8 August 2011

Opnext revenue hit by 40G DQPSK and 100G CFP module production constraints  

For its fiscal first-quarter 2012 (to end-June 2011), optical module and component maker Opnext Inc of Fremont, NJ, USA has reported revenue of $93.1m, up 18% on $78.9m a year ago but down 2% on $95.3m last quarter.

In particular, revenue from industrial & commercial products has risen 25% from $6.7m a year ago and 2% from $8.2m last quarter to $8.4m. Revenue from 10Gbps and below products of $50.6m is down 9% from $55.9m a year ago but up 4% from $48.9m last quarter. Revenue from 40Gbps and above products of $34.1m has more than doubled from $16.3m a year ago, but fallen 11% from $38.2m last quarter due to lower 40G subsystem sales and 40G DQPSK and 100G CFP module production constraints.

“While production constraints related to 40G DQPSK and 100G CFP modules limited revenue this quarter, I am nonetheless pleased with our progress,” says chairman & CEO Harry Bosco.

Of total revenue, Cisco and FiberHome each represented 10% or more (40% combined, compared with just 28% last quarter, when China’s Huawei Technologies Co Ltd was a 10%-plus customer).

On a non-GAAP basis, gross margin has risen from 20.9% a year ago and 21.3% last quarter to 23.5%, including a 100 basis point benefit from lower idle capacity and damaged inventory charges resulting from the earthquake in Japan on 11 March, partially offset by a 30 basis point negative effect from foreign currency exchange rate fluctuations.

Non-GAAP R&D expense has fallen from $15.8m a year ago and $15.2m last quarter to $13.1m, due mainly to the timing of material and outsourcing costs associated with new product introductions.

Net loss has been cut from $12.1m a year ago and $8.7m last quarter to just $4.6m. Compared with negative $2.2m last quarter and negative $6.1m a year ago, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $1.9m. “We delivered on our break-even adjusted EBITDA objective and we improved our working capital management,” says Bosco. 

Cash used in operations has been cut from $19.7m a year ago and $2.1m last quarter to $1.7 (with net cash used in the last 12 months being less than $6m). However, net gain on sale of technology assets was just $2.1m (compared with $21.4m last quarter). During the quarter, cash and cash equivalents hence fell from $100.3m to $97.2m. Net of short-term loans payable, cash and cash equivalents was $78.5m at June 30, 2011.

For fiscal second-quarter 2012 (ending in September 2011), Opnext expects revenue of $89–95m, as near-term demand remains soft, says Bosco.

See related items:

Opnext’s revenue down 1.8% after module assembly stoppage

Opnext grows for fourth consecutive quarter to record $97.1m

Opnext reports higher-than-expected growth, to quarterly record of $86.4m

Opnext’s growth limited by supply constraints

Tags: Opnext

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