2 November 2012

GigOptix reports quarterly revenue up 5% to record $10.1m

For third-quarter 2012, GigOptix Inc of San Jose, CA, USA (a fabless supplier of analog semiconductor and optical components enabling high-speed end-to-end information streaming over optical fiber and wireless networks) has reported a 12th consecutive quarter of sequential growth in product revenue, to a record $10.1m. This is up 5% on $9.6m last quarter and up 20% on $8.4m a year ago.

On a non-GAAP basis (excluding $253,000 in amortization of intangible assets, $1.2m in stock-based compensation and $576,000 in special litigation-related expenses), gross margin was 54%, level with last quarter but down on 60% a year ago. However, net income was $563,000, compared with net income of $385,000 last quarter and a net loss of $712,000 a year ago. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) has risen from $289,000 a year ago and $1.2m last quarter to $1.3m. However, during the quarter, cash and cash equivalents fell further, from $12.9m to $12.3m.

“The strong third quarter financial results, which included record quarterly revenue, continuing improvement in non-GAAP earnings and adjusted EBITDA, and most importantly generating positive cashflow from operations, reflect our continued growth in several key areas of our business,” says chairman & CEO Dr Avi Katz. “Leading the sequential gains was the ongoing growth in our optics product line, particularly with our high-speed 100Gbps and optical interconnect offerings,” he adds. “We also experienced a nice uptick in our RF/MMIC business over the prior quarter due to an increase in market interest for our recently introduced E-band offering.” 

“While we are very satisfied with our market penetration and customer’s adoption of new products, there is a higher level of uncertainty in the macroeconomic environment, increasing lack of visibility, and exceptionally short lead-times, mainly in the high-speed optical communications markets, than what we have seen in previous quarters,” says senior VP & chief financial officer Curt Sacks. “Therefore, we currently believe our revenue in the fourth quarter will be roughly in-line with the third quarter, as there are enough data-points in the market that require us to be cautious with our near-term outlook,” he adds.

Update on litigation against M/A-Com Tech (Optomai)

GigOptix says that it continues to actively prosecute the lawsuit for misappropriation of confidential information and trade secrets against its former employees, Optomai Inc (a fabless semiconductor firm that develops ICs and modules for 40Gbps and 100Gbps fiber-optic networks), and parent firm M/A-COM Technology Solutions Inc of Lowell, MA, USA (which makes semiconductors, components, and subassemblies for RF, microwave and millimeter-wave applications). GigOptix says it has been engaged in discovery (including forensic work), which has produced evidence that the individuals copied GigOptix files when they left and then used them to develop products of the corporate defendants. GigOptix is continuing to move the case towards a trial on its claims against the defendants.

“We look forward to putting the evidence regarding the conduct and actions of the defendants before a jury and judge in ‘an adjudication of the merits’ at trial,” says Katz. “A trial date has not been set and we have no estimate as of today when the court will set a trial date,” he adds.

See related items:

GigOptix’s revenue grows 5% in Q2 to record $9.6m

GigOptix grows product revenue for 10th quarter

GigOptix reports record revenue after 37% growth in 2011

GigOptix grows 10% in Q3 to record $8.4m revenue

GigOptix product revenue rises 8% in Q2 to record $7.6m

GigOptix’s product revenue rises 7% in Q1 to record $7.1m

Tags: GigOptix

Visit: www.gigoptix.com