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Oclaro, Inc. Message Board

  • sean21448 sean21448 May 8, 2013 3:28 PM Flag

    Bankruptcy coming

    I sold the remaining of my shares. This company is going down, fast! Quote: "In connection with the bridge financing from Providence, we amended our credit agreement with our existing lenders. Under the amended credit agreement we agreed to complete the sale of certain assets, product lines or operating segments of our business expeditiously, and we are actively engaged in a corresponding process. The revised credit agreement requires us to apply the proceeds of any such sales to repaying the loans under the credit agreement, although subject to certain conditions a portion of the credit line may become available to us for re-borrowing after we repay it."

    They are being allowed to restructure their loan, but with the condition to sell assets expeditiously to pay off loans. They are in trouble, and with their current cash burn and weak margins, I'm beginning to see that no miraclulous sector turn-around will be enough to save them from BK, PIPE, or something else of the nature.

    It's over for this puppy.

    JMHO

    watch this post get deleted like my other one did.

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    • May 7, 2013
      16:32 EDT OCLR Oclaro sees Q4 revenue $132M-$144M, consensus $159.48M.
      Sees Q4 non-GAAP gross margin in the range of 9% to 13%; adjusted EBITDA in the range of negative $30M to negative $17M.
      16:30 EDT OCLR Oclaro reports Q3 GAAP EPS (46c), consensus (31c)
      Reports Q3 revenue $141.6M, consensus $148.14M.

    • I'd rather see Hitachi or somebody else scooping up the co.
      I am not that pesimistic

    • == They are being allowed to restructure their loan, but with the condition to sell assets expeditiously to pay off loans. They are in trouble, and with their current cash burn and weak margins, I'm beginning to see that no miraclulous sector turn-around will be enough to save them from BK, PIPE, or something else of the nature. It's over for this puppy.

      I examined Oclaro's current quarterly financial statement, along with next quarter's revenue forecast, and for the life of me I could not see this company going forward. They lost $41 million GAP this quarter and based on forecast will lose another $41 million GAP or even more next quarter. I initially thought they got the $25 million bridge financing but now, after reading the above statement, I am not so sure. Do they only get the $25 million only after selling the assets? And if they are able to sell the assets what is the minimum amount they have to get? What is the deadline for Oclaro to complete the sale of assets? Lot of questions outstanding and for obvious reason Oclaro could not disclose them. The small positive for Oclaro investors is that there are bids out there for their assets and I am assuming that the creditors know the details of them. Whether Oclaro will get the money we will have to watch the announcements this quarter. It will be interesting to see what product lines they are selling and who are buying. My guess is that their non telecom assets (ie commercial lasers) will be on the block and possibly their datacom enterprise components where they are not so big.

    • == They are being allowed to restructure their loan, but with the condition to sell assets expeditiously to pay off loans. They are in trouble, and with their current cash burn and weak margins, I'm beginning to see that no miraclulous sector turn-around will be enough to save them from BK, PIPE, or something else of the nature. It's over for this puppy.

    • I bought the 50 shares you sold along with a few more. So far I'm up 10% today. And tomorrow is another day. How much did you lose?

 
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