About GigOptix, Inc.
GigOptix is a leading fabless supplier of semiconductor and optical components that enable high-speed end-to-end information streaming over the network and address emerging high-growth opportunities in the communications, industrial, defense and avionics industries. The Company offers a unique broad portfolio of Drivers, TIAs and TFPSTM optical modulators for 40G and 100G fiber-optic telecommunications and data-communications networks, and high performance MMIC solutions that enable next generation wireless microwave systems up to 90GHz and drivers. GigOptix also offers a wide range of digital and mixed-signal ASIC solutions and enables product lifetime extension through its GigOptix Sunset Rescue Program.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the bringing of products to market with full documentation. Such statements contain words such as "will," and "expect," or the negative thereof or comparable terminology, and include (without limitation) statements regarding growth, opportunities, continued traction, contracts, and improvement and our statements under the heading "Business Outlook." Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks include, but are not limited to: the ability to extend product offerings into new areas or products, unexpected occurrences that deter the full documentation and "bring to market" plan for products that were developed this year and last year, trends and fluctuations in the industry, changes in demand and purchasing volume of customers, unpredictability of suppliers, our ability to attract and retain qualified personnel, the ability to move product sales to production levels, the ability to compete for client design-in opportunities, the ability to cross-sell to new clients and to diversify, the success of product sales in new markets or of recently produced product offerings, including bundled product solutions, the amount of cost savings, the ability to improve productivity, the ability to pursue and attract other M&A opportunities, our ability to enforce intellectual property rights, and the ability to maintain and continue relationships with government agencies. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the company's filings with the SEC, and in the company's other current and periodic reports filed or furnished from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the company as of the date hereof, and the company assumes no obligation to update any forward-looking statement.
| GIGOPTIX, INC. | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three months ended | |||||||||||||||||
| April 1, |
|
April 3, |
|
||||||||||||||
| Revenue | 2012 |
% |
2011 |
% |
|||||||||||||
| Product | $ | 9,151 | 100 | % | $ | 7,052 | 92 | % | |||||||||
| Government contract | - | 0 | % | 610 | 8 | % | |||||||||||
| Total revenue | 9,151 | 100 | % | 7,662 | 100 | % | |||||||||||
| Cost of revenue | |||||||||||||||||
| Product | 4,178 | 46 | % | 3,651 | 48 | % | |||||||||||
| Government contract | - | 0 | % | 180 | 2 | % | |||||||||||
| Total cost of revenue | 4,178 | 46 | % | 3,831 | 50 | % | |||||||||||
| Gross profit | 4,973 | 54 | % | 3,831 | 50 | % | |||||||||||
| Research and development expense | 3,383 | 37 | % | 2,390 | 31 | % | |||||||||||
| Selling, general and administrative expense | 2,807 | 31 | % | 2,623 | 34 | % | |||||||||||
| Restructuring expense | 207 | 2 | % | - | 0 | % | |||||||||||
| Merger-related expense | - | 0 | % | 1,107 | 14 | % | |||||||||||
| Special litigation-related expense | 141 | 2 | % | - | 0 | % | |||||||||||
| Shareholder settlement expense | - | 0 | % | 1,064 | 14 | % | |||||||||||
| Total operating expenses | 6,538 | 71 | % | 7,184 | 94 | % | |||||||||||
| Loss from operations | (1,565 | ) | -17 | % | (3,353 | ) | -44 | % | |||||||||
| Interest expense | (152 | ) | -2 | % | (96 | ) | -1 | % | |||||||||
| Other income (expense), net | (15 | ) | 0 | % | 12 | 0 | % | ||||||||||
| Loss before provision for income taxes | (1,732 | ) | -19 | % | (3,437 | ) | -45 | % | |||||||||
| Provision for income taxes | (16 | ) | 0 | % | (5 | ) | 0 | % | |||||||||
| Net loss | (1,748 | ) | -19 | % | (3,442 | ) | -45 | % | |||||||||
| Net loss per share - basic and diluted | $ | (0.08 | ) | $ | (0.28 | ) | |||||||||||
| Weighted average number of shares used in per share | |||||||||||||||||
| calculations - basic and diluted | 21,555 | 12,255 | |||||||||||||||
| GIGOPTIX, INC. | |||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| April 1, | December 31, | Net Change | |||||||||||||||
| 2012 | 2011 | $ | % | ||||||||||||||
| ASSETS | |||||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 15,797 | $ | 15,788 | $ | 9 | 0 | % | |||||||||
| Short-term investments | - | 400 | (400 | ) | (100 | %) | |||||||||||
| Accounts receivable, net | 7,050 | 5,625 | 1,425 | 25 | % | ||||||||||||
| Inventories | 2,546 | 2,220 | 326 | 15 | % | ||||||||||||
| Prepaid and other current assets | 432 | 298 | 134 | 45 | % | ||||||||||||
| Total current assets | 25,825 | 24,331 | 1,494 | 6 | % | ||||||||||||
| Property and equipment, net | 4,534 | 4,488 | 46 | 1 | % | ||||||||||||
| Intangible assets, net | 5,028 | 5,281 | (253 | ) | (5 | %) | |||||||||||
| Goodwill | 9,860 | 9,860 | - | 0 | % | ||||||||||||
| Restricted cash | 258 | 255 | 3 | 1 | % | ||||||||||||
| Other assets | 304 | 309 | (5 | ) | (2 | %) | |||||||||||
| Total assets | $ | 45,809 | $ | 44,524 | $ | 1,285 | 3 | % | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
| Current liabilities: | |||||||||||||||||
| Accounts payable | $ | 3,590 | $ | 3,183 | $ | 407 | 13 | % | |||||||||
| Accrued compensation | 1,506 | 832 | 674 | 81 | % | ||||||||||||
| Line of credit | 4,710 | 3,000 | 1,710 | 57 | % | ||||||||||||
| Other current liabilities | 4,370 | 4,945 | (575 | ) | (12 | %) | |||||||||||
| Total current liabilities | 14,176 | 11,960 | 2,216 | 19 | % | ||||||||||||
| Pension liabilities | 137 | 65 | 72 | 111 | % | ||||||||||||
| Other long-term liabilities | 959 | 1,185 | (226 | ) | (19 | %) | |||||||||||
| Total liabilities | 15,272 | 13,210 | 2,062 | 16 | % | ||||||||||||
| Stockholders' Equity | |||||||||||||||||
| Common stock, $0.001 par value; 50,000,000 shares authorized as of April 1, 2012; | |||||||||||||||||
| 21,587,332 and 21,545,713 issued and outstanding as of April 1, 2012 and | |||||||||||||||||
| December 31, 2011, respectively. | |||||||||||||||||
| Common stock, $0.001 par value | 22 | 22 | - | 0 | % | ||||||||||||
| Additional paid-in capital | 119,313 | 118,362 | 951 | 1 | % | ||||||||||||
| Accumulated deficit | (89,241 | ) | (87,493 | ) | (1,748 | ) | 2 | % | |||||||||
| Accumulated other comprehensive income | 443 | 423 | 20 | 5 | % | ||||||||||||
| Total stockholders' equity | 30,537 | 31,314 | (777 | ) | (2 | %) | |||||||||||
| Total liabilities and stockholders' equity | $ | 45,809 | $ | 44,524 | $ | 1,285 | 3 | % | |||||||||
| - | - | ||||||||||||||||
| GIGOPTIX, INC. | ||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Three months ended, | ||||||||||
| April 1, | April 3, | |||||||||
| 2012 | 2011 | |||||||||
| GAAP Total cost of revenue | $ | 4,178 | $ | 3,831 | ||||||
| Stock based compensation | (15 | ) | (14 | ) | ||||||
| Amortization of intangible assets | (122 | ) | (65 | ) | ||||||
| Non-GAAP Total cost of revenue | $ | 4,041 | $ | 3,752 | ||||||
| GAAP Gross profit | $ | 4,973 | $ | 3,831 | ||||||
| Stock based compensation | 15 | 14 | ||||||||
| Amortization of intangible assets | 122 | 65 | ||||||||
| Non-GAAP Gross profit | $ | 5,110 | $ | 3,910 | ||||||
| GAAP - Operating expenses | $ | 6,538 | $ | 7,184 | ||||||
| Stock based compensation | (723 | ) | (662 | ) | ||||||
| Amortization of intangible assets | (131 | ) | (98 | ) | ||||||
| Restructuring expense | (207 | ) | - | |||||||
| Merger-related expense | - | (1,107 | ) | |||||||
| Shareholder settlement expense | - | (1,064 | ) | |||||||
| Special litigation-related expense | (141 | ) | - | |||||||
| Non-GAAP Operating expenses | $ | 5,336 | $ | 4,253 | ||||||
| GAAP Loss from operations | $ | (1,565 | ) | $ | (3,353 | ) | ||||
| Stock based compensation | 738 | 676 | ||||||||
| Amortization of intangible assets | 253 | 163 | ||||||||
| Restructuring expense | 207 | - | ||||||||
| Shareholder settlement expense | - | 1,064 | ||||||||
| Merger-related expense | - | 1,107 | ||||||||
| Special litigation-related expense | 141 | - | ||||||||
| Non-GAAP Loss from operations | $ | (226 | ) | $ | (343 | ) | ||||
| GAAP - Net loss | $ | (1,748 | ) | $ | (3,442 | ) | ||||
| Stock based compensation | 738 | 676 | ||||||||
| Amortization of intangible assets | 253 | 163 | ||||||||
| Restructuring expense | 207 | - | ||||||||
| Shareholder settlement expense | - | 1,064 | ||||||||
| Merger-related expense | - | 1,107 | ||||||||
| Special litigation-related expense | 141 | - | ||||||||
| Non-GAAP Net loss | $ | (409 | ) | $ | (432 | ) | ||||
| Adjusted EBITDA reconciliation: | ||||||||||
| Loss from operations | $ | (1,565 | ) | $ | (3,353 | ) | ||||
| Restructuring expense | 207 | - | ||||||||
| Shareholder settlement expense | - | 1,064 | ||||||||
| Merger-related expense | - | 1,107 | ||||||||
| Depreciation and amortization | 994 | 544 | ||||||||
| Stock based compensation | 738 | 676 | ||||||||
| Special litigation-related expense | 141 | - | ||||||||
| Adjusted EBITDA | $ | 515 | $ | 38 | ||||||
| Weighted average shares outstanding | 21,555 | 12,255 | ||||||||
| Per share amounts | ||||||||||
| Non-GAAP | $ | (0.02 | ) | $ | (0.04 | ) | ||||
| Adjusted EBITDA | $ | 0.02 | $ | 0.00 | ||||||
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