8 December 2010

3S grows revenue 9% in fiscal 2010

For its fiscal year 2010 (to end-June), 3S Photonics of Nozay, France, which makes laser chips, optical discrete modules and passive components for telecom networks, has reported revenue of €25.22m, up 9% on €23.04m in fiscal 2009 (which had been down 10% on fiscal 2008).

3S points out that, due to increasing global Internet traffic, the terrestrial and submarine long-distance transmission market has grown strongly. The firm says it has benefited from these favorable conditions, since it has 80% market share in submarine pumps, and has won 7% of the terrestrial pump market in just two years.

Due to a rise of 10% in overall operating revenue from €32.6m to €36m, operating profit has soared from €0.11m in 2009 to €1.98m in 2010. Net profit was €2.2m, raising the firm’s equity capital from €20m to €22.28m.

For fiscal 2011, 3S aims to reduce operating expenses by €1m, and expects 10% growth in revenue due to the recovery of the submarine market from the economic slowdown in 2009 as well as the introduction of new products dedicated to the optical transmission market.

The past year has also been marked by the acquisition in February of optical telecom component firm Avensys Inc of Montreal, Quebec, Canada. “We already achieved synergies between both companies in terms of product development, and the strategic of locating our Canadian subsidiary in North America is an important building block for our international expansion,” says president & CEO Alexandre Krivine. Synergies with Avensys are expected to boost growth in revenue to US$70m for the consolidated group.

“Next year, we will also concentrate on our expansion policy and strategic partnerships in order to strengthen our international position," adds Krivine.

Tags: 3S Photonics

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