Gray thanks for your upbeat news. What are your thought on earnings - u think worth holding onto 20k shares seeing what happened to NPTN. All insiders and funds seem to be very confident as no one seems to be selling only thing that concerns me is 25 million short, which if they come in at their number and guidance is good we could see a $1-2 swing to the upside due to the huge short.
Sentiment: Strong Buy
It was interesting that they mentioned ZTE since they recently released a statement that ZTE contributed less than 1% of their revenues.
Concerning OCLR, I would expect to hear similar China news in early May at the OCLR conference call since Huawei, ZTE, and Alcatel/Nokia are major OCLR customers.
Additionally, OCLR is rolling out the new CFP2-ACO products in volume during the second half of 2016 with a big bump in new revenue.
And what is the percentage of the opportunity for NeoPhotonics on the demand for 100 gig backbones?
The 100 gig deployments in China are generally supported by handful of network equipment manufacturers, really all of which are customers of ours. The largest of course is Huawei, it was our largest customer. But we’re also well positioned that other network equipment manufacturers in China. The other -- in China strong players in addition Huawei would include the ZTE fiber home technologies and Alcatel Shanghai Bell, now part of Nokia. So, each of these companies are participating in the network build outs there.
First off, congratulation definitely in orders, it's just great news. Can you talk a little bit about, I mean obviously the demand that came in from China in 4Q and continued in 1Q is great news. And it sounded like you’ve got some pretty good visibility to another 30,000 lines out of China. Can you talk about what’s your expectations are relative to that timing of the systems, orders from the service providers to the OEMs in China that give you the confidence that that’s real demand and that you have visibility to the timing of that order flow generation. Anything along those lines would be very helpful. Thank you.
The most recent significant element was China Mobile, who a few months ago, announced tenders that were in the range of low 30,000 lines. And the expectation is to have another 15,000 to 20,000 lines between the third and fourth quarter. We also look at China Unicom and China Telecom; one as a bid in process the other one has a bid that we think is closed. And together, these are probably another 7,000 to 8,000 lines. So, in total, it's in the range of 25,000 to 30,000 lines. All four award probably in the third and fourth quarter of this year with shipments in fourth quarter and into 2017. Last year the timing was in the third quarter and the expectation could be very similar this year.
Shorts need to force it down before blow-out earnings from NPTN after the close today. They want to stifle momentum as much as they can.
Sentiment: Strong Buy
to temper the SONS results, INFN with weak guidance though CEO mentions:
"Let me be clear on what is happening. In order to handle unrelenting traffic growth, long-haul networks have largely made the transition from 10 Gig to 40 Gig to 100 Gig. However, bandwidth consumption is not slowing down which means that capacity adds to existing networks and new network builds will be at 100 Gig. Instead of a concern, we view transition as a tremendous ongoing revenue opportunity for Infinera."
On the EnterpriseTech website, an article by CCO Adam Carter. An excerpt is below:
The enterprise and data center markets are going through what some experts call a “once in a decade transition.” Driven by the insatiable demand for ever-increasing bandwidth, these industries are rapidly moving from 40G to 100G networks while also upgrading from shorter-reach multi-mode fiber to longer-reach, single-mode fiber mesh architectures.
This is good news for the optical components companies and network equipment manufacturers because the anticipated volumes should represent a very healthy industry for many years to come, with demand likely outstripping supply at some point.
MANY YEARS TO COME.
Sentiment: Strong Buy
yeah, i know, bit of a stretch. was basing the connection on general network buildouts.
ZTE, OCLR customer with decent(?) results?
7:23 am ZTE reports Q1 results (ZTCOF) : The Group reported operating revenue of RMB21.859 billion, representing a 4.09% increase year on year. Net profit attributable to shareholders of the listed company amounted to RMB950 million, representing a 15.97% increase from the same period last year. Basic earnings per share amounted to RMB0.23. The Group's net profit after extraordinary items, operating cash flow and net cash and cash equivalents at the end of the year all made a big progress. R&D ratio hit a historical high 13.96%.