Acquisitions drive growth spurt at Avanex
The company’s revenue increased by $8.9 million, or 49%, compared with $18.1 million in the third quarter of 2003. Results for the previous quarter represented only two months of the Alcatel and Corning acquisitions, and one month of the acquisition from Vitesse.
Avanex purchased Alcatel Optronics and certain assets of Corning s optical components business in May 2003 (see Avanex buys Alcatel Optronics, parts of Corning (May 2003)), and subsequently bought Vitesse’s optical systems division in August 2003.
Avanex’s results were up by $21.7 million, or 409%, compared with $5.3 million in final quarter of 2002.
The company reported a net loss of $33.5 million, or $0.25 per share, for the final quarter of 2003, compared with a net loss of $27.9 million, or $0.26 per share, in the previous quarter and a net loss of $15.9 million, or $0.23 per share, for the year-ago period.
Walter Alessandrini, chairman and CEO of Avanex, said that the company saw an increase in business during the final quarter of 2003 due both to the recently acquired businesses as well as increased market traction for its subsystem products.
“We continue to successfully expand our customer base, making commercial shipments to more customers than ever before.” said Alessandrini, “We were pleased to have four customers each account for more than ten percent of revenue during the second quarter.”
Avanex is undergoing a vigorous consolidation program and has fully integrated all of the operations acquired from Vitesse into its existing Fremont, California facility. Also, it is nearing completion on the discontinuance of its Livingston, UK operations acquired from Alcatel.
Alessandrini added that Avanex is “in an excellent position to meet our goal to be the key supplier to all of the major telecommunication system integrators for their optical solution needs.”
The company expects its revenue for the first quarter of 2003 to grow by about 5 percent sequentially.
