Thanks for the article. I hope the focus on 100GB will pay off!
Seems to be the right strategy to to streamline and go with higher margin 100GB.
Now we have to hope the shares will recover especially if they can achieve breakeven by Sep 2015.
I'm expecting it to revisit 2+ this fall, when everyone is back from the Hamptons. Until then we are on auto pilot.
I agree, they have good tech. Now we just need the Mgmt team to turn the boat around and fire up the engine....!
No, they are actually a pile of awesome technology, unfortunately there is a glut of this particular kind of awesome technology and consequently their gross margins look more like what you would expect from a supermarket chain than a high tech business.
I like the way they keep upping the break even date. By the time they break even, 100G will be junk like 10 and 40 K.They should merge with Tim Hortons and sell coffee and donuts and come out with a new kind of slurpy.
The earlier problem stems from OCLR trying to be the jack of all trades, product-wise. I'd take OCLR in doing fewer things, but gets better in doing those fewer things, than the earlier way any day. This is acquisition larvae, as we speak. JMHO
I think they are making themselves a cleaner more straight forward buy out candidate.
Bought into this stock at 2.15, ever since its continued to drop day after day. Can anyone give me a reason to hold this with the hope of ever seeing 2+ again?
So a company that just a couple of years ago boasted as having achieved critical mass and diversification for success has been dismantled and shrunk to be fully dependent solely on 100G -related products. Any hiccup in execution or cutthroat competition from its larger and more diversified competitors and Oclaro will be driven out of business. A year ago, management said they would reach breakeven EBITDA by the end of 2014 with $110M / quarter. Now it promises breakeven EBITDA by Sep 2015 with $100M / quarter. Hurray!
Executing on turnaround plan
• Will have reduced manufacturing footprint and headcount in 12 months
• 20 sites down to 8; 6 fabs to 3; headcount from ~2900 to ~1200
• Lowered OpEx in FY14 by $26 million, or 17% vs. FY13
• Simplified product focus
• Focusing R&D on the large, high-growth 100G markets
• New product introductions to fuel growth
• Emerging flagship Coherent CFP2 to serve as growth engine
• Complete 100G portfolio for Long Haul, Metro and Data Center markets
• Lower Adjusted EBITDA breakeven model
• Revenue level down to $100 million post I&C sale
• Goal is to reach by Sept. 2015 (Q116) quarter
• Focused on operating and cash flow breakeven as next objective
PLWY proves that small caps can run with the big boys as management confirms rev share deal with AppRocket Studio. Digital apps are now worth more than $70 billion annually
Sam that is a bit deceptive… OCLR lowered the loss to $11.3 million this Q ,plus announced sale of it' unit in Japan for $18 million ( expected to close by Dec.). The CC also suggested lower losses and positive in 2015.
Just a word of caution - Co has about 100M in cash but losing about 25M a quarter and there is no more profitable business to sell. Do the math.