You misunderstand...I'm not bad mouthing. Often on here people are trying to "run down" this company without thinking about the people and lives involved. I'm all for supporting...and if a company needs to reduce to survive so be it...but having been a victim of such a situation myself I wouldn't necessarily look upon it as a positive thing even as a stock holder unless it increases efficiency. In pursuit of immediate gains a lot can be lost imho...but each company and situation is different and hopefully positive things will come in time.. I have no intention of trying to sway anyone..I'd rather people supported by buying and continuing to buy truth be told...feel free to do so.. ^^
CSCO has competitive issues in Emerging Markets especially in China competing with Huawei.
OCLR as a component company sells to all the major systems vendors so these CSCO issues are not directly related to Oclaro.
This can not be taken out by retail investors. Whoever is selling this has probably a million shares bought at a buck.
50% Headcount reduction and site closings, planned to be executed over about 3 quarters, will greatly strain the company and its management. Unless revenues AND gross margins pick up DRAMATICALLY in early 2014, Oclaro will be surely heading into liquidity problems by mid 2014. This will mean new debt and a possibility of large share dilution. Even according to the highly optimistic CEO, EBTIDA breakeven is not expected until early 2015.
Maybe you are right, but I see a sign that the top is in place now that the IPOs are arriving: Cyan, Arista, and Barracuda Networks....We saw a mass selloff a couple of weeks ago when ALU dropped a pencil, and I think the earlybirds will continue to exit.
There is evidence of both issues now.
The other optical companies see the datacom optical market improving with the carriers planning major optical upgrades in 2014 for LTE Advanced.
The OCLR cc lays out the plan for reducing headcount from 3,000 now to 1,500 by July 2014.
I highly doubt the street will buy that as they have in the past. They have been burned third degree like every time they fell for that line.
There are two issues impacting OCLR in the near future:
1. Cyclical business - optical is a cyclical business tracking the carrier and enterprise investment waves. There is a new cycle starting in 2013 with 2014 predicted to be a strong year.
2. OCLR cost structure - OCLR has been in a poor competitive position after several mergers with redundant staff. Finally, the necessary staff cuts are being made. A 50% reduction in headcount should restore OCLR to profitability.
Take a look at the OCLR long term chart to see how the stock has tracked the optical business cycle.
Again a look at the OC business and how little or nothing has changed in years:
"How the Optical Transceiver Module Sales Channel is Broken"
and click on the link
The only way to reach profitability has been to be the lowest cost, highest volume, most integrated producer...either that or keep believing in the hockey stick.
Bad-mouthing a headcount reduction, from an investor's standpoint at least, doesn't make any sense. Other than trying to get longs to unload their positions, what's the motivation?
In pursuit of stock profits people shouldn't forget the realities of these actions...though they may be necessary in the short term. In business terms loss of skills is always a worry in such reductions..hopefully as things pick up people can return..
Impressed with their quick action for the turn-a-round. 2014 will be hard to short.
I wont ignore your posts cuz I get bigtime kicks reading your goofy pompous useless junk. You and that Lou goufius have me ROTFLMFAO.
the only BAND i see is the brown band in my toilet. or maybe around your nose?