Opnext Cites Supply Constraints for 10G

Opnext reported revenue of $76.8 million for the quarter ended 31-March-2010, down 1% compared to $76.1 million for the preceding quarter. Gross margin was 18.8% compared to 15.9% for the quarter ended December 31, 2009. Non-GAAP gross margin was 20.9% for the quarter ended March 31, 2010, compared to 18.7% for the quarter ended December 31, 2009. Net loss was $18.3 million, or $(0.20) per fully diluted share, for the quarter ended March 31, 2010, compared to a net loss of $18.6 million, or $(0.21) per fully diluted share, for the quarter ended December 31, 2009. Non-GAAP net loss for the quarter ended March 31, 2010 was $14.5 million, or $(0.16) per fully diluted share, compared to a non-GAAP net loss of $12.7 million, or $(0.14) per fully diluted share, for the quarter ended December 31, 2009.


Revenue from sales of 10Gbps and below products decreased $6.2 million, or 11%, to $48.9 million, primarily as a result of lower sales of 300 Pin Tunable products and X2 modules. 40Gbps and above revenue increased $5.1 million, or 30%, to $21.8 million, driven by growth in 40Gbps modules and research and development contract revenues.


Cisco and Nokia Siemens Networks each represented 10% or more of total revenues for the quarter ended March 31, 2010. Combined, these customers represented approximately 42% of total revenues for each of the quarters ended March 31, 2010 and December 31, 2009.


"During the quarter we experienced improved demand for our products that translated into strong revenue growth in our 40G and above and industrial and commercial businesses," said Gilles Bouchard, the company's President and CEO. "Unfortunately, supply constraints contributed significantly to a decrease in our 10G and below revenue compared to the December quarter. Looking ahead to our first fiscal quarter ending in June 2010, we expect 10G and below revenue to rebound based on anticipated customer demand. While we expect sales of 40G and 100G modules to also show strong growth, we expect 40G subsystems sales to be weak, resulting in lower overall 40G and above revenue relative to the March quarter."http://www.opnext.com