Oclaro results disappoint

Oct. 30, 2010
San Jose, CA--Oclaro (NASDAQ: OCLR) reported weaker-than-expected fiscal first-quarter (ended September 30) revenue last week
San Jose, CA--Oclaro (NASDAQ: OCLR) --provider of optical communications components, modules and subsystems--reported weaker-than-expected fiscal first-quarter (ended September 30) revenue Thursday, saying it experienced a slowdown in the rate of sales growth in late September, a problem that led the company to also issue a cautious view for the current quarter.

Oclaro reported revenues of $121.3 million for the first quarter of fiscal 2011, compared to $112.7 million in the fourth quarter of fiscal 2010--a 7.6% increase compared to the prior quarter and 43% up over the same quarter last year. Telecom revenues were up over 9% compared to the prior quarter.

"We are proud of our 43% year-on-year growth for the quarter. However, we experienced a slowdown in the rate of revenue growth in late September. Accordingly, our guidance for the December quarter is cautious," said Alain Couder, President and CEO, Oclaro in the company's earnings release. "We continue to have confidence in our position in the market and believe the growth prospects for Oclaro and our customers in 2011 continue to be strong."

Nonethless, the company's stock has fallen 38% recently. BWS Financial (Woodland Hills, CA) lowered its rating on Oclaro to sell following the company's poor outlook and set a 12-month target price of $6.50 on the stock, suggesting further downside as other reports suggest slower spending by the telecom carriers in this market.

For more information visit
www.oclaro.comPosted by Steve AndersonFollow us on TwitterSubscribe now to Laser Focus World magazine; It’s free!

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