MAYNARD, Mass., May 17, 2019 (GLOBE NEWSWIRE) -- Acacia Communications, Inc. (NASDAQ:ACIA), a leading provider of high-speed coherent optical interconnect products, today announced that it is aware of the order by the U.S. Department of Commerce to impose specific license requirements for the export, reexport and/or in-country transfer of all items subject to U.S. export control regulations to Huawei Technologies Co Ltd and designated affiliates of Huawei. Acacia is taking steps to suspend affected transactions and intends to fully comply with the order.
Acacia is continuing to monitor developments affecting trade regulation and tariffs, including as related to Huawei, to assess potential impacts on Acacia's future business and financial results. For the fiscal year ended December 31, 2018, sales to Huawei represented less than 1.5% of Acacia's total revenue, and, for the three-month period ended March 31, 2019, represented less than 1.0% of Acacia's total revenue. Acacia anticipates that the loss of Huawei sales in the second quarter of 2019 will have a de minimis impact on Acacia's total revenue for the quarter. Developments or regulatory actions against Huawei may have a broader impact on overall conditions in the markets in which Acacia operates.
About Acacia Communications
Acacia Communications develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform communications networks through improvements in performance, capacity and cost. By implementing optical interconnect technology in a silicon-based platform, a process Acacia Communications refers to as the "siliconization of optical interconnect," Acacia Communications is able to offer products at higher speeds and density with lower power consumption, that meet the needs of cloud and service providers and can be easily integrated in a cost-effective manner with existing network equipment. www.acacia-inc.com.
Forward Looking Statements
This press release includes statements concerning Acacia Communications and its future expectations, plans and prospects that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions are intended to identify forward-looking statements. Acacia Communications has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Acacia believes may affect its business, financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, Acacia's expectations regarding the impact, including on Acacia's total revenue for the second quarter of 2019, of export controls and interpretations, economic sanctions and anti-corruption regulations, regulatory developments in the United States and foreign countries that are already impeding and could further impede its ability to sell its products to its customer Huawei or any of its affiliates, or that could impede its ability to sell products to other customers in certain foreign jurisdictions, particularly in China, Acacia's ability to sustain or increase revenue from its larger customers, generate revenues from new customers, or offset the discontinuation of concentrated purchases by its customers in China with purchases by new or existing customers outside China, and other risks set forth under the caption "Risk Factors" in Acacia's public reports filed with the SEC, including Acacia's Annual Report on Form 10-K for the year ended December 31, 2018 and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2019 filed with the SEC and in other filings that Acacia may make with the SEC in the future. Acacia Communications assumes no obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
SOURCE Acacia Communications, Inc.
For further information:
Investor Relations Contact:
Office: (212) 871-3927
Office: (212) 331-8417
Public Relations Contact:
Office: (408) 718-9350
The Acacia name and logo and the Acacia logo are registered trademarks of Acacia Communications, Inc. in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.
Source: Acacia Communications, Inc.