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5 November 2007


Opnext grows 38% year-on-year, driven by 10Gb/s

For its fiscal second-quarter 2008 (to end-September 2007), optical communications module and component maker Opnext Inc of Eatontown, NJ, USA has reported its fifth consecutive quarter of increased sales and profitability.

Revenue was $76.6m, up 38.4% on $55.3m a year ago and 12.9% on $67.8m last quarter, mainly due to increased sales of 40Gb/s, 10Gb/s and 1 Gigabit Ethernet products. Sales to Cisco and Alcatel-Lucent were 40.9% and 23.0% of total sales (compared to 35% and 23%, respectively, last quarter).

Sales of 10Gb/s and above products were $63.5m, up 48.0% on $42.9m a year ago and up 13.9% on $55.8m last quarter, mainly due to strong demand for 40Gb/s, X2 and 300-pin fixed wavelength and tunable products.

Sales of less than 10Gb/s products were $8.2m, up 25.9% on $6.5m a year ago and up 11.7% on $7.3m last quarter.

Sales of industrial and commercial product were $4.8m, up 32.9% on $3.6m a year ago and up 1.7% on last quarter’s $4.7m.

“The environment remains strong and we continue to be encouraged by the overall acceleration of broadband applications globally, which is driving the need for high-speed optical networks,” says president and CEO Harry Bosco. “This continues to translate into broad-based demand and high levels of interest from our core customer base.”

Net income was $5.8m, up from $1.2m a year ago but down on $6.7m last quarter. Cash and cash equivalents rose by $2.8m to $202.4m, as $4.2m of cash from operations was partially offset by additional investments to expand manufacturing capacity.

“The 40Gb/s capacity expansion completed last quarter allowed us to clear out prior quarter backlog and meet current demand,” says Bosco. “As certain of our key customers continued to implement their vendor-managed inventory programs, we successfully managed the transition with minimal impact to our business,” he adds. “R&D investments were focused on the development and qualification of new products addressing the 40Gb/s, 10 Gigabit Ethernet, and DWDM markets, as well as on our continuous product cost-reduction programs.”

For its fiscal third-quarter 2008 (to end-December 2007), Opnext expects revenue to grow to $77-80m, consistent with its aim to grow at least as fast as the market annually.

See related items:

Opnext’s sales for 10-40Gbps products rise 88% year-on-year

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