4 February 2011

Opnext grows for fourth consecutive quarter to record $97.1m

For its fiscal third-quarter 2011 (to end-December 2010), optical module and component maker Opnext Inc of Fremont, NJ, USA has reported record revenue of $97.1m, up 12.4% on $86.4m last quarter and up 27.6% on $76.1m a year ago (representing the fourth consecutive quarter of growth).

Of total revenue, Alcatel-Lucent and Cisco Systems Inc each represented 10% or more (33% combined, compared to 34% last quarter).

Revenue from 40Gbps and above products was $27.4m, up 23.5% on $22.2m last quarter (due mainly to an increase in module sales) and up 63.3% on $16.8m a year ago. Revenue from 10Gbps and below products was $61.8m, up 9.3% on $56.5m last quarter (due to increased sales of SFP+ and X2 modules) and up 12.2% on $55.1m a year ago. Revenue from industrial and commercial products was $7.9m, up 2.7% on $7.7m last quarter and up 88.3% on just $4.2m a year ago.

Although up on 20.9% a year ago, non-GAAP gross margin has fallen from 22.2% last quarter to 21.5%, unfavorably impacted by lower average per-unit selling prices despite the higher sales volumes and higher mix of 40Gbps and above revenues.

Nevertheless, non-GAAP net loss has been cut from $12.7m and $10.7m last quarter to $5.5m. Also, adjusted EBITDA has improved from –$7.3m a year ago and –$4.4m last quarter to +$1.1m.

“Led by strong 40Gbps and above module sales, the growth was broad based across most product lines and, together with lower R&D spending [shrinking from $16m last quarter to $13.3m], facilitated our return to positive adjusted EBITDA,” says president & CEO Harry Bosco. “We will continue to focus our efforts on returning to profitability as we continue to invest in our future,” he adds.

For its fiscal fourth-quarter 2011 (to end March), although most of its product portfolio will be affected by calendar year-end price adjustments, Opnext expects revenues from sales of 40Gbps and above modules to continue to grow. The firm hence expects total revenue of $97–102m.

See related items:

Opnext reports higher-than-expected growth, to quarterly record of $86.4m

Opnext’s growth limited by supply constraints

Opnext to burn cash for next two quarters whilst increasing capacity

Opnext revenue falls a further 6% quarter-to-quarter

Tags: Opnext

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