News

7 February 2007

 

Avanex reports record revenue (up 54%) and gross margin

For its fiscal second-quarter 2007 (to end-December 2006), optical network component, module and subsystem supplier Avanex Corp of Fremont, CA, USA has reported record revenue of $55.6m (up 9% on the prior quarter’s $50.9m and 54% on $36.1m a year ago).

“The second quarter was exceptionally strong and we are very pleased to report the highest revenue and gross margin in the history of Avanex,” says chairman, president and CEO Jo Major. Gross margin rose to 19%, compared with 10% the previous quarter and 8% a year ago. “We are pleased with the significant improvement in gross margin due to the programs we implemented two quarters ago aimed at reducing inventory charges, improving our supply chain, increasing manufacturing yields and managing our product portfolio,” adds Marla Sanchez, senior VP and chief financial officer. “We expect to realize further improvements in our cost structure.”

Although operating expenses rose from $15.6m last quarter to $19.9m, net loss has been cut from $18.5m a year ago and $9.7m last quarter to $8.6m, despite including $2.1m in ‘due diligence expenses related to abandoned acquisition activity’.

For its fiscal third-quarter 2007, Avanex expects revenue of $54-57m and gross margin of 17-21%. “In the metro and long-haul markets we expect flat market demand in the first half of [calendar] 2007, due to the delay of certain capacity expansion projects and we anticipate the market to return to growth in the second half of the year,” said Major.

Visit: http://www.avanex.com