For first-quarter 2014, GigOptix Inc of San Jose, CA, USA (a fabless supplier of analog semiconductor and optical communications components for fiber-optic and wireless networks) has reported revenue of $7.4m, down 5% on $7.8m last quarter but up 7% on $6.9m a year ago (and above the guidance of 4% year-on-year growth to $7.2m).
"We are pleased with our first quarter revenue performance in what is normally a seasonally weak quarter in many of the markets we serve," comments chairman & CEO Dr Avi Katz. In particular, E-band revenue grew about 340% year-on-year, while High-Speed Communications revenue was up 16%.
On a non-GAAP basis, gross margin has fallen from 65% a year ago to 60%, but this is level with last quarter and the sixth consecutive quarter at or above 60%.
Excluding about $1m in stock-based compensation and $0.2m in amortization of intangible assets, net loss was $0.66m, compared with net income of $0.1m last quarter and $0.16m a year ago.
Compared with $0.72m a year ago and $0.9m last quarter, adjusted EBITDA has fallen to $47,000. However, this included increased R&D expenses (up from $2.9m a year ago to $3.5m, to support new product tape-outs, plus seasonally higher selling, general & administrative (SG&A) expenses (up from $1.5m to $1.6m), driving total operating expenses up from $4.4m to $5.1m. Both R&D and SG&A expenses are expected to decrease in second-quarter 2014.
During the quarter, cash and cash equivalents fell from $20.4m to $19.9m, but the firm has no debt outstanding.
"As we announced in early April, we received a substantial purchase order of $1.5m for our E-band devices from one Tier 1 customer," Katz says. "This is expected to result in 2014 E-band revenue nearly doubling over 2013 levels," he adds.
Katz also says that GigOptix is encouraged by the early results from the BrPhotonics Produtos Optoeletr?nicos LTDA (BrP) joint venture announced in February between GigOptix and Brazil-based optical communications R&D organization CPqD. In second-quarter, GigOptix expects to receive an initial purchase order for a silicon photonics component from a tier-1 OEM that would include first samples to be delivered by year-end. "We are pleased with BrP's silicon photonics progress to date, which is backed by strong technology from GigOptix and CPqD, and Brazilian government support," he adds. "We expect the positive momentum in our High-Speed Communications business to continue."
For second-quarter 2014, GigOptix expects revenue to rise by 3-5% sequentially to $7.6-7.8m. "We also remain confident our revenue will increase consistently over the remainder of the year," says Curt Sacks, senior VP & chief financial officer.
