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Oclaro, Inc. Message Board

  • mgm2020 mgm2020 Jan 31, 2013 3:17 PM Flag

    Tidbit from the last ER and PR---note the last sentence......

    "While our financial results for the fiscal first quarter 2013 were disappointing, our integration is on track and we are executing on our synergies," said Alain Couder, chairman and CEO. "As the new Oclaro, we were immersed in integration activities, and therefore did not fully contemplate all potential execution risks in our forecast. With the difficult market conditions facing the industry, we focused on short-term synergies and expense reduction, which will reduce our combined expenses by $9 million per quarter in the December 2012 quarter compared to pre-merger levels. In the meantime, our new organization is firmly in place and we are fully operating as the new Oclaro. With the continuing soft telecom market, our focus is to execute on synergies that are expected to improve margins over the next few quarters. In addition, we are also focused on ramping new products, including 100G, that we expect will position Oclaro well for a positive turn of the telecom market."

    Based on the last PR it sertainly looks like they have a full slate of new products, and the telecom market definitely looks like it's taking a turn up. JDSU came in with a very good quarter, has received a few upgrades--and the future should be lookinbg brighter for OCLR and all of the other telecom suppliers. Even if the revenue comes in near the lower end(and I don't expect that) the forecast should be the best in years. They will most likely show a very strong balance sheet thanks to the $27 million from the thjin film sale, $25 million from the convertible offering, $9 million plus from cost-saving synergies, and possibly an insurance claim payout from the Thailand flooding.
    Remember--the breakeven number for OCLR was $175 million. That is only $13 million above the top of their forecast range. While they may not quite make that for the December quarter, it could become a reality in this quarter for 2013 and into the foreseeable future with greater telecom spending and expansion.
    Looking for a better quarter, better margins, smaller to small loss, plenty of cash on the books, and a brighter forecast. We'll fing out in 73 minutes.

    Sentiment: Strong Buy

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