GigOptix, Inc. GIG, a leading fabless supplier of semiconductor
and optical components that enable end-to-end high speed information streaming
over the network, today announced preliminary revenues of approximately $8.0
million, including recognition of approximately $0.9 million of previously
unrecognized government contract revenue, for its fourth quarter of fiscal
2012, ended December 31, 2012. This compares with the previous outlook
provided on October 30, 2012, that fourth quarter fiscal 2012 revenues would
be roughly in-line with third quarter fiscal 2012 revenues of $10.1 million.
Revenues for fiscal 2012 are expected to be approximately $37 million. This
compares with $32.3 million in fiscal 2011, representing a year-over-year
increase of approximately 14 percent. The annual increase resulted solely from
organic growth as the Company did not enter into any mergers or acquisitions
in 2012.
Certain factors that contributed to the lower than expected revenues in the
fourth quarter of fiscal 2012 included weaker demand in the markets the
Company currently serves, challenging macroeconomic conditions, and a push-out
into the first half of 2013 of some anticipated deployments within the
Company's optical product line.
The Company also announced today that it has taken immediate actions to adjust
overall spending as it continues to focus on its Adjusted EBITDA^1
performance. Selected actions, which became effective today, January 9, 2013,
include reducing the Company's global workforce by about 10 percent, primarily
in the Company's support and administrative functions, and company-wide salary
reductions ranging between 5 to 25 percent based on an individual's salary
level.
These actions are expected to result in approximately $450,000 of quarterly
cost savings once the plan is fully implemented.
GigOptix cautions that its anticipated revenue results, and the cost reduction
savings, are preliminary and based on the best information currently
available. The revenue results are subject to completion of the audited
financial statements for fiscal 2012.
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