RSS Content

GigOptix Reports Record Third Quarter Fiscal 2012 Financial Results
  • Record quarterly revenue of $10.1 million, up 20 percent from Q3 FY 2011 and up 5 percent from Q2 FY 2012
  • Non-GAAP net income of $0.02 per diluted share compares with a net loss of $0.03 per share in Q3 FY 2011 and net income of $0.02 per diluted share in Q2 FY 2012

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 30, 2012-- GigOptix, Inc. (NYSE MKT: GIG), a leading fabless supplier of semiconductor and optical components that enable end-to-end high speed information streaming over the network, today announced its financial results for the third quarter of fiscal 2012, which ended September 30, 2012.

Third Quarter Fiscal 2012 GAAP Results

Total revenue increased 20 percent to $10.1 million from $8.4 million in the third quarter of fiscal 2011, and increased 5 percent from $9.6 million in the second quarter of fiscal 2012.

Gross margin was 52 percent in the third quarter of fiscal 2012. This compares with 56 percent in the third quarter of fiscal 2011 and 53 percent in the second quarter of fiscal 2012.

Net loss was $1.5 million, or a net loss of $0.07 per share in the third quarter of fiscal 2012. This compares with a net loss of $3.1 million, or a net loss of $0.14 per share, in the third quarter of fiscal 2011, and net loss of $1.6 million, or a net loss of $0.08 per share, in the second quarter of 2012.

Cash and cash equivalents at September 30, 2012, were $12.3 million.

Third Quarter Fiscal 2012 Non-GAAP Results

On a non-GAAP basis1, which excludes $253,000 in amortization of intangible assets, $1.2 million in stock-based compensation and $576,000 in special litigation-related expenses, net income for the third quarter of fiscal 2012 was $563,000, or $0.02 per diluted share. This compares with a non-GAAP net loss of $712,000 or $0.03 per share, in the third quarter of fiscal 2011, and net income of $385,000, or $0.02 per diluted share, in the second quarter of fiscal 2012.

Gross margin was 54 percent, compared with 60 percent in the third quarter of fiscal 2011 and 54 percent in the second quarter of fiscal 2012.

Adjusted EBITDA1 for the third quarter of 2012 was positive $1.3 million. This compares with Adjusted EBITDA of $289,000 in the third quarter of fiscal 2011, and Adjusted EBITDA of $1.2 million in the second quarter of fiscal 2012.

“The strong third quarter financial results, which included record quarterly revenue, continuing improvement in non-GAAP earnings and Adjusted EBITDA, and most importantly generating positive cashflow from operations, reflect our continued growth in several key areas of our business,” said Dr. Avi Katz, Chairman and Chief Executive Officer of GigOptix, Inc. “Leading the sequential gains was the ongoing growth in our optics product line, particularly with our high speed 100Gbps and optical interconnect offerings. We also experienced a nice uptick in our RF/MMIC business over the prior quarter due to an increase in market interest for our recently introduced E-band offering.”

Litigation against M/A-Com Technology Solutions, Inc. (Optomai, Inc.)

GigOptix continues to actively prosecute the lawsuit for misappropriation of confidential information and trade secrets against its former employees, Optomai, Inc., and the parent of Optomai, M/A-COM Technology Solutions, Inc. GigOptix has been engaged in discovery, including forensic work, which has produced substantial evidence that the individuals copied GigOptix files when they left and then used to develop products of the corporate defendants. GigOptix is continuing to move the case towards a trial on its claims against the defendants.

“We are confident that we have evidence supporting our claim for misappropriation of trade secrets and look forward to putting the evidence regarding the conduct and actions of the defendants before a jury and judge in ‘an adjudication of the merits’ at trial. A trial date has not been set and we have no estimate as of today when the Court will set a trial date,” added Dr. Katz.

Financial Outlook

“Through the first nine months of fiscal 2012 we made good progress on our yearly business and product initiatives. While we are very satisfied with our market penetration and customer’s adoption of new products, there is a higher level of uncertainty in the macroeconomic environment, increasing lack of visibility, and exceptionally short lead-times, mainly in the high speed optical communications markets, than what we have seen in previous quarters,” said Mr. Curt Sacks, Senior Vice President and Chief Financial Officer of GigOptix. “Therefore, we currently believe our revenue in the fourth quarter will be roughly in-line with the third quarter as there are enough data-points in the market that require us to be cautious with our near-term outlook.”

Financial Results Webcast / Conference Call

GigOptix will host a conference call and webcast with investors today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the third quarter fiscal 2012 financial results and the business outlook. Investors and other interested parties may access the call by dialing 1-800-561-2731 in the U.S. (1-617-614-3528 outside of the U.S.) and entering the passcode 13822836 at least 15 minutes prior to the start of the call. The conference call replay will be available beginning two hours after the call until midnight Eastern Time on November 6, 2012. The replay dial-in number is 1-888-286-8010, and the passcode is 48014632#. International callers should dial 1-617-801-6888 and enter the same passcode at the prompt. Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the Investor Relations section of the Company's website at http://www.gigoptix.com.

1 Non-GAAP Measures - GigOptix reports gross margin, operating expense, operating income and net loss on a GAAP and non-GAAP basis. In addition, it reports Adjusted EBITDA. These non-GAAP measures are provided to enhance investors’ overall understanding of GigOptix financial performance. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to GAAP results. A reconciliation of these GAAP to non-GAAP measurements and Adjusted EBITDA for the three and nine months ended September 30, 2012 and October 2, 2011 can be found in the “Reconciliation of GAAP to Non-GAAP Financial Information” table attached to this press release.

About GigOptix, Inc.

GigOptix is a leading fabless supplier of semiconductor and optical components that enable high-speed end-to-end information streaming over the network and address emerging high-growth opportunities in the communications, industrial, defense and avionics industries. GigOptix offers a unique broad portfolio of Drivers, TIAs and TFPSTM optical modulators for 40G, 100G and 400G fiber-optic telecommunications and data-communications networks, and high performance MMIC solutions that enable next generation wireless microwave systems up to 90GHz. GigOptix also offers a wide range of digital and mixed-signal ASIC solutions and enables product lifetime extension through its GigOptix Sunset Rescue Program.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the bringing of products to market with full documentation. Such statements contain words such as "will," and "expect," or the negative thereof or comparable terminology, and include (without limitation) statements regarding growth, opportunities, continued traction, contracts, improvements and our statements under the heading "Business Outlook." Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks include, but are not limited to: the ability to extend product offerings into new areas or products, the ability to commercialize licensed technology, unexpected occurrences that deter the full documentation and "bring to market" plan for products that were developed this year and last year, trends and fluctuations in the industry, changes in demand and purchasing volume of customers, unpredictability of suppliers, our ability to attract and retain qualified personnel, the ability to move product sales to production levels, the ability to compete for client design-in opportunities, the ability to cross-sell to new clients and to diversify, the success of product sales in new markets or of recently produced product offerings, including bundled product solutions, the amount of cost savings, the ability to improve productivity, the ability to pursue and attract other M&A opportunities, our ability to enforce intellectual property rights, and the ability to maintain and continue relationships with government agencies. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's filings with the SEC, and in the Company's other current and periodic reports filed or furnished from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

(TABLES TO FOLLOW)

 
GIGOPTIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
       
September 30, December 31, Net Change
2012 2011 $ %
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 12,315 $ 15,788 $ (3,473 ) (22 %)
Short-term investments - 400 (400 ) (100 %)
Accounts receivable, net 6,676 5,625 1,051 19 %
Inventories 4,064 2,220 1,844 83 %
Prepaid and other current assets   272     298     (26 ) (9 %)
Total current assets 23,327 24,331 (1,004 ) (4 %)
Property and equipment, net 4,554 4,488 66 1 %
Intangible assets, net 4,523 5,281 (758 ) (14 %)
Goodwill 9,860 9,860 - 0 %
Restricted cash 255 255 - 0 %
Other assets   269     309     (40 ) (13 %)
Total assets $ 42,788   $ 44,524   $ (1,736 ) (4 %)
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,662 $ 3,183 $ 479 15 %
Accrued compensation 1,023 832 191 23 %
Line of credit 4,911 3,000 1,911 64 %
Other current liabilities   4,485     4,945     (460 ) (9 %)
Total current liabilities 14,081 11,960 2,121 18 %
Pension liabilities 130 65 65 100 %
Other long-term liabilities   722     1,185     (463 ) (39 %)
Total liabilities   14,933     13,210     1,723   13 %
 
Stockholders' Equity
Common stock, $0.001 par value; 50,000,000 shares authorized as of September 30, 2012 and December 31, 2011; 22,059,728 and 21,545,713 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively 22 22 - 0 %
Additional paid-in capital 122,178 118,362 3,816 3 %
Treasury stock, at cost - 701,754 and zero shares as of September 30, 2012 and
December 31, 2011, respectively. (2,209 ) - (2,209 )
Accumulated other comprehensive income 242 423 (181 ) (43 %)
Accumulated deficit   (92,378 )   (87,493 )   (4,885 ) 6 %
Total stockholders' equity   27,855     31,314     (3,459 ) (11 %)
Total liabilities and stockholders' equity $ 42,788   $ 44,524   $ (1,736 ) (4 %)
 
 

GIGOPTIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)
(Unaudited)
               
Three months ended Nine months ended
September 30,

 

October 2,

 

September 30,

 

October 2,

 

Revenue 2012

%

2011

%

2012

%

2011

%

Product $ 10,054 100 % $ 8,363 100 % $ 28,793 100 % $ 23,016 97 %
Government contract   -   0 %   -   0 %   -   0 %   628   3 %
Total revenue   10,054   100 %   8,363   100 %   28,793   100 %   23,644   100 %
Cost of revenue
Product 4,853 48 % 3,709 44 % 13,568 47 % 11,158 47 %
Government contract   -   0 %   -   0 %   -   0 %   180   1 %
Total cost of revenue   4,853   48 %   3,709   44 %   13,568   47 %   11,338   48 %
Gross profit   5,201   52 %   4,654   56 %   15,225   53 %   12,306   52 %
Research and development expense 3,395 34 % 3,633 43 % 10,223 36 % 9,097 38 %
Selling, general and administrative expense 2,816 28 % 2,769 33 % 8,775 30 % 8,091 34 %
Restructuring expense, net - 0 % 769 9 % 93 0 % 3,823 16 %
Merger-related expense - 0 % 74 1 % - 0 % 1,959 8 %
Special litigation-related expense 576 6 % 255 3 % 929 3 % 275 1 %
Shareholder settlement expense   -   0 %   -   0 %   -   0 %   1,064   5 %
Total operating expenses   6,787   68 %   7,500   90 %   20,020   70 %   24,309   103 %
Loss from operations (1,586 ) -16 % (2,846 ) -34 % (4,795 ) -17 % (12,003 ) -51 %
Interest expense, net (38 ) 0 % (97 ) -1 % (231 ) -1 % (240 ) -1 %
Other income, net   183   2 %   (131 ) -2 %   240   1 %   (61 ) 0 %
Loss before provision for income taxes (1,441 ) -14 % (3,074 ) -37 % (4,786 ) -17 % (12,304 ) -52 %
Provision for income taxes   (65 ) -1 %   -   0 %   (99 ) 0 %   (12 ) 0 %
Net loss $ (1,506 ) -15 % $ (3,074 ) -37 % $ (4,885 ) -17 % $ (12,316 ) -52 %
 
Basic and diluted net loss per share $ (0.07 ) $ (0.14 ) $ (0.23 ) $ (0.78 )

Weighted average number of shares used in per share calculations - basic and diluted

21,276 21,511 21,445 15,888
 
 
GIGOPTIX, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
               
Three months ended Nine months ended
September 30,

 

October 2,

 

September 30,

 

October 2,

 

Revenue 2012

%

2011

%

2012

%

2011

%

Product $ 10,054 100 % $ 8,363 100 % $ 28,793 100 % $ 23,016 97 %
Government contract   -   0 %   -   0 %   -   0 %   628   3 %
Total revenue   10,054   100 %   8,363   100 %   28,793   100 %   23,644   100 %
Cost of revenue
Product 4,645 46 % 3,368 40 % 13,058 45 % 10,612 45 %
Government contract   -       -   0 %   -   0 %   180   1 %
Total cost of revenue   4,645   46 %   3,368   40 %   13,058   45 %   10,792   46 %
Gross profit   5,409   54 %   4,995   60 %   15,735   55 %   12,852   54 %
Research and development expense 3,071 31 % 3,341 40 % 8,997 31 % 8,292 35 %
Selling, general and administrative expense   1,855   18 %   2,138   26 %   6,109   21 %   6,299   27 %
Total operating expenses   4,926   49 %   5,479   66 %   15,106   52 %   14,591   62 %
Income (loss) from operations 483 5 % (484 ) -6 % 629 2 % (1,739 ) -7 %
Interest expense, net (38 ) 0 % (97 ) -1 % (231 ) -1 % (240 ) -1 %
Other income, net   183   2 %   (131 ) -2 %   240   1 %   (61 ) 0 %
Income (loss) before provision for income taxes 628 6 % (712 ) -9 % 638 2 % (2,040 ) -9 %
Provision for income taxes   (65 ) -1 %   -   0 %   (99 ) 0 %   (12 ) 0 %
Net income (loss) $ 563   6 % $ (712 ) -9 % $ 539   2 % $ (2,052 ) -9 %
 
Basic net income (loss) per share $ 0.03 $ (0.03 ) $ 0.03 $ (0.13 )
Diluted net income (loss) per share $ 0.02 $ (0.03 ) $ 0.02 $ (0.13 )
 
Weighted average number of shares used in basic per share calculation 21,276 21,511 21,445 15,888
Weighted average number of shares used in diluted per share calculation 22,576 21,511 22,891 15,888
 
 
GIGOPTIX, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)
       
Three months ended, Nine months ended,
September 30, October 2, September 30, October 2,
2012 2011 2012 2011
GAAP Total cost of revenue $ 4,853 $ 3,709 $ 13,568 $ 11,338
Stock-based compensation (85 ) (14 ) (143 ) (41 )
Amortization of intangible assets (123 ) (327 ) (367 ) (498 )
Merger-related costs   -     -     -     (7 )
Non-GAAP Total cost of revenue $ 4,645   $ 3,368   $ 13,058   $ 10,792  
 
GAAP Gross profit $ 5,201 $ 4,654 $ 15,225 $ 12,306
Stock-based compensation 85 14 143 41
Amortization of intangible assets 123 327 367 498
Merger-related costs   -     -     -     7  
Non-GAAP Gross profit $ 5,409   $ 4,995   $ 15,735   $ 12,852  
 
 
GAAP - Operating expenses $ 6,787 $ 7,500 $ 20,020 $ 24,309
Stock-based compensation (1,155 ) (793 ) (3,501 ) (2,279 )
Amortization of intangible assets (130 ) (130 ) (391 ) (325 )
Restructuring expense, net - (769 ) (93 ) (3,823 )
Merger-related expense - (74 ) - (1,952 )
Shareholder settlement expense - - - (1,064 )
Special litigation-related expense   (576 )   (255 )   (929 )   (275 )
Non-GAAP Operating expenses $ 4,926   $ 5,479   $ 15,106   $ 14,591  
 
GAAP Loss from operations $ (1,586 ) $ (2,846 ) $ (4,795 ) $ (12,003 )
Stock-based compensation 1,240 807 3,644 2,320
Amortization of intangible assets 253 457 758 823
Restructuring expense, net - 769 93 3,823
Shareholder settlement expense - - - 1,064
Merger-related expense - 74 - 1,959
Special litigation-related expense   576     255     929     275  
Non-GAAP Income (loss) from operations $ 483   $ (484 ) $ 629   $ (1,739 )
 
GAAP - Net loss $ (1,506 ) $ (3,074 ) $ (4,885 ) $ (12,316 )
Stock-based compensation 1,240 807 3,644 2,320
Amortization of intangible assets 253 457 758 823
Restructuring expense, net - 769 93 3,823
Shareholder settlement expense - - - 1,064
Merger-related expense - 74 - 1,959
Special litigation-related expense   576     255     929     275  
Non-GAAP Net Income (loss) $ 563   $ (712 ) $ 539   $ (2,052 )
 
 
Adjusted EBITDA reconciliation:
Loss from operations $ (1,586 ) $ (2,846 ) $ (4,795 ) $ (12,003 )
Restructuring expense, net - 769 93 3,823
Shareholder settlement expense - - - 1,064
Merger-related expense - 74 - 1,959
Depreciation and amortization 1,031 1,230 3,085 2,495
Stock-based compensation 1,240 807 3,644 2,320
Special litigation-related expense   576     255     929     275  
Adjusted EBITDA $ 1,261   $ 289   $ 2,956   $ (67 )

Source: GigOptix, Inc.

Media:
GigOptix, Inc.
Parker Martineau, 408-522-3100
Corporate Communications Manager
pmartineau@gigoptix.com
or
Investor Relations:
Summit IR Group, Inc.
Jim Fanucchi, 408-404-5400
ir@gigoptix.com

©2014 GigOptix Inc. 130 Baytech Drive, San Jose, CA 95134