Citing an increase in demand for its “COLORZ” inter-data center solutions and coherent DSP products from its ClariPhy acquisition, Inphi reported Q3 revenue of $84.5 million (GAAP), up 19% year-over-year, compared with $70.7 million in the third quarter of 2016.
Gross margin from continuing operations under GAAP was 49.8%, compared with 68.1% in the third quarter of 2016. The decrease in gross margin was primarily due to a Q3 impairment charge of acquired intangibles. GAAP operating loss from continuing operations in the third quarter of 2017 was $52.5 million or (62.1%) of revenue from continuing operations, compared to GAAP income from continuing operations in the third quarter of 2016 of $10.2 million or 14.5% of revenue from continuing operations.
“Q3 was a solid quarter of execution for Inphi, in a market still waiting for a rebound in China long haul and metro,” said President and CEO Ford Tamer. “Once again, we had strong growth in the data center market from COLORZ, and we continue to introduce new PAM-based products, like Vega and Polaris that will lead to continued growth in the data center market in 2018 and beyond.”
