Monday, October 31, 2011

Opnext Posts Quarterly Sales of $86M, Notes Disruption from Flooding in Thailand

Opnext reported quarterly sales of $86.0 million, down 7.6 percent sequentially and down 0.5 percent compared to the quarter ended September 30, 2010. Revenue from sales of 40Gbps and above products decreased 6% compared to the quarter ended June 30, 2011 as lower sales of 40Gbps line-side modules and subsystems were partially offset by higher sales of 40Gbps and 100Gbps client-side modules. EBITDA was negative $1.5 million compared to positive $2.0 million for the quarter ended June 30, 2011 and negative $6.4 million for the quarter ended September 30, 2010.

"While reduced demand for 40G line-side modules and subsystems limited revenue in the September quarter, I continue to be pleased with our operational progress," said Harry Bosco, Chairman and Chief Executive Officer of Opnext. "Cash used in operations was less than $2.0 million and we again delivered positive Adjusted EBITDA despite lower revenues and a stronger Japanese yen. "Following the flooding in Thailand, Opnext is executing business continuity contingency plans, expanding the capacity at our manufacturing facility in Totsuka, Japan for our 10G products while moving some capacity to our contract manufacturers in China and our facility in Fremont, California,"

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