CMP PROCESSING

Learn more about R&D chemical mechanical polishing by requesting our FREE informational CD.

News

6 September 2007

 

Avanex cuts losses despite dip in revenue

For its fiscal 2007 (to end June), optical communications component and module maker Avanex Corp of Fremont, CA, USA has reported revenue of $212.8m, up 31% on $162.9m in fiscal 2006. Gross margin has increased from just 5% to 18%. Net loss has been cut from $54.7m to $30.6m.

However, for its fiscal fourth-quarter 2007, revenue was $51.1m, down from $55.1m the prior quarter (although the latter included $3.2m from Avanex France S.A. – now 3S Photonics – which was divested on 16 April).

Despite the quarter-to-quarter drop in revenue, quarterly gross margin has risen from just 4% a year ago and 19% the prior quarter to 24%. Non-GAAP net loss of $9.1m a year ago and $3.0m the prior quarter has been improved to a net profit of $49,000.

“For the first time in the company’s history, we generated cash on an operational basis and reached non-GAAP earnings per share break-even,” says president, chairman and CEO Jo Major. “We are encouraged by our new product pipeline and the customer demand we see for the second half of the calendar year,” he adds.

In addition, July’s acquisition of the 10Gbit/s 300-pin MSA transponder and 10Gbit/s XFP MSA transceiver businesses of Essex Corp’s Commercial Communication Products Division (CCPD) in Melbourne, FL has presented the opportunity to increase the firm’s product portfolio and presence in the transmission market and “continue to reinforce our leadership position in the amplifier, dispersion compensation and wavelength management/ROADM [reconfigurable optical add/drop multiplexer] markets,” says Major.

For fiscal first-quarter 2008 (to end-September 2007), Avanex expects revenue to rise slightly to $52-55m and gross margin to be flat.

See related items:

Avanex acquires Essex Corp’s Commercial Communication Products Division

Avanex’s revenues enter dip, but targets break-even by September quarter

3S Photonics launched on completion of Avanex France sale

Avanex France to become 3S Photonics

Avanex sells III-V fabs

Visit: http://www.avanex.com