Neither management nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We caution you not to rely on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in our filings with the U.S. Securities and Exchange Commission that are available on the SEC's website, located at www.sec.gov, including the sections entitled Risk Factors in our annual report on Form 10-K and our quarterly report on Form 10-Q.We assume no obligation to update any forward-looking statements to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation. With us today from EMCORE are Dr. Hong Hou, President and Chief Executive Officer; and Mark Weinswig, Chief Financial Officer. Mark will review the financial results, and Hong will discuss business highlights before we open the call up to questions. I'll now turn the call over to Mark. Mark B. Weinswig Thank you, Vic, and good afternoon, everyone. Today, I'm going to focus my discussion on our second fiscal quarter operating results and our balance sheet. Please note that the effect of the reverse stock split is reflected in our share and per share amounts. Consolidated revenue for our second fiscal quarter totaled $37.8 million, which is an increase of $0.3 million or 1% over the previous quarter. The increase was primarily due to higher Fiber Optics revenue, partially offset by a reduction in our Solar business. Our Q2 revenue guidance was $38 million to $40 million. On a segment basis, our Photovoltaics business accounted for $15.8 million or 42% of the company's total revenue. This represents a $3.3 million or 17% decrease from the prior quarter. As we've said previously, while we believe in the long-term growth prospects of this business, our revenue in any given quarter may be a bit lumpy as illustrated in our last couple of quarter results.
The Fiber Optics segment accounted for $21.9 million or 58% of the company's total revenue. This represents an increase of roughly $3.6 million or 20% from the prior quarter, with the increase primarily from our initial recovery efforts after the flood in Thailand. Hong will discuss the prospects of the Fiber Optics business later in the call.Consolidated gross margin was 14%, a 5 percentage point increase from the prior quarter, primarily attributable to the recovery in our Fiber Optics segment. On a segment basis, Photovoltaics gross margin decreased 1.8 percentage points to 20.9%, as we were unfavorably impacted by the lower revenue base. We believe that this segment can reach gross margin targets of 30%. Fiber Optics gross margin was 9.4%, a 14 percentage point increase from the prior quarter, primarily due to higher revenue and lower excess and obsolete charges. In the first quarter, the company recognized expenses of approximately $2.4 million, primarily from additional excess and obsolete charges and losses on outstanding purchase commitments relating to the Thailand flood. We expect our gross margins in our Fiber Optics segment to continue to improve in future quarters. After we complete the rebuild of the manufacturing lines damaged by the flood, we will begin to lay out the operating targets for the Fiber segment. Operating expenses were $14.2 million, excluding the flood-related charges. It's important to note that at the end of January, we removed the compensation-related reductions that were previously implemented. We believe that our operating expenses will increase in future quarters as we focus our R&D resources from the manufacturing rebuild to new product development and product support. We recorded a flood loss of $0.1 million in the quarter related to our Fiber Optics segment. Read the rest of this transcript for free on seekingalpha.com