Oclaro (NASDAQ:OCLR) Director Marissa T. Peterson acquired 75,000 shares of the stock on the open market in a transaction dated Tuesday, May 26th. The stock was purchased at an average price of $2.20 per share, with a total value of $165,000.00. Following the completion of the transaction, the director now directly owns 226,538 shares of the company’s stock, valued at approximately $498,383.60.
On the surface, this is exactly the same as last year.
Two differences are:
1. Dr. Adam Carter - Oclaro has Dr. Carter leading sales now. If you listen to the 2015 B. Riley webcast his description of the technology, trends, and market forces is impressive.
2. Oclaro CFP2- ACO module - This new award winning 100G product goes into large scale production at the end of 2015 with a boost to sales.
George Soros placed a big bet on OCLR and I would imagine that he did some due diligence.
We will see soon about this forecast for breakeven!
Sandy - I suggest that you listen to the webcast of the B. Riley presentation on the Oclaro investor website to get some fresh info on Oclaro.
Dr. Adam Carter (Oclaro Chief Commercial Officer and ex-Cisco GM of the Cisco optical component group) did an excellent presentation on the market opportunity and Oclaro product differentiation.
The Oclaro CFP-2 ACO ramps up at the end of 2015 and this is the breakeven EBITDA revenue difference product. Total OCLR sales would be $90 - $95 M in the quarter with 20% GM's.
There was a discussion of the Web 2.0 market requirements and a $200+ Million annual revenue opportunity for Oclaro in 100G in 2016.
The Oclaro fabs will allow the 100G production to ramp for a major increase in sales.
The long term target for OCLR gross margins is 30 - 35%.
The bottom line is that there is a detailed plan outlined in this presentation and obviously Oclaro management must execute on the plan.
“On Track To Achieve Adjusted EBITDA Break-Even By Calendar Year End 2015”
- As Announced During Company’s Earnings Conference Call On May 5, 2015
The Oclaro fabs can be a big advantage for high volume production of the 100G CFP2-ACO. A segment leading new product in high volume production changes the picture for Oclaro. Perhaps this is the reason that Soros invested?
The 100G CFP2-ACO is a new product and only shipping in sample volumes now.
The order backlog will allow volume sales to begin later in 2015.
"During the March quarter, we began shipping data units of our coherent CFP2-ACO product. We are now supporting numerous customers for applications in the metro and data center interconnect markets.
Our customers continue to be pleased by the initial performance with their experiencing. Demand continuous to be very strong and we have build up a healthy backlog. We expect to further increase our production capability in the current quarter and we remain on track to begin having meaningful revenue late this calendar year.
At OFC in March, the coherent CFP2-ACO transceiver received the Lightwave Innovation Award with a perfect score from the judges. We are very proud to have been recognized for innovation which is made possible due to excellence in indium phosphide photonic integrated circuits, packaging and system integration.
All-in-all, we feel very good about our position in the 100G and we expect our 100G related revenues to grow in Q4."
"Finally, as we noted in our earnings release today, our expected improvements gross margin and adjusted EBITDA in Q4 will keep us on track to achieve adjusted EBITDA break even by the end of this calendar year."
Oclaro Demonstrates the Industry's First 200G Coherent CFP2 Pluggable Transceiver at ECOC 2014
Represents the Industry's Smallest Coherent Pluggable Module with the Lowest Power Consumption
CANNES, France and SAN JOSE, Calif., Sept. 22, 2014 /PRNewswire/ -- Oclaro, Inc. (NASDAQ: OCLR), a leading provider and innovator of optical communications solutions, today announced that it will be the first company to demonstrate a 200G coherent transceiver at the ECOC show in Cannes, France. This next generation coherent module features an industry leading power dissipation of only 12 Watts, and the small CFP2 form factor enables customers to be first to market with 400G linecards (using 2x 200G with 16-QAM) that deliver optimum density and performance for applications such as data center interconnects and metro/regional packet optical transport networks.
Featuring 100G and 200G flexible modulation, the Oclaro analog coherent CFP2 pluggable transceiver has been shipping to customers since May 2014 and is being shown in the Oclaro booth #MR7 operating in either 100G PM-QPSK or 200G 16-QAM mode. The transceiver leverages Oclaro's proven indium phosphide (InP) photonic integration technology to deliver industry-leading performance, increased density and low cost in a pluggable format. These critical requirements are being demanded today by new Web 2.0 customers, router companies and long-haul network equipment manufacturers that are struggling to meet the explosive bandwidth demands and are looking to deploy faster 100G and 200G optical networks while keeping costs down.
"With this announcement, Oclaro is on track to be the first company to bring a high-density coherent CFP2 pluggable transceiver to market," said Adam Carter, Chief Commercial Officer at Oclaro. "This important 200G milestone validates our strategy to focus on delivering differentiated products that leverage Oclaro's core competencies and continually raise the bar on density, performance, and
Today, Barrons has an article about the JDSU spinoff optical component company (CCOP)and made this statement
"It is well known by investors that Finisar ( FNSR ) is willing to buy the Communications and Commercial Optical Products segment (CCOP) spinoff (Lumentum) for at least $1.2 billion, or 1.5 times sales."
The Needham upgrade is based on the OCLR reorganization of the business going from 3,000 to 1,300 employees and introducing new products in the hottest optical component segment now - 100G.
The earlier than forecast return to profitability is an interesting statement with direct impact on the OCLR stock price.
Top-Tier Customer Base
Oclaro is committed to being the preferred supplier of
optical components, modules and subsystems and delivering
innovation across all of our product areas, business processes
and practices. Top-tier customers that we partner with include:
ADVA Optical Networking • Alcatel-Lucent • Arista
Bosch • Brocade • Canon • Ciena • Cisco • Dell
Ericsson • Extreme Networks • Fanuc • FiberHome
Fujitsu • Google • Heidelberg • Hitachi • HP
Huawei • Infinera • Juniper Networks • Kyocera
Laserline • Lumenis • Mitsubishi• NEC
Nokia Siemens Networks • Padtec • Panasonic
Ricoh • Spectra-Physics • Tellabs • ZTE
Cisco is a top 3 Oclaro customer and could buy 100G modules from Oclaro.
Dr. Adam Carter was the GM of the Cisco Optical Components Group and is now CCO for Oclaro.
I suspect that there could be some new 100G business for Oclaro with Cisco.
SUNNYVALE, Calif. (AP) _ Alliance Fiber Optic Products Inc. (AFOP) on Wednesday reported first-quarter profit of $2.9 million.
The Sunnyvale, California-based company said it had profit of 16 cents per share. Earnings, adjusted for pretax expenses and stock option expense, came to 29 cents per share.
The maker of fiber optic products posted revenue of $21.7 million in the period.
Alliance Fiber Optic Products shares have increased 30 percent since the beginning of the year.
On the Oclaro pricing issue, their primary issue now is the mix of old and new products with too many old products dominating the product mix.
The new 100G products allow OCLR to get 30% GM's (matching FNSR) rather than the current 15% GM's