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20 August 2018

Oclaro’s quarterly revenue falls 5%, but 100G CFP2-ACO sales again breaks record

© Semiconductor Today Magazine / Juno PublishiPicture: Disco’s DAL7440 KABRA laser saw.

For full-year fiscal 2018 (to 30 June), Oclaro Inc of San Jose, CA, USA (which provides components, modules and subsystems for optical communications) has reported revenue of $543.2m, down 9.6% from $601m in fiscal 2017.

Fiscal fourth-quarter 2018 revenue was $120.9m (split 40%:60% between client-side/datacoms and line-side/telecoms, compared with 49%:51% a year ago). This is down 5% on $127.3m last quarter and 19% on $149.4m a year ago.

Although down by 20.4% on $120.6m a year ago, sales of 100G-and-above products rebounded slightly from $95.7m last quarter (75% of total revenue) to $96m (79% of total revenue). “We once again had a record revenue quarter for our ACO [100G CFP2 analog coherent optics] product families and our high-speed, data-center laser chips,” says CEO Greg Dougherty.

Sales of 40G-and-below products fell further to $24.9m (21% of total revenue), down 21% on $31.6m (25% of total revenue) last quarter.

China has fallen further from 32% of total revenue last quarter ($40.3m) to 30% ($36.7m) and Europe, the Middle East & Africa (EMEA) from 23% ($29.7m) to 14% ($17m), while the Americas have rebounded from 27% ($33.9m) to 34% ($40.8m) and Southeast Asia has risen further from 17% ($21.6m) to 21% ($25.7m).

“Despite the negative revenue impact of US Department of Commerce sanctions that prevented us from shipping to ZTE [in China] during Q4, we had another strong quarter,” says Dougherty.

Although full-year gross margin has fallen from 39.5% in fiscal 2017 to 38.6% for fiscal 2018, quarterly gross margin has rebounded from 37.2% last quarter to 37.7%.

Operating expenses have risen further, from $31.3m a year ago and $32.4m last quarter to $33m (and from $115.6m for fiscal 2017 to $129m for fiscal 2018).

Operating income has fallen further, from $33.3m (operating margin of 22.3%) a year ago and $18.1m (14.2% margin) last quarter to $15.7m (13% margin). Full-year operating income was hence $92.9m (17.1% margin) for fiscal 2018, down from $130.9m (21.8% margin) in fiscal 2017.

Likewise, net income has fallen further, from $33.9m ($0.20 per diluted share) a year ago and $19m ($0.11 per diluted share) last quarter to $14.6m ($0.08 per diluted share). Full-year net income was $91.1m ($0.53 per diluted share) for fiscal 2018, down from $130.1m ($0.79 per diluted share) in fiscal 2017.

During the quarter, cash, cash equivalents, and short-term investments rose by about $19m from $304.4m to $323.1m (up from $257.5m a year ago).

“We recently received overwhelming stockholder approval for our proposed merger with Lumentum, which we continue to expect will close in the second half of this calendar year,” says Dougherty.

See related items:

Oclaro stockholders approve takeover by Lumentum

Oclaro quarterly revenue falls 21.5% year-on-year

Lumentum to acquire Oclaro for $1.8bn

Oclaro’s quarterly revenue falls 10% driven by CFP and QSFP client-side 100G transceiver modules

Oclaro reports quarterly revenue up 4% sequentially and 15% year-on-year

Oclaro’s quarterly revenue up 28% year-on-year, despite 10G softness in China

Tags: Oclaro Optical communications

Visit: www.oclaro.com

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