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17 September 2008


3S grows more-than-expected 87% in fiscal 2008

For fiscal 2008 (to end June), telecom laser chip and module maker 3S Photonics of Nozay (Essonne near Paris), France, a manufacturer of laser chips, optical discrete modules and components for telecom networks, has reported revenue of €27.9m (exceeding the forecast of €24-27m). This is up 87% on fiscal 2007's €14.9m (considering only the product portfolio after Alexandre Krivine and Didier Sauvage acquired what was Avanex France SA in April 2007 from Avanex Corp, which in 2003 had acquired what was then Alcatel Optronics).

3S attributes the increase to organic growth of almost 15% in the optoelectronics market, coupled with the firm's launch of innovative new products. Some products have been designed especially to meet the needs of submarine communications market, which 3S says is currently booming. Sales of these highly strategic components - pump laser modules, filters based on fiber Bragg gratings (FBGs), and photo-detectors - grew three- or four-fold in fiscal 2008. The terrestrial pump laser module market has followed suit, with the launch of a complete line of 980nm-wavelength products contributing to growth, along with transmission laser modules.

This organic growth has been complemented by the launch of collaborative French and European R&D projects. During fiscal 2008, 3S won two major contracts: one with the French Ministry of Defense for the development of laser modules with high optical power and low noise; plus the '6_POD project', dedicated to the development of photonic integrated circuits (PICs) for broadband networks.

Fiscal 2008's operating income was €2.118m compared with fiscal 2007's loss of €7.029m. EBITDA (earnings before interest, taxes, depreciation, and amortization) reached €2.672m, compared with a loss of €5.627m. Net income has grown from €0.748m to €2.075m.

Restructuring and cost-reduction, coupled with the significant organic growth, have helped 3S to quickly achieve its goal of returning to operating profitability, according to chairman & CEO Alexandre Krivine.

3S is expecting to increase revenue by about 20% over the next fiscal year, building on continued organic growth driven by renewal of the firm's product portfolio. "In the medium term, we plan to double our annual revenues through external growth operations,” concludes Krivine.

See related item:

3S and Avanex settle contractual disputes

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