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Oclaro Revenue Outlook Misses By A Mile On China, Stock Crumbles

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Oclaro ( OCLR ) shares plunged by double digits in extended trading Wednesday after the maker of optical devices for communications networks offered a revenue outlook for the December quarter that missed by wide margin.

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Oclaro said it expects fiscal second-quarter revenue of $139 million at its midpoint of guidance, down 10% from a year earlier, vs. consensus estimates of $159 million. Makers of optical devices have been pressured by slowing demand from China's telecom gear makers.

"Our near-term visibility includes continued softness in China, compounded by a recent slowdown in data center sales. Despite our reduced outlook, we expect to remain solidly profitable for the December quarter, which would serve as a further testament to our strong financial model," Chief Executive Greg Dougherty, said in a news release.

Oclaro said adjusted fiscal first-quarter earnings were 20 cents a share, up 43% from a year ago, with revenue rising 15% to $155.6 million, topping consensus estimates. A year earlier, Oclaro earned 14 cents a share on sales of $135.5 million.

Analysts expected Oclaro to report earnings of 18 cents on sales of $154.3 million for the period ended June 30. Shares plunged 14% to 6.90 in after-hours trading on the stock market today .

Acacia Communications ( ACIA ) reports earnings late Thursday. Acacia slipped 1% to 43 in late trading.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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