NOZAY, France — 3S PHOTONICS, a world leading manufacturer of laser chips, optical discrete modules and components for telecommunication networks reports its financial results for fiscal year 2008, ended June 30th 2008. The company records a 27.9 million euro turnover, which exceeds its prospects expected between 24 and 27 million euros.

The company was renamed 3S PHOTONICS in April 2007 following its acquisition by Alexandre Krivine and Didier Sauvage. Previously Alcatel Optronics, a 100% Alcatel-owned subsidiary, then Avanex France SA following its acquisition in 2003 by the American company Avanex Corporation, 3S PHOTONICS is today the first-ranking European optical manufacturer and a world leader in development and manufacturing of optoelectronic chips and modules dedicated to the telecommunication market.

3S PHOTONICS posts 87% increase in its turnover year-over-year when considering post divestiture product portfolio only (vs. 14.9 million euros for fiscal year 2007).

Fiscal 2008 key metrics:
Operating income was 2.118 million euros compared with 7.029 million losses for fiscal year 2007, EBITDA reached 2.672 million euros compared with 5.627 million losses over the previous year, Net income increased from +0.748 million euros for fiscal year 2007 to +2.075 million euros.

A nearly 15% organic growth of the optoelectronic market, coupled with the launch by 3S PHOTONICS of innovative brand new products participated in these good results. Some products were specially designed to meet the needs of submarine communications market, which is currently booming. Sales of these highly strategic components - pump laser modules, FBG-based filters and photo-detectors - were multiplied by 3 or 4 in the ending fiscal year. Terrestrial market follows suit, with the introduction of a complete product line of 980nm terrestrial pump laser modules which contributed to sales increase, along with transmission laser modules.

This organic growth is complemented by the launch of innovative and collaborative French and European R&D projects: 3S PHOTONICS won two major contracts during the fiscal year, the first one with the French Ministry of Defense for the development of high optical power and low noise laser modules, the second one named “6_POD project” dedicated to the development of photonic integrated circuits for broadband networks.

“3S PHOTONICS goes back to profitability and we are proud to have reached these results in such a short time. Restructuring actions of our business, cost-reduction plans, coupled with a significant organic growth, helped us to quickly achieve our goals” outlined Alexandre Krivine, Chairman and CEO of 3S PHOTONICS.

He concluded : “We want to carry on this way and are expecting an approximately 20 % increase in turnover over the next fiscal year, building on a continued organic growth of the company driven by the renewal of the product portfolio. In the medium term, we plan to double our annual revenues through external growth operations.”

Source: 3S Photonics