2 August 2012

GigOptix’s revenue grows 5% in Q2 to record $9.6m

For second-quarter 2012, GigOptix Inc of San Jose, CA, USA (a fabless supplier of semiconductor and optical components including modulator and laser drivers and transimpedance amplifier ICs based on III-V materials) has reported an 11th consecutive quarter of sequential growth in product revenue, to a record $9.6m. This is up 5% on $9.2m last quarter and 26% on$7.6m a year ago.

On a non-GAAP basis, net income was $385,000, compared with net loss of $409,000 last quarter and $928,000 a year ago. Compared with a loss of $414,000 a year ago, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) has more than doubled from $515,000 last quarter to $1.2m. During the quarter, the firm purchased about 702,000 shares of its common stock through its Dutch auction tender offer at a cost of $2.2m. Cash and cash equivalents fell from $15.8m to $12.9m.

“Our product lines continue to drive our top line growth as we extend our optical product offerings from telecom to datacom and consumer electronics; further strengthen our RF/MMICs product offering by working with key partners such as our new IBM relationship to expand our presence in the E-band market; and combine the efforts of our optical and ASIC engineering lines,” says chairman & CEO Dr Avi Katz.

“We continue to execute on our mission of establishing the company as a leading provider of all devices enabling end-to-end high-speed information streaming over the network, by enhancing our position in the E-band back-haul point-to-point wireless market, and our entry into consumer electronics,” says Katz. “In our RF/MMIC business, we were pleased to announce our strategic licensing agreement with IBM to leverage their silicon germanium (SiGe) millimeter-wave transceiver technology that complements our E-band gallium arsenide (GaAs) power amplifier solutions and further drives us into the wireless business,” he adds.

“Separately, we also announced the first deployment of one of our optical interconnect chipsets in the consumer electronics market. Those components are now in full production with a leading Japanese manufacturer to enable their high-speed data interconnect module used for HDTV and next-generation HD information transfer on professional studio cameras,” continues Katz.

“In addition to these new initiatives, we have continued to productize our 40G and 100G drivers, modulators and transimpedance amplifiers offerings and enhance production access with global Tier-1 datacom and telecom customers,” says Katz. “We also introduced our first 400G Mach-Zehnder modulator driver,” he adds. “Overall, this quarter we continued to make solid steps to uniquely address the needs of our customers and diversify our business.”

“During the first half of fiscal 2012, we made good progress toward our stated goal of achieving $40m of revenue, which reflects growth of approximately 30% for the fiscal year,” says GigOptix’s senior VP & chief financial officer Curt Sacks. “We are optimistic about the large opportunity in front of us,” he adds.

Update on litigation against M/A-COM (Optomai)

GigOptix continues to actively prosecute its lawsuit (filed on 25 April with the Superior Court of California in Santa Clara County) for misappropriation of confidential information and trade secrets against former employees Manan, Rajgarhia, D’Agostino, Hwan Yoo and Bovaird; the firm that was formed in October 2009 while four of these five were still employed by GigOptix; Optomai Inc; and its parent firm M/A-COM Technology Solutions Inc of Lowell, MA, USA (which makes semiconductors, components, and subassemblies for RF, microwave and millimeter-wave applications). As previously reported in its filings with the US Securities and Exchange Commission (SEC), GigOptix has been engaged in discovery, which includes forensic work. This has led to the filing on 30 July of a motion for a preliminary injunction against M/A-COM, Optomai and two of the former employees who were designers.

See related items:

GigOptix grows product revenue for 10th quarter

GigOptix reports record revenue after 37% growth in 2011

GigOptix grows 10% in Q3 to record $8.4m revenue

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

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

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