GigOptix Breaks Out on Speculation
GigOptix, Inc. (GGOX) shares moved up more than 170 percent over the past week as the stock broke out from its prior trading range, and investors look forward to the company’s ambitious plans to market its new technology going forward.
GigOptix, Inc. [[GGOX.OB]], a provider of electronic engines for the optically connected digital world, saw its shares jump more than 170 percent during the past week as it broke out from its prior trading range. Meanwhile, long-term investors are confident that the company’s products will yield big returns over the next couple of years.
GigOptix designs and develops high-speed optical technology that will eventually replace outdated copper wiring in communications systems. These copper systems are inefficient at high speeds and experience data loss due to interfering radiation. By contrast, optical fiber produces lower emission, lower power high speed links between processors and displays.
GigOptix has the widest range of electronic components for optical transceivers in an industry that is otherwise very fragmented. And now that the company is exiting its development stages and entering its commercialization stages, there is a great opportunity for investors looking for a great growth play in an industry that promises to only get larger in the future.
In fact, earlier this month, GigOptix announced the first sales of its polymer-based optical modulators to universities and other leading-edge customers. According to one of its customers, the devices mark a significant advance in the field of ultrahigh bandwidth optical devices that could someday help support the next generation of communication systems.
During the first quarter, GigOptix recorded a net loss of $1.01 million on revenues of $2.48 million. However, the company’s balance sheet remained robust with a quick ratio of over 3x, very little debt, and cash of $4.64 million. And with a cash burn of just over $2 million last quarter, the company shouldn’t need to raise additional debt or equity funds in the near-term.
In the end, GigOptix is narrowing its net loss, improving its revenues, and preparing for the commercialization of its products. Risky investors looking for a growth stock may want to check out this unique play over the next 12 months.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com