NEW YORK (AP) -- Shares of Oclaro climbed Friday after the optical communications company agreed to additional businesses to laser and optics maker II-VI.
The San Jose, Calif., company sold its semiconductor laser business to II-IV in September for $92 million. The deal included an option to sell its fiber amplifier and micro-optics unit.
The sale of the fiber amplifier and micro-optics unit was announced Thursday and II-VI said it should close around Nov. 1. The deal is worth $88.6 million and will add to II-VI's profit for the fiscal year that ends in June 2015.
The sale improves Oclaro's balance sheet, said B. Riley analyst Dave Kang. He raised his price target on the stock to $3.20 per share from $2.70.
Oclaro Inc. shares gained 19 cents, or 10 percent, to $2.04 in afternoon trading Friday. The stock is up 79 percent in the past three months.
Separately Thursday, Oclaro said Chief Financial Officer Jerry Turin will resign Nov. 8 to pursue other opportunities. He has been its CFO since 2008. The company did not name a replacement but say it expects to name one by Nov. 8.
II-VI Inc. shares added 9 cents to $18.47.