3S Photonics Reports Fiscal Year

NOZAY, France -- 3S PHOTONICS, world-leading French manufacturer of optical and optoelectronic components for telecommunications networks, today reported growing FY10 financial results (ended June 2010). The past year was particularly marked by the acquisition in February 2010 of Avensys Inc, a Canadian company.

3S PHOTONICS manufactures high value products developed to cater to the needs of cutting edge technology markets. Among them, the terrestrial and submarine long distance transmissions market reported a strong growth resulting from the increasing global Internet traffic. As the world leader on the submarine pumps market with 80% of market shares, and after winning 7% of the terrestrial pumps in only 2 years, 3S PHOTONICS benefited from these favorable market conditions. As a result, the company completed its 2010 fiscal year with a nine percent growth of its turnover in France compared to 2009, reaching €25.22 million.

Operating profits raised from €0.11M in 2009 to €1.98M in 2010. This important growth results from an increase by 10% of overall operating revenue from €32.6M to €36M. A €2.2M net profit has also been transferred to the equity of the company, to attain €22.28M against €20M.

Export turnover represents 95 percent, the optimized procurement of foreign currencies by the financial department allowed the company to register a profit of €255,500. During this fiscal year, the company also pursues its efforts to reduce operating expenses by €1 million.

The expected recovery of the submarine market, which suffered from the economic slowdown in 2009 and the introduction of new products dedicated to the optical transmission market, allow 3S PHOTONICS to anticipate an increase of 10 percent in turnover for its 2011 fiscal year. This growth will be reinforced by creating new synergies with Avensys Inc.

"Our 2010 fiscal year was particularly marked by the acquisition of Avensys Inc. This alliance resulted in the creation of the 3S PHOTONICS group. We already achieved synergies between both companies in terms of product development and the strategic locating of our Canadian subsidiary in North America is an important building block for our international expansion," comments Alexandre Krivine, President and CEO of 3S PHOTONICS Group. "The coming year also promises to be successful. We anticipate a growth in turnover of 10% and a US $70M revenue for our consolidated group. Next year, we will also concentrate on our expansion policy and strategic partnerships in order to strengthen our international position."

3S Photonics S.A.