Thu, May 28, 5:40 PM
Wed, May 27, 1:20 PM| Wed, May 27, 1:20 PM | Comment!
Thu, May 21, 1:47 PM| Thu, May 21, 1:47 PM | Comment!
Tue, May 5, 4:32 PM
- Though its FQ3 revenue only slightly missed estimates (and EPS slightly beat), Oclaro (NASDAQ:OCLR) is guiding for FQ4 revenue of $77M-$83M, below an $86.4M consensus.
- The optical component vendor says it's still on track to achieve breakeven adjusted EBITDA by the end of 2015. Peer JDS Uniphase offered soft guidance last week; weak telecom capex has weighed on many companies.
- FQ3 gross margin was 15.8% vs. 16.5% in FQ2 and 12.3% a year ago. FQ4 GM guidance is at 15%-19%. Oclaro ended FQ3 with $123.9M in cash/short-term investments, after raising $61.6M through a convertible offering.
- Shares have fallen to $1.71 AH. They fell 3.1% in regular trading amid a broad tech selloff.
- FQ3 results, PR
Tue, May 5, 4:07 PM
Mon, Apr. 27, 11:14 AM
- Needham's Alex Henderson has upgraded Oclaro (NASDAQ:OCLR) to Buy ahead of its May 5 FQ3 report, and set a $3 target.
- Henderson: "For much of the last year, we have been gradually getting more positive on OCLR. Management has fixed the balance sheet, cleaned up the product line, started to rebound margins, shifted to Data Comm and managed to be first to market in the important CFP2 100G coherent module market."
- Though still seeing execution risk in the optical component/module vendor's new product ramps, Henderson thinks "the strong demand growth in Optical suggests Oclaro should be able to show solid improvements and earlier than forecast return to profitability."
- Shares currently trade for just 0.4x an FY15 (ends June '15) sales consensus of $344.5M, after backing out $73M in net cash.
Sun, Mar. 29, 7:39 PM
- Optical component industry consolidation "was a common topic of discussion among investors and companies" at the industry's recent OFC conference, reports Piper's Troy Jensen. "The reasons for consolidation are well known and center on operational expense savings, a more rational pricing environment, and more complete product lines."
- One deal that's viewed as especially likely: A Finisar (NASDAQ:FNSR) purchase of JDS Uniphase's (NASDAQ:JDSU) optical component/laser unit (CCOP), currently set to be spun off as Lumentum Holdings in Q3. Activist Sandell Asset Management has been urging JDS to sell CCOP, which had FY14 (ended June '14) revenue of $794M (+7% Y/Y). Jefferies' James Kisner thinks a deal could happen, but not before the spinoff occurs.
- Jensen on industry consolidation in general: "The question isn't really an if, but more of the urgency of potential sellers and buyers and also at what price a deal would take place. In general, our feeling is that investors were slightly more anxious for a deal, while companies we spoke with sensed the need for consolidation, but were less anxious."
- The industry has already seen a decent amount of M&A. In addition to CCOP, smaller component vendors Oclaro (OCLR - $213M market cap), Alliance Fiber (AFOP - $308M market cap), Applied Optoelectronics (AAOI - $196M market cap), and NeoPhotonics (NPTN - $217M market cap) could be targeted. NeoPhotonics has soared since delivering a big Q4 beat (fueled by strong 100G component demand) on March 3.
Fri, Mar. 20, 3:02 PM
- With the Nasdaq up 0.9% (and nearing its March 2000 highs) amid a market rally, major tech gainers are easily outnumbering major decliners.
- Following a 1.4% overnight rally in Shanghai, strong Q1 guidance from Ctrip, and a report that Sohu/Tencent's Sogou search engine is planning an IPO, a slew of Chinese tech names are posting big gains. Aside from Ctrip and Sohu, notable gainers include search/browser/security app provider Qihoo (QIHU +4.9%), sports lottery site 500.com (WBAI +12.5%), auto sites Bitauto (BITA +4.2%) and Autohome (ATHM +4.9%), online retailer Vipshop (VIPS +4.7%), data center owner 21Vianet (VNET +6.7%), polysilicon maker Daqo (DQ +6.5%), and chat/dating app owner Momo (MOMO +4.6%).
- Other standouts include optical component vendor Oclaro (OCLR +9.6%), U.S. solar installer Solar3D (SLTD +10%), NFC reader maker On Track (OTIV +10.5%), printer maker Lexmark (LXK +3.7%), and big data/analytics software provider Hortonworks (HDP +10.2%).
- Notable decliners include VoIP hardware/software provider Sonus (SONS -6.1%), solar microinverter leader Enphase (ENPH -4.2%), and authentication hardware/software provider Vasco (VDSI -5.7%).
- Qihoo is adding to Wednesday's gains, while 500.com and 21Vianet are erasing recent losses. On Track is now up 21% over the last two days. Solar3D is adding to the gains seen yesterday following a contract announcement. Vasco had rallied strongly this week before today.
- Previously covered: Ambarella, Spherix, Envivio, Youku, Viggle, Castlight/Benefitfocus, Care.com, Ultra Clean, InterCloud, Perceptron, Violin Memory, Amtech
Fri, Feb. 27, 2:59 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +8.1%), ultracapacitor maker Maxwell (MXWL +4.7%), local services marketplace Angie's List (ANGI +5.9%), voice processor developer Audience (ADNC +5.4%), Ethernet/Wi-Fi hardware maker Extreme Networks (EXTR +3.5%), Chinese polysilicon vendor Daqo (DQ +8.3%), Chinese mobile game published Sky-mobi (MOBI +9.8%), professional video hardware/software maker Avid (AVID +5.2%), and optical component vendors NeoPhotonics (NPTN +11%) and Oclaro (OCLR +5.2%).
- Notable decliners include cloud HR/financials software leader Workday (WDAY -3.5%), cloud IT service desk software leader ServiceNow (NOW -3.7%), industrial laser maker IPG Photonics (IPGP -3.1%), FPGA/mobile sensor hub maker QuickLogic (QUIK -4.5%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO -4%). The Nasdaq is down 0.5%.
- Initially up post-earnings, Workday is now down 9% since beating FQ4 revenue estimates and offering in-line FY16 revenue guidance on Wednesday afternoon. Heavily-shorted VirnetX is up 33% since announcing on Feb. 18 the USPTO had denied five Apple patent review petitions. Maxwell (also heavily shorted) is up 17% since an insider buy was disclosed a week ago. Sky-mobi is up 20% since Rosenblatt Securities provided bullish coverage yesterday.
- Previously covered: Chinese Web/mobile stocks, SanDisk, Autobytel, DigitalGlobe, GoPro, Immersion, MoSys, Resonant, Infoblox, Aruba, UniPixel, Autodesk, Universal Display, TubeMogul, Nimble Storage
Thu, Feb. 19, 5:40 PM
- The initial purchaser made full use of the $10M overallotment option attached to Oclaro's (NASDAQ:OCLR) $55M convertible offering (first announced last week), leading the total offering to amount to $65M.
- The notes carry a 6% interest rate, and a $1.95/share initial conversion price (32% above today's close).
Thu, Feb. 12, 9:13 AM
- Oclaro (NASDAQ:OCLR) plans to offer $55M worth of convertible senior notes due 2020. Initial purchasers are expected to have a $10M overallotment option. The optical component vendor only says net proceeds will be used for "general corporate purposes, including working capital."
- Oclaro had $79M in cash/short-term investments as of Dec. 27, and no debt. But it's expected to lose $0.43/share in FY15 (ends June '15), and $0.23/share in FY16.
Wed, Feb. 11, 2:31 PM
- Today's notable tech gainers include Chinese mobile app developer/game publisher NQ Mobile (NQ +5.3%), P2P lending platform/recent IPO Lending Club (LC +4.7%), Chinese microblogging leader Weibo (WB +5.2%), analog/mixed-signal chipmaker Power Integrations (POWI +4.1%), security tech provider Wave Systems (WAVX +10.6%), car-buying site TrueCar (TRUE +7.6%), and Fibre Channel/Ethernet connectivity hardware vendor Emulex (ELX +3.6%).
- Notable decliners include Chinese EV maker Kandi Technologies (KNDI -4.7%), optical component maker Oclaro (OCLR -5%), Chinese online travel agency eLong (LONG -5.6%), and big data software provider/recent IPO Hortonworks (HDP -3.5%). The Nasdaq is up 0.1%.
- LendingClub is now up 47% from its $15 IPO price, and Hortonworks up 42% from its $16 IPO price. TrueCar is two days removed from announcing its dealer count has topped 10K. eLong is adding to the losses seen after last week's Q4 miss.
- Previously covered: 3D Systems/Voxeljet, AOL, Worlds, A10 Networks, 500.com, Digital Ally, Marketo, Jive Software
Tue, Feb. 3, 5:32 PM
- Oclaro (NASDAQ:OCLR) expects FQ3 revenue of $78M-$85M, above a $79.5M consensus at the midpoint.
- FQ2 gross margin was 16.5%, flat Q/Q and down 40 bps Y/Y, but near the high end of a 13%-17% guidance range. FQ3 GM guidance is also at 13%-17%. Thanks in part to asset sales, R&D spend fell 29% Y/Y to $11.7M, and SG&A spend 27% to $13.6M.
- The optical component vendor notes strong 100G product sales provided a lift. Equipment vendor Infinera can relate.
- FQ2 results, PR
Tue, Feb. 3, 4:07 PM
Mon, Feb. 2, 5:35 PM
Fri, Jan. 30, 2:56 PM
- Optical networking/carrier Ethernet hardware vendor Ciena (CIEN -4%), optical component suppliers Finisar (FNSR -2.4%) and Oclaro (OCLR -2%), and telecom chipmakers AppliedMicro (AMCC -5.9%) and Cavium (CAVM -4.4%) are all off after component vendor JDS Uniphase (JDSU -7.4%) missed FQ2 estimates and provided soft FQ3 guidance.
- On its CC (transcript), JDS observed its FQ2 network enablement (test equipment) and service enablement (telecom software/services) revenue fell a combined 8% Y/Y due to "weaker carrier spending and no budget flush in historically stronger December quarter." Network enablement is expected to remain soft in seasonally weak FQ3 as customers weigh their 2015 spending plans. Service enablement is expected to grow ~24%, after growing 16.6% in FQ2.
- AppliedMicro is down 10% since providing a soft FQ4 EPS guidance (-$0.09 vs. a -$0.07 pre-earnings consensus) on Tuesday afternoon to go with an FQ3 beat. Cavium is giving back the gains it saw yesterday after beating Q4 estimates and providing strong Q1 guidance.
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