Avanex Guides Higher

Wall Street is wowed by a revenue beat.
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Avanex (AVNX) soared 12% late Thursday after the optical-parts company posted a fiscal first-quarter revenue gain and boosted top-line guidance.

The Fremont, Calif., photonics outfit lost $10 million, or a nickel a share, compared with the year-ago loss of $17 million, or 12 cents a share. On a pro forma basis, excluding certain costs, the latest-quarter loss was 3 cents a share.

Revenue rose 12% sequentially and 23% from a year ago to $50.9 million.

Analysts surveyed by Thomson Financial were looking for a 2-cent loss on revenue of $49.2 million.

Gross margin rose to 9% from 4% a year ago, Avanex said.

Avanex said it expects second-quarter revenue of $52 million to $55 million, above the $51.8 million Thomson target.

Shares rose 19 cents to $1.71.