News

2 August 2006

 

3G wireless infrastructure market boosts

WJ Communications’ Q2 figures

WJ Communications Inc has reported Q2/2006 revenue of $12.4m, from $12.3m in Q1/2006 and $4.0m in Q2/2005. During Q2/2005, the company says it changed its revenue recognition policy for its distribution channel. Excluding this change, revenue would have been $8.1m for Q2/2005. Taking this into account, the latest financial results represent a year-on-year increase of 53%.

Gross margin for Q2/2006 was 54.2%, compared to 51.2% in the first quarter of 2006 and 29% in Q2/2005. Operating expenses for the quarter totalled $8.3m, compared to $10.3m in the preceding quarter and $9.2m in Q2/2005. Net loss for the second quarter of 2006 was $1.3m, compared to a net loss of $2.4m in Q1/2006 and a net loss of $7.8m in the second quarter of 2005.

Bruce Diamond, president and CEO of WJ Communications Inc, said: "Our business continues to benefit from the growth in the 3G wireless infrastructure, strong distribution channels and a consistent demand from our OEM business."

"We introduced 13 new products to the market during the first half of the year, exceeding our stated goal of 10," continued Mr. Diamond. "We also gained traction in RFID during the quarter by further building partnerships with leading OEMs in order to bring new products to market. Additionally, we made progress with the qualification of our foundry processes at GCS and began initial production wafer runs in July."

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