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GigOptix, Inc. (GIG) Strategically Positioned to Grow with High-Speed Communications Demand
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
