Electronics Production |
Avanex completes divestiture of<br>Optoelectronic fabs in France
Avanex has completed the sale of 90 percent of its interest in its French subsidiary, Avanex France S.A, including its Indium Phosphide (InP) and Gallium Arsenide (GaAs) semiconductor fabs, and its laser, terrestrial pump, submarine pump and Fiber Bragg Grating (FBG) product lines to Global Research Company, owned by Alexandre Krivine, and to the current management of Avanex France S.A, Didier Sauvage.
The purchasers have changed the name of Avanex France to 3S Photonics. The divested business represented approximately $3.0 million of Avanex Corporation's $55.6 million total revenue for its second quarter of fiscal 2007 ended December 31, 2006. Avanex Corporation expects the divestiture of Avanex France S.A. and certain product lines to accelerate its path to profitability and result in approximately $12.0 million to $16.0 million of annual operating savings beginning in the fourth quarter of fiscal 2007 ending June 30, 2007. Avanex Corporation expects to begin to recognize the full quarterly operating savings of $3.0 million to $4.0 million and to achieve non-GAAP EBITDA (earnings before interest, tax, depreciation and amortization) breakeven in the first quarter of fiscal 2008 ending September 30, 2007. Non-GAAP adjustments would remove the effect of non-recurring events, including certain costs associated with the French divestiture, and stock-based compensation.
At the closing, Avanex Corporation and 3S Photonics entered into several commercial agreements in order to assure a smooth transition and to ensure their customers' continuity of supply. Avanex Corporation will maintain an innovation center in France comprised of approximately 20 employees that will focus on developing transmission products.
