For 2012, GigOptix Inc of San Jose, CA, USA (a fabless supplier of analog semiconductor and optical components enabling high-speed end-to-end information streaming over optical fiber and wireless networks) has reported total revenue of $36.7m, up 14% on 2011's $32.3m.
However, after 12 consecutive quarters of sequential growth in product revenue, for fourth-quarter 2012 revenue was $7.9m (in-line with the pre-announcement on 9 January) including $0.9m of previously unrecognized government contract revenue. This is down 22% on $10.1m last quarter and down 8% on $8.6m a year ago.
Despite this, on a non-GAAP basis, gross margin has risen again, from 52% a year ago and 54% last quarter to 60%. Full-year gross margin was 56%, up from 54% in 2011.
Compared with net income of $0.6m last quarter, Q4 yielded a net loss of $0.1m. However, this is still better than net loss of $0.4m a year ago. Full-year 2012 yielded the firm's first year of positive annual net income (of $0.4m), an improvement on a net loss of $2.5m in 2011.
Likewise, although down from $1.3m last quarter, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $0.7m, up on $0.3m a year ago. Full-year adjusted EBITDA was a record $3.6m, up from just $0.3m in 2011.
"Fiscal 2012 was a year of continued year-over-year financial improvement for GigOptix driven by 60% revenue growth in our high-speed optical telecom and datacom components business, which is the company's primary growth engine," notes chairman & CEO Dr Avi Katz. "We also continued our industry-leading investment, about 32% of our revenue, in the development of innovative and differentiating products, which will be a key component in our future growth," he adds.
"As we begin 2013, general market and economic conditions, particularly in the telecom and datacom markets, remain uncertain and forecasting our financial performance for this quarter remains difficult," says senior VP & chief financial officer Curt Sacks. "The majority of the annual price reductions for the optical component part of our business fall in our first quarter, resulting in a typically softer quarter for our business," he adds. "With this continued lack of visibility, our current expectation is that first-quarter product revenue will be flat compared to the $7.1m in the fourth quarter of 2012."
"For fiscal 2013, we are cautiously optimistic of a rebound in spending of the carriers and OEMs in the telecom and datacom markets," says Katz. "While we wait for the tangible signs of this improvement, mainly in the telecom markets, we have taken appropriate actions to adjust our expenses to the current revenue rate, by lowering our cost structure while continuing to innovate and deliver new products to our serviceable and new markets," he adds. This includes investments in development of next generations for both telecom and datacom applications and, as of this quarter, introduction of products that target the consumer electronics markets, mainly for high-speed and high-resolution motion and gesture tracking products. "These actions will further strengthen our leading position within the telecom and datacom markets allowing us to take advantage of our core skills and innovation in generating businesses in the high-volume consumer electronics market," believes Katz.
Litigation against M/A-Com Tech (Optomai)
GigOptix says that it continues to actively prosecute the lawsuit for misappropriation of confidential information and trade secrets against defendants M/A-COM Technology Solutions Inc of Lowell, MA, USA (which makes semiconductors, components, and subassemblies for RF, microwave and millimeter-wave applications), its subsidiary Optomai Inc (a fabless semiconductor firm that develops ICs and modules for 40Gbps and 100Gbps fiber-optic networks), and three former GigOptix employees. At a trial-setting conference on 29 January, the Superior Court of Santa Clara County, California, scheduled the lawsuit for a two-week jury trial starting 26 August.
