Oclaro, Inc. (NASDAQ:OCLR) is this year’s winner of the coveted Light Reading Leading Light Award for ‘Outstanding Components Vendor’. The leading provider of optical communication solutions has presented the award at an Award’s Dinner in Texas as Light Reading’s Communications event commenced.
Honored by the award, Chief executive officer, Greg Dougherty, reiterated that they will continue to come up with innovative products able to help customers solve the most complex problems.
“Given that bandwidth requirements will continue to increase, Oclaro is well positioned in the future with the technology innovation and manufacturing power to enable our customers to drive communications networks forward, faster, “said Mr. Dougherty.
Oclaro Q3 Earning Beat Estimates
Separately Oclaro reported third-quarter earnings that beat Wall Street estimates highlighted by revenue growth and improved gross margin. Revenue in the quarter was up by 60% coming in at $162.2 million, compared to revenues of $101.1 million for the same period last year. The Innovator of optical communications solutions has attributed the increase to its 100G products.
For the current quarter, Oclaro expects revenues to be in the range of $144 million and $155 million, below Wall Street expectations of $165 million.
Gross margin for the quarter came in at 41.2% compared to 39.5% as of last year. Net income in the quarter totaled 38.2 million or 22 cents a share compared to a net income of $0.1 million as of Q1 2016. For the current quarter ending July 1, 2017, Oclaro expects its Non-GAAP gross margin to be in the range of 38% and 41% at the back of an operating income of between $27 million and $31 million.
Headwinds in China
Oclaro stock was on the receiving end in April after it emerged that the company was experiencing slowing demand in China. Lower than expected orders from Huawei saw the stock downgraded by equity research firms amidst growing concern that the same could hurt its earnings going forward.
Huawei is Oclaro’s largest customer. The lower than expected revenue forecast for the current quarter could be an indication that the company does not expect orders from its largest customer to pick. The Chinese company is currently entangled in a standoff with authorities in the U.S over allegations it broke American trade sanctions in dealing with Iran, Syria, Sudan, and Cuba.
Shares of Oclaro were up by 1.1% in Tuesday trading session consequently ending the day at highs of $9.23 a share.