Avanex Announces Record Revenue for Q1 Fiscal 2007
Thursday November 2, 4:05 pm ET
FREMONT, Calif., Nov. 2 /PRNewswire-FirstCall/ -- Avanex Corporation (Nasdaq: AVNX - News), a pioneer of intelligent photonic solutions that enable next-generation optical networks, today reported financial results for the first quarter of fiscal 2007 ended Sept. 30, 2006.
Net revenue in the first quarter of fiscal 2007 was a record $50.9 million, a 12 percent increase over the prior quarter revenue of $45.5 million and a 23 percent increase over revenue of $41.2 million in the first quarter of the previous year.
The company reported a net loss of $9.8 million or a loss of $0.05 per share in the first quarter of fiscal 2007, compared with a net loss of $9.1 million or a loss of $0.04 per share in the prior quarter and a net loss of $16.9 million or a loss of $0.12 per share in the first quarter of the prior year.
Non-GAAP net loss in the first quarter of fiscal 2007 was $7.2 million or a loss of $0.03 per share, compared with a non-GAAP net loss of $9.1 million or a loss of $0.04 per share in the prior quarter and a non-GAAP net loss of $14.7 million or a loss of $0.10 per share in the first quarter of the prior year. Non-GAAP net loss excludes share-based payments, amortization of intangibles, restructuring charges, and gains (loss) on the disposal of property and equipment.*
Gross margin in the first quarter of fiscal 2007 was 9 percent, an increase of five percentage points over the prior quarter gross margin of 4 percent.
Financial results for the first quarter of fiscal 2007 are subject to review of the accounting for cost reductions from the company's contract manufacturer, which may affect cost of goods sold.
"I am very pleased with our performance this quarter as it marks the company's third consecutive quarter of double-digit revenue growth," said Jo Major, chairman and chief executive officer of Avanex.
"During the quarter, we saw strong growth from new products we announced including our amplifier with integrated optical monitoring capability developed for next-generation deployments that provide the network backbone for the delivery of high-bandwidth triple play services. Also during the quarter, our supply chain initiatives started to take hold, helping reduce our overall product cost. Our operational metrics including yield, on-time shipments and return rates continued to recover following last year's manufacturing transition," said Major.
Q2 FY 2007 Outlook
The company expects revenue in the second quarter of fiscal 2007 to be between $52 million and $55 million and expects gross margin to improve.
Conference Call
Avanex will host a conference call today, Nov. 2 at 1:30 p.m. Pacific time; 4:30 p.m. Eastern time. The number for the conference call is 210-835-2510, and the password is "Avanex." A live webcast of the conference call will be available on the Investors section on the company's web site at www.avanex.com . An audio replay of the conference call will be available until Nov. 10 at 11:59 p.m. Pacific time. To access the audio replay, please dial 203-369-3364.
About Avanex
Avanex Corporation is a leading global provider of Intelligent Photonic Solutions(TM) to meet the needs of fiber optic communications networks for greater capacity, longer distance transmissions, improved connectivity, higher speeds and lower costs. These solutions enable or enhance optical wavelength multiplexing, dispersion compensation, switching and routing, transmission, amplification, and include network-managed subsystems. Avanex was incorporated in 1997 and is headquartered in Fremont, Calif. Avanex also maintains facilities in Horseheads, N.Y.; Shanghai; Nozay, France; San Donato, Italy; and Bangkok. To learn more about Avanex, visit our Web site at: www.avanex.com .
Forward-looking Statements
This press release contains forward-looking statements including forward-looking statements regarding expected second quarter of fiscal 2007 operating results and market reception for new products. Actual results could differ materially from those projected in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include general economic conditions, the pace of spending and timing of economic recovery in the telecommunications industry and in particular the optical networks industry, the company's inability to sufficiently anticipate market needs and develop products and product enhancements that achieve market acceptance, problems or delays in reducing the cost structure of the company, the company's inability to achieve the anticipated benefits of previous acquisitions, to effect its restructuring goals or to successfully transfer manufacturing operations to lower cost regions, any slowdown or deferral of new orders for products, higher than anticipated expenses the company may incur in future quarters or the inability to identify expenses which can be eliminated.
Finally, please refer to the risk factors contained in the company's SEC filings including the company's Annual Report on Form 10-K filed with the SEC on Sept. 28. |
