GigOptix, Inc. (NYSE MKT: GIG), a leading fabless supplier of semiconductor and optical components that enable end-to-end high speed information streaming over the network, today announced preliminary revenues of approximately $8.0 million, including recognition of approximately $0.9 million of previously unrecognized government contract revenue, for its fourth quarter of fiscal 2012, ended December 31, 2012. This compares with the previous outlook provided on October 30, 2012, that fourth quarter fiscal 2012 revenues would be roughly in-line with third quarter fiscal 2012 revenues of $10.1 million.
Revenues for fiscal 2012 are expected to be approximately $37 million. This compares with $32.3 million in fiscal 2011, representing a year-over-year increase of approximately 14 percent. The annual increase resulted solely from organic growth as the Company did not enter into any mergers or acquisitions in 2012.
Certain factors that contributed to the lower than expected revenues in the fourth quarter of fiscal 2012 included weaker demand in the markets the Company currently serves, challenging macroeconomic conditions, and a push-out into the first half of 2013 of some anticipated deployments within the Company’s optical product line.
The Company also announced today that it has taken immediate actions to adjust overall spending as it continues to focus on its Adjusted EBITDA 1 performance. Selected actions, which became effective today, January 9, 2013, include reducing the Company’s global workforce by about 10 percent, primarily in the Company’s support and administrative functions, and company-wide salary reductions ranging between 5 to 25 percent based on an individual’s salary level.These actions are expected to result in approximately $450,000 of quarterly cost savings once the plan is fully implemented. “After 12 consecutive quarters of increasing revenues we are clearly disappointed that revenues for the fourth quarter of fiscal 2012 are below expectations. We view the revenue performance of the fourth quarter of 2012 as a temporary setback and not indicative of our future prospects,” said Dr. Avi Katz, Chairman and Chief Executive Officer of GigOptix, Inc.
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