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   Technology StocksGigoptix, Inc.


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From: tktrimbath6/30/2010 4:32:07 PM
   of 148
 
my mid year review of GGOX

INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.

GigOptix
GGOX (market cap $0.027B)
GigOptix is a small electronic supplier selling to the electro-optical switching market. Though small, the company has been growing organically and through acquisition. I believe its recent 100 gps switch was based on Lumera's technology (a spinoff of Microvision that was subsequently acquired by GigOptix). Many possible applications were shelved, but that also means they could be re-explored. Their high-end components were ahead of their time, and may now be finding profitable acceptance.

GigOptix appears to be gaining traction enough to be considered an investment, but their business is small and just beginning which keeps them in a speculative condition. They also are investigating being listed on AMEX, a move which I don't understand.

Management seems to be doing smart things, but I have no connection to them and can not evaluate them further. As a result, I am less confident. Based on the bits I know, there is potential, but my holding is small and a consequence of previous investments so I have not quantitatively evaluated them. If they succeed, it may be quietly because their market involves sophisticated technology that sells to very high-tech customers.

I will continue to HOLD, because selling wouldn't make me much money, because I don't know enough about them to confidently buy, and because it gives me an incentive to research them more.

DISCLOSURE LTBH of LMRA since 2004.

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From: tktrimbath12/31/2010 5:13:06 PM
   of 148
 
my end of year review of GGOX

INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.

GigOptix
GGOX (market cap $0.034B)

GigOptix produces and sells high-speed, very technical electrical and electro-optical components, primarily for the telecommunications market. They are a small company and are the result of small acquisitions. Despite their small size, they are projected to be profitable next year, and my read of their cash flow suggests that their most recent quarter showed positive cash flow. I'm still trying to understand their debt/equity situation, but it might be high because of the acquisitions. It might also appear high because a small number for a small company can still appear large in ratios.

I like the industry that they are in, and I am a fan of the technologies they acquired when they bought Lumera (LMRA), which is how I became a shareholder of GGOX.

At this point I don't have a confident feel for the company's long term strategy or business plan. They operate quietly so there is little news to work from, and they are also one of my smallest holdings; so there is little incentive for me to learn more. I look forward to the next earnings report as an opportunity to examine their financial trends and possibly gain confidence in their future.

I will continue to HOLD and might BUY more because, at a simplest level, they are an overlooked, profitable and growing company.

DISCLOSURE LTBH of LMRA since 2004.

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From: tktrimbath6/30/2011 4:42:06 PM
   of 148
 
my mid year review of GGOX

INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.

GigOptix
GGOX (market cap $0.025B)
GigOptix is so high-tech I don't try describing it to anyone except those that understand internet and telecom backbones or physics and organic chemistry. I certainly don't understand the technical details but here's my attempt at describing their business.

GigOptix sells very high speed switches to companies that operate and install high-capacity information networks, or how build exotic high-quality machines like satellites. Their optical-electrical switches operate at the boundaries between fiber optic networks (photons in fiber optics) and conventional information networks (electrons in metal wires). I know about and am particularly interested in the highest end product that is based on organic (as in organic chemistry, not biology) materials because I was originally investing in the company Lumera (LMRA) that they merged with a few years ago.

The company seems to have great potential, is already making money, and has much room for product expansion considering the other applications for their technology (steerable smart antennas with no moving parts, biotech labs on a chip, etc.). The company is very small, which may be why a lack of management visibility is an issue for me, but that may be because I was able to visit the company when their headquarters and meetings were local. For me, the financial statements are more convoluted than I expect from a small company, but that may be because they have grown through mergers and acquisitions. I find it surprising that price/book is only ~2 and that price/sales < 1. Those look like retailers' numbers, not what I expect from a high-tech electronics manufacturer.

DISCLOSURE LTBH of LMRA since 2004, and actually bought some more within the last year or so, despite the very small market cap.
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com)

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From: tktrimbath12/31/2011 1:35:22 PM
1 Recommendation   of 148
 
My semi-annual review of GGOX

INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.

GigOptix
GGOX (market cap $0.039B)
GigOptix is so high tech that I don't try describing the details to anyone except the intensely curious or the engineering educated. (It would be too easy to display my ignorance.) They make very high-end electro-optical switches, the sort of equipment that converts electrical signals to optical signals and optical signals to electrical signals. (I just exposed an ignorance. Are those two different devices?) The materials are sophisticated enough to operate with very few moving parts, which allows them to operate at very high frequencies and which gives them a competitive advantage. Their customers are the companies that manage the communications backbone, so are driven more by technical specifications and operational costs than by press releases. They probably get some of the credit for enabling streaming video across the internet. Their customer industry should continue to grow, and they may find themself in a very nice niche that grows dramatically. The company has grown through acquisitions and product sales, more than doubling revenues from 2008 to 2010.

The stock languishes with price/book and price/sales more typical of construction firms instead of high-tech electronics. Simply being valued at six times 2010 revenues would suggest a quintupling of their current stock price. Either they are very poor at getting the word out, don't care about publicity, or the financial community has other reasons to avoid them (they are not on a major exchange, have a price less than $5, and there's always the possibility of private insider knowledge about significant internal or competitive issues.)

Company management is not very communicative, so speculation can be used to describe many aspects of this small but growing company but such speculation is not data, information, or a basis for definitive analysis.

DISCLOSURE LTBH of LMRA since 2004 and may have time to buy more at these low prices as they make progress and if I have discretionary cash (which I don't - let me check my lottery tickets).
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com)

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From: tktrimbath5/2/2012 1:28:45 PM
1 Recommendation   of 148
 
I don't tend to pass along my blog posts, but this one is a synopsis of Lumera's history in and out of GigOptix that others might find useful.

trimbathcreative.wordpress.com

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From: tktrimbath6/30/2012 10:59:24 AM
   of 148
 
My mid year synopsis of GIG

GigOptix
GIG (was GGOX) (market cap $0.058B)
GigOptix is a high tech electronic component supplier to high capacity telecommunication applications. They make the electro-optical switches that allow for high download speeds, high bandwidth. Computers and electronics operate on electricity, but much of the information on the internet is carried by light through fiber optics. Electro-optical switches connect the two. They do so with a mix of technologies, though the one I am most familiar with is that associated with Lumera, a part of GigOptix through a merger a few years ago. Lumera's technology allows the switching to happen within a material which means fewer moving parts, which means faster switching, lower power requirements, fewer failures, etc.

The company has been quietly increasing revenues and is trading at price/sales and price/book of less than 2. I expect high-tech companies with little competition to trade at much higher multiples, especially when they are growing and are backed up by impressive patent portfolios that have extensive auxiliary applications (electrically steerable antennas without moving parts, biolabs on a chip, etc.).

The stock has recently risen from delisting to be traded on the AMEX under GIG.

I think GigOptix has much in common with F5 and that GIG has much in common with FFIV. Both companies worked within esoteric aspects of the internet backbone that are only appreciated by techies, and techies demand high-quality, high-speed, and high-reliability. FFIV's history is impressive and little known. GIG may follow a similar track. Unfortunately, there is a large difference in transparency. F5 was very open about their business, its prospects, and its challenges. I've never met a more impressive CEO. GigOptix is operated with much less transparency. There were few press releases, though that is improving. The discussion boards are almost empty. And it isn't local so I can't attend the stockholders meetings to meet the management.

DISCLOSURE LTBH of LMRA since 2004 and may have time to buy more at these low prices as they make progress and if I have discretionary cash (which I don't - let me check my lottery tickets). Unfortunately, I may have to sell if I can't find a job or sell my house.
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com . There is also a longer description of history between GIG and me on my blog. )

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From: tktrimbath9/17/2012 2:05:55 AM
1 Recommendation   of 148
 
Sounds like Lumera's tech has matured. Okay, now do good work and make this company and this stock shine.


finance.yahoo.com

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To: tktrimbath who wrote (111)12/27/2012 12:08:32 PM
From: The Ox
   of 148
 
I have had the board header updated.
Subject 55082

The company's products and the industry are finally coming into alignment. The future looks very bright for GIG.

Revs: 2007/3.18, 2008/9.66, 2009/14.83, 2010/26.88, 2011/32.27, 2012/38.9-estimated, 2013/47.4-estimated

They have never achieved positive EPS in a quarter but are expected to do so in the near future.

GigOptix, Inc. Ranked 125th Fastest Growing Company in North America on Deloitte’s 2012 Technology Fast 500™
SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 14, 2012-- GigOptix, Inc. (NYSE MKT: GIG) today announced it ranked 125th on Deloitte's Technology Fast 500™, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America. GigOptix grew 916% percent during this period.

GigOptix's Chairman and CEO, Dr. Avi Katz, credits the use of a strong strategic business plan and the deep understanding of future technology needs - mainly 100G and 400G - with the company's 916% revenue growth. He said, "Upon inception in 2007, we created a business strategy based upon 3 pillars: 1. Innovation; 2. Execution; and 3. Financial Growth Engine. These core ideals still hold true and strong today and have helped us become the leader in 100G semiconductor and optical components that enable high-speed information streaming. We are honored to be recognized as a Technology Fast 500TM company again this year and we look forward to future years of expanding growth."

"We are proud to honor the 2012 Technology Fast 500™ companies, and commend them for their outstanding growth," said Eric Openshaw, vice chairman, Deloitte LLP and U.S. technology, media and telecommunications (TMT) leader. "These ground-breaking companies have outpaced their competition and are reinventing the way we do business today."

"The companies on the Fast 500 list are among those that have demonstrated remarkable innovation, creativity and business savvy," said Bill Ribaudo partner, Deloitte & Touche LLP and national TMT leader for audit and enterprise risk services (AERS). "As a result, these companies have continued to successfully forge ahead in a challenging economic environment. We applaud the leadership and employees of GigOptix for this impressive accomplishment."

GigOptix previously ranked 95th as a Technology Fast 500™ award winner for 2011.

About Deloitte's 2012 Technology Fast 500™

Technology Fast 500, conducted by Deloitte & Touche LLP, provides a ranking of the fastest growing technology, media, telecommunications, life sciences and clean technology companies - both public and private - in North America. Technology Fast 500 award winners are selected based on percentage fiscal year revenue growth from 2007 to 2011.

In order to be eligible for Technology Fast 500 recognition, companies must own proprietary intellectual property or technology that is sold to customers in products that contribute to a majority of the company's operating revenues. Companies must have base-year operating revenues of at least $50,000 USD or CD, and current-year operating revenues of at least $5 million USD or CD. Additionally, companies must be in business for a minimum of five years, and be headquartered within North America.

About GigOptix, Inc.

GigOptix is a leading fabless supplier of semiconductor and optical components that enable high-speed end-to-end information streaming over the network and address emerging high-growth opportunities in the communications, industrial, defense and avionics industries. GigOptix offers a unique broad portfolio of Drivers, TIAs and TFPSTM optical modulators for 40G, 100G and 400G fiber-optic telecommunications and data-communications networks, and high performance MMIC solutions that enable next generation wireless microwave systems up to 90GHz and drivers. GigOptix also offers a wide range of digital and mixed-signal ASIC solutions and enables product lifetime extension through its GigOptix Sunset Rescue Program. For more information, please visit http://www.gigoptix.com.

Source: GigOptix, Inc.

Media:
GigOptix, Inc.
Parker Martineau, 408-522-3100
Corporate Communications Manager
pmartineau@gigoptix.com
or
Investor Relations:
Summit IR Group
Jim Fanucchi, 408-404-5400
ir@gigoptix.com


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To: The Ox who wrote (112)12/27/2012 12:12:23 PM
From: The Ox
   of 148
 
Events
On March 19-21, 2013, GigOptix will be exhibiting at OFC2013 at the Anaheim Convention Center in Anaheim, California. Please visit us!

On June 2-7, 2013, GigOptix will be exhibiting at IMS2013 in Seattle, Washington. Please visit us at booth #2507.

The last earnings release:

ir.gigoptix.com

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From: tktrimbath12/31/2012 11:02:34 PM
1 Recommendation   of 148
 
My End of Year Review of GIG

INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.

GigOptix
GIG (was GGOX) (market cap $0.041B)
GigOptix is a high tech company selling very high rate switches to telecommunications networks. Other applications exist, but predominantly, GigOptix makes and sells those critical components that allow some of the fastest, if not the fastest, switch rates between electrical and optical signals. Someone has to make the switch that lets us download and stream movies with hesitation. It wasn't possible before, but is possible now. They aren't the only ones selling into this market, but they are selling to this market that few except the techies see. Revenues have more than doubled in the last few years. Whatever competition they have isn't enough to pull away all of the market share. The company is quiet with press releases, and when they do announce something it can be hard to understand its significance because of the arcane nature of the technology.

Price to book and price to sales are both below 2, which is a good level for a construction firm, but surprisingly low for high tech electro-optics. My favorite analogy is f5 networks, which languished for many years because their products were aimed at the tech staff of similar companies. Eventually they made enough money that people noticed what they were doing, despite being overshadowed by a major competitor like Cisco.

Their market is growing. They're making money. Their products are relatively new. There is significant potential as word-of-mouth amongst techies (which is probably not word-of-mouth but a series of texts) gets around.

DISCLOSURE LTBH of LMRA since 2004. I'd be interested in buying more if I have discretionary cash (which I don't - let me check my lottery tickets). Unfortunately, I may have to sell if I can't find a job or sell my house.
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com . There is also a longer description of history between GIG and me on my blog trimbathcreative.wordpress.com

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