Enablence Technologies Inc., a supplier of optical components and subsystems, has reported its fiscal year 2023 results, highlighting strong revenue growth driven by new optical products and AI interconnect technology. The company’s CEO, Todd Haugen, expressed his satisfaction with the commercial release of several new optical products aimed at high growth segments of the datacom markets. He also mentioned the planned release of Ultra DWDM and LiDAR solutions for industrial automation and automotive markets, which will further expand Enablence’s optical roadmap.
Haugen emphasized the company’s focus on artificial intelligence (AI) and its ability to increase processor interconnect throughput. He noted that Enablence’s new AI optical interconnect technology platform is well-positioned to meet the industry’s goals and drive future growth.
In terms of financial performance, Enablence reported revenue of $1,961 thousand for fiscal year 2023, representing a 1% decline compared to the previous year. The revenue mix shifted away from Fab Services, resulting in a decline from $678 thousand to $281 thousand, while Product and NRE revenue increased by 29% to $1,680 thousand.
The company reported a net comprehensive loss of $8,471 thousand for the year, primarily due to a recapitalization of the business. Operating expenses increased by 21.6% to $6,469 thousand, mainly driven by investments in sales and operational headcount, as well as R&D for LiDAR and AI technologies.
Enablence’s gross margin for the year ended June 30, 2023, was ($1,373) thousand, a decline of $910 thousand compared to the previous year. The decline was attributed to flat revenues and significant investment in wafer fabrication to support increased production.
Enablence also announced an amendment to its secured loan agreement with Vortex LP, consolidating the total loan facilities to $15,697 thousand.
CFO Stan Besko acknowledged the challenging year for Enablence due to a pause in chip sales across the industry. However, he emphasized the company’s investments in R&D and wafer fabrication capacities, along with an optimistic technology outlook, positioning Enablence for future growth.
Enablence Technologies Inc. is a publicly traded company listed on the TSX Venture Exchange that designs, manufactures, and sells optical components, primarily in the form of planar lightwave circuits (PLC), on silicon-based chips. The company serves a global customer base in data center and other rapidly-growing end markets, as well as emerging markets such as medical devices, automotive LiDAR, and virtual and augmented reality headsets. Enablence also has a non-captive fabrication plant in Fremont, California, for manufacturing chips designed by third-party customers.
For additional information on Enablence’s fiscal year 2023 results, please refer to the company’s audited financial statements and management’s discussion and analysis, available on SEDAR under Enablence’s issuer profile.
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