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21 September 2007


Optium’s Q4 revenues drop 22.5% sequentially; Q1 rebound expected

Optical subsystems supplier Optium Corp of Horsham, PA, USA recorded fiscal 2007 revenue of $125.5m, up 80.6% on fiscal 2006’s $69.5m due to sales of its existing telecoms and cable TV products, as well as its new ROADM (reconfigurable optical add/drop multiplexer) products (introduced in Q2/2007). Net income was $11.3m, compared to fiscal 2006’s net loss of $8.1m.

However, in Q4/2007, revenues of $26.8m was down 22.5% on Q3’s $34.5m. On a non-GAAP basis, net loss was $1.2m, compared to net income of $4.0m in Q3. The firm says that this is due to the sequential decline in revenue, an unfavourable product mix and under-absorption of fixed manufacturing overhead, and expenditure to support the capacity ramp in ROADM and 40Gb/s product lines. Also, Q4 results reflect the absorption of Kailight Photonics Inc, acquired in May.

"We faced some tough timing issues in our fourth fiscal quarter, especially with our top two telecommunication end customers,” says chairman and CEO Eitan Gertel. “However, our outlook for the first quarter reflects a noticeable change in current booking trends, primarily in our higher-end 300-pin products, which is reflected in our outlook for sequential growth next quarter,” he adds.

Gertel continued by saying that in Q4 the company grew its revenues by delivering high-performing 10Gb/s and cable TV solutions to its customers, and that it is now making strategic investments in the high-growth markets associated with ROADM and 40Gb/s products.

"Our goal for fiscal 2008 is to build on our strong fiscal 2007 performance. We expect our addressable markets to grow at a combined rate of 30% over the next twelve months," says Gertel. For fiscal first-quarter 2008 (ending 3 November 2007), Optium expects revenues of $34-35m (up 27-31% sequentially). “With the explosive growth in video and the accelerating convergence of voice, video and data expected in the IP network, we believe all of our product lines will play an important role in the evolution of network architecture and changes in carriers' service delivery models over the coming years,” concludes Gertel.

See related items:

Optium hit by drop in sales of high-end 300-pin products to main customers

Optium banking on 40Gb/s acquisition to boost growth

Optium completes acquisition of Kailight

Optium to acquire Kailight for 40Gb/s technologies

Optium reports 10th quarter of revenue growth, more than doubling year-on-year