By the way, did you catch Ortel's earning report? They are a broad band supplier and they had some interesting comments about domestic spending.
Everyone seems to know it's coming, but just keep on pushing the time out.
Ortel Reports Second-Quarter Results
ALHAMBRA, Calif.--(BUSINESS WIRE)--Nov. 25, 1997--Ortel Corp. (Nasdaq:
ORTL - news) Tuesday reported financial results for its second fiscal
quarter and six-month periods ended Oct. 31, 1997.
For the quarter ended Oct. 31, 1997, revenues rose 5.8% to $22.1 million
from $20.9 million in the corresponding prior-year period. Net income
for the current second quarter totaled $1.9 million vs. $2.1 million a
year ago. As expected, on a per-share basis, net income was $.15
compared with $.17 a year ago.
Revenues of $12.4 million from the sale of broadband fiber-optic
products were 57% of total revenues for the second quarter and
represented a decrease of 27% over the corresponding prior-year period
of $17.2 million. The decrease reflects the slowdown in capital spending
for domestic cable system upgrades that had affected the industry for
the past three quarters.
Other product sales, for wireless, satellite and telecom applications,
totaled $9.6 million in the second quarter, a 158% increase over $3.7
million in the corresponding quarter last year.
International sales for the current second quarter of $11.4 million rose
82% from $6.3 million a year ago and represented 52% of total revenues,
fueled by strong growth across all of Ortel's markets.
For the first half of the fiscal year, revenues of $41.8 million
increased 10% from $38.1 million in the corresponding prior-year period.
Net income for the same period of $3.4 million, or $.27 per share,
compares with $3.9 million, or $.31 per share, a year ago.
''We believe we have seen the end of the long slide in domestic cable
system spending based on sequentially higher domestic broadband sales
and talk of renewed spending from TCI,'' said Wim H.J. Selders, Ortel's
president and chief executive officer. ''Several issues, however, leave
us cautious as to Ortel's ability to expand sales in the third quarter,
and we anticipate product mix in the quarter will affect profit margins.
''It now appears that Ortel will begin to see the benefits of an upturn
in cable spending in the U.S. in our fourth fiscal quarter, as well as
the benefit of several new products such as a new high-performance
1310nm laser and a 1550nm transmitter,'' Selders concluded.
Ortel manufactures and sells a broad range of signal transmission
products worldwide, principally serving the broadband, wireless and
telecom sectors of the communications industry. Its products are
designed to improve signal quality, enhance transmission distances,
increase bandwidth, lessen signal interference and reduce costs.
The company has headquarters in Alhambra and international operations in
Stockholm, Sweden; Munich, Germany; Paris; and Shenzhen, China. For more
information on the company and its products, call 800/362-3891, or visit
the company's Web site at ortel.co |
