Solid results. Analysts impressed. Breakeven threshold reduced.
With growing market and 50% improvement in operating efficiency, they are looking good.
Nice job management!
There is still more to do, so keep it up!
Oclaro Announces Second Quarter Fiscal Year 2015 Financial Results
SAN JOSE, Calif., Feb. 3, 2015 /PRNewswire/ -- Oclaro, Inc. (Nasdaq: OCLR), a leading provider and innovator of optical communications solutions, today announced the financial results for its second quarter of fiscal year 2015, which ended December 27, 2014.
"Our second quarter financial results benefited from strong 100G revenue growth. Adjusted EBITDA for the quarter was better than our previously announced guidance range, and both gross margin and revenue were at the higher end of our guidance. Our recent results demonstrate that we are steadily making progress in achieving our financial and business objectives," said Greg Dougherty, Chief Executive Officer, Oclaro. "Market demand for 100G in both telecom and datacom continues to build and we expect to leverage our products and technology to drive future revenue growth."
Results for the Second Quarter of Fiscal 2015
Revenues were $86.8 million for the second quarter of fiscal 2015, compared with revenues of $89.2 million in the first quarter of fiscal 2015. The Company's industrial and consumer business, which was sold on October 27, 2014, contributed $1.8 million of revenue in the second quarter and $7.5 million in the first quarter of fiscal 2015.
GAAP gross margin was 15.9% for the second quarter of fiscal 2015, compared with a GAAP gross margin of 16.1% in the first quarter of fiscal 2015.
Non-GAAP gross margin was 16.5% for the second quarter of fiscal 2015, compared with a non-GAAP gross margin of 16.5% in the first quarter of fiscal 2015.
GAAP operating loss was $3.8 million for the second quarter of fiscal 2015. This compares with a GAAP operating loss of $17.5 million for the first quarter of fiscal 2015.
Non-GAAP operating loss was $9.8 million for the second quarter of fiscal 2015, compared with a non-GAAP operating loss of $13.6 million in the first quarter of fiscal 2015.
GAAP net loss for the second quarter of fiscal 2015 was $12.3 million. This compares with a GAAP net loss of $20.4 million in the first quarter of fiscal 2015.
Non-GAAP net loss for the second quarter of fiscal 2015 was $9.9 million. This compares with a non-GAAP net loss of $15.1 million in the first quarter of fiscal 2015.
Adjusted EBITDA was negative $5.5 million for the second quarter of fiscal 2015, compared with negative $8.9 million in the first quarter of fiscal 2015.
Cash, cash equivalents, restricted cash, and short-term investments were $79.0 million at December 27, 2014.
Third Quarter Fiscal Year 2015 Outlook
The guidance for the quarter ending March 28, 2015 is:
Revenues in the range of $78 million to $85 million.
Non-GAAP gross margin in the range of 13% to 17%.
Adjusted EBITDA in the range of negative $9 million to negative $5 million.
i really wish that i could root for oclaro again after all this time but even if they had a profit for a quarter (as they have had in the past a few times) it never would be sustained in the current commodity optics sector. as to any buy-out, oclaro bought out avanex, opnext, etc., etc. and where has it gotten them?...read again today, continued losses! one would think that the incremental revs from these oclaro acquisitions and efficiencies from the combinations would vault them to actual real profits and sustained added revs but inexplicably not a damn thing happens in this sector with acquisitions...just continued red ink. woe the suitor that tries to take oclaro into its fold. ajimhothough. I will be watching and will jump back in if & when I see something "quantifiably" different within the optics sector. gl longs
fyi, I finally sold oclaro in december offsetting a huge gain in another 2008-2009 financial stock with my huge loss in oclaro.
it should. We were at 2 when things looked worse. They are truly getting traction and doing a great job internally managing costs. This was an impressive quarter considering where they were and the job at hand.
I still think they need to be bought now that things are looking more simple and manageable.
re: I still think they need to be bought now...
So does everybody else. Oclaro would jump at any reasonable offer. But there aren't any because nobody wants or needs those two fabulous but too costly InP fabs. Its really that simple, imo.
GL Sean, I wish longs well... It just didn't work for me. I hope it works for you all. I will monitor and jump back in when I see some 'quantum' changes in the oc sector.
Our Q2 results demonstrate the progress we’re making toward that goal. Our revenue growth in the quarter was driven largely by our success in 100G, which increased by almost 60% quarter-on-quarter. 100G sales represented almost 40% of our total sales in Q2, compared with 24% of sales in Q1. The expansion of our 100G business is the cornerstone of our growth plan. Therefore, we have decided to start breaking out 100G separately from 40G in the supplemental information, which you can find on our website. Our recent results validate that our strategy are focused on 100G for packet optical transport is indeed working.
The revenue growth in Q2 was primarily due to 100G client side pluggable transceivers, lithium niobate modulators, and narrow line Micro-iTLA lasers. During the quarter, we saw our 100G client side business achieved record revenue levels, driven by two factors. One, the market in China bounce backed as we predicated on our last call. Two, we saw an increase in the adoption of 100G client interfaces in high-end router platforms. We continue to see steady progress in growth from our 100G lithium niobate and our Micro-iTLA product lines. Both of these businesses are ramping nicely and we expect to see continued growth.
For Dec. 14, 100G revenue 86.8mil X 40% = 34.72 mil
For March, 15: 100G revenue 34.72 mil X 1.6 =55.55 mil
For June, 15: 100G revenue 55.55 mil X 1.6 = 88.88 mil
For September 15: 100G revenue 88.88 mil X 1.6 = 142.2 mil
For December 15: 100G revenue 142.2 mil X 1.6 = 227.5 mil
If they can keep 60% increase quarter on quarter for 100G product.
Am I right ?
Earnings were good in the sense that they came at the high end of expectations so the stock will appreciate a little. However it was a large loss and the tangible book value is down to $1.6/sh. The guidance is for a pityful Non-GAAP gross margin in the range of 13% to 17% so losses will continue. The company has become almost completely reliant on few 100G products that will face very stiff competition and price erosion. Only takeover speculations might take the stock to $2.
The OCLR CC comments are an early indication that their 100G strategy is working.
Concerning their forward comments, the forecast seems conservative but there is nothing to be gained by alerting their competitors about taking market share in 100G especially after the announcement of a 60% quarter on quarter sales increase in 100G.
They said they can't keep up with demand. They need to move production of new prods to Shenzhen for high volume production. That will be a major effort, but should happen just in time for major ramp and more price competition. This company is so ripe for a takeover.
I listened to the ER call, and I heard multiple references to "simplified balance sheet" with removal of the other units/sales of same. I agree going forward the reality will be 100g sales and execution, none of the other distractions. Even the expensive FAB's they have, it was indicated that their utilization levels allow for significant expansion without that part needing updates. So, I'm thinking that these efforts are truly different than the stories sold in the past to shareholders. Which is probably why shorty is heading for the hills today, and maybe even some new, genuine buyers of this stock. I admit I've had my doubts, but listening yesterday sure sounded like hard work and execution have been the going themes lately at OCLR.
Yeah, 20 staff in UK currently to move the production to China. Guess what, production in China will sell in China, and China is one of the major buyers of OCLR components. This is a great thing!! I agree and also noted that their expectations are to be at 90-95M in revs this year. Which means actual revenue growth!! Yippeeeeeeeeeee
They have been making good progress and this management has credibility with me at this point. Their job is to maximize shareholder value so there is still work ahead...