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 its fourth quarter and fiscal year 2012, which ended
December 31, 2012.
Fiscal Year 2012 GAAP Results
Total revenue, which included approximately $0.9 million of previously
unrecognized government contract revenue, increased 14 percent to $36.7
million from $32.3 million in fiscal 2011. Gross margin was 54 percent,
up from 50 percent in the prior fiscal year. Net loss improved to $7.0
million, compared with a net loss of $14.1 million in fiscal 2011.
Fiscal Year 2012 Non-GAAP Results1
Gross margin was 56 percent, up from 54 percent in the prior fiscal
year. Net income improved to $0.4 million, compared with a net loss of
$2.5 million in fiscal 2011.
Adjusted EBITDA1 for fiscal 2012 was $3.6 million, compared
with $0.3 million in fiscal 2011.
Fourth Quarter Fiscal 2012 GAAP Results
Total revenue of $7.9 million was in-line with the Company's
pre-announcement on January 9, 2013, and included approximately $0.9
million of previously unrecognized government contract revenue. This
compares with revenue of $8.6 million in the fourth quarter of fiscal
2011, and $10.1 million in the third quarter of fiscal 2012.
Gross margin improved to 58 percent in the fourth quarter of fiscal
2012. This compares with 46 percent in the fourth quarter of fiscal
2011, and 52 percent in the third quarter of fiscal 2012.
Net loss was $2.1 million, or a net loss of ($0.10) per share, in the
fourth quarter of fiscal 2012. This compares with a net loss of $1.8
million, or a net loss of ($0.08) per share, in the fourth quarter of
fiscal 2011, and net loss of $1.5 million, or a net loss of ($0.07) per
share, in the third quarter of fiscal 2012.
Cash and cash equivalents at December 31, 2012, were $10.1 million.
Fourth Quarter Fiscal 2012 Non-GAAP Results1
Non-GAAP net loss, which excludes approximately $0.3 million in
amortization of intangible assets, $1.3 million in stock-based
compensation and $0.4 million in special litigation-related expenses,
was $0.1 million, or ($0.01) per share in the fourth quarter of fiscal
2012. This compares with a non-GAAP net loss of $0.4 million
or ($0.02) per share, in the fourth quarter of fiscal 2011, and non-GAAP
net income of $0.6 million, or $0.02 per diluted share, in the
third quarter of fiscal 2012.
Non-GAAP gross margin was 60 percent, compared with 52
percent in the fourth quarter of fiscal 2011 and 54 percent in the third
quarter of fiscal 2012.
Adjusted EBITDA for the fourth quarter of 2012 was $0.7
million. This compares with Adjusted EBITDA of $0.3 million in the
fourth quarter of fiscal 2011, and Adjusted EBITDA1 of $1.3
million in the third quarter of fiscal 2012.
"Fiscal 2012 was a year of continued year-over-year financial
improvement for GigOptix driven by 60 percent revenue growth in our
high-speed optical telecom and datacom components business, which is the
Company's primary growth engine," said Dr. Avi Katz, Chairman and Chief
Executive Officer of GigOptix, Inc. "We also continued our industry
leading investment, about 32 percent of our revenue, in the development
of innovative and differentiating products, which will be a key
component in our future growth.
"For fiscal 2013, we are cautiously optimistic of a rebound in spending
of the Carriers and OEMs in the telecom and datacom markets. 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.
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,"
said Dr. Avi Katz. "We believe 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."
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
defendants M/A-COM Technology Solutions, Inc. (MACOM), MACOM's
subsidiary Optomai, Inc., and three former GigOptix employees. On
January 30, 2013, GigOptix announced that in its lawsuit, the Superior
Court of Santa Clara County, California held a trial setting conference
on January 29, 2013. At the trial setting conference, the Superior Court
scheduled the lawsuit for a two-week jury trial starting Monday, August
"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. 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," said Curt Sacks, Senior Vice President and
Chief Financial Officer of GigOptix. "With this continued lack of
visibility our current expectation is that first quarter product revenue
will be flat compared to the $7.1 million in the fourth quarter of 2012."
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 fourth
quarter and fiscal 2012 financial results, and the business outlook.
Investors and other interested parties may access the call by dialing 1-
888-396-2369 in the U.S. (1-617-847-8710 outside of the U.S.) and
entering the passcode 54142599. The conference call replay will be
available beginning two hours after the call until midnight Eastern Time
on March 5, 2013. The replay dial-in number is 1-888-286-8010, and the
passcode is 16610081. 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 revenue,
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 twelve months ended December 31, 2012
and 2011 can be found in the "Reconciliation of GAAP to Non-GAAP
Financial Information" table attached to this press release.
About GigOptix, Inc.
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
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 merger and acquisition 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
Treasury stock, at cost; 701,754 and zero shares as of December
31, 2012 and December 31, 2011, respectively
Weighted average number of shares used in per share calculations -
basic and diluted
GAAP Total cost of revenue
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