |  | impose various procedural and other requirements, which could
    make it difficult for stockholders to effect certain corporate
    actions.





26



---



##### Table of Contents





| |                                                                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to maintain our listing on The Nasdaq
    National Market, the liquidity of our common stock would be
    seriously impaired and we would become subject to various
    statutory requirements, which would likely harm our business and
    place downward pressure on our common stock price.







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the state securities law exemptions available to us would be
    more limited and, as a result, future issuances of our
    securities may require time-consuming and costly registration
    statements;                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | due to the application of different securities law exemptions
    and provisions, we may be required to amend our stock option and
    stock purchase plans and comply with time-consuming and costly
    administrative procedures;                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | the coverage of us by securities analysts may decrease or cease
    entirely;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | we may lose current or potential investors and customers;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | we may be unable to regain or maintain compliance with the
    listing requirements of either The Nasdaq SmallCap Market or The
    Nasdaq National Market; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | we may lose our exemption from the provisions of
    Section 2115 of the California Corporations Code which
    imposes aspects of California corporate law on certain
    non-California corporations operating within California. As a
    result, (i) our Board of Directors would no longer be
    classified and our stockholders would elect all of our directors
    at each annual meeting, (ii) our stockholders would be
    entitled to cumulative voting, and (iii) we would be
    subject to more stringent stockholder approval requirements and
    more stockholder-favorable dissenters rights in connection
    with certain strategic transactions.



27



---



##### Table of Contents








|        |           
|------- | ----------
|Item 2. | Properties
















|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings

In re Oplink
Communications, Inc. Initial Public Offering Securities
Litigation






28



---



##### Table of Contents














|        |                                                         
|------- | --------------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security
    Holders.



29



---



##### Table of Contents






Part II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities



| |                                      
| | -------------------------------------
| | Market for Registrants Common Equity



|               |  |      |      |  |     |   |      | 
|-------------- |  | ---- | ---- |  | --- | - | ---- | 
|               |  | High |      |  | Low |  
|               |  |      |      |  |     |  
|Fiscal 2005:   |  |      |      |  |     |   |      | 
|First Quarter  |  | $    | 2.25 |  |     | $ | 1.46 | 
|Second Quarter |  | $    | 2.27 |  |     | $ | 1.63 | 
|Third Quarter  |  | $    | 1.98 |  |     | $ | 1.40 | 
|Fourth Quarter |  | $    | 1.72 |  |     | $ | 1.32 | 
|Fiscal 2004:   |  |      |      |  |     |   |      | 
|First Quarter  |  | $    | 2.52 |  |     | $ | 1.28 | 
|Second Quarter |  | $    | 3.00 |  |     | $ | 1.88 | 
|Third Quarter  |  | $    | 3.18 |  |     | $ | 2.00 | 
|Fourth Quarter |  | $    | 2.64 |  |     | $ | 1.60 | 





| |                                                    
| | ---------------------------------------------------
| | Use of Proceeds From Sales of Registered Securities







| |                                 
| | --------------------------------
| | Repurchases of Equity Securities



30



---



##### Table of Contents












|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data





31



---



##### Table of Contents



|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |         |        |        |        |         |         |         |        |        | 
|----------------------------------------------------- | ----------------------------------------------------- | ---------------------------------------- | -------------------------------- | ------------------------ | ------ | ----- | ------- | ------ | ------ | ----- | ------- | ------ | ------ | ----- | ------- | ------ | ------ | ------ | ------- | ------- | ------- | ------ | ------ | 
|                                                      |                                                       | Years Ended June 30,                     |                                 
|                                                      |                                                       |                                          |                                 
|                                                      |                                                       | 2005                                     |                                  |                          | 2004   |       |         | 2003   |        |       | 2002    |        |        | 2001  |        
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      |                                                       | (In thousands, except per share data)    |                                 
|Consolidated Statement of Operations Data:            |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |         |        |        |        |         |        
|Revenues                                              |                                                       | $                                        | 34,355                           |                          |        | $     | 34,328  |        |        | $     | 22,743  |        |        | $     | 37,939  |        |        | $      | 131,815 |        
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|Cost of revenues:                                     |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |         |        |        |        |         |        
|                                                      | Cost of revenues                                      |                                          |                                  | 24,709                   |        |       |         | 22,736 |        |       |         | 23,080 |        |       |         | 48,512 |        |        |         | 120,835 |        
|                                                      | Non-cash compensation expense (recovery)              |                                          |                                  | 27                       |        |       |         | 177    |        |       |         | (415   | )      |       |         | 342    |        |        |         | 4,765   |        
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      |                                                       | Total cost of revenues                   |                                  |                          | 24,736 |       |         |        | 22,913 |       |         |        | 22,665 |       |         |        | 48,854 |        |         |         | 125,600 |       
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|Gross profit (loss)                                   |                                                       |                                          | 9,619                            |                          |        |       | 11,415  |        |        |       | 78      |        |        |       | (10,915 | )      |        |        | 6,215   |        
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|Operating expenses:                                   |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |         |        |        |        |         |        
|                                                      | Research and development:                             |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |         |        |        |        |         |         |        
|                                                      |                                                       | Research and development                 |                                  |                          | 7,173  |       |         |        | 7,056  |       |         |        | 8,765  |       |         |        | 13,927 |        |         |         | 17,706  |       
|                                                      |                                                       | Non-cash compensation expense            |                                  |                          | 2      |       |         |        | 448    |       |         |        | 42     |       |         |        | 984    |        |         |         | 4,390   |       
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      |                                                       |                                          | Total research and development   |                          |        | 7,175 |         |        |        | 7,504 |         |        |        | 8,807 |         |        |        | 14,911 |         |         |         | 22,096 |       
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      | Sales and marketing:                                  |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |         |        |        |        |         |         |        
|                                                      |                                                       | Sales and marketing                      |                                  |                          | 3,629  |       |         |        | 3,329  |       |         |        | 4,235  |       |         |        | 8,079  |        |         |         | 19,923  |       
|                                                      |                                                       | Non-cash compensation expense (recovery) |                                  |                          | 84     |       |         |        | 53     |       |         |        | 172    |       |         |        | (328   | )      |         |         | 2,363   |       
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      |                                                       |                                          | Total sales and marketing        |                          |        | 3,713 |         |        |        | 3,382 |         |        |        | 4,407 |         |        |        | 7,751  |         |         |         | 22,286 |       
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      | General and administrative:                           |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |         |        |        |        |         |         |        
|                                                      |                                                       | General and administrative               |                                  |                          | 6,160  |       |         |        | 6,619  |       |         |        | 7,009  |       |         |        | 7,247  |        |         |         | 13,736  |       
|                                                      |                                                       | Non-cash compensation expense            |                                  |                          | 110    |       |         |        | 1,011  |       |         |        | 2,074  |       |         |        | 3,716  |        |         |         | 15,120  |       
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      |                                                       |                                          | Total general and administrative |                          |        | 6,270 |         |        |        | 7,630 |         |        |        | 9,083 |         |        |        | 10,963 |         |         |         | 28,856 |       
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      | Impairment charge                                     |                                          |                                  | 322                      |        |       |         |       |        |       |         | 2,825  |        |       |         |       |        |        |         |        |        
|                                                      | Restructuring costs and other charges                 |                                          |                                  |                         |        |       |         | 452    |        |       |         | 14,123 |        |       |         | 28,908 |        |        |         | 18,177  |        
|                                                      | Merger fees                                           |                                          |                                  | (904                     | )      |       |         |       |        |       |         | 1,300  |        |       |         | 1,844  |        |        |         |        |        
|                                                      | In-process research and development                   |                                          |                                  |                         |        |       |         | 1,565  |        |       |         |       |        |       |         |       |        |        |         | 793     |        
|                                                      | Amortization of goodwill, intangible and other assets |                                          |                                  | 185                      |        |       |         | 56     |        |       |         | 78     |        |       |         | 168    |        |        |         | 3,606   |        
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|                                                      |                                                       |                                          |                                  | Total operating expenses |        |       | 16,761  |        |        |       | 20,589  |        |        |       | 40,623  |        |        |        | 64,545  |         |         |        | 95,814 | 
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|Loss from operations                                  |                                                       |                                          | (7,142                           | )                        |        |       | (9,174  | )      |        |       | (40,545 | )      |        |       | (75,460 | )      |        |        | (89,599 | )      
|Interest and other income, net                        |                                                       |                                          | 4,591                            |                          |        |       | 2,665   |        |        |       | 4,016   |        |        |       | 4,713   |        |        |        | 8,414   |        
|(Loss) gain on sale of assets                         |                                                       |                                          | (96                              | )                        |        |       | 68      |        |        |       | (258    | )      |        |       | 2,373   |        |        |        | 813     |        
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|Net loss                                              |                                                       | $                                        | (2,647                           | )                        |        | $     | (6,441  | )      |        | $     | (36,787 | )      |        | $     | (68,374 | )      |        | $      | (80,372 | )      
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|Basic and diluted net loss per share                  |                                                       | $                                        | (0.02                            | )                        |        | $     | (0.04   | )      |        | $     | (0.23   | )      |        | $     | (0.42   | )      |        | $      | (0.65   | )      
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        
|Basic and diluted weighted average shares outstanding |                                                       |                                          | 148,069                          |                          |        |       | 145,479 |        |        |       | 158,782 |        |        |       | 162,688 |        |        |        | 124,362 |        
|                                                      |                                                       |                                          |                                  |                          |        |       |         |        |        |       |         |        |        |       |        

|                                                                 |  |                |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|---------------------------------------------------------------- |  | -------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|                                                                 |  | June 30,       |        
|                                                                 |  |                |        
|                                                                 |  | 2005           |         |  | 2004 |   |         | 2003 |  |   | 2002    |  |  | 2001 |        
|                                                                 |  |                |         |  |      |   |         |      |  |   |         |  |  |      |        
|                                                                 |  | (In thousands) |        
|Consolidated Balance Sheet Data:                                 |  |                |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|Cash, cash equivalents, and short-term and long-term investments |  | $              | 186,133 |  |      | $ | 190,443 |      |  | $ | 188,103 |  |  | $    | 224,749 |  |  | $ | 246,743 | 
|Working capital                                                  |  |                | 132,260 |  |      |   | 137,268 |      |  |   | 185,138 |  |  |      | 218,683 |  |  |   | 250,708 | 
|Total assets                                                     |  |                | 228,246 |  |      |   | 232,903 |      |  |   | 233,743 |  |  |      | 303,194 |  |  |   | 387,902 | 
|Long-term liabilities                                            |  |                |        |  |      |   | 104     |      |  |   | 1,555   |  |  |      | 6,894   |  |  |   | 6,712   | 
|Total stockholders equity                                       |  |                | 218,544 |  |      |   | 219,702 |      |  |   | 218,716 |  |  |      | 273,281 |  |  |   | 338,007 | 

32



---



##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

This discussion contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act
of 1934, including, without limitation, statements regarding our
anticipated revenues, gross margins and expense levels for
future periods, and other statements reflecting our
expectations, beliefs, intentions or future strategies that are
signified by the words expect,
anticipate, intend, believe,
estimate or assume or similar language.
All forward-looking statements included herein are based on
information available to us on the date hereof, and we assume no
obligation to update any such forward-looking statements. We
caution you that our business and financial performance are
subject to substantial risks and uncertainties. Actual results
could differ materially from those projected in the
forward-looking statements. In evaluating our business, you
should also carefully consider the information set forth under
the caption Risk Factors contained in Item 1
above in addition to the information contained in this
Item 7. We undertake no obligation to update publicly any
forward-looking statements, whether as a result of new
information, future events or otherwise.










| |         
| | --------
| | Overview





33



---



##### Table of Contents





REVENUES.


COST OF REVENUES.


RESEARCH AND DEVELOPMENT EXPENSES.


SALES AND MARKETING EXPENSES.


GENERAL AND ADMINISTRATIVE EXPENSES.


NON-CASH COMPENSATION EXPENSE.


34



---



##### Table of Contents





ACQUISITIONS.








|                                    |                                              |           |     |       |         |   |       |         |  |   |       |       | 
|----------------------------------- | -------------------------------------------- | --------- | --- | ----- | ------- | - | ----- | ------- |  | - | ----- | ----- | 
|                                    |                                              | RedClover |     |       | Accumux |   |       | Gigabit | 
|                                    |                                              |           |     |       |         |   |       |         | 
|Cash                                |                                              | $         | 250 |       |         | $ |      |         |  | $ | 1,150 |      
|Value of securities issued          |                                              |           |    |       |         |   | 1,612 |         |  |   |      |      
|Transaction costs                   |                                              |           | 70  |       |         |   | 50    |         |  |   | 37    |      
|                                    |                                              |           |     |       |         |   |       |         | 
|                                    | Purchase price                               |           |     | 320   |         |   |       | 1,662   |  |   |       | 1,187 | 
|                                    | Liabilities assumed                          |           |     | 1,135 |         |   |       | 81      |  |   |       |      | 
|                                    |                                              |           |     |       |         |   |       |         | 
|                                    | Total purchase price and assumed liabilities |           | $   | 1,455 |         |   | $     | 1,743   |  |   | $     | 1,187 | 
|                                    |                                              |           |     |       |         |   |       |         | 
|Assets acquired:                    |                                              |           |     |       |         |   |       |         |  |   |       |      
|Cash and cash equivalents           |                                              | $         |    |       |         | $ | 1,054 |         |  | $ |      |      
|Inventories                         |                                              |           | 11  |       |         |   |      |         |  |   | 53    |      
|Fixed assets                        |                                              |           | 583 |       |         |   | 393   |         |  |   | 172   |      
|In-process research and development |                                              |           | 861 |       |         |   | 251   |         |  |   | 453   |      
|Patent                              |                                              |           |    |       |         |   | 45    |         |  |   |      |      
|Technology                          |                                              |           |    |       |         |   |      |         |  |   | 509   |      
|                                    |                                              |           |     |       |         |   |       |         | 
|                                    | Total                                        |           | $   | 1,455 |         |   | $     | 1,743   |  |   | $     | 1,187 | 
|                                    |                                              |           |     |       |         |   |       |         | 



35



---



##### Table of Contents





| |                                                  
| | -------------------------------------------------
| | Use of Estimates and Critical Accounting Policies





| |                                        
| | ---------------------------------------
| | Revenue Recognition and Product Returns





| |                     
| | --------------------
| | Warranty Obligations





| |                                
| | -------------------------------
| | Allowance for Doubtful Accounts



36



---



##### Table of Contents







| |                              
| | -----------------------------
| | Excess and Obsolete Inventory





| |                           
| | --------------------------
| | Long-Lived Asset Valuation





37



---



##### Table of Contents





| |                     
| | --------------------
| | Business Combination





| |               
| | --------------
| | Deferred Taxes





| |                      
| | ---------------------
| | Results of Operations



| |                                                             
| | ------------------------------------------------------------
| | For Each of the Years Ended June 30, 2005, 2004 and
    2003



| |         
| | --------
| | REVENUES

|         |  |                                    |        |  |      |                                    |            |        |  |             |        |  |  |  |      |            |  |      |   |        |        |  |   |        |  |  |   |        |  |  |  |      |  
|-------- |  | ---------------------------------- | ------ |  | ---- | ---------------------------------- | ---------- | ------ |  | ----------- | ------ |  |  |  | ---- | ---------- |  | ---- | - | ------ | ------ |  | - | ------ |  |  | - | ------ |  |  |  | ---- | -
|         |  | Years Ended                        |        |  |      |                                    |            |        |  | Years Ended |        |  |  |  |     
|         |  | June 30,                           |        |  |      |                                    |            |        |  | June 30,    |        |  |  |  |     
|         |  |                                    |        |  |      |                                    | Percentage |        |  |             |        |  |  |  |      | Percentage | 
|         |  | 2005                               |        |  | 2004 |                                    |            | Change |  |             | Change |  |  |  | 2004 |            |  | 2003 |   |        | Change |  |   | Change | 
|         |  |                                    |        |  |      |                                    |            |        |  |             |        |  |  |  |      |            |  |      |   |        |        |  |   |        | 
|         |  | (In thousands, except percentages) |        |  |      | (In thousands, except percentages) |           
|Revenues |  | $                                  | 34,355 |  |      | $                                  | 34,328     |        |  | $           | 27     |  |  |  | 0.1  | %          |  |      | $ | 34,328 |        |  | $ | 22,743 |  |  | $ | 11,585 |  |  |  | 50.9 | %







38



---



##### Table of Contents





| |             
| | ------------
| | GROSS PROFIT

|                    |  |                                    |       |   |      |                                    |            |        |  |             |        |   |  |  |       |            |  |      |   |        |        |  |   |        |   |  |   |        |  |  |  |          |  
|------------------- |  | ---------------------------------- | ----- | - | ---- | ---------------------------------- | ---------- | ------ |  | ----------- | ------ | - |  |  | ----- | ---------- |  | ---- | - | ------ | ------ |  | - | ------ | - |  | - | ------ |  |  |  | -------- | -
|                    |  | Years Ended                        |       |   |      |                                    |            |        |  | Years Ended |        |   |  |  |      
|                    |  | June 30,                           |       |   |      |                                    |            |        |  | June 30,    |        |   |  |  |      
|                    |  |                                    |       |   |      |                                    | Percentage |        |  |             |        |   |  |  |       | Percentage | 
|                    |  | 2005                               |       |   | 2004 |                                    |            | Change |  |             | Change |   |  |  | 2004  |            |  | 2003 |   |        | Change |  |   | Change |  
|                    |  |                                    |       |   |      |                                    |            |        |  |             |        |   |  |  |       |            |  |      |   |        |        |  |   |        |  
|                    |  | (In thousands, except percentages) |       |   |      | (In thousands, except percentages) |           
|Gross profit        |  | $                                  | 9,619 |   |      | $                                  | 11,415     |        |  | $           | (1,796 | ) |  |  | (15.7 | )%         |  |      | $ | 11,415 |        |  | $ | 78     |   |  | $ | 11,337 |  |  |  | 14,534.6 | %
|Gross profit margin |  |                                    | 28.0  | % |      |                                    | 33.3       | %      |  |             |        |   |  |  |       |            |  |      |   | 33.3   | %      |  |   | 0.3    | % |  |   |        |  |  |  |          |  













| |                         
| | ------------------------
| | RESEARCH AND DEVELOPMENT

|                         |  |                                    |       |  |      |                                    |            |        |  |             |        |   |  |  |      |            |  |      |   |       |        |  |   |        |  |  |   |        |   |  |  |       |   
|------------------------ |  | ---------------------------------- | ----- |  | ---- | ---------------------------------- | ---------- | ------ |  | ----------- | ------ | - |  |  | ---- | ---------- |  | ---- | - | ----- | ------ |  | - | ------ |  |  | - | ------ | - |  |  | ----- | --
|                         |  | Years Ended                        |       |  |      |                                    |            |        |  | Years Ended |        |   |  |  |     
|                         |  | June 30,                           |       |  |      |                                    |            |        |  | June 30,    |        |   |  |  |     
|                         |  |                                    |       |  |      |                                    | Percentage |        |  |             |        |   |  |  |      | Percentage | 
|                         |  | 2005                               |       |  | 2004 |                                    |            | Change |  |             | Change |   |  |  | 2004 |            |  | 2003 |   |       | Change |  |   | Change | 
|                         |  |                                    |       |  |      |                                    |            |        |  |             |        |   |  |  |      |            |  |      |   |       |        |  |   |        | 
|                         |  | (In thousands, except percentages) |       |  |      | (In thousands, except percentages) |           
|Research and development |  | $                                  | 7,175 |  |      | $                                  | 7,504      |        |  | $           | (329   | ) |  |  | (4.4 | )%         |  |      | $ | 7,504 |        |  | $ | 8,807  |  |  | $ | (1,303 | ) |  |  | (14.8 | )%

39



---



##### Table of Contents











| |                    
| | -------------------
| | SALES AND MARKETING

|                    |  |                                    |       |  |      |                                    |            |        |  |             |        |  |  |  |      |            |  |      |   |       |        |  |   |        |  |  |   |        |   |  |  |       |   
|------------------- |  | ---------------------------------- | ----- |  | ---- | ---------------------------------- | ---------- | ------ |  | ----------- | ------ |  |  |  | ---- | ---------- |  | ---- | - | ----- | ------ |  | - | ------ |  |  | - | ------ | - |  |  | ----- | --
|                    |  | Years Ended                        |       |  |      |                                    |            |        |  | Years Ended |        |  |  |  |     
|                    |  | June 30,                           |       |  |      |                                    |            |        |  | June 30,    |        |  |  |  |     
|                    |  |                                    |       |  |      |                                    | Percentage |        |  |             |        |  |  |  |      | Percentage | 
|                    |  | 2005                               |       |  | 2004 |                                    |            | Change |  |             | Change |  |  |  | 2004 |            |  | 2003 |   |       | Change |  |   | Change | 
|                    |  |                                    |       |  |      |                                    |            |        |  |             |        |  |  |  |      |            |  |      |   |       |        |  |   |        | 
|                    |  | (In thousands, except percentages) |       |  |      | (In thousands, except percentages) |           
|Sales and marketing |  | $                                  | 3,713 |  |      | $                                  | 3,382      |        |  | $           | 331    |  |  |  | 9.8  | %          |  |      | $ | 3,382 |        |  | $ | 4,407  |  |  | $ | (1,025 | ) |  |  | (23.3 | )%









| |                           
| | --------------------------
| | GENERAL AND ADMINISTRATIVE

|                           |  |                                    |       |  |      |                                    |            |        |  |             |        |   |  |  |       |            |  |      |   |       |        |  |   |        |  |  |   |        |   |  |  |       |   
|-------------------------- |  | ---------------------------------- | ----- |  | ---- | ---------------------------------- | ---------- | ------ |  | ----------- | ------ | - |  |  | ----- | ---------- |  | ---- | - | ----- | ------ |  | - | ------ |  |  | - | ------ | - |  |  | ----- | --
|                           |  | Years Ended                        |       |  |      |                                    |            |        |  | Years Ended |        |   |  |  |      
|                           |  | June 30,                           |       |  |      |                                    |            |        |  | June 30,    |        |   |  |  |      
|                           |  |                                    |       |  |      |                                    | Percentage |        |  |             |        |   |  |  |       | Percentage | 
|                           |  | 2005                               |       |  | 2004 |                                    |            | Change |  |             | Change |   |  |  | 2004  |            |  | 2003 |   |       | Change |  |   | Change | 
|                           |  |                                    |       |  |      |                                    |            |        |  |             |        |   |  |  |       |            |  |      |   |       |        |  |   |        | 
|                           |  | (In thousands, except percentages) |       |  |      | (In thousands, except percentages) |           
|General and administrative |  | $                                  | 6,270 |  |      | $                                  | 7,630      |        |  | $           | (1,360 | ) |  |  | (17.8 | )%         |  |      | $ | 7,630 |        |  | $ | 9,083  |  |  | $ | (1,453 | ) |  |  | (16.0 | )%





40



---



##### Table of Contents









| |                              
| | -----------------------------
| | NON-CASH COMPENSATION EXPENSE

|                              |  |                                    |     |  |      |                                    |            |        |  |             |        |   |  |  |       |            |  |      |   |       |        |  |   |        |  |  |   |      |   |  |  |      |   
|----------------------------- |  | ---------------------------------- | --- |  | ---- | ---------------------------------- | ---------- | ------ |  | ----------- | ------ | - |  |  | ----- | ---------- |  | ---- | - | ----- | ------ |  | - | ------ |  |  | - | ---- | - |  |  | ---- | --
|                              |  | Years Ended                        |     |  |      |                                    |            |        |  | Years Ended |        |   |  |  |      
|                              |  | June 30,                           |     |  |      |                                    |            |        |  | June 30,    |        |   |  |  |      
|                              |  |                                    |     |  |      |                                    | Percentage |        |  |             |        |   |  |  |       | Percentage | 
|                              |  | 2005                               |     |  | 2004 |                                    |            | Change |  |             | Change |   |  |  | 2004  |            |  | 2003 |   |       | Change |  |   | Change | 
|                              |  |                                    |     |  |      |                                    |            |        |  |             |        |   |  |  |       |            |  |      |   |       |        |  |   |        | 
|                              |  | (In thousands, except percentages) |     |  |      | (In thousands, except percentages) |           
|Non-cash compensation expense |  | $                                  | 223 |  |      | $                                  | 1,689      |        |  | $           | (1,466 | ) |  |  | (86.8 | )%         |  |      | $ | 1,689 |        |  | $ | 1,873  |  |  | $ | (184 | ) |  |  | (9.8 | )%





IMPAIRMENT CHARGE.




41



---



##### Table of Contents





RESTRUCTURING COSTS AND OTHER CHARGES.


|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  |   |         |  
|----------------------------------------------------------------------------------- |  | --------- | ------ | - | --------------- | ---------------- | ------- | ----------------- | ------------ | - | ----------------- | - |  | ----- | ---- | - |  | - | ------- | -
|                                                                                    |  |           |        |   |                 |                  |         | Impairment of     |              |   |                  
|                                                                                    |  |           |        |   |                 | Consolidation of |         |                   | Goodwill and |   |                   |  
|                                                                                    |  | Workforce |        |   | Excess Property |                  |         | Excess Facilities |              |   | Purchased         |   |  |      
|                                                                                    |  | Reduction |        |   | and Equipment   |                  |         | and Other Charges |              |   | Intangible Assets |   |  | Total |     
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Balance at June 30, 2002                                                            |  | $         | 880    |   |                 | $                |        |                   |              | $ | 8,799             |   |  | $     |     |   |  | $ | 9,679   |  
|Less: accrued restructuring costs, current                                          |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  |   | 4,355   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Accrued restructuring costs, non current                                            |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  | $ | 5,324   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Additional restructuring charge in the second and fourth quarter
    of fiscal 2003 |  |           | 1,831  |   |                 |                  | 10,724  |                   |              |   | 1,267             |   |  |       | 301  |   |  |   | 14,123  |  
|Non-cash charge                                                                     |  |           |       |   |                 |                  | (10,724 | )                 |              |   | 310               |   |  |       | (301 | ) |  |   | (10,715 | )
|Cash payments                                                                       |  |           | (2,535 | ) |                 |                  |        |                   |              |   | (6,062            | ) |  |       |     |   |  |   | (8,597  | )
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Balance at June 30, 2003                                                            |  |           | 176    |   |                 |                  |        |                   |              |   | 4,314             |   |  |       |     |   |  | $ | 4,490   |  
|Less: accrued restructuring costs, current                                          |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  |   | 3,018   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Accrued restructuring costs, non current                                            |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  | $ | 1,472   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Additional restructuring charge in the fourth quarter of fiscal
    2004            |  |           |       |   |                 |                  |        |                   |              |   | 452               |   |  |       |     |   |  |   | 452     |  
|Adjustment                                                                          |  |           | 99     |   |                 |                  |        |                   |              |   | (99               | ) |  |       |     |   |  |   |        |  
|Cash payments                                                                       |  |           | (275   | ) |                 |                  |        |                   |              |   | (2,768            | ) |  |       |     |   |  |   | (3,043  | )
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Balance at June 30, 2004                                                            |  |           |       |   |                 |                  |        |                   |              |   | 1,899             |   |  |       |     |   |  | $ | 1,899   |  
|Less: accrued restructuring costs, current                                          |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  |   | 1,795   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Accrued restructuring costs, non current                                            |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  | $ | 104     |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Cash payments                                                                       |  |           |       |   |                 |                  |        |                   |              |   | (1,836            | ) |  |       |     |   |  |   | (1,836  | )
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Balance at June 30, 2005                                                            |  | $         |       |   |                 | $                |        |                   |              | $ | 63                |   |  | $     |     |   |  | $ | 63      |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Restructuring costs and other charges incurred during the
    year ended June 30, 2004





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Restructuring costs and other charges incurred during the
    year ended June 30, 2003



42



---



##### Table of Contents





| |                              
| | -----------------------------
| | Worldwide workforce reduction





| |                                                                
| | ---------------------------------------------------------------
| | Excess property and equipment, facilities and other
    charges







| |                                                           
| | ----------------------------------------------------------
| | Impairment of goodwill and purchased intangible
    assets



MERGER FEES.


IN-PROCESS RESEARCH AND DEVELOPMENT.


43



---



##### Table of Contents











AMORTIZATION OF INTANGIBLE AND OTHER ASSETS.




| |                               
| | ------------------------------
| | INTEREST AND OTHER INCOME, NET

|                               |  |                                    |       |  |      |                                    |            |        |  |             |        |  |  |  |      |            |  |      |   |       |        |  |   |        |  |  |   |        |   |  |  |       |   
|------------------------------ |  | ---------------------------------- | ----- |  | ---- | ---------------------------------- | ---------- | ------ |  | ----------- | ------ |  |  |  | ---- | ---------- |  | ---- | - | ----- | ------ |  | - | ------ |  |  | - | ------ | - |  |  | ----- | --
|                               |  | Years Ended                        |       |  |      |                                    |            |        |  | Years Ended |        |  |  |  |     
|                               |  | June 30,                           |       |  |      |                                    |            |        |  | June 30,    |        |  |  |  |     
|                               |  |                                    |       |  |      |                                    | Percentage |        |  |             |        |  |  |  |      | Percentage | 
|                               |  | 2005                               |       |  | 2004 |                                    |            | Change |  |             | Change |  |  |  | 2004 |            |  | 2003 |   |       | Change |  |   | Change | 
|                               |  |                                    |       |  |      |                                    |            |        |  |             |        |  |  |  |      |            |  |      |   |       |        |  |   |        | 
|                               |  | (In thousands, except percentages) |       |  |      | (In thousands, except percentages) |           
|Interest and other income, net |  | $                                  | 4,591 |  |      | $                                  | 2,665      |        |  | $           | 1,926  |  |  |  | 72.3 | %          |  |      | $ | 2,665 |        |  | $ | 4,016  |  |  | $ | (1,351 | ) |  |  | (33.6 | )%



GAIN (LOSS) ON SALE OF ASSETS.


PROVISION FOR INCOME TAXES.


44



---



##### Table of Contents





| |                                
| | -------------------------------
| | Quarterly Results of Operations



|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |         |       |       |        |         |       |       | 
|------------------------------------- | ------------------------------------------- | ------------------------------------- | -------------------------------- | ------- | -------- | ----- | ------ | -------- | ----- | ----- | --------- | ------- | ----- | ----- | ------ | ------- | ----- | ----- | 
|                                      |                                             | Three Months Ended                    |                                 
|                                      |                                             |                                       |                                 
|                                      |                                             | June 30,                              |                                  |         | Mar. 31, |       |        | Dec. 31, |       |       | Sept. 30, |        
|                                      |                                             | 2005                                  |                                  |         | 2005     |       |        | 2004     |       |       | 2004      |        
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      |                                             | (In thousands, except per share data) |                                 
|                                      |                                             | (Unaudited)                           |                                 
|Revenues                              |                                             | $                                     | 8,882                            |         |          | $     | 8,421  |          |       | $     | 8,144     |         |       | $     | 8,908  |        
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|Cost of revenues:                     |                                             |                                       |                                  |         |          |       |        |          |       |       |           |         |       |       |        |        
|                                      | Cost of revenues                            |                                       |                                  | 5,557   |          |       |        | 6,260    |       |       |           | 6,939   |       |       |        | 5,953   |      
|                                      | Non-cash compensation expense               |                                       |                                  |        |          |       |        |         |       |       |           |        |       |       |        | 27      |      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      |                                             | Total cost of revenues                |                                  |         | 5,557    |       |        |          | 6,260 |       |           |         | 6,939 |       |        |         | 5,980 |      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|Gross profit                          |                                             |                                       | 3,325                            |         |          |       | 2,161  |          |       |       | 1,205     |         |       |       | 2,928  |        
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|Operating expenses:                   |                                             |                                       |                                  |         |          |       |        |          |       |       |           |         |       |       |        |        
|                                      | Research and development:                   |                                       |                                  |         |          |       |        |          |       |       |           |         |       |       |        |         |      
|                                      |                                             | Research and development              |                                  |         | 1,544    |       |        |          | 1,929 |       |           |         | 1,795 |       |        |         | 1,905 |      
|                                      |                                             | Non-cash compensation expense         |                                  |         |         |       |        |          |      |       |           |         |      |       |        |         | 2     |      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      |                                             |                                       | Total research and development   |         |          | 1,544 |        |          |       | 1,929 |           |         |       | 1,795 |        |         |       | 1,907 | 
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      | Sales and marketing:                        |                                       |                                  |         |          |       |        |          |       |       |           |         |       |       |        |         |      
|                                      |                                             | Sales and marketing                   |                                  |         | 819      |       |        |          | 935   |       |           |         | 1,042 |       |        |         | 833   |      
|                                      |                                             | Non-cash compensation expense         |                                  |         |         |       |        |          |      |       |           |         | 79    |       |        |         | 5     |      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      |                                             |                                       | Total sales and marketing        |         |          | 819   |        |          |       | 935   |           |         |       | 1,121 |        |         |       | 838   | 
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      | General and administrative:                 |                                       |                                  |         |          |       |        |          |       |       |           |         |       |       |        |         |      
|                                      |                                             | General and administrative            |                                  |         | 1,336    |       |        |          | 1,517 |       |           |         | 1,556 |       |        |         | 1,751 |      
|                                      |                                             | Non-cash compensation expense         |                                  |         | 17       |       |        |          | 22    |       |           |         | 26    |       |        |         | 45    |      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      |                                             |                                       | Total general and administrative |         |          | 1,353 |        |          |       | 1,539 |           |         |       | 1,582 |        |         |       | 1,796 | 
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      | Impairment charge                           |                                       |                                  | 322     |          |       |        |         |       |       |           |        |       |       |        |        |      
|                                      | Merger fees                                 |                                       |                                  |        |          |       |        | (904     | )     |       |           |        |       |       |        |        |      
|                                      | Amortization of intangible and other assets |                                       |                                  | 47      |          |       |        | 46       |       |       |           | 46      |       |       |        | 46      |      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      |                                             |                                       | Total operating expenses         |         |          | 4,085 |        |          |       | 3,545 |           |         |       | 4,544 |        |         |       | 4,587 | 
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|Loss from operations                  |                                             |                                       | (760                             | )       |          |       | (1,384 | )        |       |       | (3,339    | )       |       |       | (1,659 | )      
|Interest and other income, net        |                                             |                                       | 1,547                            |         |          |       | 1,193  |          |       |       | 1,050     |         |       |       | 801    |        
|Gain (loss) on sale of assets         |                                             |                                       | 81                               |         |          |       | (168   | )        |       |       | 7         |         |       |       | (16    | )      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|Net income (loss)                     |                                             | $                                     | 868                              |         |          | $     | (359   | )        |       | $     | (2,282    | )       |       | $     | (874   | )      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|Net income (loss) per share:          |                                             |                                       |                                  |         |          |       |        |          |       |       |           |         |       |       |        |        
|                                      | Basic                                       |                                       | $                                | 0.01    |          |       | $      | (0.00    | )     |       | $         | (0.02   | )     |       | $      | (0.01   | )    
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      | Diluted                                     |                                       | $                                | 0.01    |          |       | $      | (0.00    | )     |       | $         | (0.02   | )     |       | $      | (0.01   | )    
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|Shares used in per share calculation: |                                             |                                       |                                  |         |          |       |        |          |       |       |           |         |       |       |        |        
|                                      | Basic                                       |                                       |                                  | 148,604 |          |       |        | 148,219  |       |       |           | 147,982 |       |       |        | 147,512 |      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        
|                                      | Diluted                                     |                                       |                                  | 153,086 |          |       |        | 148,219  |       |       |           | 147,982 |       |       |        | 147,512 |      
|                                      |                                             |                                       |                                  |         |          |       |        |          |       |       |           |        



45



---



##### Table of Contents



|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |       |       |       |         |       |       |       | 
|----------------------------------------------------- | ------------------------------------------- | ---------------------------------------- | -------------------------------- | ----- | -------- | ----- | ------- | -------- | ----- | ----- | --------- | ----- | ----- | ----- | ------- | ----- | ----- | ----- | 
|                                                      |                                             | Three Months Ended                       |                                 
|                                                      |                                             |                                          |                                 
|                                                      |                                             | June 30,                                 |                                  |       | Mar. 31, |       |         | Dec. 31, |       |       | Sept. 30, |      
|                                                      |                                             | 2004                                     |                                  |       | 2004     |       |         | 2003     |       |       | 2003      |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      |                                             | (In thousands, except per share data)    |                                 
|                                                      |                                             | (Unaudited)                              |                                 
|Revenues                                              |                                             | $                                        | 9,689                            |       |          | $     | 9,200   |          |       | $     | 8,131     |       |       | $     | 7,308   |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|Cost of revenues:                                     |                                             |                                          |                                  |       |          |       |         |          |       |       |           |       |       |       |         |      
|                                                      | Cost of revenues                            |                                          |                                  | 5,973 |          |       |         | 6,088    |       |       |           | 5,585 |       |       |         | 5,090 |      
|                                                      | Non-cash compensation expense               |                                          |                                  | 17    |          |       |         | 32       |       |       |           | 52    |       |       |         | 76    |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      |                                             | Total cost of revenues                   |                                  |       | 5,990    |       |         |          | 6,120 |       |           |       | 5,637 |       |         |       | 5,166 |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|Gross profit                                          |                                             |                                          | 3,699                            |       |          |       | 3,080   |          |       |       | 2,494     |       |       |       | 2,142   |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|Operating expenses:                                   |                                             |                                          |                                  |       |          |       |         |          |       |       |           |       |       |       |         |      
|                                                      | Research and development:                   |                                          |                                  |       |          |       |         |          |       |       |           |       |       |       |         |       |      
|                                                      |                                             | Research and development                 |                                  |       | 2,077    |       |         |          | 1,961 |       |           |       | 1,648 |       |         |       | 1,370 |      
|                                                      |                                             | Non-cash compensation expense            |                                  |       | 11       |       |         |          | 32    |       |           |       | 55    |       |         |       | 350   |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      |                                             |                                          | Total research and development   |       |          | 2,088 |         |          |       | 1,993 |           |       |       | 1,703 |         |       |       | 1,720 | 
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      | Sales and marketing:                        |                                          |                                  |       |          |       |         |          |       |       |           |       |       |       |         |       |      
|                                                      |                                             | Sales and marketing                      |                                  |       | 767      |       |         |          | 946   |       |           |       | 823   |       |         |       | 793   |      
|                                                      |                                             | Non-cash compensation expense (recovery) |                                  |       | 12       |       |         |          | 22    |       |           |       | 33    |       |         |       | (14   | )    
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      |                                             |                                          | Total sales and marketing        |       |          | 779   |         |          |       | 968   |           |       |       | 856   |         |       |       | 779   | 
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      | General and administrative:                 |                                          |                                  |       |          |       |         |          |       |       |           |       |       |       |         |       |      
|                                                      |                                             | General and administrative               |                                  |       | 1,565    |       |         |          | 1,354 |       |           |       | 1,409 |       |         |       | 2,291 |      
|                                                      |                                             | Non-cash compensation expense            |                                  |       | 95       |       |         |          | 293   |       |           |       | 258   |       |         |       | 365   |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      |                                             |                                          | Total general and administrative |       |          | 1,660 |         |          |       | 1,647 |           |       |       | 1,667 |         |       |       | 2,656 | 
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      | Restructuring costs and other charges       |                                          |                                  | 452   |          |       |         |         |       |       |           |      |       |       |         |      |      
|                                                      | In-process research and development         |                                          |                                  |      |          |       |         | 704      |       |       |           | 861   |       |       |         |      |      
|                                                      | Amortization of intangible and other assets |                                          |                                  | 45    |          |       |         | 1        |       |       |           |      |       |       |         | 10    |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|                                                      |                                             |                                          | Total operating expenses         |       |          | 5,024 |         |          |       | 5,313 |           |       |       | 5,087 |         |       |       | 5,165 | 
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|Loss from operations                                  |                                             |                                          | (1,325                           | )     |          |       | (2,233  | )        |       |       | (2,593    | )     |       |       | (3,023  | )    
|Interest and other income, net                        |                                             |                                          | 739                              |       |          |       | 800     |          |       |       | 576       |       |       |       | 550     |      
|(Loss) gain on sale of assets                         |                                             |                                          | (37                              | )     |          |       | (20     | )        |       |       | (90       | )     |       |       | 215     |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|Net loss                                              |                                             | $                                        | (623                             | )     |          | $     | (1,453  | )        |       | $     | (2,107    | )     |       | $     | (2,258  | )    
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|Basic and diluted net loss per share                  |                                             | $                                        | (0.00                            | )     |          | $     | (0.01   | )        |       | $     | (0.01     | )     |       | $     | (0.02   | )    
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      
|Basic and diluted weighted average shares outstanding |                                             |                                          | 147,257                          |       |          |       | 146,529 |          |       |       | 145,544   |       |       |       | 142,589 |      
|                                                      |                                             |                                          |                                  |       |          |       |         |          |       |       |           |      





| |   |                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------
| |  | economic downturn and uncertainty of the fiber optic industry;                                                                                 
|
| |  | economic conditions specific to the communications and related
    industries and the development and size of the markets for our
    products;
|
| |  | fluctuations in demand for, and sales of, our products;                                                                                        

46



---



##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our inability to cut costs quickly in the event of market or
    demand downturns, due to the fact that a high percentage of our
    expenses, including those related to manufacturing, engineering,
    research and development, sales and marketing and general and
    administrative functions, is fixed in the short term;
|
| |  | cancellations of orders and shipment rescheduling;                                                                                                                                                                                                                                                                               
|
| |  | the ability of our manufacturing operations in China to timely
    produce and deliver products and components in the quantity and
    of the quality our customers require;                                                                                                                                                     
|
| |  | the availability of raw materials used in our products and
    increases in the price of these raw materials;                                                                                                                                                                                                                    
|
| |  | our ability to successfully improve our manufacturing capability
    and achieve acceptable production yields in our facilities in
    China;                                                                                                                                                                                    
|
| |  | the practice of communication equipment suppliers to
    sporadically place large orders with short lead times;                                                                                                                                                                                                                  
|
| |  | the mix of products and the average selling prices of the
    products we sell;                                                                                                                                                                                                                                                  
|
| |  | competitive factors, including introductions of new products,
    new technologies and product enhancements by competitors,
    consolidation of competitors in the fiber optic subsystems,
    integrated modules and components market and pricing pressures;                                                                  
|
| |  | our ability to develop, introduce, manufacture and ship new and
    enhanced optical networking products in a timely manner without
    defects;                                                                                                                                                                                 
|
| |  | with respect to new products, a mismatching of research and
    development expenses and sales and marketing expenses that are
    incurred in one quarter with revenues that are not recognized,
    if at all, until a subsequent quarter when the new products are
    introduced and commercially accepted; and              
|
| |  | costs associated with and the outcomes of any intellectual
    property or other litigation to which we are, or may become, a
    party.                                                                                                                                                                                         





| |                                
| | -------------------------------
| | Liquidity and Capital Resources





47



---



##### Table of Contents







| |            
| | -----------
| | Fiscal 2005























| |            
| | -----------
| | Fiscal 2004



48



---



##### Table of Contents















Fiscal 2003
















49



---



##### Table of Contents







| |                        
| | -----------------------
| | Contractual Obligations



|                        |       |       |       |                                       |        |   |       |       |  |     |       |     |       |         |    |    |  |   |   |   | 
|----------------------- | ----- | ----- | ----- | ------------------------------------- | ------ | - | ----- | ----- |  | --- | ----- | --- | ----- | ------- | -- | -- |  | - | - | - | 
|                        |       |       |       | Contractual Obligations Due by Period
|                        |       |       |       |                                      
|                        |       |       |       | Less Than                             |        |   | 1-3   |       |  | 4-5 |       |     | After
|Contractual Obligations |       | Total |       |                                       | 1 Year |   |       | Years |  |     | Years |     |       | 5 Years
|                        |       |       |       |                                       |        |   |       |       |  |     |       |     |       |        
|Purchase obligations    |       | $     | 4,941 |                                       |        | $ | 4,764 |       |  | $   | 177   |     |       | $       |   |    |  | $ |  |  
|Operating leases        |       |       | 810   |                                       |        |   | 290   |       |  |     | 478   |     |       |         | 42 |    |  |   |  |  
|                        |       |       |       |                                       |        |   |       |       |  |     |       |     |       |         |   
|                        | Total |       | $     | 5,751                                 |        |   | $     | 5,054 |  |     | $     | 655 |       |         | $  | 42 |  |   | $ |  | 
|                        |       |       |       |                                       |        |   |       |       |  |     |       |     |       |         |   



| |                                 
| | --------------------------------
| | Recent Accounting Pronouncements











50



---



##### Table of Contents














|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk





| |                       
| | ----------------------
| | Interest Rate Exposure





51



---



##### Table of Contents





|                                       |       |          |        |              |              |  |     |          |              |   |              |         |  |  |     |   | 
|-------------------------------------- | ----- | -------- | ------ | ------------ | ------------ |  | --- | -------- | ------------ | - | ------------ | ------- |  |  | --- | - | 
|                                       |       | Carrying |        |              | Average Rate |  |     | Carrying |              |   | Average Rate |        
|                                       |       | Value at |        |              | of Return at |  |     | Value at |              |   | of Return at |        
|                                       |       | June 30, |        |              | June 30,     |  |     | June 30, |              |   | June 30,     |        
|                                       |       | 2005     |        |              | 2005         |  |     | 2004     |              |   | 2004         |        
|                                       |       |          |        |              |              |  |     |          |              |   |              |        
|                                       |       |          |        | (Annualized) |              |  |     |          | (Annualized) |  
|Investment Securities:                 |       |          |        |              |              |  |     |          |              |   |              |         |  |  |     |  
|Cash equivalents  variable rate       |       | $        | 26,464 |              |              |  | 3.1 | %        |              | $ | 46,034       |         |  |  | 1.1 | %
|Cash equivalents  fixed rate          |       |          |       |              |              |  |    |          |              |   | 5,219        |         |  |  | 0.9 | %
|Short-term investments  variable rate |       |          | 68,676 |              |              |  | 3.3 | %        |              |   | 61,197       |         |  |  | 1.4 | %
|Short-term investments  fixed rate    |       |          | 27,020 |              |              |  | 2.1 | %        |              |   | 17,352       |         |  |  | 1.3 | %
|Long-term investments  variable rate  |       |          |       |              |              |  |    |          |              |   | 5,002        |         |  |  | 1.2 | %
|Long-term investments  fixed rate     |       |          | 60,727 |              |              |  | 3.4 | %        |              |   | 50,202       |         |  |  | 2.3 | %
|                                       |       |          |        |              |              |  |     |          |              |   |              |        
|                                       | Total |          | $      | 182,887      |              |  |     |          |              |   | $            | 185,006 |  |  |     |   | 
|                                       |       |          |        |              |              |  |     |          |              |   |              |        

|                                   |  |                                    |   |      |  |   |        |   |       |   |   |            |  |   |        |   |  |   |        | 
|---------------------------------- |  | ---------------------------------- | - | ---- |  | - | ------ | - | ----- | - | - | ---------- |  | - | ------ | - |  | - | ------ | 
|                                   |  | Expected Fiscal Year Maturity Date |  
|                                   |  |                                    |  
|                                   |  | 2006                               |   | 2007 |  |   | 2008   |   | Total |   |   | Fair Value | 
|                                   |  |                                    |   |      |  |   |        |   |       |   |   |            | 
|Long-term investments  fixed rate |  | $                                  |  |      |  | $ | 60,727 |   |       | $ |  |            |  | $ | 60,727 |   |  | $ | 60,264 | 
|Average interest rate              |  |                                    |  |      |  |   | 3.4    | % |       |   |  |            |  |   | 3.4    | % |  |   |        | 



| |                                        
| | ---------------------------------------
| | Foreign Currency Exchange Rate Exposure







52



---



##### Table of Contents








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes In and Disagreements with Accountants on
    Accounting and Financial Disclosure










|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures



| |                                                 
| | ------------------------------------------------
| | Evaluation of Disclosure Controls and Procedures





| |                                                                            
| | ---------------------------------------------------------------------------
| | Managements Annual Report on Internal Control Over
    Financial Reporting





Internal
Control  Integrated Framework.


53



---



##### Table of Contents







| |                             
| | ----------------------------
| | Changes in Internal Controls






Item 9B. Other Information







Part III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant








|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services



54



---



##### Table of Contents






Part IV







|         |                                            
|-------- | -------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules.







| |                                  
| | ---------------------------------
| | See Item 8 of this Annual Report.





| |                                                                                                     
| | ----------------------------------------------------------------------------------------------------
| | See Item 8 and Schedule II of this Annual Report
    immediately following the financial statements.



|            |    |             |  |                                                                                                                                                                                                          
|----------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |    | Description
|            |    |            
|            | 3  | .1(1)       |  | Amended and Restated Certificate of Incorporation of Oplink.                                                                                                                                             
|           
|            | 3  | .2(1)       |  | Bylaws of Oplink.                                                                                                                                                                                        
|           
|            | 3  | .3(2)       |  | Certificate of Designation of Series A Junior Participating
    Preferred Stock.                                                                                                                         
|           
|            | 4  | .1(1)(2)    |  | Reference is made to Exhibits 3.1, 3.2 and 3.3.                                                                                                                                                          
|           
|            | 4  | .2(1)       |  | Third Amended and Restated Rights Agreement, dated as of
    February 7, 2000 by and among Oplink and the investors
    listed on Exhibit A attached thereto.                                            
|           
|            | 4  | .3(2)       |  | Rights Agreement, dated as of March 18, 2002, between
    Oplink Communications, Inc. and The Bank of New York.                                                                                          
|           
|            | 10 | .2(1)       |  | State-owned Land Use Rights Assignment Contract dated
    May 16, 2000 by and between Oplink Communications Inc. and
    Zhuhai Bonded Area Management Committee.                                        
|           
|            | 10 | .3(1)       |  | Sublease Agreement dated February 29, 2000 by and among
    Wyse Technology Inc. and Oplink and Wyse Technology Investments
    Inc.                                                                     
|           
|            | 10 | .4(1)       |  | Amended and Restated Lease Agreement dated March 19, 1993
    by and between Wyse Technology Investments, Inc. and Wyse
    Technology, Inc.                                                             
|           
|            | 10 | .5(1)       |  | Amendment No. 1 to Sublease Agreement dated April 14,
    2000 and Amendment No. 2 dated September 1, 2000 by
    and among Oplink, Wyse Technology Inc. and Wyse Technology
    Investments Inc.        
|           
|            | 10 | .6(1)(5)    |  | Oplinks 2000 Equity Incentive Plan.                                                                                                                                                                     
|           
|            | 10 | .7(1)(5)    |  | Oplinks 2000 Employee Stock Purchase Plan.                                                                                                                                                              
|           
|            | 10 | .8(1)(5)    |  | Oplinks 1995 Stock Plan.                                                                                                                                                                                
|           
|            | 10 | .9(1)(5)    |  | Oplinks 1998 Stock Plan.                                                                                                                                                                                
|           
|            | 10 | .10(1)(5)   |  | Oplink Form of Indemnity Agreement.                                                                                                                                                                      
|           
|            | 10 | .14(3)(5)   |  | Form of Stock Option Agreement between Oplink and Chieh Chang,
    Herbert Chang and Leonard LeBlanc.                                                                                                    
|           
|            | 10 | .22(4)(5)   |  | Amended and Restated Executive Corporate Event Agreement, dated
    February 20, 2003, by and between the Registrant and Bruce
    Horn.                                                                 
|           
|            | 10 | .24(4)(5)   |  | Executive Corporate Event Agreement, dated February 24,
    2003, by and between the Registrant and River Gong.                                                                                          
|           
|            | 10 | .25(4)(5)   |  | Executive Corporate Event Agreement, dated March 21, 2003,
    by and between the Registrant and Joseph Y. Liu.                                                                                          
|           
|            | 10 | .27(5)(6)   |  | Consulting Agreement dated as of January 17, 2004, by and
    between the Registrant and Allen Hsu.                                                                                                      
|           
|            | 10 | .29(7)      |  | Building Purchase Agreement dated April 15, 2004 by and
    between the Registrant and Dianne S. Gagos &
    Mitchell S. Gagos, Trustees, The Dianne S. Gagos Survivors
    Trust, U/ I/ D April 8, 1992.
|           
|            | 10 | .30         |  | Amendment to Amended and Restated Executive Corporate Event
    Agreement between the Registrant and Bruce Horn, dated
    August 14, 2003.                                                              

55



---



##### Table of Contents



|            |    |             |  |                                                                                                                                                                                                                                                      
|----------- | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |    | Description
|            |    |            
|           
|            | 10 | .31         |  | Amendment to Executive Corporate Event Agreement between the
    Registrant and River Gong, dated August 14, 2003.                                                                                                                                   
|           
|            | 21 | .1          |  | Subsidiaries of Oplink.                                                                                                                                                                                                                              
|           
|            | 23 | .1          |  | Consent of Burr, Pilger & Mayer LLP.                                                                                                                                                                                                                 
|           
|            | 23 | .2          |  | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                                                               
|           
|            | 24 | .1          |  | Power of Attorney is contained on the Signatures page.                                                                                                                                                                                               
|           
|            | 31 | .1          |  | Certification of Chief Executive Officer Required under
    Rule 13a-14(a) or Rule 15d-14(a) of the Securities
    Exchange Act of 1934, as amended.                                                                                                 
|           
|            | 31 | .2          |  | Certification of Chief Financial Officer Required under
    Rule 13a-14(a) or Rule 15d-14(a) of the Securities
    Exchange Act of 1934, as amended.                                                                                                 
|           
|            | 32 | .1*         |  | Certification of Chief Executive Officer Required under
    Rule 13a-14(b) or Rule 15d-14(b) of the Securities
    Exchange Act of 1934, as amended, and 18 U.S.C.
    Section 1350.                                                                 
|           
|            | 32 | .2*         |  | Certification of Financial Officer Required under
    Rule 13a-14(b) or Rule 15d-14(b) of the Securities
    Exchange Act of 1934, as amended, and Section 1350 of
    Chapter 63 of Title 18 of the United States Code
    (18 U.S.C. Section 1350).








|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Previously filed as an Exhibit to the Registrants
    Registration Statement on Form S-1 No. 333-41506, as
    amended, filed on September 20, 2000 and incorporated
    herein by reference.
|   
|(2) | Previously filed as an Exhibit to the Registrants Report
    on Form 8-K filed on March 22, 2002 and incorporated
    herein by reference.                                                   
|   
|(3) | Previously filed as an Exhibit to the Registrants Annual
    Report on Form 10-K filed on September 30, 2002 and
    incorporated herein by reference.                                       
|   
|(4) | Previously filed as an Exhibit to the Registrants
    Quarterly Report on Form 10-Q filed on filed on
    May 13, 2003 and incorporated herein by reference.                                 
|   
|(5) | Management contract or compensatory plan or arrangement.                                                                                                                                      
|   
|(6) | Previously filed as an Exhibit to the Registrants
    Quarterly Report on Form 10-Q filed on May 11, 2004
    and incorporated herein by reference.                                          
|   
|(7) | Previously filed as an Exhibit to the Registrants Annual
    Report on Form 10-K filed on September 10, 2004 and
    incorporated herein by reference.                                       



| |   |                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | The certifications attached as Exhibits 32.1 and 32.2
    accompany this Annual Report on Form 10-K pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 and shall not
    be deemed filed by Oplink for purposes of
    Section 18 of the Securities Exchange Act of 1934, as
    amended.

56



---



##### Table of Contents



SIGNATURES






| |                            
| | ---------------------------
| | OPLINK COMMUNICATIONS, INC.



| |     |                  
| | --- | -----------------
| | By: | /s/ Bruce D. Horn

| | 
| | 
| | 



| |                        
| | -----------------------
| | Bruce D. Horn          
| | Chief Financial Officer





|                                             |  |                                                                             |  |                    |  | 
|-------------------------------------------- |  | --------------------------------------------------------------------------- |  | ------------------ |  | 
|Signature                                    |  | Title                                                                       |  | Date              
|                                             |  |                                                                             |  |                   
|                                            
|/s/ Joseph Y. LiuJoseph
    Y. Liu           |  | Chief Executive Officer
    and President (Principal
    Executive Officer) |  | September 23, 2005
|                                            
|/s/ Bruce D. HornBruce
    D. Horn           |  | Chief Financial Officer (Principal Financial and Accounting
    Officer)    |  | September 23, 2005
|                                            
|/s/ Herbert ChangHerbert
    Chang           |  | Chairman of the Board                                                       |  | September 23, 2005
|                                            
|/s/ Chieh ChangChieh
    Chang               |  | Director                                                                    |  | September 23, 2005
|                                            
|/s/ Jesse W. JackJesse
    W. Jack           |  | Director                                                                    |  | September 23, 2005
|                                            
|/s/ Leonard J. LeBlancLeonard
    J. LeBlanc |  | Director                                                                    |  | September 23, 2005

57



---



##### Table of Contents





|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

Oplink Communications, Inc.


Index to Financial Statements


|                                                    |  |      |     | 
|--------------------------------------------------- |  | ---- | --- | 
|                                                    |  | Page |    
|                                                    |  |      |    
|Reports of Burr, Pilger & Mayer
    LLP             |  |      | F-2 | 
|Report of PricewaterhouseCoopers LLP                |  |      | F-4 | 
|Consolidated Balance Sheets                         |  |      | F-5 | 
|Consolidated Statements of Operations               |  |      | F-6 | 
|Consolidated Statements of
    Stockholders Equity |  |      | F-7 | 
|Consolidated Statements of Cash Flows               |  |      | F-8 | 
|Notes to Consolidated Financial
    Statements      |  |      | F-9 | 

F-1



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















| |                             
| | ----------------------------
| | /s/ Burr, Pilger & Mayer LLP







F-2



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















,




| |                             
| | ----------------------------
| | /s/ Burr, Pilger & Mayer LLP







F-3



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










| |                           
| | --------------------------
| | PRICEWATERHOUSECOOPERS LLP





F-4



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.





CONSOLIDATED BALANCE SHEETS


|                                         |                                                                                                                                                                             |                             |                                            |          |         |         |        |          |         |         | 
|---------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------- | ------------------------------------------ | -------- | ------- | ------- | ------ | -------- | ------- | ------- | 
|                                         |                                                                                                                                                                             | June 30,                    |                                           
|                                         |                                                                                                                                                                             |                             |                                           
|                                         |                                                                                                                                                                             | 2005                        |                                            |          | 2004    |        
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|                                         |                                                                                                                                                                             | (In thousands, except share |                                           
|                                         |                                                                                                                                                                             | and per share data)         |                                           
|ASSETS                                  
|Current assets:                          |                                                                                                                                                                             |                             |                                            |          |         |         |        |         
|                                         | Cash and cash equivalents                                                                                                                                                   |                             | $                                          | 29,710   |         |         | $      | 56,690   |        
|                                         | Short-term investments                                                                                                                                                      |                             |                                            | 95,696   |         |         |        | 78,549   |        
|                                         | Accounts receivable, net                                                                                                                                                    |                             |                                            | 7,127    |         |         |        | 7,545    |        
|                                         | Inventories, net                                                                                                                                                            |                             |                                            | 6,999    |         |         |        | 4,767    |        
|                                         | Prepaid expenses and other current assets                                                                                                                                   |                             |                                            | 2,430    |         |         |        | 2,814    |        
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|                                         |                                                                                                                                                                             | Total current assets        |                                            |          | 141,962 |         |        |          | 150,365 |        
|Long-term investments                    |                                                                                                                                                                             |                             | 60,727                                     |          |         |         | 55,204 |         
|Property, plant and equipment, net       |                                                                                                                                                                             |                             | 25,297                                     |          |         |         | 26,426 |         
|Intangible assets                        |                                                                                                                                                                             |                             |                                           |          |         |         | 507    |         
|Other assets                             |                                                                                                                                                                             |                             | 260                                        |          |         |         | 401    |         
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|                                         |                                                                                                                                                                             | Total assets                |                                            | $        | 228,246 |         |        | $        | 232,903 |        
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|                                        
|LIABILITIES AND STOCKHOLDERS EQUITY    
|Current liabilities:                     |                                                                                                                                                                             |                             |                                            |          |         |         |        |         
|                                         | Accounts payable                                                                                                                                                            |                             | $                                          | 3,658    |         |         | $      | 4,926    |        
|                                         | Accrued liabilities                                                                                                                                                         |                             |                                            | 6,044    |         |         |        | 8,090    |        
|                                         | Capital lease obligations, current                                                                                                                                          |                             |                                            |         |         |         |        | 81       |        
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|                                         |                                                                                                                                                                             | Total current liabilities   |                                            |          | 9,702   |         |        |          | 13,097  |        
|Accrued restructuring costs, non current |                                                                                                                                                                             |                             |                                           |          |         |         | 104    |         
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|                                         |                                                                                                                                                                             | Total liabilities           |                                            |          | 9,702   |         |        |          | 13,201  |        
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|Commitments and contingencies (Note 11)  |                                                                                                                                                                             |                             |                                            |          |         |         |        |         
|Stockholders equity:                    |                                                                                                                                                                             |                             |                                            |          |         |         |        |         
|                                         | Common stock, $0.001 par value, 400,000,000 shares
    authorized; 148,763,115 and 147,472,871 shares issued and
    outstanding as of June 30, 2005 and 2004, respectively |                             |                                            | 149      |         |         |        | 147      |        
|                                         | Additional paid-in capital                                                                                                                                                  |                             |                                            | 445,484  |         |         |        | 444,125  |        
|                                         | Notes receivable from stockholders                                                                                                                                          |                             |                                            | (27      | )       |         |        | (38      | )      
|                                         | Deferred stock compensation                                                                                                                                                 |                             |                                            | (37      | )       |         |        | (158     | )      
|                                         | Accumulated other comprehensive income                                                                                                                                      |                             |                                            | 62       |         |         |        | 66       |        
|                                         | Accumulated deficit                                                                                                                                                         |                             |                                            | (227,087 | )       |         |        | (224,440 | )      
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|                                         |                                                                                                                                                                             | Total stockholders equity  |                                            |          | 218,544 |         |        |          | 219,702 |        
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        
|                                         |                                                                                                                                                                             |                             | Total liabilities and stockholders equity |          | $       | 228,246 |        |          | $       | 232,903 | 
|                                         |                                                                                                                                                                             |                             |                                            |          |         |        



F-5



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.





CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                      |                                             |                                       |                                  |                          |        |       |         |        |        |       |         |        |        |       |        | 
|----------------------------------------------------- | ------------------------------------------- | ------------------------------------- | -------------------------------- | ------------------------ | ------ | ----- | ------- | ------ | ------ | ----- | ------- | ------ | ------ | ----- | ------ | 
|                                                      |                                             | Years Ended June 30,                  |                                 
|                                                      |                                             |                                       |                                 
|                                                      |                                             | 2005                                  |                                  |                          | 2004   |       |         | 2003   |       
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      |                                             | (In thousands, except per share data) |                                 
|Revenues                                              |                                             | $                                     | 34,355                           |                          |        | $     | 34,328  |        |        | $     | 22,743  |       
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|Cost of revenues:                                     |                                             |                                       |                                  |                          |        |       |         |        |        |       |         |       
|                                                      | Cost of revenues                            |                                       |                                  | 24,709                   |        |       |         | 22,736 |        |       |         | 23,080 |       
|                                                      | Non-cash compensation expense (recovery)    |                                       |                                  | 27                       |        |       |         | 177    |        |       |         | (415   | )     
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      |                                             | Total cost of revenues                |                                  |                          | 24,736 |       |         |        | 22,913 |       |         |        | 22,665 |      
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|Gross profit                                          |                                             |                                       | 9,619                            |                          |        |       | 11,415  |        |        |       | 78      |       
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|Operating expenses:                                   |                                             |                                       |                                  |                          |        |       |         |        |        |       |         |       
|                                                      | Research and development:                   |                                       |                                  |                          |        |       |         |        |        |       |         |        |       
|                                                      |                                             | Research and development              |                                  |                          | 7,173  |       |         |        | 7,056  |       |         |        | 8,765  |      
|                                                      |                                             | Non-cash compensation expense         |                                  |                          | 2      |       |         |        | 448    |       |         |        | 42     |      
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      |                                             |                                       | Total research and development   |                          |        | 7,175 |         |        |        | 7,504 |         |        |        | 8,807 |       
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      | Sales and marketing:                        |                                       |                                  |                          |        |       |         |        |        |       |         |        |       
|                                                      |                                             | Sales and marketing                   |                                  |                          | 3,629  |       |         |        | 3,329  |       |         |        | 4,235  |      
|                                                      |                                             | Non-cash compensation expense         |                                  |                          | 84     |       |         |        | 53     |       |         |        | 172    |      
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      |                                             |                                       | Total sales and marketing        |                          |        | 3,713 |         |        |        | 3,382 |         |        |        | 4,407 |       
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      | General and administrative:                 |                                       |                                  |                          |        |       |         |        |        |       |         |        |       
|                                                      |                                             | General and administrative            |                                  |                          | 6,160  |       |         |        | 6,619  |       |         |        | 7,009  |      
|                                                      |                                             | Non-cash compensation expense         |                                  |                          | 110    |       |         |        | 1,011  |       |         |        | 2,074  |      
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      |                                             |                                       | Total general and administrative |                          |        | 6,270 |         |        |        | 7,630 |         |        |        | 9,083 |       
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      | Impairment charge                           |                                       |                                  | 322                      |        |       |         |       |        |       |         | 2,825  |       
|                                                      | Restructuring costs and other charges       |                                       |                                  |                         |        |       |         | 452    |        |       |         | 14,123 |       
|                                                      | Merger fees                                 |                                       |                                  | (904                     | )      |       |         |       |        |       |         | 1,300  |       
|                                                      | In-process research and development         |                                       |                                  |                         |        |       |         | 1,565  |        |       |         |       |       
|                                                      | Amortization of intangible and other assets |                                       |                                  | 185                      |        |       |         | 56     |        |       |         | 78     |       
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|                                                      |                                             |                                       |                                  | Total operating expenses |        |       | 16,761  |        |        |       | 20,589  |        |        |       | 40,623 | 
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|Loss from operations                                  |                                             |                                       | (7,142                           | )                        |        |       | (9,174  | )      |        |       | (40,545 | )     
|Interest and other income, net                        |                                             |                                       | 4,591                            |                          |        |       | 2,665   |        |        |       | 4,016   |       
|(Loss) gain on sale of assets                         |                                             |                                       | (96                              | )                        |        |       | 68      |        |        |       | (258    | )     
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|Net loss                                              |                                             | $                                     | (2,647                           | )                        |        | $     | (6,441  | )      |        | $     | (36,787 | )     
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|Basic and diluted net loss per share                  |                                             | $                                     | (0.02                            | )                        |        | $     | (0.04   | )      |        | $     | (0.23   | )     
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       
|Basic and diluted weighted average shares outstanding |                                             |                                       | 148,069                          |                          |        |       | 145,479 |        |        |       | 158,782 |       
|                                                      |                                             |                                       |                                  |                          |        |       |         |        |       



F-6



---



##### Table of Contents





OPLINK COMMUNICATIONS, INC.





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |     |     |   |   |          |         |   |   |         |         |         |  
|----------------------------------------------------------------- | -------------------------------------------- | --------------------------------- | ----------- | - | ---------- | - | --- | -------- |  | ---------- | ------- | - | ----------- | ------------ | ------- | ----- | ------------- | - | ------- | ------------- | ----- | - | ------------- | - |  | ------ | --- | --- | - | - | -------- | ------- | - | - | ------- | ------- | ------- | -
|                                                                  |                                              |                                   |             |   |            |   |     | Notes    |  |            |         |   | Accumulated |              |         |       |               |  
|                                                                  |                                              | Common Stock                      |             |   | Additional |   |     |          |  | Receivable |         |   | Deferred    |              |         | Other |               |   |         |               | Total |  
|                                                                  |                                              |                                   |             |   | Paid in    |   |     | Treasury |  |            | from    |   |             | Stock        |         |       | Comprehensive |   |         | Accumulated   |       |   | Stockholders |  
|                                                                  |                                              | Shares                            |             |   | Amount     |   |     | Capital  |  |            | Stock   |   |             | Stockholders |         |       | Compensation  |   |         | Income (Loss) |       |   | Deficit       |   |  | Equity |    
|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |    
|                                                                  |                                              | (In thousands, except share data) |            
|Balance at June 30, 2002                                          |                                              |                                   | 164,877,460 |   |            | $ | 165 |          |  | $          | 472,451 |   |             | $            | (1,953  | )     |               | $ | (10,771 | )             |       | $ | (5,425        | ) |  | $      | 26  |     |   | $ | (181,212 | )       |   | $ | 273,281 |        
|Exercise of stock options                                         |                                              |                                   | 5,658,644   |   |            |   | 5   |          |  |            | 2,653   |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 2,658   |        
|Issuance of common stock from ESPP                                |                                              |                                   | 465,498     |   |            |   |    |          |  |            | 312     |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 312     |        
|Interest receivable related to notes receivable from stockholders |                                              |                                   |            |   |            |   |    |          |  |            |        |   |             |              |        |       |               |   | (686    | )             |       |   |              |   |  |        |    |     |   |   |         |         |   |   | (686    | )      
|Repayment of note receivable from stockholder                     |                                              |                                   |            |   |            |   |    |          |  |            |        |   |             |              |        |       |               |   | 11,407  |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 11,407  |        
|Repurchase of common stock                                        |                                              |                                   | (28,912,925 | ) |            |   | (28 | )        |  |            |        |   |             |              | (33,259 | )     |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | (33,287 | )      
|Retirement of treasury stock                                      |                                              |                                   |            |   |            |   |    |          |  |            | (9,936  | ) |             |              | 9,936   |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   |        |        
|Stock-based compensation expense                                  |                                              |                                   |            |   |            |   |    |          |  |            | 585     |   |             |              |        |       |               |   |        |               |       |   | (585          | ) |  |        |    |     |   |   |         |         |   |   |        |        
|Amortization of deferred compensation                             |                                              |                                   |            |   |            |   |    |          |  |            | (2,616  | ) |             |              |        |       |               |   |        |               |       |   | 4,489         |   |  |        |    |     |   |   |         |         |   |   | 1,873   |        
|Components of comprehensive loss:                                 |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |     |     |   |   |          |         |   |   |         |        
|                                                                  | Net loss                                     |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     |    |   |   |          | (36,787 | ) |   |         | (36,787 | )      
|                                                                  | Change in cumulative translation adjustments |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     | (42 | ) |   |          |        |   |   |         | (42     | )      
|                                                                  | Unrealized loss on investments               |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     | (13 | ) |   |          |        |   |   |         | (13     | )      
|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |    
|                                                                  |                                              | Total comprehensive loss          |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |     |     |   |   |          |         |   |   |         |         | (36,842 | )
|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |    
|Balance at June 30, 2003                                          |                                              |                                   | 142,088,677 |   |            |   | 142 |          |  |            | 463,449 |   |             |              | (25,276 | )     |               |   | (50     | )             |       |   | (1,521        | ) |  |        | (29 | )   |   |   | (217,999 | )       |   |   | 218,716 |        
|Exercise of stock options                                         |                                              |                                   | 3,779,094   |   |            |   | 3   |          |  |            | 3,231   |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 3,234   |        
|Issuance of common stock from ESPP                                |                                              |                                   | 1,005,100   |   |            |   | 1   |          |  |            | 784     |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 785     |        
|Repayment of note receivable from stockholder                     |                                              |                                   |            |   |            |   |    |          |  |            |        |   |             |              |        |       |               |   | 15      |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 15      |        
|Interest receivable related to note receivable from stockholder   |                                              |                                   |            |   |            |   |    |          |  |            |        |   |             |              |        |       |               |   | (3      | )             |       |   |              |   |  |        |    |     |   |   |         |         |   |   | (3      | )      
|Retirement of treasury stock                                      |                                              |                                   |            |   |            |   |    |          |  |            | (25,276 | ) |             |              | 25,276  |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   |        |        
|Stock-based compensation expense                                  |                                              |                                   |            |   |            |   |    |          |  |            | 412     |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 412     |        
|Amortization of deferred compensation                             |                                              |                                   |            |   |            |   |    |          |  |            | (86     | ) |             |              |        |       |               |   |        |               |       |   | 1,363         |   |  |        |    |     |   |   |         |         |   |   | 1,277   |        
|Issuance of common stock in connection with acquisition           |                                              |                                   | 600,000     |   |            |   | 1   |          |  |            | 1,611   |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 1,612   |        
|Components of comprehensive loss:                                 |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |     |     |   |   |          |         |   |   |         |        
|                                                                  | Net loss                                     |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     |    |   |   |          | (6,441  | ) |   |         | (6,441  | )      
|                                                                  | Change in cumulative translation adjustments |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     | 57  |   |   |          |        |   |   |         | 57      |        
|                                                                  | Unrealized gain on investments               |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     | 38  |   |   |          |        |   |   |         | 38      |        
|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |    
|                                                                  |                                              | Total comprehensive loss          |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |     |     |   |   |          |         |   |   |         |         | (6,346  | )
|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |    
|Balance at June 30, 2004                                          |                                              |                                   | 147,472,871 |   |            |   | 147 |          |  |            | 444,125 |   |             |              |        |       |               |   | (38     | )             |       |   | (158          | ) |  |        | 66  |     |   |   | (224,440 | )       |   |   | 219,702 |        
|Exercise of stock options                                         |                                              |                                   | 274,866     |   |            |   | 1   |          |  |            | 262     |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 263     |        
|Issuance of common stock from ESPP                                |                                              |                                   | 1,015,378   |   |            |   | 1   |          |  |            | 995     |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 996     |        
|Repayment of note receivable from stockholder                     |                                              |                                   |            |   |            |   |    |          |  |            |        |   |             |              |        |       |               |   | 12      |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 12      |        
|Interest receivable related to note receivable from stockholder   |                                              |                                   |            |   |            |   |    |          |  |            |        |   |             |              |        |       |               |   | (1      | )             |       |   |              |   |  |        |    |     |   |   |         |         |   |   | (1      | )      
|Stock-based compensation expense                                  |                                              |                                   |            |   |            |   |    |          |  |            | 102     |   |             |              |        |       |               |   |        |               |       |   |              |   |  |        |    |     |   |   |         |         |   |   | 102     |        
|Amortization of deferred compensation                             |                                              |                                   |            |   |            |   |    |          |  |            |        |   |             |              |        |       |               |   |        |               |       |   | 121           |   |  |        |    |     |   |   |         |         |   |   | 121     |        
|Components of comprehensive loss:                                 |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |     |     |   |   |          |         |   |   |         |        
|                                                                  | Net loss                                     |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     |    |   |   |          | (2,647  | ) |   |         | (2,647  | )      
|                                                                  | Change in cumulative translation adjustments |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     | (7  | ) |   |          |        |   |   |         | (7      | )      
|                                                                  | Unrealized gain on investments               |                                   |             |  |            |   |     |         |  |            |         |  |             |              |         |      |               |   |         |              |       |   |               |  |  |        |     | 3   |   |   |          |        |   |   |         | 3       |        
|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |    
|                                                                  |                                              | Total comprehensive loss          |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |     |     |   |   |          |         |   |   |         |         | (2,651  | )
|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |    
|Balance at June 30, 2005                                          |                                              |                                   | 148,763,115 |   |            | $ | 149 |          |  | $          | 445,484 |   |             | $            |        |       |               | $ | (27     | )             |       | $ | (37           | ) |  | $      | 62  |     |   | $ | (227,087 | )       |   | $ | 218,544 |        
|                                                                  |                                              |                                   |             |   |            |   |     |          |  |            |         |   |             |              |         |       |               |   |         |               |       |   |               |   |  |        |    



F-7



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |       |        |          |          |        |        |          |  
|--------------------------------------------------------- | ---------------------------------------------------------------------------------------------- | ------------------------------------------------------- | --------------------------------------------------- | --------------------------------------------------- | ----- | ------ | ------- | -------- | ----- | ------ | -------- | -------- | ------ | ------ | -------- | -
|                                                          |                                                                                                | Years Ended June 30,                                    |                                                    
|                                                          |                                                                                                |                                                         |                                                    
|                                                          |                                                                                                | 2005                                                    |                                                     |                                                     | 2004  |        |         | 2003     |      
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|                                                          |                                                                                                | (In thousands)                                          |                                                    
|Cash flows from operating activities:                     |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |       |        |          |         
|                                                          | Net loss                                                                                       |                                                         | $                                                   | (2,647                                              | )     |        | $       | (6,441   | )     |        | $        | (36,787  | )     
|                                                          | Adjustments to reconcile net loss to net cash provided by (used
    in) operating activities:  |                                                         |                                                     |                                                     |       |        |         |          |       |        |          |          |       
|                                                          |                                                                                                | Non-cash restructuring costs and other charges          |                                                     |                                                     |      |        |         |          |      |        |          |          | 10,715 |       
|                                                          |                                                                                                | Depreciation and amortization of property and equipment |                                                     |                                                     | 7,697 |        |         |          | 8,221 |        |          |          | 11,958 |       
|                                                          |                                                                                                | Amortization of intangible and other assets             |                                                     |                                                     | 185   |        |         |          | 56    |        |          |          | 78     |       
|                                                          |                                                                                                | Stock compensation                                      |                                                     |                                                     | 223   |        |         |          | 1,689 |        |          |          | 1,873  |       
|                                                          |                                                                                                | Amortization of premium (discount) on investments       |                                                     |                                                     | 955   |        |         |          | 394   |        |          |          | (3     | )     
|                                                          |                                                                                                | Loss (gain) on sale or disposal of assets               |                                                     |                                                     | 96    |        |         |          | (68   | )      |          |          | 258    |       
|                                                          |                                                                                                | Acquired in-process research and development            |                                                     |                                                     |      |        |         |          | 1,565 |        |          |          |       |       
|                                                          |                                                                                                | Impairment charge                                       |                                                     |                                                     | 322   |        |         |          |      |        |          |          | 2,825  |       
|                                                          |                                                                                                | Interest income related to stockholder notes            |                                                     |                                                     | (1    | )      |         |          | (3    | )      |          |          | (686   | )     
|                                                          |                                                                                                | Other                                                   |                                                     |                                                     | (7    | )      |         |          |      |        |          |          | (339   | )     
|                                                          |                                                                                                | Change in assets and liabilities:                       |                                                     |                                                     |       |        |         |          |       |        |          |          |        |       
|                                                          |                                                                                                |                                                         | Accounts receivable                                 |                                                     |       | 418    |         |          |       | (2,829 | )        |          |        | 2,092  |         
|                                                          |                                                                                                |                                                         | Inventories                                         |                                                     |       | (2,232 | )       |          |       | (1,268 | )        |          |        | 3,009  |         
|                                                          |                                                                                                |                                                         | Prepaid expenses and other current assets           |                                                     |       | (78    | )       |          |       | (598   | )        |          |        | 991    |         
|                                                          |                                                                                                |                                                         | Other assets                                        |                                                     |       | 141    |         |          |       | 207    |          |          |        | 652    |         
|                                                          |                                                                                                |                                                         | Accounts payable                                    |                                                     |       | (1,268 | )       |          |       | 102    |          |          |        | (1,383 | )       
|                                                          |                                                                                                |                                                         | Accrued liabilities and accrued restructuring costs |                                                     |       | (1,433 | )       |          |       | (1,572 | )        |          |        | (9,011 | )       
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|                                                          |                                                                                                |                                                         |                                                     | Net cash provided by (used in) operating activities |       |        | 2,371   |          |       |        | (545     | )        |        |        | (13,758  | )
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|Cash flows from investing activities:                     |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |       |        |          |         
|                                                          | Purchases of available-for-sale investments                                                    |                                                         |                                                     | (99,072                                             | )     |        |         | (113,508 | )     |        |          | (240,712 | )     
|                                                          | Sales and maturities of available-for-sale investments                                         |                                                         |                                                     | 113,450                                             |       |        |         | 148,279  |       |        |          | 132,813  |       
|                                                          | Purchases of held-to-maturity investments                                                      |                                                         |                                                     | (48,000                                             | )     |        |         | (79,275  | )     |        |          |          |       
|                                                          | Maturities of held-to-maturity investments                                                     |                                                         |                                                     | 10,000                                              |       |        |         | 24,000   |       |        |          |          |       
|                                                          | Proceeds from sales of property and equipment                                                  |                                                         |                                                     | 434                                                 |       |        |         | 588      |       |        |          | 1,022    |       
|                                                          | Purchase of property and equipment                                                             |                                                         |                                                     | (6,636                                              | )     |        |         | (305     | )     |        |          | (690     | )     
|                                                          | Acquisition of businesses, net of cash and cash equivalents                                    |                                                         |                                                     | (717                                                | )     |        |         | 404      |       |        |          |         |       
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|                                                          |                                                                                                |                                                         |                                                     | Net cash used in investing activities               |       |        | (30,541 | )        |       |        | (19,817  | )        |        |        | (107,567 | )
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|Cash flows from financing activities:                     |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |       |        |          |         
|                                                          | Proceeds from issuance of common stock                                                         |                                                         |                                                     | 1,259                                               |       |        |         | 4,019    |       |        |          | 2,970    |       
|                                                          | Repurchase of common stock                                                                     |                                                         |                                                     |                                                    |       |        |         |         |       |        |          | (33,287  | )     
|                                                          | Payments received on notes receivable from stockholders                                        |                                                         |                                                     | 12                                                  |       |        |         | 15       |       |        |          | 11,407   |       
|                                                          | Repayment of capital lease obligations                                                         |                                                         |                                                     | (81                                                 | )     |        |         | (1,480   | )     |        |          | (4,300   | )     
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|                                                          |                                                                                                |                                                         |                                                     | Net cash provided by (used in) financing activities |       |        | 1,190   |          |       |        | 2,554    |          |        |        | (23,210  | )
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|Net decrease in cash and cash equivalents                 |                                                                                                |                                                         | (26,980                                             | )                                                   |       |        | (17,808 | )        |       |        | (144,535 | )       
|Cash and cash equivalents, beginning of year              |                                                                                                |                                                         | 56,690                                              |                                                     |       |        | 74,498  |          |       |        | 219,033  |         
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|Cash and cash equivalents, end of year                    |                                                                                                | $                                                       | 29,710                                              |                                                     |       | $      | 56,690  |          |       | $      | 74,498   |         
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|Supplemental disclosures of cash flow information:        |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |       |        |          |         
|                                                          | Cash paid during the period for interest                                                       |                                                         | $                                                   | 6                                                   |       |        | $       | 37       |       |        | $        | 310      |       
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|Supplemental non-cash investing and financing activities: |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |       |        |          |         
|                                                          | Recovery/ Return of property and equipment                                                     |                                                         | $                                                   |                                                    |       |        | $       |         |       |        | $        | (412     | )     
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|                                                          | Deferred compensation related to common stock option grants and
    modifications to employees |                                                         | $                                                   |                                                    |       |        | $       |         |       |        | $        | 585      |       
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|                                                          | Issuance of common stock in connection with acquisitions                                       |                                                         | $                                                   |                                                    |       |        | $       | 1,612    |       |        | $        |         |       
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      
|                                                          | Unrealized gain (loss) on investments                                                          |                                                         | $                                                   | 3                                                   |       |        | $       | 38       |       |        | $        | (13      | )     
|                                                          |                                                                                                |                                                         |                                                     |                                                     |       |        |         |          |      



F-8



---



##### Table of Contents






OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1  THE COMPANY:




| |            
| | -----------
| | The Company







| |                        
| | -----------------------
| | Risks and Uncertainties





| |            
| | -----------
| | Fiscal Year



F-9



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                  
| | -----------------
| | Reclassifications



| |                   
| | ------------------
| | Shanghai operation





| |                        
| | -----------------------
| | Auction Rate Securities









F-10



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES:




| |                      
| | ---------------------
| | Basis of presentation





| |                 
| | ----------------
| | Use of estimates





| |                          
| | -------------------------
| | Cash and cash equivalents





| |            
| | -----------
| | Investments





| |                    
| | -------------------
| | Revenue recognition



F-11



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                              
| | -----------------------------
| | Foreign currency translations





| |                                    
| | -----------------------------------
| | Fair value of financial instruments





| |                             
| | ----------------------------
| | Concentration of credit risk







|           |  |                      |    |   |      |  |    |      |  |  |    |  
|---------- |  | -------------------- | -- | - | ---- |  | -- | ---- |  |  | -- | -
|           |  | Years Ended June 30, |   
|           |  |                      |   
|           |  | 2005                 |    |   | 2004 |  |    | 2003 | 
|           |  |                      |    |   |      |  |    |      | 
|Customer A |  |                      | 26 | % |      |  | 21 | %    |  |  | 23 | %
|Customer B |  |                      | 16 | % |      |  | *  |      |  |  | *  |  
|Customer C |  |                      | *  |   |      |  | 20 | %    |  |  | *  |  
|Customer D |  |                      | *  |   |      |  | 14 | %    |  |  | 10 | %
|Customer E |  |                      | *  |   |      |  | *  |      |  |  | 11 | %






|  |               
|- | --------------
|* | Less than 10%.

F-12



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |            
| | -----------
| | Inventories





| |                                                            
| | -----------------------------------------------------------
| | Accounts Receivable and Allowance for Doubtful
    Accounts





| |                              
| | -----------------------------
| | Property, plant and equipment





| |                               
| | ------------------------------
| | Long-lived assets and goodwill



F-13



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |             
| | ------------
| | Income taxes





| |                               
| | ------------------------------
| | Research and development costs





| |                         
| | ------------------------
| | Stock-based compensation



F-14



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                                              |  |                      |        |   |      |   |         |      |  |   |         |  
|----------------------------------------------------------------------------- |  | -------------------- | ------ | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                              |  | Years Ended June 30, |       
|                                                                              |  |                      |       
|                                                                              |  | 2005                 |        |   | 2004 |   |         | 2003 | 
|                                                                              |  |                      |        |   |      |   |         |      | 
|Net loss as reported                                                          |  | $                    | (2,647 | ) |      | $ | (6,441  | )    |  | $ | (36,787 | )
|Stock-based employee compensation expense included in reported
    net loss   |  |                      | 144    |   |      |   | 1,689   |      |  |   | 1,873   |  
|Pro forma stock compensation expense computed under the fair
    value method |  |                      | (3,198 | ) |      |   | (6,415  | )    |  |   | (8,040  | )
|                                                                              |  |                      |        |   |      |   |         |      | 
|Pro forma net loss                                                            |  | $                    | (5,701 | ) |      | $ | (11,167 | )    |  | $ | (42,954 | )
|                                                                              |  |                      |        |   |      |   |         |      | 
|Basic and diluted net loss per share, as reported                             |  | $                    | (0.02  | ) |      | $ | (0.04   | )    |  | $ | (0.23   | )
|                                                                              |  |                      |        |   |      |   |         |      | 
|Pro forma basic and diluted net loss per share                                |  | $                    | (0.04  | ) |      | $ | (0.08   | )    |  | $ | (0.27   | )
|                                                                              |  |                      |        |   |      |   |         |      | 





|                        |  |                      |         |   |      |  |         |      |  |  |         |  
|----------------------- |  | -------------------- | ------- | - | ---- |  | ------- | ---- |  |  | ------- | -
|                        |  | Years Ended June 30, |        
|                        |  |                      |        
|                        |  | 2005                 |         |   | 2004 |  |         | 2003 | 
|                        |  |                      |         |   |      |  |         |      | 
|Risk-free interest rate |  |                      | 3.59    | % |      |  | 3.32    | %    |  |  | 2.94    | %
|Expected life of option |  |                      | 4 years |   |      |  | 4 years |      |  |  | 4 years |  
|Expected dividends      |  |                      | 0       | % |      |  | 0       | %    |  |  | 0       | %
|Volatility              |  |                      | 54      | % |      |  | 70      | %    |  |  | 70      | %





|                        |  |                      |         |   |      |  |         |      |  |  |         |  
|----------------------- |  | -------------------- | ------- | - | ---- |  | ------- | ---- |  |  | ------- | -
|                        |  | Years Ended June 30, |        
|                        |  |                      |        
|                        |  | 2005                 |         |   | 2004 |  |         | 2003 | 
|                        |  |                      |         |   |      |  |         |      | 
|Risk-free interest rate |  |                      | 3.33    | % |      |  | 1.98    | %    |  |  | 1.43    | %
|Expected average life   |  |                      | 2 years |   |      |  | 2 years |      |  |  | 2 years |  
|Expected dividends      |  |                      | 0       | % |      |  | 0       | %    |  |  | 0       | %
|Volatility              |  |                      | 52      | % |      |  | 70      | %    |  |  | 70      | %

F-15



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                                            
| | -----------------------------------------------------------
| | Derivative financial instruments and hedging
    activities





| |                   
| | ------------------
| | Comprehensive loss





| |                   
| | ------------------
| | Net loss per share



|                                                                              |                                     |                      |            |             |      |  |            |             |   |  |            |             |  
|----------------------------------------------------------------------------- | ----------------------------------- | -------------------- | ---------- | ----------- | ---- |  | ---------- | ----------- | - |  | ---------- | ----------- | -
|                                                                              |                                     | Years Ended June 30, |           
|                                                                              |                                     |                      |           
|                                                                              |                                     | 2005                 |            |             | 2004 |  |            | 2003        |  
|                                                                              |                                     |                      |            |             |      |  |            |             |  
|Numerator:                                                                    |                                     |                      |            |             |      |  |            |             |   |  |            |            
|                                                                              | Net loss                            |                      | $          | (2,647      | )    |  | $          | (6,441      | ) |  | $          | (36,787     | )
|                                                                              |                                     |                      |            |             |      |  |            |             |  
|Denominator:                                                                  |                                     |                      |            |             |      |  |            |             |   |  |            |            
|                                                                              | Weighted average shares outstanding |                      |            | 148,068,724 |      |  |            | 145,479,442 |   |  |            | 158,781,618 |  
|                                                                              |                                     |                      |            |             |      |  |            |             |  
|Net loss per share:                                                           |                                     |                      |            |             |      |  |            |             |   |  |            |            
|                                                                              | Basic and diluted                   |                      | $          | (0.02       | )    |  | $          | (0.04       | ) |  | $          | (0.23       | )
|                                                                              |                                     |                      |            |             |      |  |            |             |  
|Antidilutive stock options not included in net loss per share
    calculation |                                     |                      | 21,444,423 |             |      |  | 19,794,330 |             |   |  | 20,460,615 |            
|                                                                              |                                     |                      |            |             |      |  |            |             |  



| |                                     
| | ------------------------------------
| | Recently issued accounting standards



F-16



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















F-17



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|         |                                     
|-------- | ------------------------------------
|NOTE 3  | SHORT-TERM AND LONG-TERM INVESTMENTS





|                        |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |   |      |      |      |   |        |        |         | 
|----------------------- | ------------------------------------------------ | ---------------------------- | ----------------- | ------ | --------- | ------- | ----- | ---------- | ------ | ------- | ---------- | - | - | ---------- | - | ---- | ---- | ---- | - | ------ | ------ | ------- | 
|                        |                                                  | June 30, 2005                |                  
|                        |                                                  |                              |                  
|                        |                                                  |                              |                   | Gross  |           |         | Gross |            |        |        
|                        |                                                  | Carrying                     |                   |        | Amortized |         |       | Unrealized |        |         | Unrealized |   |   | Estimated  |  
|                        |                                                  | Value                        |                   |        | Cost      |         |       | Gains      |        |         | Losses     |   |   | Fair Value |  
|                        |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |  
|Short-term investments: |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |   |      |      |      |   |       
|                        | Obligations of states and political subdivisions |                              | $                 | 46,400 |           |         | $     | 46,400     |        |         | $          |  |   |            | $ |     |      |      | $ | 46,400 |       
|                        | U.S. corporate securities                        |                              |                   | 27,296 |           |         |       | 27,317     |        |         |            |  |   |            |   | (29  | )    |      |   | 27,288 |       
|                        | United States government agencies                |                              |                   | 22,000 |           |         |       | 22,000     |        |         |            |  |   |            |   | (192 | )    |      |   | 21,808 |       
|                        |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |  
|                        |                                                  | Total short-term investments |                   |        | 95,696    |         |       |            | 95,717 |         |            |   |  |            |   |      | (221 | )    |   |        | 95,496 |        
|                        |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |  
|Long-term investments:  |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |   |      |      |      |   |       
|                        | U.S. corporate securities                        |                              |                   | 5,719  |           |         |       | 5,719      |        |         |            |  |   |            |   | (126 | )    |      |   | 5,593  |       
|                        | United States government agencies                |                              |                   | 55,008 |           |         |       | 55,008     |        |         |            | 2 |   |            |   | (339 | )    |      |   | 54,671 |       
|                        |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |  
|                        |                                                  | Total long-term investments  |                   |        | 60,727    |         |       |            | 60,727 |         |            |   | 2 |            |   |      | (465 | )    |   |        | 60,264 |        
|                        |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |  
|                        |                                                  |                              | Total investments |        | $         | 156,423 |       |            | $      | 156,444 |            |   | $ | 2          |   |      | $    | (686 | ) |        | $      | 155,760 | 
|                        |                                                  |                              |                   |        |           |         |       |            |        |         |            |   |   |            |  

F-18



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                |                                                  |                                      |                   |        |            |         |       |            |   |   |            |      |      |      |   |        |        |         | 
|------------------------------- | ------------------------------------------------ | ------------------------------------ | ----------------- | ------ | ---------- | ------- | ----- | ---------- | - | - | ---------- | ---- | ---- | ---- | - | ------ | ------ | ------- | 
|                                |                                                  | June 30, 2005                        |                  
|                                |                                                  |                                      |                  
|                                |                                                  |                                      |                   | Gross  |            |         | Gross |            |   |  
|                                |                                                  | Amortized                            |                   |        | Unrealized |         |       | Unrealized |   |   | Estimated  |     
|                                |                                                  | Cost                                 |                   |        | Gains      |         |       | Losses     |   |   | Fair Value |     
|                                |                                                  |                                      |                   |        |            |         |       |            |   |   |            |     
|Available-for-sale investments: |                                                  |                                      |                   |        |            |         |       |            |   |   |            |      |      |      |   |       
|                                | Obligations of states and political subdivisions |                                      | $                 | 46,400 |            |         | $     |           |   |   | $          |     |      |      | $ | 46,400 |       
|                                | U.S. corporate securities                        |                                      |                   | 17,296 |            |         |       |           |   |   |            | (21  | )    |      |   | 17,275 |       
|                                |                                                  |                                      |                   |        |            |         |       |            |   |   |            |     
|                                |                                                  | Total available-for-sale investments |                   |        | 63,696     |         |       |            |  |   |            |      | (21  | )    |   |        | 63,675 |        
|                                |                                                  |                                      |                   |        |            |         |       |            |   |   |            |     
|Held-to-maturity investments:   |                                                  |                                      |                   |        |            |         |       |            |   |   |            |      |      |      |   |       
|                                | U.S. corporate securities                        |                                      |                   | 15,740 |            |         |       |           |   |   |            | (134 | )    |      |   | 15,606 |       
|                                | United States government agencies                |                                      |                   | 77,008 |            |         |       | 2          |   |   |            | (531 | )    |      |   | 76,479 |       
|                                |                                                  |                                      |                   |        |            |         |       |            |   |   |            |     
|                                |                                                  | Total held-to-maturity investments   |                   |        | 92,748     |         |       |            | 2 |   |            |      | (665 | )    |   |        | 92,085 |        
|                                |                                                  |                                      |                   |        |            |         |       |            |   |   |            |     
|                                |                                                  |                                      | Total investments |        | $          | 156,444 |       |            | $ | 2 |            |      | $    | (686 | ) |        | $      | 155,760 | 
|                                |                                                  |                                      |                   |        |            |         |       |            |   |   |            |     

|                                |                                                  |                                      |                   |        |            |         |            |   |   |            |   |      |      |      |   |        |        |         | 
|------------------------------- | ------------------------------------------------ | ------------------------------------ | ----------------- | ------ | ---------- | ------- | ---------- | - | - | ---------- | - | ---- | ---- | ---- | - | ------ | ------ | ------- | 
|                                |                                                  | June 30, 2004                        |                  
|                                |                                                  |                                      |                  
|                                |                                                  |                                      |                   | Gross  |            | Gross   |            |   |  
|                                |                                                  | Amortized                            |                   |        | Unrealized |         | Unrealized |   |   | Estimated  |  
|                                |                                                  | Cost                                 |                   |        | Gains      |         | Losses     |   |   | Fair Value |  
|                                |                                                  |                                      |                   |        |            |         |            |   |   |            |  
|Available-for-sale investments: |                                                  |                                      |                   |        |            |         |            |   |   |            |   |      |      |      |   |       
|                                | Obligations of states and political subdivisions |                                      | $                 | 48,700 |            |         | $          |  |   |            | $ |     |      |      | $ | 48,700 |       
|                                | U.S. corporate securities                        |                                      |                   | 24,956 |            |         |            |  |   |            |   | (84  | )    |      |   | 24,872 |       
|                                | United States government agencies                |                                      |                   | 5,000  |            |         |            |  |   |            |   | (23  | )    |      |   | 4,977  |       
|                                |                                                  |                                      |                   |        |            |         |            |   |   |            |   |     
|                                |                                                  | Total available-for-sale investments |                   |        | 78,656     |         |            |   |  |            |   |      | (107 | )    |   |        | 78,549 |        
|                                |                                                  |                                      |                   |        |            |         |            |   |   |            |   |     
|Held-to-maturity investments:   |                                                  |                                      |                   |        |            |         |            |   |   |            |   |      |      |      |   |       
|                                | U.S. corporate securities                        |                                      |                   | 16,182 |            |         |            |  |   |            |   | (197 | )    |      |   | 15,985 |       
|                                | United States government agencies                |                                      |                   | 39,022 |            |         |            |  |   |            |   | (322 | )    |      |   | 38,700 |       
|                                |                                                  |                                      |                   |        |            |         |            |   |   |            |   |     
|                                |                                                  | Total held-to-maturity investments   |                   |        | 55,204     |         |            |   |  |            |   |      | (519 | )    |   |        | 54,685 |        
|                                |                                                  |                                      |                   |        |            |         |            |   |   |            |   |     
|                                |                                                  |                                      | Total investments |        | $          | 133,860 |            |   | $ |           |   |      | $    | (626 | ) |        | $      | 133,234 | 
|                                |                                                  |                                      |                   |        |            |         |            |   |   |            |   |     

F-19



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                |                                   |                                    |                                    |        |                      |        |   |                        |       |      |            |        |        |        |   |      |            |      |   |        |        |        |   |      |      |      |  
|------------------------------- | --------------------------------- | ---------------------------------- | ---------------------------------- | ------ | -------------------- | ------ | - | ---------------------- | ----- | ---- | ---------- | ------ | ------ | ------ | - | ---- | ---------- | ---- | - | ------ | ------ | ------ | - | ---- | ---- | ---- | -
|                                |                                   | June 30, 2005                      |                                   
|                                |                                   |                                    |                                   
|                                |                                   | In Loss Position                   |                                    |        | In Loss Position     |        |   |                       
|                                |                                   | <12 Months                         |                                    |        | 12 Months and Longer |        |   | Total in Loss Position |      
|                                |                                   |                                    |                                    |        |                      |        |   |                        |      
|                                |                                   |                                    |                                    | Gross  |                      |        |   |                        | Gross |      |            |        |        | Gross  |  
|                                |                                   | Fair                               |                                    |        | Unrealized           |        |   | Fair                   |       |      | Unrealized |        |        | Fair   |   |      | Unrealized |     
|                                |                                   | Value                              |                                    |        | Losses               |        |   | Value                  |       |      | Losses     |        |        | Value  |   |      | Losses     |     
|                                |                                   |                                    |                                    |        |                      |        |   |                        |       |      |            |        |        |        |   |      |            |     
|Available-for-sale investments: |                                   |                                    |                                    |        |                      |        |   |                        |       |      |            |        |        |        |   |      |            |      |   |        |        |        |   |     
|                                | U.S. corporate securities         |                                    | $                                  | 7,825  |                      |        | $ | (21                    | )     |      | $          |       |        |        | $ |     |            |      | $ | 7,825  |        |        | $ | (21  | )   
|                                |                                   |                                    |                                    |        |                      |        |   |                        |       |      |            |        |        |        |   |      |            |     
|Held-to-maturity investments:   |                                   |                                    |                                    |        |                      |        |   |                        |       |      |            |        |        |        |   |      |            |      |   |        |        |        |   |     
|                                | U.S. corporate securities         |                                    |                                    | 4,999  |                      |        |   | (1                     | )     |      |            | 10,607 |        |        |   | (133 | )          |      |   | 15,606 |        |        |   | (134 | )   
|                                | United States government agencies |                                    |                                    | 49,669 |                      |        |   | (339                   | )     |      |            | 21,808 |        |        |   | (192 | )          |      |   | 71,477 |        |        |   | (531 | )   
|                                |                                   |                                    |                                    |        |                      |        |   |                        |       |      |            |        |        |        |   |      |            |     
|                                |                                   | Total held-to-maturity investments |                                    |        | 54,668               |        |   |                        | (340  | )    |            |        | 32,415 |        |   |      | (325       | )    |   |        | 87,083 |        |   |      | (665 | )   
|                                |                                   |                                    |                                    |        |                      |        |   |                        |       |      |            |        |        |        |   |      |            |     
|                                |                                   |                                    | Total investments in loss position |        | $                    | 62,493 |   |                        | $     | (361 | )          |        | $      | 32,415 |   |      | $          | (325 | ) |        | $      | 94,908 |   |      | $    | (686 | )
|                                |                                   |                                    |                                    |        |                      |        |   |                        |       |      |            |        |        |        |   |      |            |     



|                                |                                |                                      |   |        |               |  |   |           |         |  |            |        |         |  |   |        |         | 
|------------------------------- | ------------------------------ | ------------------------------------ | - | ------ | ------------- |  | - | --------- | ------- |  | ---------- | ------ | ------- |  | - | ------ | ------- | 
|                                |                                | June 30, 2005                        |   |        | June 30, 2004 | 
|                                |                                |                                      |   |        |               | 
|                                |                                | Amortized                            |   |        | Estimated     |  |   | Amortized |         |  | Estimated  |       
|                                |                                | Cost                                 |   |        | Fair Value    |  |   | Cost      |         |  | Fair Value |       
|                                |                                |                                      |   |        |               |  |   |           |         |  |            |       
|Available-for-sale investments: |                                |                                      |   |        |               |  |   |           |         |  |            |        |         |  |   |       
|                                | Due in one year or less        |                                      | $ | 12,596 |               |  | $ | 12,575    |         |  | $          | 24,956 |         |  | $ | 24,849 |        
|                                | Due in one year to five years  |                                      |   |       |               |  |   |          |         |  |            |       |         |  |   |       |        
|                                | Due in five years to ten years |                                      |   |       |               |  |   |          |         |  |            |       |         |  |   |       |        
|                                | Due after ten years            |                                      |   | 51,100 |               |  |   | 51,100    |         |  |            | 53,700 |         |  |   | 53,700 |        
|                                |                                |                                      |   |        |               |  |   |           |         |  |            |       
|                                |                                | Total available-for-sale investments |   |        | 63,696        |  |   |           | 63,675  |  |            |        | 78,656  |  |   |        | 78,549  | 
|                                |                                |                                      |   |        |               |  |   |           |         |  |            |       
|Held-to-maturity investments:   |                                |                                      |   |        |               |  |   |           |         |  |            |        |         |  |   |       
|                                | Due in one year or less        |                                      |   | 32,021 |               |  |   | 31,821    |         |  |            | 5,009  |         |  |   | 4,989  |        
|                                | Due in one year to five years  |                                      |   | 60,727 |               |  |   | 60,264    |         |  |            | 50,195 |         |  |   | 49,696 |        
|                                |                                |                                      |   |        |               |  |   |           |         |  |            |       
|                                |                                | Total held-to-maturity investments   |   |        | 92,748        |  |   |           | 92,085  |  |            |        | 55,204  |  |   |        | 54,685  | 
|                                |                                |                                      |   |        |               |  |   |           |         |  |            |       
|                                |                                | Total investments                    |   | $      | 156,444       |  |   | $         | 155,760 |  |            | $      | 133,860 |  |   | $      | 133,234 | 
|                                |                                |                                      |   |        |               |  |   |           |         |  |            |       



F-20



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|         |                                      
|-------- | -------------------------------------
|NOTE 4  | RESTRUCTURING COSTS AND OTHER CHARGES



|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  |   |         |  
|----------------------------------------------------------------------------------- |  | --------- | ------ | - | --------------- | ---------------- | ------- | ----------------- | ------------ | - | ----------------- | - |  | ----- | ---- | - |  | - | ------- | -
|                                                                                    |  |           |        |   |                 |                  |         | Impairment of     |              |   |                  
|                                                                                    |  |           |        |   |                 | Consolidation of |         |                   | Goodwill and |   |                   |  
|                                                                                    |  | Workforce |        |   | Excess Property |                  |         | Excess Facilities |              |   | Purchased         |   |  |      
|                                                                                    |  | Reduction |        |   | and Equipment   |                  |         | and Other Charges |              |   | Intangible Assets |   |  | Total |     
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Balance at June 30, 2002                                                            |  | $         | 880    |   |                 | $                |        |                   |              | $ | 8,799             |   |  | $     |     |   |  | $ | 9,679   |  
|Less: accrued restructuring costs, current                                          |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  |   | 4,355   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Accrued restructuring costs, non current                                            |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  | $ | 5,324   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Additional restructuring charge in the second and fourth quarter
    of fiscal 2003 |  |           | 1,831  |   |                 |                  | 10,724  |                   |              |   | 1,267             |   |  |       | 301  |   |  |   | 14,123  |  
|Non-cash charge                                                                     |  |           |       |   |                 |                  | (10,724 | )                 |              |   | 310               |   |  |       | (301 | ) |  |   | (10,715 | )
|Cash payments                                                                       |  |           | (2,535 | ) |                 |                  |        |                   |              |   | (6,062            | ) |  |       |     |   |  |   | (8,597  | )
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Balance at June 30, 2003                                                            |  |           | 176    |   |                 |                  |        |                   |              |   | 4,314             |   |  |       |     |   |  | $ | 4,490   |  
|Less: accrued restructuring costs, current                                          |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  |   | 3,018   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Accrued restructuring costs, non current                                            |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  | $ | 1,472   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Additional restructuring charge in the fourth quarter of fiscal
    2004            |  |           |       |   |                 |                  |        |                   |              |   | 452               |   |  |       |     |   |  |   | 452     |  
|Adjustment                                                                          |  |           | 99     |   |                 |                  |        |                   |              |   | (99               | ) |  |       |     |   |  |   |        |  
|Cash payments                                                                       |  |           | (275   | ) |                 |                  |        |                   |              |   | (2,768            | ) |  |       |     |   |  |   | (3,043  | )
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Balance at June 30, 2004                                                            |  |           |       |   |                 |                  |        |                   |              |   | 1,899             |   |  |       |     |   |  | $ | 1,899   |  
|Less: accrued restructuring costs, current                                          |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  |   | 1,795   |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Accrued restructuring costs, non current                                            |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |      |   |  | $ | 104     |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Cash payments                                                                       |  |           |       |   |                 |                  |        |                   |              |   | (1,836            | ) |  |       |     |   |  |   | (1,836  | )
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     
|Balance at June 30, 2005                                                            |  | $         |       |   |                 | $                |        |                   |              | $ | 63                |   |  | $     |     |   |  | $ | 63      |  
|                                                                                    |  |           |        |   |                 |                  |         |                   |              |   |                   |   |  |       |     





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Restructuring costs and other charges incurred during the
    year ended June 30, 2004



F-21



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Restructuring costs and other charges incurred during the
    year ended June 30, 2003





| |                              
| | -----------------------------
| | Worldwide workforce reduction





| |                                                                
| | ---------------------------------------------------------------
| | Excess property and equipment, facilities and other
    charges







| |                                                       
| | ------------------------------------------------------
| | Impairment of goodwill and purchased intangible assets



NOTE 5  ACQUISITIONS




F-22



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|                                    |                                              |           |     |       |         |   |       |         |  |   |       |       | 
|----------------------------------- | -------------------------------------------- | --------- | --- | ----- | ------- | - | ----- | ------- |  | - | ----- | ----- | 
|                                    |                                              | RedClover |     |       | Accumux |   |       | Gigabit | 
|                                    |                                              |           |     |       |         |   |       |         | 
|Cash                                |                                              | $         | 250 |       |         | $ |      |         |  | $ | 1,150 |      
|Value of securities issued          |                                              |           |    |       |         |   | 1,612 |         |  |   |      |      
|Transaction costs                   |                                              |           | 70  |       |         |   | 50    |         |  |   | 37    |      
|                                    |                                              |           |     |       |         |   |       |         | 
|                                    | Purchase price                               |           |     | 320   |         |   |       | 1,662   |  |   |       | 1,187 | 
|                                    | Liabilities assumed                          |           |     | 1,135 |         |   |       | 81      |  |   |       |      | 
|                                    |                                              |           |     |       |         |   |       |         | 
|                                    | Total purchase price and assumed liabilities |           | $   | 1,455 |         |   | $     | 1,743   |  |   | $     | 1,187 | 
|                                    |                                              |           |     |       |         |   |       |         | 
|Assets acquired:                    |                                              |           |     |       |         |   |       |         |  |   |       |      
|Cash and cash equivalents           |                                              | $         |    |       |         | $ | 1,054 |         |  | $ |      |      
|Inventories                         |                                              |           | 11  |       |         |   |      |         |  |   | 53    |      
|Fixed assets                        |                                              |           | 583 |       |         |   | 393   |         |  |   | 172   |      
|In-process research and development |                                              |           | 861 |       |         |   | 251   |         |  |   | 453   |      
|Patent                              |                                              |           |    |       |         |   | 45    |         |  |   |      |      
|Technology                          |                                              |           |    |       |         |   |      |         |  |   | 509   |      
|                                    |                                              |           |     |       |         |   |       |         | 
|                                    | Total                                        |           | $   | 1,455 |         |   | $     | 1,743   |  |   | $     | 1,187 | 
|                                    |                                              |           |     |       |         |   |       |         | 



F-23



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















|         |                                        
|-------- | ---------------------------------------
|NOTE 6  | BALANCE SHEET COMPONENTS (IN THOUSANDS)

|                                   |                                       |          |       |       |      |   |       |       |  
|---------------------------------- | ------------------------------------- | -------- | ----- | ----- | ---- | - | ----- | ----- | -
|                                   |                                       | June 30, |      
|                                   |                                       |          |      
|                                   |                                       | 2005     |       |       | 2004 |  
|                                   |                                       |          |       |       |      |  
|Accounts receivable, net:          |                                       |          |       |       |      |   |       |      
|                                   | Accounts receivable                   |          | $     | 7,271 |      |   | $     | 7,986 |  
|                                   | Less: Allowance for doubtful accounts |          |       | (144  | )    |   |       | (441  | )
|                                   |                                       |          |       |       |      |  
|                                   |                                       | $        | 7,127 |       |      | $ | 7,545 |      
|                                   |                                       |          |       |       |      |  
|Prepaid expenses and other assets: |                                       |          |       |       |      |   |       |      
|                                   | Prepaid expenses                      |          | $     | 1,970 |      |   | $     | 1,892 |  
|                                   | Assets held for sale                  |          |       | 460   |      |   |       | 922   |  
|                                   |                                       |          |       |       |      |  
|                                   |                                       | $        | 2,430 |       |      | $ | 2,814 |      
|                                   |                                       |          |       |       |      |  

F-24



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                    |                                                  |          |        |         |      |   |        |         |  
|----------------------------------- | ------------------------------------------------ | -------- | ------ | ------- | ---- | - | ------ | ------- | -
|                                    |                                                  | June 30, |       
|                                    |                                                  |          |       
|                                    |                                                  | 2005     |        |         | 2004 |  
|                                    |                                                  |          |        |         |      |  
|Inventories, net:                   |                                                  |          |        |         |      |   |        |        
|                                    | Raw materials                                    |          | $      | 11,895  |      |   | $      | 11,442  |  
|                                    | Work-in-process                                  |          |        | 4,656   |      |   |        | 4,289   |  
|                                    | Finished goods                                   |          |        | 1,285   |      |   |        | 2,894   |  
|                                    |                                                  |          |        |         |      |  
|                                    |                                                  |          | 17,836 |         |      |   | 18,625 |        
|                                    | Less: Reserves for excess and obsolete inventory |          |        | (10,837 | )    |   |        | (13,858 | )
|                                    |                                                  |          |        |         |      |  
|                                    |                                                  | $        | 6,999  |         |      | $ | 4,767  |        
|                                    |                                                  |          |        |         |      |  
|Property, plant and equipment, net: |                                                  |          |        |         |      |   |        |        
|                                    | Production and engineering equipment             |          | $      | 31,153  |      |   | $      | 33,356  |  
|                                    | Computer hardware and software                   |          |        | 6,207   |      |   |        | 5,970   |  
|                                    | Building and leasehold improvements              |          |        | 14,708  |      |   |        | 11,064  |  
|                                    | Land                                             |          |        | 1,949   |      |   |        |        |  
|                                    |                                                  |          |        |         |      |  
|                                    |                                                  |          | 54,017 |         |      |   | 50,390 |        
|                                    | Less: Accumulated depreciation and amortization  |          |        | (28,720 | )    |   |        | (23,964 | )
|                                    |                                                  |          |        |         |      |  
|                                    |                                                  | $        | 25,297 |         |      | $ | 26,426 |        
|                                    |                                                  |          |        |         |      |  



|                     |                                            |          |       |       |      |   |       |       | 
|-------------------- | ------------------------------------------ | -------- | ----- | ----- | ---- | - | ----- | ----- | 
|                     |                                            | June 30, |      
|                     |                                            |          |      
|                     |                                            | 2005     |       |       | 2004 |  
|                     |                                            |          |       |       |      |  
|Accrued liabilities: |                                            |          |       |       |      |   |       |      
|                     | Payroll and related expenses               |          | $     | 1,175 |      |   | $     | 938   | 
|                     | Accrued sales commission                   |          |       | 325   |      |   |       | 971   | 
|                     | Accrued warranty                           |          |       | 560   |      |   |       | 700   | 
|                     | Accrued restructuring costs                |          |       | 63    |      |   |       | 1,795 | 
|                     | Accrued professional fees                  |          |       | 1,062 |      |   |       | 642   | 
|                     | Remaining amounts payable for acquisitions |          |       | 33    |      |   |       | 750   | 
|                     | Other                                      |          |       | 2,826 |      |   |       | 2,294 | 
|                     |                                            |          |       |       |      |  
|                     |                                            | $        | 6,044 |       |      | $ | 8,090 |      
|                     |                                            |          |       |       |      |  



|         |                 
|-------- | ----------------
|NOTE 7  | ACCRUED WARRANTY



F-25



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                  |  |   |      |  
|------------------------------------------------------------------------------------------------- |  | - | ---- | -
|Balance at June 30, 2003                                                                          |  | $ | 700  |  
|Accruals for warranties issued during the year                                                    |  |   | 830  |  
|Adjustments related to pre-existing warranties including
    expirations and changes in estimates |  |   | (90  | )
|Cost of warranty repair                                                                           |  |   | (740 | )
|                                                                                                  |  |   |     
|Balance at June 30, 2004                                                                          |  |   | 700  |  
|Accruals for warranties issued during the year                                                    |  |   | 477  |  
|Adjustments related to pre-existing warranties including
    expirations and changes in estimates |  |   | (200 | )
|Cost of warranty repair                                                                           |  |   | (417 | )
|                                                                                                  |  |   |     
|Balance at June 30, 2005                                                                          |  | $ | 560  |  
|                                                                                                  |  |   |     



|         |             
|-------- | ------------
|NOTE 8  | INCOME TAXES





|                        |                                               |          |   |         |      |   |   |         |  
|----------------------- | --------------------------------------------- | -------- | - | ------- | ---- | - | - | ------- | -
|                        |                                               | June 30, |  
|                        |                                               |          |  
|                        |                                               | 2005     |   |         | 2004 |  
|                        |                                               |          |   |         |      |  
|Deferred tax assets:    |                                               |          |   |         |      |   |   |        
|                        | Net operating loss carryforwards              |          | $ | 42,372  |      |   | $ | 37,403  |  
|                        | Accruals and reserves                         |          |   | 8,305   |      |   |   | 14,282  |  
|                        | Research and development credit carryforwards |          |   | 4,727   |      |   |   | 4,676   |  
|                        |                                               |          |   |         |      |  
|                        | Gross deferred tax assets                     |          |   | 55,404  |      |   |   | 56,361  |  
|                        | Valuation allowance                           |          |   | (55,404 | )    |   |   | (56,361 | )
|                        |                                               |          |   |         |      |  
|Net deferred tax assets |                                               | $        |  |         |      | $ |  |        
|                        |                                               |          |   |         |      |  

F-26



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |  |          |     |    |      |  |     |      |  |  |     |   
|----------------------------------- |  | -------- | --- | -- | ---- |  | --- | ---- |  |  | --- | --
|                                    |  | June 30, |    
|                                    |  |          |    
|                                    |  | 2005     |     |    | 2004 |  |     | 2003 | 
|                                    |  |          |     |    |      |  |     |      | 
|Tax at federal statutory rate       |  |          | (34 | )% |      |  | (34 | )%   |  |  | (34 | )%
|State, net of federal benefit       |  |          | 15  |    |      |  | 19  |      |  |  | (2  | ) 
|Research credit carryforward        |  |          | (1  | )  |      |  | 1   |      |  |  | (1  | ) 
|Stock compensation                  |  |          | 2   |    |      |  | 10  |      |  |  | 2   |   
|In-process research and development |  |          |    |    |      |  | 1   |      |  |  |    |   
|Foreign rate differences            |  |          | 47  |    |      |  | 19  |      |  |  | 2   |   
|Increase in valuation allowance     |  |          | (29 | )  |      |  | (15 | )    |  |  | 33  |   
|Other                               |  |          |    |    |      |  | (1  | )    |  |  |    |   
|                                    |  |          |     |    |      |  |     |      | 
|Effective tax rate                  |  |          |    | %  |      |  |    | %    |  |  |    | % 
|                                    |  |          |     |    |      |  |     |      | 









|         |                     
|-------- | --------------------
|NOTE 9  | STOCKHOLDERS EQUITY



| |                  
| | -----------------
| | Authorized shares







| |                     
| | --------------------
| | Purchase Rights Plan



F-27



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                   
| | ------------------
| | Stock Option Plans





F-28



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                       |  |                  |            |           |             |          |            |          |  |   |        | 
|---------------------- |  | ---------------- | ---------- | --------- | ----------- | -------- | ---------- | -------- |  | - | ------ | 
|                       |  |                  |            |           |             | Weighted |           
|                       |  |                  |            | Number of |             |          | Average    |         
|                       |  | Shares Available |            |           | Options     |          |            | Exercise | 
|                       |  | for Grant        |            |           | Outstanding |          |            | Price    | 
|                       |  |                  |            |           |             |          |            |          | 
|Balance, June 30, 2002 |  |                  | 37,332,125 |           |             |          | 27,356,849 |          |  | $ | 2.4109 | 
|Options granted        |  |                  | (5,783,000 | )         |             |          | 5,783,000  |          |  |   | 0.6780 | 
|Options exercised      |  |                  |            |           |             |          | (5,658,644 | )        |  |   | 0.4691 | 
|Options canceled       |  |                  | 7,020,590  |           |             |          | (7,020,590 | )        |  |   | 3.3179 | 
|                       |  |                  |            |           |             |          |            |          | 
|Balance, June 30, 2003 |  |                  | 38,569,715 |           |             |          | 20,460,615 |          |  |   | 2.1599 | 
|Options granted        |  |                  | (4,746,700 | )         |             |          | 4,746,700  |          |  |   | 2.1118 | 
|Options exercised      |  |                  |            |           |             |          | (3,779,094 | )        |  |   | 0.8535 | 
|Options canceled       |  |                  | 1,633,891  |           |             |          | (1,633,891 | )        |  |   | 3.4471 | 
|                       |  |                  |            |           |             |          |            |          | 
|Balance, June 30, 2004 |  |                  | 35,456,906 |           |             |          | 19,794,330 |          |  |   | 2.2665 | 
|Options granted        |  |                  | (4,724,500 | )         |             |          | 4,724,500  |          |  |   | 1.5972 | 
|Options exercised      |  |                  |            |           |             |          | (274,866   | )        |  |   | 0.9517 | 
|Options canceled       |  |                  | 2,799,541  |           |             |          | (2,799,541 | )        |  |   | 2.6745 | 
|                       |  |                  |            |           |             |          |            |          | 
|Balance, June 30, 2005 |  |                  | 33,531,947 |           |             |          | 21,444,423 |          |  | $ | 2.0783 | 
|                       |  |                  |            |           |             |          |            |          | 

F-29



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                        |  |                                      |            |                |                 |  |          |                    |  |   |             |          |  |          |            |  |  |   |         | 
|----------------------- |  | ------------------------------------ | ---------- | -------------- | --------------- |  | -------- | ------------------ |  | - | ----------- | -------- |  | -------- | ---------- |  |  | - | ------- | 
|                        |  |                                      |            |                |                 |  |          | Options Vested and | 
|                        |  |                                      |            | Exercisable at |                
|                        |  | Options Outstanding at June 30, 2005 |            |                | June 30, 2005   | 
|                        |  |                                      |            |                |                 | 
|                        |  |                                      |            | Weighted       |                 |  |          |                    | 
|                        |  |                                      |            | Average        |                 |  | Weighted |                    |  |   |             | Weighted | 
|                        |  |                                      |            | Remaining      |                 |  | Average  |                    |  |   |             | Average  | 
|                        |  | Number                               |            |                | Contractual     |  |          | Exercise           |  |   | Number      |          |  | Exercise |           
|Range of Exercise Price |  | Outstanding                          |            |                | Life (in Years) |  |          | Price              |  |   | Outstanding |          |  | Price    |           
|                        |  |                                      |            |                |                 |  |          |                    |  |   |             |          |  |          |           
|$ 0.0125 - $2.4500      |  |                                      | 15,280,027 |                |                 |  | 7.6      |                    |  | $ | 1.1690      |          |  |          | 8,559,882  |  |  | $ | 1.0086  | 
|$ 2.4501 - $4.9000      |  |                                      | 3,227,296  |                |                 |  | 6.5      |                    |  |   | 2.6738      |          |  |          | 2,496,264  |  |  |   | 2.7201  | 
|$ 4.9001 - $7.3500      |  |                                      | 2,665,600  |                |                 |  | 5.1      |                    |  |   | 5.3684      |          |  |          | 2,665,600  |  |  |   | 5.3684  | 
|$ 7.3501 - $9.8000      |  |                                      | 84,000     |                |                 |  | 5.2      |                    |  |   | 8.9732      |          |  |          | 84,000     |  |  |   | 8.9732  | 
|$ 9.8001 - $12.250      |  |                                      |           |                |                 |  |         |                    |  |   |            |          |  |          |           |  |  |   |        | 
|$12.2501 - $14.700      |  |                                      | 2,000      |                |                 |  | 5.6      |                    |  |   | 12.5625     |          |  |          | 2,000      |  |  |   | 12.5625 | 
|$14.7001 - $17.150      |  |                                      | 130,500    |                |                 |  | 5.3      |                    |  |   | 15.0000     |          |  |          | 130,500    |  |  |   | 15.0000 | 
|$17.1501 - $19.600      |  |                                      | 40,000     |                |                 |  | 5.5      |                    |  |   | 18.1875     |          |  |          | 40,000     |  |  |   | 18.1875 | 
|$19.6001 - $22.050      |  |                                      | 15,000     |                |                 |  | 5.6      |                    |  |   | 19.9375     |          |  |          | 15,000     |  |  |   | 19.9375 | 
|                        |  |                                      |            |                |                 |  |          |                    |  |   |             |          |  |          |           
|                        |  |                                      | 21,444,423 |                |                 |  | 7.1      |                    |  | $ | 2.0783      |          |  |          | 13,993,246 |  |  | $ | 2.3938  | 
|                        |  |                                      |            |                |                 |  |          |                    |  |   |             |          |  |          |           



| |                 
| | ----------------
| | Notes Receivable





F-30



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                           
| | --------------------------
| | Repurchase of Common Stock





| |                                  
| | ---------------------------------
| | 2000 Employee Stock Purchase Plan



NOTE 10  RELATED PARTY TRANSACTIONS




| |                          
| | -------------------------
| | Investor Rights Agreement





| |                           
| | --------------------------
| | Indemnification Agreements





| |                
| | ---------------
| | Loan to Officer



F-31



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                   
| | ------------------
| | Sales to Investors







| |                       
| | ----------------------
| | Purchases From Vendors







| |                           
| | --------------------------
| | Repurchase of Common Stock



NOTE 11  COMMITMENTS AND CONTINGENCIES




| |               
| | --------------
| | Line of Credit





| |                     
| | --------------------
| | Purchase Obligations



F-32



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                 
| | ----------------
| | Operating Leases



|                     |  |   |     | 
|-------------------- |  | - | --- | 
|Year Ending June 30, |  |   |     | 
|2006                 |  | $ | 290 | 
|2007                 |  |   | 231 | 
|2008                 |  |   | 247 | 
|2009                 |  |   | 42  | 
|                     |  |   |    
|                     |  | $ | 810 | 
|                     |  |   |    





| |           
| | ----------
| | Litigation

In re
Oplink Communications, Inc. Initial Public Offering Securities
Litigation






F-33



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|          |                  
|--------- | -----------------
|NOTE 12  | SEGMENT REPORTING





|          |               |                      |   |        |        |  |   |        |        |  |   |       |        | 
|--------- | ------------- | -------------------- | - | ------ | ------ |  | - | ------ | ------ |  | - | ----- | ------ | 
|          |               | Years Ended June 30, |  
|          |               |                      |  
|          |               | 2005                 |   |        | 2004   |  |   | 2003   |       
|          |               |                      |   |        |        |  |   |        |       
|Revenues: |               |                      |   |        |        |  |   |        |        |  |   |      
|          | United States |                      | $ | 5,323  |        |  | $ | 3,534  |        |  | $ | 9,751 |       
|          | Europe        |                      |   | 6,905  |        |  |   | 6,063  |        |  |   | 4,308 |       
|          | Asia          |                      |   | 11,255 |        |  |   | 8,998  |        |  |   | 7,244 |       
|          | Canada        |                      |   | 10,872 |        |  |   | 15,733 |        |  |   | 1,440 |       
|          |               |                      |   |        |        |  |   |        |       
|          |               | Totals               |   | $      | 34,355 |  |   | $      | 34,328 |  |   | $     | 22,743 | 
|          |               |                      |   |        |        |  |   |        |       

F-34



---



##### Table of Contents



OPLINK COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                           |        |          |        |        |      |   |        |        | 
|-------------------------- | ------ | -------- | ------ | ------ | ---- | - | ------ | ------ | 
|                           |        | June 30, |       
|                           |        |          |       
|                           |        | 2005     |        |        | 2004 |  
|                           |        |          |        |        |      |  
|United States              |        | $        | 7,037  |        |      | $ | 4,500  |       
|Peoples Republic of China |        |          | 18,260 |        |      |   | 21,926 |       
|                           |        |          |        |        |      |  
|                           | Totals |          | $      | 25,297 |      |   | $      | 26,426 | 
|                           |        |          |        |        |      |  

NOTE 13  401(K) PLAN




F-35



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON


FINANCIAL STATEMENT SCHEDULE










| |                           
| | --------------------------
| | PricewaterhouseCoopers LLP





F-36



---



##### Table of Contents



Schedule II


Oplink Communications, Inc.


Valuation and Qualifying Accounts


For the Years ended June 30, 2005, 2004 and 2003


|                                |                          |                |   |        |            |  |   |               |   |            |             |        |  |  |   |        | 
|------------------------------- | ------------------------ | -------------- | - | ------ | ---------- |  | - | ------------- | - | ---------- | ----------- | ------ |  |  | - | ------ | 
|                                |                          | Balance at     |   |        | Charged to |  |   |               |   |           
|                                |                          | Beginning      |   |        | Costs and  |  |   |               |   | Balance at |            
|                                |                          | of Year        |   |        | Expenses   |  |   | Deductions(1) |   |            | End of Year |       
|                                |                          |                |   |        |            |  |   |               |   |            |             |       
|                                |                          | (In thousands) |  
|Allowance for doubtful accounts |                          |                |   |        |            |  |   |               |   |            |             |        |  |  |   |       
|                                | Year Ended June 30, 2005 |                | $ | 441    |            |  | $ | (147          | ) |            | $           | 150    |  |  | $ | 144    | 
|                                | Year Ended June 30, 2004 |                | $ | 598    |            |  | $ | 22            |   |            | $           | 179    |  |  | $ | 441    | 
|                                | Year Ended June 30, 2003 |                | $ | 704    |            |  | $ | 62            |   |            | $           | 168    |  |  | $ | 598    | 
|Inventory reserve               |                          |                |   |        |            |  |   |               |   |            |             |        |  |  |   |       
|                                | Year Ended June 30, 2005 |                | $ | 13,858 |            |  | $ | 551           |   |            | $           | 3,572  |  |  | $ | 10,837 | 
|                                | Year Ended June 30, 2004 |                | $ | 18,442 |            |  | $ | 303           |   |            | $           | 4,887  |  |  | $ | 13,858 | 
|                                | Year Ended June 30, 2003 |                | $ | 35,601 |            |  | $ |              |   |            | $           | 17,159 |  |  | $ | 18,442 | 
|Accrued restructuring costs     |                          |                |   |        |            |  |   |               |   |            |             |        |  |  |   |       
|                                | Year Ended June 30, 2005 |                | $ | 1,899  |            |  | $ |              |   |            | $           | 1,836  |  |  | $ | 63     | 
|                                | Year Ended June 30, 2004 |                | $ | 4,490  |            |  | $ | 452           |   |            | $           | 3,043  |  |  | $ | 1,899  | 
|                                | Year Ended June 30, 2003 |                | $ | 9,679  |            |  | $ | 12,167        |   |            | $           | 17,356 |  |  | $ | 4,490  | 
|Product returns                 |                          |                |   |        |            |  |   |               |   |            |             |        |  |  |   |       
|                                | Year Ended June 30, 2005 |                | $ | 332    |            |  | $ | 58            |   |            | $           |       |  |  | $ | 390    | 
|                                | Year Ended June 30, 2004 |                | $ | 200    |            |  | $ | 132           |   |            | $           |       |  |  | $ | 332    | 
|                                | Year Ended June 30, 2003 |                | $ | 574    |            |  | $ | (47           | ) |            | $           | 327    |  |  | $ | 200    | 






|    |                                                                                                
|--- | -----------------------------------------------------------------------------------------------
|(1) | Deductions represent costs charged or amounts written off
    against the reserve or allowance.

F-37



---



##### Table of Contents






Exhibit Index


|            |    |             |  |                                                                                                                                                                                                          
|----------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |    | Description
|            |    |            
|            | 3  | .1(1)       |  | Amended and Restated Certificate of Incorporation of Oplink.                                                                                                                                             
|           
|            | 3  | .2(1)       |  | Bylaws of Oplink.                                                                                                                                                                                        
|           
|            | 3  | .3(2)       |  | Certificate of Designation of Series A Junior Participating
    Preferred Stock.                                                                                                                         
|           
|            | 4  | .1(1)(2)    |  | Reference is made to Exhibits 3.1, 3.2 and 3.3.                                                                                                                                                          
|           
|            | 4  | .2(1)       |  | Third Amended and Restated Rights Agreement, dated as of
    February 7, 2000 by and among Oplink and the investors
    listed on Exhibit A attached thereto.                                            
|           
|            | 4  | .3(2)       |  | Rights Agreement, dated as of March 18, 2002, between
    Oplink Communications, Inc. and The Bank of New York.                                                                                          
|           
|            | 10 | .2(1)       |  | State-owned Land Use Rights Assignment Contract dated
    May 16, 2000 by and between Oplink Communications Inc. and
    Zhuhai Bonded Area Management Committee.                                        
|           
|            | 10 | .3(1)       |  | Sublease Agreement dated February 29, 2000 by and among
    Wyse Technology Inc. and Oplink and Wyse Technology Investments
    Inc.                                                                     
|           
|            | 10 | .4(1)       |  | Amended and Restated Lease Agreement dated March 19, 1993
    by and between Wyse Technology Investments, Inc. and Wyse
    Technology, Inc.                                                             
|           
|            | 10 | .5(1)       |  | Amendment No. 1 to Sublease Agreement dated April 14,
    2000 and Amendment No. 2 dated September 1, 2000 by
    and among Oplink, Wyse Technology Inc. and Wyse Technology
    Investments Inc.        
|           
|            | 10 | .6(1)(5)    |  | Oplinks 2000 Equity Incentive Plan.                                                                                                                                                                     
|           
|            | 10 | .7(1)(5)    |  | Oplinks 2000 Employee Stock Purchase Plan.                                                                                                                                                              
|           
|            | 10 | .8(1)(5)    |  | Oplinks 1995 Stock Plan.                                                                                                                                                                                
|           
|            | 10 | .9(1)(5)    |  | Oplinks 1998 Stock Plan.                                                                                                                                                                                
|           
|            | 10 | .10(1)(5)   |  | Oplink Form of Indemnity Agreement.                                                                                                                                                                      
|           
|            | 10 | .14(3)(5)   |  | Form of Stock Option Agreement between Oplink and Chieh Chang,
    Herbert Chang and Leonard LeBlanc.                                                                                                    
|           
|            | 10 | .22(4)(5)   |  | Amended and Restated Executive Corporate Event Agreement, dated
    February 20, 2003, by and between the Registrant and Bruce
    Horn.                                                                 
|           
|            | 10 | .24(4)(5)   |  | Executive Corporate Event Agreement, dated February 24,
    2003, by and between the Registrant and River Gong.                                                                                          
|           
|            | 10 | .25(4)(5)   |  | Executive Corporate Event Agreement, dated March 21, 2003,
    by and between the Registrant and Joseph Y. Liu.                                                                                          
|           
|            | 10 | .27(5)(6)   |  | Consulting Agreement dated as of January 17, 2004, by and
    between the Registrant and Allen Hsu.                                                                                                      
|           
|            | 10 | .29(7)      |  | Building Purchase Agreement dated April 15, 2004 by and
    between the Registrant and Dianne S. Gagos &
    Mitchell S. Gagos, Trustees, The Dianne S. Gagos Survivors
    Trust, U/ I/ D April 8, 1992.
|           
|            | 10 | .30         |  | Amendment to Amended and Restated Executive Corporate Event
    Agreement between the Registrant and Bruce Horn, dated
    August 14, 2003.                                                              
|           
|            | 10 | .31         |  | Amendment to Executive Corporate Event Agreement between the
    Registrant and River Gong, dated August 14, 2003.                                                                                       
|           
|            | 21 | .1          |  | Subsidiaries of Oplink.                                                                                                                                                                                  
|           
|            | 23 | .1          |  | Consent of Burr, Pilger & Mayer LLP.                                                                                                                                                                     
|           
|            | 23 | .2          |  | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                   
|           
|            | 24 | .1          |  | Power of Attorney is contained on the Signatures page.                                                                                                                                                   
|           
|            | 31 | .1          |  | Certification of Chief Executive Officer Required under
    Rule 13a-14(a) or Rule 15d-14(a) of the Securities
    Exchange Act of 1934, as amended.                                                     
|           
|            | 31 | .2          |  | Certification of Chief Financial Officer Required under
    Rule 13a-14(a) or Rule 15d-14(a) of the Securities
    Exchange Act of 1934, as amended.                                                     



---



##### Table of Contents



|            |    |             |  |                                                                                                                                                                                                                                                      
|----------- | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |    | Description
|            |    |            
|           
|            | 32 | .1*         |  | Certification of Chief Executive Officer Required under
    Rule 13a-14(b) or Rule 15d-14(b) of the Securities
    Exchange Act of 1934, as amended, and 18 U.S.C.
    Section 1350.                                                                 
|           
|            | 32 | .2*         |  | Certification of Financial Officer Required under
    Rule 13a-14(b) or Rule 15d-14(b) of the Securities
    Exchange Act of 1934, as amended, and Section 1350 of
    Chapter 63 of Title 18 of the United States Code
    (18 U.S.C. Section 1350).








|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Previously filed as an Exhibit to the Registrants
    Registration Statement on Form S-1 No. 333-41506, as
    amended, filed on September 20, 2000 and incorporated
    herein by reference.
|   
|(2) | Previously filed as an Exhibit to the Registrants Report
    on Form 8-K filed on March 22, 2002 and incorporated
    herein by reference.                                                   
|   
|(3) | Previously filed as an Exhibit to the Registrants Annual
    Report on Form 10-K filed on September 30, 2002 and
    incorporated herein by reference.                                       
|   
|(4) | Previously filed as an Exhibit to the Registrants
    Quarterly Report on Form 10-Q filed on filed on
    May 13, 2003 and incorporated herein by reference.                                 
|   
|(5) | Management contract or compensatory plan or arrangement.                                                                                                                                      
|   
|(6) | Previously filed as an Exhibit to the Registrants
    Quarterly Report on Form 10-Q filed on May 11, 2004
    and incorporated herein by reference.                                          
|   
|(7) | Previously filed as an Exhibit to the Registrants Annual
    Report on Form 10-K filed on September 10, 2004 and
    incorporated herein by reference.                                       



| |   |                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | The certifications attached as Exhibits 32.1 and 32.2
    accompany this Annual Report on Form 10-K pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 and shall not
    be deemed filed by Oplink for purposes of
    Section 18 of the Securities Exchange Act of 1934, as
    amended.