News Article
Opnext quarterly revenues battered by Japanese tsunami
The shortfall in expected revenues is attributable to a ten-day interruption in the Company's module manufacturing operations in Japan following the earthquake and tsunami on March 11, 2011.
Opnext, a designer and manufacturer of optical modules and components, expects revenues for its fourth fiscal quarter ended March 31, 2011 will be approximately $95.3 million, as compared to the original guidance for the quarter of $97.0 million to $102.0 million.
Opnext reported revenues of $97.1 million for the third quarter ended December 31, 2010 and $76.8 million for the fourth quarter ended March 31, 2010. The shortfall in expected revenues from the Company's earlier guidance is attributable to a ten-day interruption in the Company's module manufacturing operations in Japan following the earthquake and tsunami on March 11, 2011.
Opnext's module assembly facility in Totsuka, Japan suffered minor disruption as a result of the March 11 earthquake and, while shipments of subassemblies to contract manufacturers and shipments of finished goods to customers from inventory each resumed on March 18, 2011, production at this facility was not reinstated until March 21, 2011.
The Company's chip production facility in Totsuka suffered minor damage which has been repaired and the Company is in the process of recalibrating and verifying the proper operation of the equipment at this facility prior to restarting full production, which is expected to resume by the end of April 2011.
Opnext's industrial and commercial production facility located in Komoro, Japan was undamaged and production at this facility resumed shortly following the earthquake. The Komoro facility is also being used to process pre-existing wafers from the Totsuka chip production facility pending full restoration of the Totsuka facility.
Opnext also continues to work with its suppliers affected by the earthquake and tsunami and related subsequent events to address component availability and, in certain instances, the Company is exploring alternative sources of supply. In addition, Opnext continues to be impacted by the planned power outages in the Totsuka area and the Company is in the process of installing backup power capability to permit continuous operation.
Opnext cautions that its anticipated revenues for its fourth fiscal quarter ended March 31, 2011 are preliminary and remain subject to completion of the financial statements for such quarter; consequently, the preliminary revenues are subject to change.
Opnext plans to review its fourth fiscal quarter results in further detail and discuss its full fiscal year results and business outlook during its regular quarterly earnings conference call for investors in May 2011. The date and time of the conference call will be announced separately.
