Optical Device Manufacturer EZconn Benefits from Quick Visibility into Orders

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Optical communication device specialist EZconn has seen clear order visibility, especially for active optical products, extending into the first quarter of 2023, according to company sources.

The company also saw its gross margin climb to 31.6% in the second quarter of 2022 from 28.5% in the previous quarter.

Sources attributed the improved gross margin to increased shipments of high-margin products for U.S. broadband infrastructure construction and data center applications.

The company also reported that its revenue increased slightly year-on-year to NT$770 million (US$26.18 million) in the second quarter, driven by increased fiber optic device shipments. .

The outlook for the rest of 2022 is optimistic as the company has just added a new production line to its factory, increasing its production capacity.

For fiber optic devices, the sources said demand for its 10G BOSA (bidirectional optical sub-assembly) products will remain robust for the rest of the year.

The sources noted that 10G BOSA devices will become mainstream within the next 2-3 years.

According to an estimate from industry sources, EZconn is expected to register NT$2.9-3.0 billion in revenue for the whole of 2022, up slightly from NT$2.813 billion a year ago.

The company’s gross margin for this year will remain around 25-30%, comparable to the level reached in 2021.

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