Emcore optical communication business performance analysis
Recently, Emcore announced its closing in September 30, 2012 fourth quarter earnings. Earnings data show that, Emcore optical communication business sales revenue of $30100000, down 2.7% from a year earlier in the quarter, annulus comparing grows 16.5%, total sales revenue accounted for 63%; at the same time, the business department of wool interest rate is 2.4%, 18% for the same period last year, a quarter to 9.3%.
Emcore said optical communications sales revenue growth is mainly due to Thailand after the flood capacity recovery, and gross margin decline was mainly due to the higher excess and obsolete inventory costs, new product line of work order variance (Work order variances ) and the company will be made from the United States of California moved to China and Thailand and other related variance. If the deduction of the expenses, the Emcore optical communication business gross interest rate should be in 20% above. Emcore is expected with the company overseas production line capacity upgrade, future a few quarters optical communication business gross interest rates will rise.
Emcore CEO Hong Hou said in a conference call, fourth wealth season optical communication business revenue growth is not only due to capacity recovery, have relevant 40G and 100G strong market demand. Hong Hou said that the company from the product line sales revenue has exceeded flood before the highest level. Despite the flood recovery period, new competitors to enter the market, but Emcore believes the company related businesses will continue to grow rapidly.
Adjustable product line of XFP, Emcore in Fabrinet adjustable XFP product line has been a customer authentication. In the last quarter, Emcore in order to improve the cost competitiveness, has stopped the bay area adjustable XFP production line. The line transfer to the Fabrinet, Emcore also improved the production. However, due to the need for automating the process of debugging equipment, the Fabrinet adjustable XFP production was delayed by one or two months, which will affect the company until 2012 12 at the end of quarter adjustable XFP sales revenue. Emcore expect adjustable XFP output will from 2013 3 at the end of the quarter began to increase, and the goal of the company is from the 2013 April start adjustable XFP can support up to $15000000 for the quarter income.
Emcore CATV transmitter and the laser module mainly in its Chinese factory production. In the flood disaster recovery period, because of limited capacity, the company market share decline. Emcore is expected next quarter from the CATV product sales income will realize growth.
For fiscal 2012, says Hong Hou, the company had a very challenging fiscal year. However, in the unremitting efforts, Emcore has successfully got through, and saw more clearly the future.
