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20 February 2008


3S reports positive EBITDA as revenue triples year-on-year

Just eight months after its divestiture last April by Avanex Corp, telecom laser chip and module maker 3S Photonics of Essonne near Paris (formerly Alcatel Optronics then Avanex France) has reported a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) of over $230,000 for its second-quarter 2007/2008 (to end-December 2007). This compares with a negative EBITDA of $1.2m the prior quarter and $3.5m a year ago (considering the post-divestiture product portfolio only).

Revenue was more than $10m, up 22% on the prior quarter and up three-fold year-on-year. Growth is due partly to the upswing of the submarine market and soaring sales in pump laser modules and filters using fiber Bragg gratings (FBG). Income from these strategic components has multiplied four-fold over the last three quarters. 3S says that the results can also be explained by good sales of the LDM product line – including transmission laser modules – as well as the introduction of new products.

In addition, restructuring actions and the cost reduction plan carried out by the new management team have led to a 10% reduction in fixed costs over the last 12 months.

“Since the acquisition of 3S Photonics in April 2007, the financial situation of the company is getting back into shape,” says chairman and CEO Alexandre Krivine. Every profitability indicator is gradually turning positive, he adds. The recovery should carry on into the coming months, due to a solid backlog and the recent introduction of new products, including terrestrial pump laser modules, he reckons.

See related items:

Avanex files complaint against 3S and cuts guidance

3S enters terrestrial pump laser module market

3S Photonics heads into profit as it cuts costs and launches new products

3S Photonics launched on completion of Avanex France sale

Avanex France to become 3S Photonics

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