News

11 August 2008

 

Opnext grows 15.8% sequentially to record $84.2m revenue

For its fiscal first-quarter 2009 (to end June), optical module and component manufacturer Opnext Inc of Eatontown, NJ, USA has reported record revenue of $84.2m, up 24.2% on $67.8m a year ago and 15.8% on $72.7m last quarter, and above its guidance (given in May) of $74-77m. This has been driven by broad-based growth across most communication product lines, including XFP, XENPAK, X2, SFP and 300-pin tunable form factors (offsetting a year-on-year drop in demand for 300-pin fixed-wavelength modules).

In particular, sales of 10Gb/s and above products grew sequentially 15.5% to $69.4m, while sales of less than 10Gb/s products grew 17.1% to $9.6m, and industrial and commercial product sales grew 18.2% to $5.2m.

Cisco and Alcatel-Lucent represented 44.3% and 10.2% of total sales, respectively, down from 45.7% and 14.3% last quarter. Diversification improved as sales to other top-ten customers (including Juniper, Hitachi, Huawei and Fujitsu) grew 58% sequentially to 31% of total revenue.

Operating income was $2.2m, compared to an operating loss of $0.8m last quarter. Net income was $2.6m, up on $0.9m last quarter.

“Last quarter we stated that we were well-positioned to continue our growth in the 10G and 40G markets in fiscal 2009, while expanding our 40G portfolio to address broader applications,” says president and CEO Harry Bosco. “Our record top-line performance in the first quarter demonstrates our growth potential and speaks to the strength we are seeing across our customer base,” he adds.

“Over the last couple quarters, we have noted several reasons for cautious optimism,” Bosco continues. “Our near-term outlook has not changed, despite the strong growth experienced in the June quarter. While we believe the growth in broadband applications will drive growth in our business into the future, we continue to see fluctuations in customer spending in any given quarter due to their customers’ spending patterns,” he adds. For its fiscal second-quarter 2009 (to end-September 2008), Opnext expects revenue to be flat to slightly up on fiscal Q1, at $84-87m.

*On 9 July, in a move to expand its 40Gb/s portfolio and address broader network applications, Opnext announced an agreement to acquire StrataLight Communications Inc of Los Gatos, CA, USA. Completion of the proposed deal is expected in the December quarter. The combination of Opnext’s device and module technology with StrataLight’s subsystem expertise will create new opportunities in the 40Gb/s arena and accelerate development of Opnext’s 100Gb/s product family, reckons Bosco.

See related items:

Opnext to acquire StrataLight

Opnext revenues rebound from December-quarter dip

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