Making a profit in telecom is notoriously difficult. It has been a big drag for both Finisar and JDSU and Avago has completely avoided it for that reason. The OEMs skimming off the top (long haul 100G coherent) has made the challenge much worse. However if JDSU & Finisar merge, I think it will improve Oclaro's chances to be acquired. Mergers are needed but there is little gained for all the expense and trouble.
I don't know if someone will acquire OCLR but it is better for all players to consolidate. There has been rumors about FNSR picking up JDSU after they spilt the company but who knows? I am hoping for traction in OCLR sales of 100 GB which are higher margin products. If OCLR goes down in price, I will think about averaging down because I still think they are a viable company and the optics upgrade cycle should hopefully start soon.
Looking for towards to the next CC hopefully with some good news. We all deserve it!
So far it does not look that way. I hope we have a better 2015!
Well Coriant is OCLR's largest customer and there are other Oclaro 100G modules that are long haul so this quote may not apply but Oclaro could still be winning this business.
Management comments on client side 100G which is short reach. China Unicom is talking about backbone upgrades which is long haul or ultra long haul. Two different things altogether.
both ways. We're done with the drop. Prepare for the rise. and when this rises, its usually in multiples. I've been in this thing since it was Avanex, so been watching it for a decade or so. I think this up cycle will be the last one and end in an acquisition.
This news confirms the comment from the Oclaro CEO in the Nov 4, 2014 conference call.
"In the first quarter fiscal 2015, revenues came in at the upper end of our guidance at $89.2 million. As discussed in our last call, we expected sales for our 100G client-side business in China to be down in Q1 as major Chinese customers digested shipments from a very strong Q4. We do expect sales for the 100G client for the Chinese market to rebound nicely this quarter driven by customers in and out of China. "
Oclaro 100G surely involved....
China Unicom taps Coriant for 100G backbone upgrade
December 15, 2014
Optical transport vendor Coriant GmbH has notched another win with China Unicom to expand the operator's 100G backbone network linking the cities of Wuhan, Hefei, and Nanjing. China Unicom will deploy the Coriant hiT 7300 multi-haul transport platform as part of the fiber-optic network expansion.
"We're constantly working to accelerate the expansion of our mobile communications network across China, while providing our customers with high-quality broadband communications and information services," said Guangquan Wang, director of network technology, Network Technology Research Institute, China Unicom. "For this network expansion, we chose the Coriant hiT 7300 solution because it enables us to support an upgrade without interrupting existing traffic. It also provides us with the flexibility to add capacity as network demands increase."
Coriant says its hiT 7300 optical transport platform provides the China Unicom network with higher capacity, support for photonic mesh configurations, and scalability from 40G to 100G and beyond.
Coriant's optical transport team has been working with China Unicom since 2006 (see, for example, "China Unicom selects Nokia Siemens Networks to deploy optical network").
This bodes well for Oclaro as it's all about 100G and Coriant is a top Oclaro customer. Good find safeway! We're good to go!
China Unicom Selects Coriant to Expand 100G Network Coverage, Linking Key Cities
PR Newswire via Yahoo! Finance Dec 09 06:00pm
NAPERVILLE, Ill., Dec. 9, 2014 /PRNewswire/ -- Coriant, a global supplier of SDN-enabled end-to-end transport solutions, today announced that it has been selected by China Unicom, a leading fixed and mobile ...