[July 27, 2015]

GigOptix Achieves GAAP Profitability in the Second Quarter Fiscal Year 2015

GigOptix, Inc. (NYSE MKT: GIG), a leading supplier of advanced high-speed semiconductor components for communications networks used in long-haul, metro, access, cloud connectivity, data center, and consumer electronics applications, today announced financial results for its second quarter of fiscal year 2015, which ended June 28, 2015.

Second Quarter Fiscal 2015 GAAP Results

Total revenue in Q2 FY15 was $9.8 million. This compares with revenue of $8.0 million in Q2 FY14, and $9.1 million in Q1 FY15.

Gross margin in Q2 FY15 was a record 63 percent, and compares with 57 percent in Q2 FY14, and 60 percent in Q1 FY15.

Net income in Q2 FY15 was $0.5 million, or net income of $0.02 per diluted share. This marks the first profitable quarter, free of non-recurring items, in the Company's history. This compares with a net loss of $2.0 million, or a net loss of ($0.06) per share in Q2 FY14, and a net loss of $0.6 million, or a net loss of ($0.02) per share in Q1 FY15.

Cash and cash equivalents as of June 28, 2015 were $18.4 million, an increase of $0.7 million from the end of the prior quarter.

Second Quarter Fiscal 2015 Non-GAAP Results¹

Non-GAAP net income for Q2 FY15 was $2.1 million, or net income of $0.06 per diluted share, and represents the record non-GAAP quarterly profit in the Company's history. The Q2 FY15 results compare with non-GAAP net income of $0.3 million, or net income of $0.01 per diluted share in Q2 FY14, and non-GAAP net income of $0.7 million, or $0.02 per diluted share in Q1 FY15.

Non-GAAP gross margin for Q2 FY15 was a record 66 percent, and compares with 59 percent in Q2 FY14 and 62 percent in Q1 FY15.

Adjusted EBITDA¹ for Q2 FY15 was a record $2.8 million, and is the highest Adjusted EBITDA quarterly performance in the company's history. The Q2 FY15 results compares with Adjusted EBITDA of $1.0 million in Q2 FY14, and Adjusted EBITDA of $1.4 million in Q1 FY15.

"The all-around record quarterly financial results we achieved in Q2 represent a positive and significant inflection point in the 8 year history of GigOptix, going back to our inception in July 2007. We delivered our first quarter of GAAP profitability, free of non-recurring items, and the highest ever non-GAAP profitability and Adjusted EBITDA. This record performance clearly shows the success we continue to achieve with our global growth and scalable strategy," said Dr. Avi Katz, Chairman and Chief Executive Officer of GigOptix, Inc. "Increasing customer demand across all our product lines for our ever-growing and innovative product portfolio is driving our continued revenue growth. In particular, we are seeing strong pull in our high-speed communications (HSC) business in both datacom, with our 40Gbps and 100Gbps drivers and TIAs for data center active optical cables (AOC) and transceivers, and in telecom, with our linear-coherent 100Gbps and 200Gbps devices used for both long-haul and metro applications. In addition, in our Industrial product line we are experiencing several new business opportunities that are driving continuous revenue growth. The combination of higher revenue, better margins and on-going strict expense controls translated into our record profitability this quarter."

Financial Outlook

"We expect third quarter fiscal 2015 revenue to be approximately $10.3 million, which would be the highest quarterly revenue in GigOptix's history, while maintaining the consistent high-level of profitability. The projected third quarter revenue would represent a continuous increase of about 5 percent compared with Q2, and 21 percent compared with the same quarter a year ago," said Dr. Katz. "In addition, we are raising our initial revenue guidance for fiscal 2015 from about $37.5 million to at least $39 million, consistent with our pre-announcement on June 29, 2015. This current revenue forecast represents a year-over-year increase of approximately 20 percent compared with revenue of $32.9 million in fiscal year 2014. Overall, we expect 2015 to yield the highest annual revenue, best profitability and largest cash generation from operations in our history."

Financial Results Webcast / Conference Call

GigOptix will host a conference call and webcast with investors today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its second quarter fiscal 2015 financial results and business outlook. Investors and other interested parties may access the call by dialing (719) 325-2323. No passcode is needed for the live call. The replay dial-in number is (858) 384-5517, and the passcode is 2850820. Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the Investor Relations section of GigOptix' website at www.gigoptix.com.

¹ Non-GAAP Measures - GigOptix reports revenue, gross margin, operating expense, operating income and net loss on a Generally Accepted Accounting Principles (GAAP) and non-GAAP basis. In addition, it reports Adjusted EBITDA. These non-GAAP measures are provided to enhance investors' overall understanding of GigOptix financial performance. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. A reconciliation of these GAAP to non-GAAP measurements and Adjusted EBITDA for the 3 and 6 months ended June 28, 2015 and June 29, 2014, as well as the prior quarter, can be found in the "Reconciliation of GAAP to Non-GAAP Financial Information" table attached to this press release.

About GigOptix, Inc.

GigOptix, Inc. (NYSE MKT: GIG) is a leading fabless supplier of advanced high-speed semiconductor components that enable end-to-end information streaming over communications networks. Its product portfolio addresses emerging telecom long-haul and metro applications, datacom cloud and data center connectivity, point-to-point backhaul wireless applications, and interactive interfaces for consumer electronics. GigOptix offers a broad portfolio of high performance devices and multi-chip module solutions that enable next generation wireless microwave systems up to 90GHz, drivers and TIAs for 40Gbps, 100Gbps and 400Gbps fiber-optic telecommunications and data-communications networks. GigOptix also offers a wide range of digital and mixed-signal ASIC solutions in a wide range of technology geometries from 28nm to 0.6um, and enables a complete product life cycle support.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the bringing of products to market with full documentation. Such statements contain words such as "will," and "expect," or the negative thereof or comparable terminology, and include (without limitation) statements regarding expected revenues, income and cash, and completion of the financial statements for the quarter just ended. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks include, but are not limited to: the ability to recognize revenues, the ability to extend product offerings into new areas or products, the ability to commercialize licensed technology, unexpected occurrences that deter the full documentation and "bring to market" plan for products that were developed this year and last year, trends and fluctuations in the industry, changes in demand and purchasing volume of customers, unpredictability of suppliers, our ability to control our costs of goods sold, our ability to attract and retain qualified personnel, the ability to move product sales to production levels, the ability to compete for client design-in opportunities, the ability to cross-sell to new clients and to diversify, the success of product sales in new markets or of recently produced product offerings, including bundled product solutions, the amount of cost savings, the ability to improve productivity, and to do so in an efficient manner, the ability to pursue and attract other merger and acquisition opportunities, our ability to enforce intellectual property rights, and the ability to maintain and continue relationships with government agencies. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of GigOptix' filings with the SEC, and in GigOptix' other current and periodic reports filed or furnished from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to GigOptix as of the date hereof, and GigOptix assumes no obligation to update any forward-looking statement.

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