3 August 2011

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

For second-quarter 2011, GigOptix Inc of San Jose, CA, USA, which designs modulator and laser drivers and transimpedance amplifier (TIA) ICs based on III-V materials as well as polymer electro-optic modulators, has reported total revenue of $7.6m (up 21% on $6.3m a year ago but down slightly on $7.7m last quarter).

However, this represents GigOptix’s seventh consecutive quarter of growth in terms of product revenue, up 38% on $5.5m a year ago (excluding $755,000 of government contract revenue) and up 8% on Q1’s $7.1m (excluding $610,000 of government contract revenue) — exceeding guidance of just 5%. 

“GigOptix continued to gain strong momentum throughout the second quarter,” says chairman & CEO Dr Avi Katz. “We continued to experience solid customer interest for our 40G and 100G optical networking products,” he adds.

“From a product development perspective, we continued to make significant advancements in the commercialization of our TFPS [Thin Film Polymer on Silicon] Mach–Zehnder modulators [MZMs],” says Katz. “A number of our tier 1 customers have validated the performance of our first-generation 40G TFPS modulator, and we have recently begun production shipments,” he adds. “Additionally, we released and began sampling our second-generation more advanced 40G modulator, the LX8220, to continue to bring customers the lowest-power, smallest-footprint and lowest-cost modulator available in the market,” he claims.   

“We are also making significant progress with our 100G modulator offering and expect to release engineering samples for our customers’ planned evaluation programs before the end of the year,” says Katz. “In addition, interest in our 40G and 100G drivers and amplifiers continues to grow with Tier 1 telecom customers,” he adds. “I am satisfied with the progress we have made and the key design wins and production opportunities we have secured for both our 40G and 100G products.”

Although down on 58% a year ago, non-GAAP gross margin has rebounded slightly from 51% in Q1 to 52%. Total operating expenses were $6.4m, up from $4.7m a year ago but cut from $7.2m last quarter.

Nevertheless, net loss has risen from $0.4m both a year ago and in Q1/2011 to $0.8m. Adjusted EBITDA (cash flow, net of changes in working capital and capital expenditures) was a loss of $0.3m, compared to income of $45,000 in Q1 and $0.4m a year ago.

During the quarter, cash and investments rose from $4.1m to $18.3m, due mainly to the addition of the net cash balance acquired from Endwave. On 17 June GigOptix closed the acquisition of Endwave Corp of San Jose, CA (which designs and manufactures high-frequency RF solutions and semiconductor products, particularly point-to-point radio communication systems). During the quarter, the firm substantially completed the integration of Endwave’s operational, global sales, US engineering and IC design teams at GigOptix’s new corporate headquarters in San Jose. “GigOptix has taken actions that we believe will result in significant cost savings for the consolidated company since the closing of the acquisition,” says Katz.  

“We are further enhancing our position as the leading one-stop supplier of component solutions that enable high-speed information streaming, and we will be bringing to market more advanced bundled integrated solutions based on our unique component portfolio,” says Katz.

For third-quarter 2011, GigOptix expects sequential revenue growth, including product revenue rising 8%. “We remain committed to driving increased quarter-over-quarter product revenue by further commercializing our innovative, industry-leading high-speed 40G and 100G solutions for next-generation end-to-end communications networks and capitalizing on our high-performance MMIC solutions, which enable next-generation wireless systems,” states chief financial officer Curt Sacks.

See related items:

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

GigOptix reports fifth quarter of double-digit revenue growth

GigOptix increases Q3/2010 revenue guidance

GigOptix grows 19% sequentially to record revenue of $6.3m for Q2

GigOptix reports record revenue of $5.3m in Q1

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