Oclaro revenue grows 20% on 100G fiber-optic communications surge

Oclaro announced healthy financial results for fiscal year 2016 on strong demand for 100G fiber-optic equipment.

Optical communications solutions company Oclaro (Nasdaq: OCLR; San Jose, CA) announced healthy financial results for its fourth quarter and fiscal year 2016, which ended July 2, 2016. Fiscal 2016 revenues of $407.9 million were nearly 20% higher than the $341.3 million dollar revenues of fiscal 2015 thanks to strong demand for optical equipment to support the 100 Gigabit per second (100G) fiber-optic communications market.

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"The results we achieved in the fourth quarter represent an all-time Oclaro record for gross margin and operating income. Our excellent performance was driven by the strength of our 100G product line revenues, which grew 36 percent sequentially, including a significant contribution from our CFP2-ACO product line," said Greg Dougherty, Oclaro CEO. "I am very pleased with our performance and annual results for the past year, which reflect the progress that we have made. Our annual revenue grew by 20 percent when compared with fiscal year 2015, and we achieved an annual operating profit. Entering fiscal 2017, we are well positioned for ongoing revenue growth as our product mix continues to shift towards 100G for both our client- and line-side businesses. I am proud of what the Oclaro team has accomplished and look forward to another successful year in fiscal 2017."

Financial highlights of the quarter include:

--Revenues were $125.2 million for the fourth quarter of fiscal 2016, which was a 14 week quarter, and compare with revenues of $101.1 million in the third quarter of fiscal 2016, and revenues of $82.2 million in the fourth quarter of fiscal 2015.

--Generally accepted accounting principles (GAAP) gross margin was 32.1% for the fourth quarter of fiscal 2016, compared with GAAP gross margin of 26.7% in the third quarter of fiscal 2016, and a GAAP gross margin of 19.3% in the fourth quarter of fiscal 2015.

--GAAP operating income was $12.8 million for the fourth quarter of fiscal 2016. This compares with GAAP operating income of $2.5 million in the third quarter of fiscal 2016, and a GAAP operating loss of $10.8 million in the fourth quarter of fiscal 2015.

--GAAP net income for the fourth quarter of fiscal 2016 was $11.8 million. This compares with GAAP net income of $0.1 million in the third quarter of fiscal 2016, and a GAAP net loss of $13.9 million in the fourth quarter of fiscal 2015.

--Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $19.2 million for the fourth quarter of fiscal 2016, compared with Adjusted EBITDA of $8.5 million in the third quarter of fiscal 2016, and negative Adjusted EBITDA of $1.2 million in the fourth quarter of fiscal 2015.

Financial highlights of the fiscal year include:

--Revenues were $407.9 million for fiscal 2016, compared with $341.3 million in fiscal 2015.

--GAAP gross margin was 28.5% for fiscal 2016, compared with 16.6% in fiscal 2015.

--GAAP operating income was $15.8 million for fiscal 2016. This compares with a GAAP operating loss of $45.5 million in fiscal 2015.

--GAAP net income for fiscal 2016 was $8.6 million. This compares with a GAAP net loss of $56.7 million in fiscal 2015.

--Adjusted EBITDA was $40.9 million for fiscal 2016, compared with a negative Adjusted EBITDA of $20.9 million in fiscal 2015.

The fiscal outlook for the first quarter of fiscal year 2016 (the quarter ending October 1, 2016) is revenue in the range of $126 million to $134 million.

SOURCE: Oclaro; http://investor.oclaro.com/releasedetail.cfm?ReleaseID=982467

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