Gigoptix Reports All-Time Record Revenue And Profitability In The

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The following excerpt is from the company's SEC filing.



Third Quarter Fiscal Year 2015



Q3 FY15 revenue was the highest ever, increasing for the sixth consecutive quarter to $10.4 million, up 23 percent from $8.5 million in Q3 FY14, and up 6 percent from $9.8 million in Q2 FY15



YTD FY15 record revenue of $29.3 million, increased 23 percent from $23.9 million for the same period of FY14



Q3 FY15 record GAAP and non-GAAP gross margin of 64 percent and 66 percent, respectively



Q3 FY15 record GAAP net income of $1.0 million, or net income of $0.03 per diluted share, excluding a one-time gain from a non-recurring litigation settlement in Q3 FY1 3



Q3 FY15 record non-GAAP net income of $2.3 million, or net income of $0.06 per diluted share



Q3 FY15 record Adjusted EBITDA of $3.0 million



Cash and cash equivalents as of September 27, 2015 were $35.0 million, which includes the approximately $16.5 million in net proceeds raised through a public offering of common stock in August 2015. Cash and cash

equivalents were up from $18.4 million in Q2 FY15



Revenue in Q4 FY15 is expected to be approximately $10.7 million, which would be a new quarterly record for the Company, resulting in total revenue of $40 million in FY15, which would be a new annual record for the

Company, and represents an increase of approximately 21 percent from FY14



SAN JOSE, Calif.  October 19, 2015 





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 third quarter of fiscal year 2015, which ended September 27, 2015.



Third

Quarter Fiscal 2015 GAAP Results



Total revenue in Q3 FY15 was a record $10.4 million, and compares with revenue of $8.5 million in Q3 FY14, and

$9.8 million in Q2 FY15.



Gross margin in Q3 FY15 was a record 64 percent, and compares with 59 percent in Q3 FY14, and 63 percent in Q2 FY15.



Net income in Q3 FY15 was a record $1.0 million, or net income of $0.03 per diluted share, representing the

highest GAAP quarterly net income in the Companys history, excluding a one-time gain from a litigation settlement in Q3 FY13. This compares with a net loss of $0.8 million, or a net loss of ($0.02) per share in Q3 FY14, and net income of $0.5

million, or net income of $0.02 per diluted share in Q2 FY15.



Cash and cash equivalents as of September 27, 2015 were $35.0 million, which

includes approximately $16.5 million raised through a public offering of common stock in August 2015, up from $18.4 million in Q2 FY15.



Third

Quarter Fiscal 2015 Non-GAAP Results



Gross margin for Q3 FY15 was a record 66 percent, and

compares with 61 percent in Q3 FY14 and 66 percent in Q2 FY15.



Net income for Q3 FY15 was a record $2.3 million, or net income of $0.06 per diluted

share, representing the highest non-GAAP quarterly net income in the Companys history. This compares with net income of $0.7 million, or net income of $0.02 per diluted share in Q3 FY14, and net income of $2.1 million, or net income of $0.06

per diluted share in Q2 FY15.



for Q3 FY15 was a record $3.0 million, and represents

the highest quarterly Adjusted EBITDA in the Companys history. This compares with Adjusted EBITDA of $1.4 million in Q3 FY14, and Adjusted EBITDA of $2.8 million in Q2 FY15.



We produced another quarter of record financial results, further demonstrating that our business strategy to expand into high-growth markets, both

organically and through strategic acquisitions, accompanied by tight cost controls, is generating exceptional performance, said Dr. Avi Katz, Chairman and Chief Executive Officer of GigOptix, Inc. Our all-time record results and

enhanced profitability this quarter were driven by significant growth in our High-Speed Communications business. We continue to be the dominant supplier of RF devices for current 40Gbps and future 100Gbps active optical cables and transceivers for

the fast growing data center market. While delivering an exceptional financial quarter, we have also enhanced our customer base for datacom and telecom-metro 100Gbps links, completed a successful oversubscribed underwritten follow-on public common

stock offering of about $16.5 million in net proceeds, which was done in a very tough market environment, and, subsequent to the end of the third quarter, successfully completed the strategic acquisition of the Korean company Terasquare to establish

GigOptix-Terasquare-Korea (GTK) Co., Ltd in Seoul, Korea. With the addition of Terasquare, we are now strongly positioned to further increase our cloud-based links market-share by having a complete and superior IC portfolio of industry leading

100Gbps datacom solutions for Ethernet, Fiber Channel, and InfiniBand data center connectivity. We believe the transaction will result in a meaningful increase of the High Speed Communications revenue in fiscal 2016 and beyond.



Earlier this month we announced another milestone in the development of our Industrial ASIC product line with a substantial $6.1 million contract with

one of the worlds largest suppliers of advanced aerospace for commercial and defense products. Revenue from this agreement will begin in the fourth quarter and be spread over the next two years. When combined with the $7.9 million order we

announced in May of this year from another major supplier in the same industry, we have the foundation in place to deliver continued strong financial performance in 2016, said Dr. Katz.



Financial Outlook



We expect Q4 FY15 revenue of approximately $10.7 million, which would be another record quarter in the Companys history. For fiscal 2015, we will

generate record annual revenue of $40 million, representing an increase of approximately 21 percent over fiscal 2014, and greater annual profitability, said Dr. Katz. Based on the fourth quarter fiscal 2015 revenue guidance, fiscal

2015 will result in the highest revenue and most profitable year in the Companys history.



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 its third quarter

fiscal 2015 financial results and business outlook. Investors and other interested parties may access the call by dialing (719) 325-2435. No passcode is needed for the live call. The replay dial-in number is (858) 384-5517, and the

passcode is 632303. 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 GigOptix website at



www.gigoptix.com



Non-GAAP Measures



GigOptix reports revenue, gross margin, operating expense, operating

income and net income (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 nine months ended September 27, 2015 and September 28, 2014, as well as the prior quarter, can be found in the Reconciliation of GAAP to Non-GAAP Financial Information table attached to

this press release.



About GigOptix, Inc.



GigOptix,

Inc., (NYSE MKT: GIG) is a leading fabless supplier of high-speed semiconductor components that enable end-to-end information streaming over optical and wireless networks. Its products portfolio addresses emerging telecom long-haul and metro

applications, datacom Cloud and data center connectivity, point-to-point backhaul wireless applications, and interactive interfaces for consumer electronics. The Company offers a broad portfolio of high performance MMIC solutions that enable next

generation wireless microwave systems up to 90GHz and drivers, TIAs for 40Gbps and 100Gbps fiber-optic telecommunications and data-communications networks, and Clock Data Recovery (CDR) technology.



GigOptix also offers a wide range of digital and mixed-signal ASIC solutions in a wide range of technology geometries from 28nm to 0.6um, and enables a

complete product life cycle support from swift introduction of new product through its ASIC Sunrise



program to extension of legacy products 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 believe, will, and expect, or the negative thereof or

comparable terminology, and include (without limitation) statements regarding expected revenues, income and cash, product expansion and completion of the financial statements for the quarter just ended. 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 recognize revenues, 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, and to do so in an efficient manner, 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 GigOptixs filings with the SEC, and

in GigOptix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 GigOptix as of the date

hereof, and GigOptix assumes no obligation to update any forward-looking statement.



Darrow Associates, Inc.



Jim Fanucchi, (408) 404-5400



ir@gigoptix.com



(TABLES TO FOLLOW)



GIGOPTIX, INC.



CONDENSED CONSOLIDATED BALANCE SHEETS



(In thousands)



(Unaudited)



December 31,



Net Change



ASSETS



Current assets:



35,021



18,438



16,583



Accounts receivable, net



Inventories



Prepaid and other current assets



Total current assets



52,030



31,965



20,065



Property and equipment, net



Intangible assets, net



Goodwill



10,395



10,306



Restricted cash



Other assets



Total assets



66,780



46,750



20,030



LIABILITIES AND STOCKHOLDERS EQUITY



Current liabilities:



Accounts payable



Accrued compensation



Other current liabilities



Total current liabilities



Pension liabilities



Other long-term liabilities



Total liabilities



Stockholders Equity



Common stock



Additional paid-in capital



162,488



143,661



18,827



Treasury stock, at cost; 701,754 shares as of September 27, 2015 and December 31, 2014



(2,209



Accumulated other comprehensive income



Accumulated deficit



(101,348



(102,264



Total stockholders equity



59,276



39,505



19,771



Total liabilities and stockholders equity



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



(In thousands, except per share amounts)



Three months ended



Nine months ended



June 28,



10,419



29,319



23,907



Total cost of revenue



11,040



10,095



Gross profit



18,279



13,812



Research and development expense



10,357



Selling, general and administrative expense



Restructuring expense, net



Total operating expenses



17,252



18,053



Income (loss) from operations



(4,241



Interest expense, net



Other income (expense), net



Income (loss) before provision for income taxes



(4,232



Provision for income taxes



Income (loss) from consolidated companies



(4,271



Loss on equity investment



Net income (loss)



(4,727



Basic net income (loss) per share



Diluted net income (loss) per share



Weighted average number of shares used in basic net income (loss) per share calculation



36,769



32,885



31,866



34,060



31,636



Weighted average number of shares used in diluted net income (loss) per share calculation



38,497



33,922



35,109



NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



10,415



18,904



14,370



13,708



14,005



Income from operations



Income before provision for income taxes



Basic net income per share



Diluted net income per share



Weighted average number of shares used in basic net income per share calculation



Weighted average number of shares used in diluted net income per share calculation



32,340



32,525



RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION



GAAP Total cost of revenue



Stock-based compensation



Amortization of intangible assets



Non-GAAP Total cost of revenue



GAAP Gross profit



Non-GAAP Gross profit



GAAP Operating expenses



(1,161



(2,812



(2,937



Acquisition and strategic related costs



Special bonus



Non-GAAP Operating expenses



GAAP Income (loss) from operations



Non-GAAP Income from operations



GAAP Net income (loss)



Non-GAAP Net income



Adjusted EBITDA reconciliation:



Depreciation and amortization

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. GigOptix next reports earnings on October 26, 2015.

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