11 April 2011

Opnext’s revenue down 1.8% after module assembly stoppage

Optical module and component maker Opnext Inc of Fremont, NJ, USA says that for its fiscal fourth-quarter 2011 (to end March) it expects revenue of about $95.3m, up 24% on $76.8m a year ago but down 1.8% on $97.1m last quarter.

It is also down on original guidance of $97–102m, but this is attributed to a 10-day interruption in module manufacturing operations in Japan following the earthquake and tsunami on 11 March.

The module assembly facility in Totsuka suffered minor disruption but, while shipments of subassemblies to contract manufacturers and shipments of finished goods to customers from inventory each resumed on 18 March, production was not reinstated until 21 March.

The chip production facility in Totsuka suffered minor damage which has been repaired, and the firm is in the process of recalibrating and verifying proper operation of the equipment prior to restarting full production, which is expected by the end of April.

Opnext’s industrial and commercial production facility in Komoro was undamaged and production there resumed shortly after the earthquake. The facility is also being used to process pre-existing wafers from the Totsuka chip fab pending full restoration of operations there.

Opnext says that it is also continuing to work with suppliers affected by the earthquake and tsunami (and related follow-on events) to address component availability and, in certain instances, it is exploring alternative sources of supply. In addition, it continues to be impacted by the planned power outages in the Totsuka area and it is in the process of installing backup power capability to permit continuous operation.

The firm cautions that its anticipated revenue for fiscal Q4 is preliminary and remains subject to completion of the financial statements (and is hence subject to change).
Opnext will review its full fiscal Q4 and full-year results in May.

See related items:

Opnext grows for fourth consecutive quarter to record $97.1m

Opnext reports higher-than-expected growth, to quarterly record of $86.4m

Opnext’s growth limited by supply constraints

Opnext to burn cash for next two quarters whilst increasing capacity

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