GigOptix, Inc. (OTCBB:GGOX), a leading provider of electronic engines for the optically connected digital world, today is providing shareholders with an update and strategic plan to continue its organic and strategic growth in 2010.
"2009 was another eventful year for GigOptix as we continued to emphasize and focus on executing both our organic and strategic growth initiatives," stated Dr. Avi Katz, Chairman and CEO of GigOptix. "Over the past several years it has been our strategy to identify and acquire businesses with synergistic qualities in markets vertical to our core business, with a strong product and customer base and advanced intellectual property, along with other valuable assets. To date we have been successful in these efforts, culminating with our largest acquisition to date, ChipX Inc. ChipX more than doubled 2009 revenue on a pro forma consolidated basis and brings an attractive set of valuable customer relationships, providing us the opportunity to cross sell existing products. We have begun restructuring and integrating ChipX to deliver significant cost reductions through the physical consolidation of the company's headquarters in the Bay Area, elimination of redundancies, cost reductions of service and tools, and size of the organization appropriately for our goals. Although only a few months removed from the closing of this acquisition, integration has gone well and we have already begun to see the financial benefits during the first quarter of 2010."
Organic Growth and Product Update
GigOptix has recently made progress expanding its existing product and customer base, the results of which will deliver opportunities for revenue growth in 2010.
- The Company continued to gain traction with Government agencies receiving an award of $4.5 million sponsored by the Air Force Research Laboratory to develop integrated driver and polymer modulator technology to support terabit networks. It is currently anticipated that most of the work under this contract will be performed in 2010.
- GigOptix continues to maintain strong ties with the U.S. Government, Military and other governmental agencies and expects to receive more contracts in the future.
- GigOptix has launched a new family of Transimpedance Amplifiers (TIAs) for optical receivers to compliment its optical drivers.
- The Company has also won key contracts with several important customers to supply its GX6120 Electro-absorption Modulated Laser drivers, GX6155 mach-zehnder modulator drivers, and its HX family of parallel drivers and receivers for use in active optical cables including optical HDMI. Traction with customers in Asia was particularly strong.
- GigOptix has also made progress with sales of its 100G polymer modulators for research applications and extended the temperature stability of its EO polymer with the introduction of the M3 material. This product has passed Telcordia level testing and is now being used in its latest 40G and 100G modulators to be released this year.
"In conjunction with our integration of ChipX, our acquisition strategy, and continued organic growth plans, we have materially enhanced our management team," continued Dr. Katz. "Recently, we welcomed Ron Shelton, Chief Financial Officer, and Jay de la Barre, Vice President of Optical Communications Sales. Both team members bring strong financial and industry experience to GigOptix and, along with the rest of our management team, will play critical roles in the Company's growth going forward."
Additionally the Company has recently completed a number of filings with the SEC related to the completion of the ChipX acquisition and to provide for the flexibility to further strengthen our balance sheet to enable execution of the strategic growth through acquisitions, and potentially register in a major stock exchange. GigOptix has also enhanced its Equity Incentive Plan to provide additional incentive for employees and other key members of the GigOptix family to help build improved shareholder value.
GigOptix will report fiscal 2009 results and host an investor conference call in March 2010.
About GigOptix, Inc.
GigOptix is a leading fabless manufacturer of electronic engines for the digital world. The Company offers a broad portfolio of high speed electronic devices including polymer electro-optic modulators, modulator drivers, laser drivers and TIAs for telecom, datacom, Infiniband and consumer optical systems, covering serial and parallel communication technologies from 1G to 100G. GigOptix now also offers the widest range of mixed-signal and RF ASIC solutions in the market including Standard Cell, Hybrid and Structured ASICs targeting the Consumer, Industrial, Defense & Avionics industries. For more information, please visit www.GigOptix.com.
Forward Looking Statements
Statements made in this release, other than statements of historical fact, are forward-looking statements, including any statement that refers to expectations, projections or other characterizations of future events or circumstances and those which can be identified by the use of forward-looking terminology such as "expects," "plans," "may," "should," or "anticipates" and other similar expressions. Forward-looking statements are subject to a number of known and unknown risks, which might cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include those risks described in GigOptix's periodic reports filed with the SEC, and in news releases and other communications. GigOptix disclaims any intention or duty to update any forward-looking statements made in this release.
Contacts:
Investor Contact:
Alliance Advisors, LLC
Alan Sheinwald,
914-669-0222
President
asheinwald@allianceadvisors.net
or
Media
Contact:
GigOptix, Inc.
Parker Martineau, 650-424-1937
Corporate
Communications Manager
pmartineau@gigoptix.com
