5 April 2011

Oclaro cuts quarterly revenue guidance by 8%

Optical component, module and subsystem maker Oclaro Inc of San Jose, CA, USA has cut its revenue forecast for fiscal third-quarter 2011 (ended 2 April) by about 8%, from $123–131m (provided on 27 January) to $116.5m. This would be up 15% on a year ago but down 3% on $120.3m in fiscal second-quarter 2011 (ended 1 January).

The cut in revenue guidance is due mainly to inventory corrections among certain telecom customers that began during the quarter and continued through the end of the quarter. Oclaro also expects a correlation between this lowered revenue guidance and the estimated level of gross margin and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter.

Oclaro says that it currently has a cautious short-term view of revenue for its fiscal fourth-quarter (ending 2 July). However, the firm remains confident in the solid fundamentals of its business, based on an expected book-to-bill ratio of about 1:1 in telecoms for the fiscal third quarter (with particular booking strength late in the quarter) as well as scheduled new product introductions and its belief in the fundamental underlying demand for broadband.

Oclaro cautions that its anticipated revenue results are preliminary and based on the best information currently available, and are subject to completion of financial statements for its fiscal third-quarter 2011. The firm will announce the results on 28 April.

See related items:

Oclaro’s profit dips during investment and ramp-up

Oclaro’s quarterly revenue growth slows from 11.4% to 7.6%

Oclaro reports record profitability on 44% revenue growth year-on-year

Oclaro grows margin for third consecutive quarter

Tags: Oclaro

Visit: www.oclaro.com

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