Update: Oclaro Appoints A New Chief Commercial Officer

| About: Oclaro, Inc. (OCLR)


Oclaro announced appointment of Dr. Adam Carter as a new Chief Commercial Officer in a move expected after the departure of the COO last month.

The appointment of Dr. Carter will strengthen OCLR’s executive capabilities and is a positive step for its shareholders.

I remain long Oclaro and reiterate my target price of $2.4 per share by the end of the year, with further upside in the upcoming years.

As part of a series of significant management changes and continued restructuring, Oclaro (NASDAQ:OCLR) reported that Dr. Adam Carter would become its new Chief Commercial Officer. Dr. Carter will be a strong addition to Oclaro's team. He is a seasoned industry veteran with excellent technical expertise and decades of managerial experience from Cisco and several other tech companies who knows the in-and-out workings of the industry relationships from the other side of the business - the client and OEM partner side. Dr. Carter also has strong industry ties that could help Oclaro maintain and improve ties with its current and potential customers. The step signals Oclaro's stronger focus on the marketing and commercial side, while keeping up the high operational and technical standards.

Dr. Carter has a very strong technical background with a B.S. degree in Applied Physics from Portsmouth University in the United Kingdom, a Ph.D. degree from the University of Wales in the United Kingdom, and former roles as senior director and general manager of the Transceiver Module Group of Cisco Systems, Inc. (NASDAQ:CSCO) From February 2007 to February 2008 he served as Cisco's director of marketing. Prior to Cisco, Dr. Carter served in a variety of marketing, business development and engineering roles at Avago Technologies (NASDAQ:AVGO), Agilent Technologies (NYSE:A), Hewlett Packard (NYSE:HP) and BT&D Technologies.

The annual salary will be $300,000 plus options to purchase 300,000 shares of OCLR if performance targets are fully met. The share dilution would be ~0.3% per year, which is insignificant as a dilution, but will certainly add to OCLR's costs. Nevertheless, I think Dr. Carter will prove to be a good investment for the company in the long run. My thesis remains long Oclaro thanks to its current strong turnaround efforts and streamlining of its business despite strong competitive pressures. I reiterate my $2.4 price target to be achieved within 12 months, with further upside in the years to come if the current economic global expansion continues.

Disclosure: The author is long OCLR. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article. I am long Oclaro with ~$8,000 invested.