Earnings Call Excerpt
Avanex Corporation (AVNX)
F4Q07 Earnings Call
September 4, 2007 4:30 pm ET
Executives
Maria Riley - Director of Communications
Jo Major - Chairman and President & CEO
Marla Sanchez - SVP and CFO
Analysts
John Harmon - Needham & Co.
Todd Koffman - Raymond James
Natarajan "Subu" Subrahmanyan - Sanders Morris Harris
Hamed Khorsand - BWS Financial
Jagjit Sahota - Wedge Partners
Presentation
Welcome to the Avanex Corporation fiscal fourth quarter and fiscal year 2007 financial results conference call. (Operator Instructions) With us on today's call are Jo Major, Chairman, President and CEO; and Marla Sanchez, Senior Vice President and CFO.
I would now like to turn the call over to Maria Riley. Ms. Riley, you may begin.
Maria Riley
Good afternoon and thank you for joining us today. I'd like to remind you that this call contains forward-looking statements about future events and future performance of the company. Forward-looking statements are subject to risks and uncertainties and actual results could differ materially from those projected or contemplated by the forward-looking statements. We encourage you to look at the company's most recent SEC filings, particularly in today's news release, Form 8-K and the risk factors section of our most recent Form 10-Q. Avanex assumes no obligation and does not intend to update any forward-looking statement, including guidance, as a result of new developments or otherwise.
In addition, because non-GAAP information is being presented on today's call and in order to comply with SEC regulations, please note that Avanex has provided a reconciliation table and other information attached in today's press release which can be found on the company's website at www.avanex.com.
I'd like to take this opportunity to inform you that the company will present at the Jefferies’ technology conference in New York City on October 1 and 2, 2007.
With that, I'll turn the call over to Jo Major, Chairman, President and CEO.
Jo Major
Thanks, Maria. Good afternoon everyone and thank you for joining us today. The key points of our discussion today will be: that at a revenue level of $51 million, Avanex is approximately at non- GAAP breakeven; that we believe our operating structure is sufficient to handle substantially higher levels of revenue; and, that we are now focused on investing in profitable growth.
To get to this point, the Avanex team has streamlined our operational infrastructure, resulting in a 67-point increase in our gross margins since the first quarter of fiscal 2004. We've grown our revenue without acquisitions by almost 300% over the same time period, transformed our development infrastructure into a cost effective 24/7 global team to provide great new products and strong technical support to our customers, and restructured our G&A functions to provide better oversight of the company as we move forward. Taken as a whole, the team has created a company poised for profitable growth in a large and growing marketplace. Prior to telling you about our next growth phase, I'd like to thank all of the members of the Avanex team that have worked so hard to transform this company and to lay such a solid foundation for future growth and prosperity.
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