From METHA's latest 10Q
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FISCAL YEARS ENDED APRIL 30, 1999 AND 1998
Gross margins of the Optical Subsystems and Components segment increased to 30% in fiscal
1999 from 25% in fiscal 1998.
This increase was due primarily to a positive shift in product mix between higher margin optical subsystems and lower margin optical components. The effect of this
shift on margins was partially offset by an increase of $700,000 in personnel costs related to research and development and $200,000 in project related material and overhead costs.
Optical Subsystems and Components segment net sales increased 76% to $59,248,000 in fiscal 1999 from $33,683,000 in fiscal 1998. Of this $25,565,000 increase, $23,200,000 is from an increase in net sales of optical subsystems and $2,365,000 is from an increase in net sales of optical components.
The increase in net sales of optical subsystems was primarily due to an increase in sales of Stratos' embedded transceivers.
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FISCAL YEARS ENDED APRIL 30, 2000 AND 1999
Net sales of the Optical Subsystems and Components segment represented 20% of consolidated
net sales in fiscal 2000 and 15% of consolidated net sales in fiscal 1999. Optical Subsystems and Components segment net sales increased 43% to $84,847,000 in fiscal 2000 from $59,248,000 in fiscal 1999. Of this $25,599,000 increase, $19,218,000 is from an increase in net sales of optical
subsystems and $6,381,000 is from an increase in net sales of optical components. The increase in net sales of optical subsystems was primarily due to an increase in sales of Stratos' line of internal removable transceivers.
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Break-
EXPLAINATION
Gross margins of the Optical Subsystems and Components segment decreased to 25% in fiscal 2000 from 30% in fiscal 1999.
EXPLANATION is below------------
Fiscal 2000 cost of sales includes an increase of approximately $1,800,000 in material and overhead costs related to major product development projects and
approximately $1,700,000 of additional personnel costs dedicated to research and development.
Fiscal 2000 also included start-up and unusual expenses related to Stratos' recently acquired Stratos Micro Systems and Bandwidth Semiconductor subsidiaries.
The Optical Subsystems and Components segment also experienced declines in the average unit prices for its products.
WHOA, If I can sell in VOLUME then my price may be lowered
or there may be some priceing pressures to stay competitive....so.......INTC does this with AMD all the TIME......
As described in Note 2 to the consolidated financial statements, substantially all of the Optical
Subsystems and Components segment was transferred to the Company's newly formed subsidiary, Stratos Lightwave, Inc. (Stratos), effective May 28, 2000. On June 27, 2000, Stratos issued shares of common stock in an initial public offering. The Company owns 84.3% of Stratos'
common stock outstanding.
It is the Company's intention to distribute, at a later date, all of the shares of Stratos common stock it owns to its stockholders contingent upon receiving a ruling from
the Internal Revenue Service that such a distribution would be tax-free to the Company and its stockholders.
Wait til september to see the actual #'s and Margins even though we had our PRE-Announcement
`As of
the end of our first quarter (July, 2000), our backlog increased 88% to $47 million, from our ending
fourth quarter (April, 2000) backlog of $25 million. We experienced an 82% increase in our optical
subsystems backlog and a 104% increase in our optical components backlog. This expansion will
allow us to add 50% to our Gigabit-speed optical subsystems unit capacity by the end of October
2000, with a 100% total increase in unit capacity by end of calendar 2000. The new space will also
provide for a 200% increase in our optical component manufacturing and precision fiber optic
termination capacity in our Chicago facility.''
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