14 February 2014

GigOptix's Q4 revenue grows more-than-expected 7% sequentially to $7.8m

For fourth-quarter 2013, GigOptix Inc of San Jose, CA, USA (a fabless supplier of analog semiconductor and optical communications components for fiber-optic and wireless networks) has reported revenue of $7.8m, up 10% on $7.1m (excluding $0.9m from government contracts) a year ago and up 7% on $7.3m last quarter (above the guidance of 5% growth, led by a nearly 40% increase in datacom-related revenue and a near doubling in E-band product sales).

For full-year 2013, revenue has fallen 21% from $36.7m in 2012 to $28.9m, due mainly to the decline in end-of-life (EOL) related sales from the firm’s ASIC and RF product groups (relating to the acquisitions of Santa Clara-based ChipX Inc in 2009 and San Jose-based Endwave Corp in 2011, respectively) as well as the government contract revenue in Q4/2012.

On a non-GAAP basis, Q4 gross margin was 60% (at or above 60% for the fifth consecutive quarter). Full-year gross margin has risen from 56% in 2012 to 63% in 2013.

Q4 net income was $0.1m, compared with net losses of $0.7m last quarter and $0.1m a year ago. Full-year net loss was $0.4m, compared with net income of $0.4m in 2012. Full-year adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) has fallen from $3.6m in 2012 to $2.4m in 2013. However, adjusted EBITDA in Q4/2013 was $0.9m, up on $0.1m last quarter and $0.7m a year ago.

At the end of December, cash and cash equivalents were $20.4m, with no debt outstanding. This compares with $9.3m (excluding $6m drawn from the firm’s line of credit) at the end of September.

“We had a very strong finish to fiscal 2013, with fourth quarter revenue growing 7% sequentially, on top of the 7% sequential growth we recorded in the prior quarter, and returning to non-GAAP profitability,” comments chairman & CEO Dr Avi Katz.

In late December, GigOptix completed a stock offering that raised about $13.6m (before expenses). “We expect to use these additional funds for possible strategic alternatives, and to accelerate our strategic R&D initiatives as we look to bring several products to market in 2014,”says Katz. “This includes extending our leadership offering in the 100Gbps coherent telecom market, expanding our delivery of 40Gbps and 100Gbps devices for data-center connectivity, and our new offering for natural interfaces, gesture tracking and other advanced application devices for the consumer market,” he adds. “When taken together, I am confident this year we will deliver meaningful revenue growth over 2013.”

GigOptix has also entered the silicon photonics arena through a definitive agreement with Brazil-based optical communications R&D organization CPqD to form the joint venture BrPhotonics Produtos Optoeletrônicos LTDA in Brazil. “This mutually exclusive partnership leverages GigOptix’s small-form-factor Thin Film Polymer on Silicon (TFPS) modulation devices expertise, and CPqD’s Silicon Photonics (SiPh) based product expertise,” says Katz. “We expect BrPhotonics will provide advanced high-speed components for optical communications utilizing silicon photonics and Thin Film Polymer on Silicon technologies to advance the development and deployment of 100Gbps-1Tbps fiber-optic long-haul, metro links and Cloud-connectivity in the next-generation CFP2 and CFP4 applications,” he adds. “With GigOptix being the exclusive worldwide sales agent for BrPhotonics, we believe that this progressive business arrangement will significantly enhance our product portfolio and enable us to bring those products to our customers in the fastest and most cost-effective manner,” Katz continues.

“As is traditionally the case in the first quarter of our fiscal year, we expect revenue will decline due to the normal seasonal pricing reductions that occur in our High-Speed Communications business,” notes Katz. For Q1/2014, GigOptix expects revenue of $7.2m (up 4% year-on-year, but down 8% on last quarter), reflecting normal seasonal trends impacting the served optics markets. “It is our current belief that, after the first quarter, revenue will grow steadily over the rest of the fiscal year and increase over 2013 levels,” says senior VP & chief financial officer Curt Sacks.

See related items:

GigOptix and CPqD form joint venture BrPhotonics in Brazil

GigOptix’s revenue rebounds by more-than-expected 7% in Q3 to $7.3m

GigOptix reports Q2 revenue down 29% year-on-year but level with Q1

GigOptix’s optical component revenue grows 25% in Q1

GigOptix reports first year of annual net income, driven by 60% growth in optical revenue

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