3S PHOTONICS Announces Fiscal Year 2009 Results
3S PHOTONICS, world-leading French manufacturer of optical and optoelectronic components for telecommunications networks, today reported financial results in line with expectations for fiscal year ended June 2009.
Despite a challenging worldwide economic and financial environment, 3S PHOTONICS keeps its course. It indeed reports a slight drop in its turnover limited to 10% when compared to FY2008, while its main competitors are experiencing a decline of around 30% of their revenues.
Thus, the company records a 23.04 million euros turnover for fiscal year 2008/2009.
In 2009, 3S PHOTONICS net income and cash flow remain positive, without taking into account the funds raised back in July from three investment funds - FSI, Alto Invest and Midi Capital -, the funds raised being mainly devoted to support the acquisition strategy implemented by the company. From a financial standpoint, equity capital raised from 12 to 20 million euros.
In 2009, 3S PHOTONICS has also reduced its financial debts. Operating expenses were lowered as well, in line with the turnover.
"Great efforts have been made to reduce our operating expenditure. At the end of the first quarter of our fiscal year 2010, our expenses are fully in line with our budget" explains Alexandre Krivine, Chairman, President and CEO of 3S PHOTONICS. "Despite adverse economic conditions, we are pleased to sustain a healthy financial position with positive operating profit and a stable debt".
Purchased by Alexandre Krivine and Didier Sauvage from the American group Avanex Corp. in April 2007, 3S PHOTONICS was then deeply in dept.
In 2 years, 3S PHOTONICS recovered its financial stability leveraging its existing product portfolio and opening up to new segments of the telecommunications market such as pump modules for terrestrial applications or transmission lasers for FTTH (Fiber-To-The-Home) and PON (Passive Optical Networks).
The fact that it is so resistant to the current economic situation is due to its positioning on niche markets with strong added value or fashionable markets such as WDM, long-term projects and research and development activities partly financed by its industrial partners.
In addition to the outlets provided by the market, 3S PHOTONICS growth over the next few years will rely on M&A activities, facilitated by the funds from its new shareholders.