Opnext (OPXT) Sees Material Q3 Earnings Impact from Thai Flooding
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Financial Fact:
Amortization of acquired developed technology: 1.45M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Opnext, Inc. (Nasdaq: OPXT), issued the following statement regarding the status of its contract manufacturing operations in Thailand following heavy seasonal rains that have resulted in severe flooding:
Opnext’s primary contract manufacturer, Fabrinet (NYSE: FN), today announced that, as of October 22, 2011, flood waters had infiltrated the offices and manufacturing floor space at its Chokchai campus in Pathum Thani, Thailand, where it manufactures certain of Opnext’s products. Fabrinet has reported that its manufacturing buildings at Chokchai are currently filled with several feet of water. In addition, local transportation and utilities have been impacted and are affecting access to Fabrinet's factory as well as the availability of power.
Opnext has not yet been able to assess the full extent of the damage. Fabrinet, however, believes that it is unlikely that production at Chokchai will resume before the end of the calendar year. As a result, Opnext expects that the flooding will have significant impact on the Company’s operations and its ability to meet customer demand for its products in the near future.
While Opnext is still assessing the likely impact of the situation on its financial results for the current and future quarters, Opnext expects that the loss of revenue in the third fiscal quarter ending December 31, 2011 will be material.
Opnext’s primary contract manufacturer, Fabrinet (NYSE: FN), today announced that, as of October 22, 2011, flood waters had infiltrated the offices and manufacturing floor space at its Chokchai campus in Pathum Thani, Thailand, where it manufactures certain of Opnext’s products. Fabrinet has reported that its manufacturing buildings at Chokchai are currently filled with several feet of water. In addition, local transportation and utilities have been impacted and are affecting access to Fabrinet's factory as well as the availability of power.
Opnext has not yet been able to assess the full extent of the damage. Fabrinet, however, believes that it is unlikely that production at Chokchai will resume before the end of the calendar year. As a result, Opnext expects that the flooding will have significant impact on the Company’s operations and its ability to meet customer demand for its products in the near future.
While Opnext is still assessing the likely impact of the situation on its financial results for the current and future quarters, Opnext expects that the loss of revenue in the third fiscal quarter ending December 31, 2011 will be material.
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