Will this be one of the valuable assets that Oclaro will have to let go in a fire sale in order to comply with the recent loans it got to survive?
wake up rats... :)
Oclaro, Inc. (NASDAQ: OCLR), a tier-one provider and innovator of optical communications and laser solutions, today announced the industry's broadest wavelength range of high-power, high-brightness laser diodes enabling multi-kilowatt direct diode systems. The company's high power laser diodes are available over a wavelength range from 800 nm to 1070 nm and are shipping in volume today to laser system manufacturers targeting the industrial, semiconductor, automotive, and materials processing markets.
In addition to output power and brightness, another critical factor for scaling the power of kilowatt direct diode systems is the consistency of performance and reliability across the entire available wavelength range that is used. Within the wavelength range of 910 nm to 1070 nm, Oclaro offers seven standard wavelength windows with up to 200 W on a microchannel cooler and up to 120 W on the industry's standard passive mini-cooler, the Oclaro BLM. This Oclaro family of mounted bar products enables the scaling of system power up to 15 kW. With on-going innovation efforts, Oclaro recently demonstrated output powers of up to 350 W on a microchannel cooler and 250 W on a passive mini-cooler which illustrates the technology reach.
"Today's announcement underscores our ability to deliver a comprehensive portfolio of solutions for direct diode applications and highlights the extensive technology and design capabilities we have assembled in-house to achieve industry-leading performance," said Gunnar Stolze, VP of Sales for the Global Industrial and Consumer business at Oclaro, Inc. "By offering the industry's broadest wavelength range while consistently delivering product performance and reliability, our customers have the flexibility to scale system power as needed to better respond to their customer's needs."
Oclaro will showcase its portfolio of visible and near infrared laser devices, and VCSEL products and technology at the LASER World of PHOTONI
I sure as hell hope so. OCLR needs something soon to light a fire under their arss, if that mush mouth Alain Chowder can't.
Maybe they can clean up with lasers and put telecom on the back burner, if you get my drift?
It makes plenty of sense. Plenty of tidbits of juicy info about all the latest, tightest laser devices that are used in different stuff like medical and other stuff.
Sentiment: Strong Buy
These are the facts (IMO) OCLR run by Alan, CEO (E for exploiting)
When market goes up OCLR goes down.
When market goes down OCLR goes down.
When company runs out of money, Alan buys other company like OPXT and spends their money like water.
When company loses money, Alan always makes money and so his officers.
What we can expect in future:
Sale of assets so that Alan can keep his job.
Reverse split so that he can continue to fool investors like us.
I think next stop is 70 cents
re: I can't for the life of me figure out how we can be investing so much in R&D and yet not have it translate it to premium pricing on products and better margins.
Here are some points to consider:
a. Fabs have very high fixed operating costs and Oclaro maintains 5 while JDSU and FNSR both have 2.
b. Manufacturing yields (Oclaro has had a long history of struggling with poor yields which increase cost from higher scrap counts and quality control issues. Also, a key for high yields is how well the product is designed for mass production (ease of manufacturing). Production design must be incoporated at each step in product development and requires a team of both production and design engineers to achieve the best balance. A product can have a superior functional design but is difficult to manufacture in high volumes which will results in poor yields and high costs. (Finisar has excellent production designs which result in the highest manufacturing yields within the industry).
c. product mix in revenues: ratio of high end to low end products and newer (first 2 years returns highest margin) v. legacy (older and low margin)
d) manufacturing model for back end (test and assembly) vertically integrated has higher fixed cost and margins will suffer during soft demand periods. Contract manufacturing provides higher margins during slow downs. Cost are variable...lower on low volume; higher as volume increases. JDSU is benefiting here during off periods. However, when demand is high, the VI model boosts margins as fixed costs are spread out among more units, and the COGs are lower.
No such thing as premium pricing at the component level as vendors have zero control over pricing, regardless of any innovation attained thru R&D. All value has been captured at the systems level which is directly responsible for the historically poor performances of the component vendors.
Does anyone know if JDSU reports margins for their segments? I'm trying to compare OCLR's dismal gross margins (9%) to other peers. JDSU's overall gross margin is about 40%, but I need to know what the margin for their CCOP segment is to make a valid apples to apples comparison. The only info I can find on it is from two years ago where their margins appear to be about 25% for that segments, which is still significantly better than OCLR. I can't for the life of me figure out how we can be investing so much in R&D and yet not have it translate it to premium pricing on products and better margins.
Something tells me that a young chase4money spent a lot of time touching hot stoves.
I have had this stock for about 7 years and am out about $180,000.