GigOptix (NYSE:GIG) is a leading
fabless supplier of high-speed semiconductor components that enable end-to-end
information streaming over optical and wireless networks. The company’s core
products target three primary markets – including high-speed fiber optical
communications, wireless backhaul networks and high-speed links for consumer
applications. Leveraging a formidable portfolio of IP and an acquisition-based
growth strategy – including eight acquisitions of key technologies since 2007 –
the company has recorded impressive financial growth in recent months.
The demand for high-speed communications
networks is rapidly expanding. By 2017, the company estimates that nearly 4
billion people will be connected to the Internet, leading to a 720-percent
increase in online video traffic and a 440-percent boost in cloud traffic, as
compared to 2012. This continued stress on networks will be met by an estimated
300-percent increase in broadband speed over the same period, providing
GigOptix with a formidable opportunity to realize sustained growth within its
addressable markets moving forward. The company’s recent financial results
highlight this potential.
In the first quarter of 2015,
GigOptix recorded total revenue of $9.1 million, which represents a 22.9
percent year-over-year increase. Among this revenue, approximately two-thirds
was attributed to the company’s high-speed communications product line.
Additionally, the company’s adjusted EBITDA for the period was $1.4 million, up
from $47,000 during the first quarter of 2014.
“Our strong financial
performance in the first quarter of 2015 represents the most profitable first
quarter in our company’s history,” Dr. Avi Katz, chairman and chief executive
officer of GigOptix, stated in a news release. “The continuous demand for our
40Gbps devices for enhanced data center infrastructure installation… drove our
stronger than expected results.”
In May, GigOptix built on its
first-quarter performance through the announcement of a $7.9 million order from
a large aerospace and defense contractor, highlighting the market acceptance of
the company’s mature products in the field of ASIC for advanced mil-aero
applications. By continuing to serve legacy customers and effectively acquiring
new accounts in established and emerging government and commercial markets,
GigOptix is in a strong position to continue building on its industry presence
moving forward.
For more information, visit
www.gigoptix.com
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