News

6 November 2006

 

Avanex's revenues up 12%, but losses continue

For its fiscal first-quarter 2007 (to end-September), Avanex Corp of Fremont, CA, USA, which makes components, modules and subsystems for optical networks, reported record net revenue of $50.9m, with record revenues in transponders, modulators, and dispersion compensators. This is up 12% on the prior quarter and 23% on a year ago), and its third consecutive quarter of double-digit revenue growth. It also exceeds August's guidance of
$48-50m.

Gross profit rose from $1.8m the prior quarter to $4.7m; gross margin rose from 4% to 9%. Non-GAAP loss (excluding share-based payments, amortization
of intangibles, restructuring charges, and gain/loss on the disposal of property and equipment) was cut from $14.7m a year ago and $9.1m last quarter to $7.2m. However, net loss, though down from $16.9m a year ago, rose from $9.1m last quarter to $9.8m. Cash reserves shrank from $29m at the end of June to $16.4m, partly due to problems with the company's invoicing system.

"We saw strong growth from new products we announced, including our amplifier with integrated optical monitoring capability developed for next-generation deployments that provide the network backbone for the delivery of high-bandwidth triple-play services," said Jo Major, chairman
and CEO. "Also during the quarter, our supply chain initiatives started to take hold, helping reduce our overall product cost. Our operational metrics including yield, on-time shipments and return rates continued to recover
following last year's manufacturing transition," adds Major.

* Avanex appoints new CFO; promotes optical components division GM to chief marketing officer

Avanex has appointed Marla Sanchez as senior vice president and chief financial officer (responsible for finance, corporate planning and administration), succeeding Cal R. Hoagland, who has left Avanex after five months as CFO.

Sanchez has over 20 years of experience in international finance, cost accounting, controllership and strategic planning. She was the interim CFO at a portfolio company for SDL Ventures, a Silicon Valley investment firm specializing in early-stage funding for optical technologies. Previously, Sanchez was corporate controller for SDL Inc.

Avanex has also promoted Yves Le Maitre to chief marketing officer, responsible for worldwide sales, marketing and business development. Le Maitre joined Avanex in 2005 as VP & general manager of the optical
components division.

Prior to joining Avanex, he was president and CEO of Lightconnect Inc, a supplier of MEMS components and modules for optical networking applications. Previously, he was VP & general manager of Core Data Products at Alcatel USA Inc.

"Over the past year, he has been a key player in both handling multiple customer negotiations and in guiding the development of a series of strategic initiatives, including our optical monitoring product line and our low-cost ROADM [reconfigurable optical add/drop multiplexer] products to
address the metropolitan and access markets," said Major.

Visit: http://www.avanex.com