- Q4 FY13 revenue of $7.8 million, up 7
percent sequentially and in-line with pre-announcement on January
14, 2014
- Q4 FY13 non-GAAP gross margin of 60
percent, at or above 60 percent for the fifth consecutive
quarter
- Returns to non-GAAP profitability with
net income of $0.1 million, or $0.00 per diluted share, compared
with a non-GAAP net loss of $0.7 million, or ($0.03) per share, in
Q3 FY13
- Adjusted EBITDA up significantly to
$0.9 million, compared with $0.1 million in Q3 FY13
- Cash and cash equivalents at December
31, 2013 of $20.4 million with no debt
- Q1 FY14 revenue will reflect normal
seasonal trends impacting the Company’s served optics markets and
expected to be approximately $7.2 million, or up approximately 4
percent compared with Q1 FY13
GigOptix, Inc. (NYSE MKT: GIG), a leading supplier of advanced
high speed semiconductor components for use in long-haul, metro,
Cloud connectivity, data centers, consumer electronics links and
interactive applications, through optical and wireless
communications networks, today announced financial results for its
fourth quarter and fiscal year 2013, which ended December 31,
2013.
Fourth Quarter Fiscal 2013 GAAP
Results
Total revenue in the fourth quarter of fiscal 2013 was $7.8
million. This compares with revenue of $7.1 million, excluding
approximately $0.9 million of government contract revenue, in the
fourth quarter of fiscal 2012, and $7.3 million in the third
quarter of fiscal 2013.
Gross margin was 58 percent in the fourth quarter of fiscal
2013, compared with 58 percent in the fourth quarter of fiscal
2012, and 59 percent in the third quarter of fiscal 2013.
Net loss in the fourth quarter of fiscal 2013 was $1.5 million,
or a net loss of ($0.07) per share. This compares with a net loss
of $2.1 million, or a net loss of ($0.10) per share, in the fourth
quarter of fiscal 2012, and net income of $3.5 million, or net
income of $0.16 per diluted share, in the third quarter of fiscal
2013. The third quarter fiscal 2013 GAAP net income was positively
impacted by a gain of approximately $5.7 million pertaining to the
net settlement of the litigation against M/A-Com, partially offset
by an additional approximately $0.6 million in R&D wafer
tape-out related expenses associated with the Company’s joint
development programs.
Cash and cash equivalents at December 31, 2013 were $20.4
million, and the Company had no debt outstanding. This compares
with $6.5 million, excluding the $3.6 million drawn from the
Company’s line of credit at December 31, 2012, and $9.3 million,
excluding the $6.0 million drawn from the Company’s line of credit
at September 29, 2013.
Fourth Quarter Fiscal 2013 Non-GAAP
Results1
Non-GAAP net income in the fourth quarter of fiscal 2013 was
$0.1 million, or $0.00 per diluted share, and excludes
approximately $1.0 million in stock-based compensation, $0.4
million in compensation expense related to financing activities,
and $0.2 million in amortization of intangible assets. The fourth
quarter results compare with a non-GAAP net loss of $0.1 million,
or ($0.01) per share in the fourth quarter of fiscal 2012, and a
non-GAAP net loss of $0.7 million, or ($0.03) per share in the
third quarter of fiscal 2013.
Non-GAAP gross margin was 60 percent, compared with 60 percent
in the fourth quarter of fiscal 2012 and 62 percent in the third
quarter of fiscal 2013.
Adjusted EBITDA for the fourth quarter of 2013 was $0.9 million.
This compares with Adjusted EBITDA of $0.7 million in the fourth
quarter of fiscal 2012, and Adjusted EBITDA of $0.1 million in the
third quarter of fiscal 2013.
Fiscal Year 2013 GAAP
Results
Total revenue was $28.9 million, compared with total revenue of
$36.7 million in fiscal 2012. The year-over-year change was
primarily due to the decline in the previously discussed end of
life (EOL) related sales from the Company’s ASIC and RF product
groups, pertaining to the prior ChipX and Endwave acquisitions, as
well as the government contract revenue in Q4 2012.
Gross margin increased to 60 percent, up from 54 percent in the
prior fiscal year.
Fiscal 2013 net loss was $1.9 million, compared with a net loss
of $7.0 million in fiscal 2012. The year-over-year improvement was
due in part to the one time net gain of approximately $4.8 million
pertaining to a litigation settlement in the third quarter of
fiscal 2013.
Fiscal Year 2013 Non-GAAP
Results1
Non-GAAP gross margin was 63 percent, up from 56 percent in the
prior fiscal year. Non-GAAP net loss was $0.4 million, compared
with non-GAAP net income of $0.4 million in fiscal 2012.
Adjusted EBITDA1 for fiscal 2013 was $2.4 million, compared with
$3.6 million in fiscal 2012.
“We had a very strong finish to fiscal 2013, with fourth quarter
revenue growing 7 percent sequentially, on top of the 7 percent
sequential growth we recorded in the prior quarter, and returning
to non-GAAP profitability,” said Dr. Avi Katz, Chairman and Chief
Executive Officer of GigOptix, Inc. “These results were better than
we forecasted, led by a nearly 40 percent increase in datacom
related revenue and a near doubling of sales of our E-band
product.”
“In addition, during the fourth quarter we completed a
successful stock offering that raised approximately $13.6 million
before expenses. We expect to use these additional funds for
possible strategic alternatives, and to accelerate our strategic
R&D initiatives as we look to bring several products to market
in 2014. This includes extending our leadership offering in the
100Gbps Coherent telecom market, expanding our delivery of 40Gbps
and 100Gbps devices for data center connectivity, and our new
offering for natural interfaces, gesture tracking and other
advanced application devices for the consumer market. When taken
together, I am confident this year we will deliver meaningful
revenue growth over 2013,” said Dr. Katz.
“Today we also announced a very significant event for GigOptix.
We have entered the Silicon Photonics arena, which will leverage
our Thin Film Polymer on Silicon (TFPSTM) technology, through the
signing of a definitive agreement with CPqD, a leading Brazil-based
optical communications research and development organization, to
incept BrPhotonics Produtos Optoeletrônicos LTDA., a new joint
venture company in Brazil,” said Dr. Katz. “This mutually exclusive
partnership leverages GigOptix’s small form factor Thin Film
Polymer on Silicon modulation devices expertise, and CPqD’s Silicon
Photonics (SiPh) based product expertise. We expect BrPhotonics
will provide advanced high-speed components for optical
communications utilizing Silicon Photonics and Thin Film Polymer on
Silicon technologies to advance the development and deployment of
100Gbps to 1Tbps fiber-optic long haul, metro links and
Cloud-connectivity in the next generation CFP2 and CFP4
applications. With GigOptix being the exclusive worldwide sales
agent for BrPhotonics, we believe that this progressive business
arrangement will significantly enhance our product portfolio and
enable us to bring those products to our customers in the fastest
and most cost-effective manner.”
Financial Outlook
“As is traditionally the case in the first quarter of our fiscal
year, we expect revenue will decline due to the normal seasonal
pricing reductions that occur in our High-Speed Communications
business. We expect this will result in first quarter revenue of
approximately $7.2 million,” said Curt Sacks, Senior Vice President
and Chief Financial Officer of GigOptix, Inc. “It is our current
belief that after the first quarter revenue will grow steadily over
the rest of the fiscal year and increase over 2013 levels.”
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 2013 financial results, and the
business outlook. Investors and other interested parties may access
the call by dialing (480) 629-9859. No passcode is needed for the
live call. The replay dial-in number is (858) 384-5517, and the
passcode is 4665223. 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
Generally Accepted Accounting Principles (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 12 months ended December 31, 2013 and 2012
can be found in the “Reconciliation of GAAP to Non-GAAP Financial
Information” table attached to this press release.
About GigOptix, Inc.
GigOptix is a leading fabless supplier of semiconductor
components that enable end-to-end high speed information streaming
over the optical and wireless networks. The products address long
haul and metro telecom applications as well as emerging high-growth
opportunities for Cloud and data centers connectivity, and
interactive applications for consumer electronics. GigOptix offers
a unique broad portfolio of Drivers for 40Gbps, 100Gbps and 400Gbps
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 Rescue
Program.
Forward-Looking Statements
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 the plans for
BrPhotonics and its relationship with the Company, growth,
opportunities, continued traction, contracts, improvements and our
statements under the heading "Financial 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
control our costs of goods sold, 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, the ability to maintain and continue relationships
with government agencies, and the ability of the partners to
BrPhotonics to work together in furtherance of its operational
objectives. 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 forward-looking
statement.
GIGOPTIX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) (Unaudited)
December 31, December 31, Net Change
2013 2012 $ %
ASSETS Current assets: Cash and cash equivalents $
20,377 $ 10,147 $ 10,230 101 % Accounts receivable, net 5,021 5,056
(35 ) (1 %) Inventories 4,617 4,111 506 12 % Prepaid and other
current assets 434 295 139
47 % Total current assets 30,449 19,609 10,840 55 % Property
and equipment, net 2,999 4,579 (1,580 ) (35 %) Intangible assets,
net 3,287 4,270 (983 ) (23 %) Goodwill 9,860 9,860 - 0 % Restricted
cash 284 282 2 1 % Other assets 183 228
(45 ) (20 %) Total assets $ 47,062 $ 38,828 $
8,234 21 %
LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable $ 831 $ 3,174 $
(2,343 ) (74 %) Accrued compensation 1,170 846 324 38 % Line of
credit - 3,600 (3,600 ) (100 %) Other current liabilities
2,746 3,080 (334 ) (11 %) Total current
liabilities 4,747 10,700 (5,953 ) (56 %) Pension liabilities 140
252 (112 ) (44 %) Other long-term liabilities 595
876 (281 ) (32 %) Total liabilities
5,482 11,828 (6,346 ) (54 %)
Stockholders' Equity Common stock 32 22 10 45 % Additional paid-in
capital 139,710 123,386 16,324 13 % Treasury stock, at cost;
701,754 shares as of December 31, 2013 and December 31, 2012,
respectively. (2,209 ) (2,209 ) - 0 % Accumulated other
comprehensive income 490 298 192 64 % Accumulated deficit
(96,443 ) (94,497 ) (1,946 ) 2 % Total stockholders'
equity 41,580 27,000 14,580
54 % Total liabilities and stockholders' equity $ 47,062
$ 38,828 $ 8,234 21 %
GIGOPTIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts)
(Unaudited) Three months ended Twelve
months ended December 31,
December 31,
December 31,
December 31,
2013
%
2012
%
2013
%
2012
%
Total revenue $ 7,838 100 % $ 7,941 100 % $ 28,926 100 % $ 36,734
100 % Total cost of revenue 3,323 42 % 3,373
42 % 11,522 40 % 16,941 46 %
Gross profit 4,515 58 % 4,568 58 %
17,404 60 % 19,793 54 % Research and
development expense 3,481 44 % 3,293 41 % 13,878 48 % 13,516 37 %
Selling, general and administrative expense 2,511 32 % 2,934 37 %
9,388 32 % 11,709 32 % Restructuring expense, net - 0 % - 0 % 950 3
% 93 0 % Special litigation-related expense (income) -
0 % 422 5 % (4,786 ) -17 % 1,351
4 % Total operating expenses 5,992 76 %
6,649 84 % 19,430 67 % 26,669 73
% Loss from operations (1,477 ) -19 % (2,081 ) -26 % (2,026 ) -7 %
(6,876 ) -19 % Interest expense, net (21 ) 0 % (36 ) 0 % (127 ) 0 %
(267 ) -1 % Other income (expense), net (2 ) 0 % (20
) 0 % 257 1 % 220 1 % Loss before
provision for (benefit from) income taxes (1,500 ) -19 % (2,137 )
-27 % (1,896 ) -7 % (6,923 ) -19 % Provision for (benefit from)
income taxes 22 0 % (18 ) 0 % 50
0 % 81 0 % Net loss $ (1,522 ) -19 % $ (2,119 ) -27 %
$ (1,946 ) -7 % $ (7,004 ) -19 % Basic and diluted net loss
per share $ (0.07 ) $ (0.10 ) $ (0.09 ) $ (0.33 ) Weighted average
number of shares used in per share calculations - basic and diluted
22,471 21,441 21,826 21,444
GIGOPTIX, INC.
NON-GAAP CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts) (Unaudited)
Three months ended Twelve
months ended December 31,
December 31,
December 31,
December 31,
2013
%
2012
%
2013
%
2012
%
Total revenue $ 7,838 100 % $ 7,941 100 % $ 28,926 100 % $ 36,734
100 % Total cost of revenue 3,128 40 % 3,163
40 % 10,765 37 % 16,221 44 %
Gross profit 4,710 60 % 4,778 60 %
18,161 63 % 20,513 56 % Research and
development expense 3,161 40 % 2,938 37 % 12,636 44 % 11,937 32 %
Selling, general and administrative expense 1,453 19
% 1,935 24 % 6,004 21 % 8,042
22 % Total operating expenses 4,614 59 %
4,873 61 % 18,640 64 % 19,979
54 % Income (loss) from operations 96 1 % (95 ) -1 % (479 )
-2 % 534 1 % Interest expense, net (21 ) 0 % (36 ) 0 % (127 ) 0 %
(267 ) -1 % Other income (expense), net (2 ) 0 % (20
) 0 % 257 1 % 220 1 % Income (loss)
before provision for (benefit from) income taxes 73 1 % (151 ) -2 %
(349 ) -1 % 487 1 % Provision for (benefit from) income taxes
22 0 % (18 ) 0 % 50 0 %
81 0 % Net income (loss) $ 51 1 % $ (133 ) -2 % $
(399 ) -1 % $ 406 1 % Basic net income (loss) per
share $ 0.00 $ (0.01 ) $ (0.02 ) $ 0.02 Diluted net income (loss)
per share $ 0.00 $ (0.01 ) $ (0.02 ) $ 0.02 Weighted average
number of shares used in basic per share calculation 22,471 21,441
21,826 21,444 Weighted average number of shares used in diluted per
share calculation 23,399 21,441 21,826 22,901
GIGOPTIX, INC. RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION (In thousands) (Unaudited)
Three months ended,
Twelve months ended, December 31, December 31,
December 31, December 31, 2013
2012 2013
2012 GAAP Total cost of revenue $ 3,323 $ 3,373 $
11,522 $ 16,941 Stock-based compensation (67 ) (87 ) (263 ) (230 )
Amortization of intangible assets (117 ) (123 ) (483 ) (490 )
Special bonuses (11 ) - (11 ) -
Non-GAAP Total cost of revenue $ 3,128 $ 3,163
$ 10,765 $ 16,221 GAAP Gross profit $ 4,515 $
4,568 $ 17,404 $ 19,793 Stock-based compensation 67 87 263 230
Amortization of intangible assets 117 123 483 490 Special bonuses
11 - 11 -
Non-GAAP Gross profit $ 4,710 $ 4,778 $ 18,161
$ 20,513 GAAP - Operating expenses $ 5,992 $
6,649 $ 19,430 $ 26,669 Stock-based compensation (894 ) (1,224 )
(3,291 ) (4,725 ) Amortization of intangible assets (120 ) (130 )
(500 ) (521 ) Restructuring expense, net - - (950 ) (93 ) Special
litigation-related income (expense) - (422 ) 4,786 (1,351 ) Special
bonuses (364 ) - (835 ) -
Non-GAAP Operating expenses $ 4,614 $ 4,873 $ 18,640
$ 19,979 GAAP Loss from operations $ (1,477 )
$ (2,081 ) $ (2,026 ) $ (6,876 ) Stock-based compensation 961 1,311
3,554 4,955 Amortization of intangible assets 237 253 983 1,011
Restructuring expense, net - - 950 93 Special litigation-related
expense (income) - 422 (4,786 ) 1,351 Special bonuses 375
- 846 - Non-GAAP
Income (loss) from operations $ 96 $ (95 ) $ (479 ) $ 534
GAAP - Net loss $ (1,522 ) $ (2,119 ) $ (1,946 ) $
(7,004 ) Stock-based compensation 961 1,311 3,554 4,955
Amortization of intangible assets 237 253 983 1,011 Restructuring
expense, net - - 950 93 Special litigation-related expense (income)
- 422 (4,786 ) 1,351 Special bonuses 375 -
846 - Non-GAAP Net Income (loss)
$ 51 $ (133 ) $ (399 ) $ 406 Adjusted EBITDA
reconciliation: Loss from operations $ (1,477 ) $ (2,081 ) $ (2,026
) $ (6,876 ) Restructuring expense, net - - 950 93 Depreciation and
amortization 1,039 1,033 3,882 4,085 Stock-based compensation 961
1,311 3,554 4,955 Special litigation-related expense (income) - 422
(4,786 ) 1,351 Special bonuses 375 -
846 - Adjusted EBITDA $ 898 $
685 $ 2,420 $ 3,608
Darrow Associates, Inc.InvestorsJim Fanucchi,
408-404-5400ir@gigoptix.com
GigPeak, Inc. (AMEX:GIG)
Historical Stock Chart
From Jun 2024 to Jul 2024
GigPeak, Inc. (AMEX:GIG)
Historical Stock Chart
From Jul 2023 to Jul 2024
