Oclaro, Inc. (OCLR) - NASDAQ
  • Tue, Feb. 2, 5:38 PM
    • Top gainers, as of 5.25 p.m.: BOOT +13.6%. WNC +9.7%. OCLR +8.2%. GOV +7.5%. RCL +4.8%.
    • Top losers, as of 5.25p.m.: DRD -4.4%. CMG -4.4%. HNSN -2.9%. ATW -2.8%. GGP -2.6%.
    | Tue, Feb. 2, 5:38 PM | 2 Comments
  • Tue, Feb. 2, 4:12 PM
    • Oclaro (NASDAQ:OCLR): FQ2 EPS of $0.03 beats by $0.04.
    • Revenue of $94.13M (+8.4% Y/Y) beats by $2.64M.
    | Tue, Feb. 2, 4:12 PM | 1 Comment
  • Tue, Feb. 2, 12:21 PM
    • Fabrinet (FN +11.8%) has surged to new 52-week highs after beating FQ2 estimates and providing strong FQ3 guidance - revenue of $240M-$244M and EPS of $0.52-$0.54 vs. a consensus of $216.6M and $0.45.
    • On its earnings call (transcript), the optical component contract manufacturing/packaging firm mentioned new programs (25% of revenue) lifted FQ2 sales, as did strong datacom optical demand (up 64% Y/Y, boosted by Web/cloud service provider investments). Telecom sales rose a moderate 5% Y/Y.
    • Revenue from 100G programs nearly tripled Y/Y, and revenue from 40G programs rose 36%; 40G revenue declined. Non-optical sales (28% of total revenue) rose 18%. Fabrinet estimates it's using 75% of its capacity, and has begun construction of its first building in a new campus outside Bangkok.
    • Optical component vendors Oclaro (OCLR +4.8%) and Lumentum (LITE +4.7%), both of which are Fabrinet clients, are following Fabrinet higher. Oclaro reports after the close, and Lumentum on Thursday.
    • Fabrinet's FQ2 results, earnings release
    | Tue, Feb. 2, 12:21 PM
  • Mon, Feb. 1, 5:35 PM
  • Fri, Jan. 22, 3:30 PM
    • Plenty of tech names crushed over the first 20 days or so of January are sharply higher as the Nasdaq (up 2.4%) continues rebounding from Wednesday's intraday lows. Many still have sizable YTD losses.
    • Big gainers among telecom equipment/component firms: Optical component vendors Oclaro (OCLR +9.5%) and NeoPhotonics (NPTN +6%), mobile infrastructure/services giant Ericsson (ERIC +6.2%), optical networking hardware vendor Infinera (INFN +5.2%), and microcap RF backhaul hardware firms DragonWave (DRWI +24.3%) and Ceragon (CRNT +10%). Ericsson underperformed yesterday following a pre-earnings Goldman downgrade.
    • Among enterprise tech firms: Threat-prevention technology and services provider FireEye (FEYE +7.7%), big data software provider Hortonworks (HDP +16.1%), security software/services firm Rapid7 (RPD +9.1%), data governance software firm Varonis (VRNS +5.6%), and flash storage array vendor Violin Memory (VMEM +13.6%). FireEye fell slightly yesterday after making a Q4 pre-announcement and announcing a $200M+ acquisition. Hortonworks was crushed on Tuesday after a Q4 pre-announcement and stock offering shelf registration.
    • Among chip industry firms: RF chipmaker Skyworks (SWKS +6%), audio codec developer Cirrus Logic (CRUS +7.3%), smart TV/home automation chipmaker Sigma Designs (SIGM +6.5%), FPGA/sensor hub maker QuickLogic (QUIK +9.2%), and chip equipment firms Axcelis (ACLS +4.9%) and Aixtron (AIXG +4.9%). Major Cirrus/Skyworks client Apple reports on Tuesday afternoon.
    • Also up big: 3D printer maker 3D Systems (DDD +7.1%), Russian search leader Yandex (YNDX +7.5%), mortgage origination software firm Ellie Mae (ELLI +6.4%), Chinese solar firm Yingli (YGE +11.4%), and SMB Web services provider Wix.com (WIX +5.3%).
    • Previously covered: Rosetta Stone, Live Ventures, HP Enterprise, Mitel, Mobileye, Qorvo, SunPower, SolarCity
    | Fri, Jan. 22, 3:30 PM | 6 Comments
  • Dec. 30, 2015, 5:43 PM
    • Though a fan of optical networking hardware vendors Ciena (NYSE:CIEN), Infinera (NASDAQ:INFN), and Xtera (NASDAQ:XCOM), Needham's Alex Henderson thinks many component makers have more 2016 upside. "We see more upside to revenues, better margin leverage, and more room for valuation improvements with the component names. We point out the current supply constraints on broad classes of Optical components at the end of CY15, which we expect to persist through CY16."
    • He sees 2016 as a good year for optical, and 2017/2018 even better ones. "The driver of this should be the continuing strong growth in the [data center interconnect] market and the substantial ramp-up of the Metro Core Market. We strongly believe CY16 is the beginning of the Metro 100G/200G cycle, which should last through CY2020."
    • Lumentum (NASDAQ:LITE), formerly JDS Uniphase's component arm, is one of Henderson's favorites. "LITE has roughly 50% of its optical product line in sold- out conditions well into CY16. The Industrial laser business is also likely to accelerate ... [supply constraints] reflect strong demand across numerous segments ... including Long-Haul and [data center interconnect] with Coherent modulators, Metro with ROADMs, and Access Metro with the T-XFP 10G transceivers. LITE is currently trading at 13x [enterprise value/EPS] on CY16 estimates and just 1.1x [enterprise value/sales]."
    • He also likes Fabrinet (NYSE:FN), citing a valuation of 0.7x EV/sales and 9x EV/EPS, and Oclaro (NASDAQ:OCLR). “[T]he primary reason we are recommending [Oclaro] is the ACO 100G Coherent pluggable [transceiver]. Oclaro is first to market in this emerging category and if they ramp production smoothly we think they can sell whatever they can produce.”
    • Looking at networking hardware firms, Henderson likes data center switch vendor Arista (NYSE:ANET) and networking visibility/monitoring hardware firm Gigamon (NYSE:GIMO). Arista is expected to benefit from 25G Ethernet adoption and the rollout of Broadcom's Jericho switching chip, which contains a 720Gbps packet processor and will allow Arista's gear to support edge routing functionality at much lower costs than rivals (read: Cisco). "We think Arista could pick up 3-5 points of market share, which we calculate could drive over 30% top-line growth."
    • Regarding Gigamon: "After a strong year in CY15, Gigamon is likely to produce a more 'normalized' year with growth in the 20% plus vicinity against tough comps with a gradual upward bias to Gross Margins driven by increasing security-driven transactions."
    | Dec. 30, 2015, 5:43 PM
  • Dec. 11, 2015, 6:10 PM
    • On a brutal day for equities, Lumentum (LITE +4.1%), Oclaro (OCLR +1.5%), NeoPhotonics (NPTN +0.8%), and Fabrinet (FN +0.2%) stayed green after peer Finisar (FNSR +22.3%) beat FQ2 estimates on the back of strong telecom optical component demand, and offered slightly soft but better-than-feared FQ3 guidance.
    • On its earnings call (transcript), Finisar forecast telecom component sales will rise Q/Q again in FQ3 thanks to continued strength for 10G tunable transceivers and wavelength selective switches, as well as healthy Chinese demand. Datacom component sales are expected to "decline a bit" Q/Q, as 100G Ethernet transceiver demand is offset by "lumpiness in demand at multiple large data centers" for 40G Ethernet transceivers, and lower Ethernet transceiver sales for wireless applications.
    • When asked about Chinese sales (under pressure for many telecom suppliers in recent quarters due to soft 4G network spending), CEO Jerry Rawls stated several catalysts were boosting demand. "Wireless is pretty strong in China. I think we don’t participate in the [passive optical network] market, but they are spending a lot of money on [it]. The long-haul upgrade program for 100-gig coherent [optical networks] is well underway and is moving in a very positive direction ... In addition they are building a number of big data centers over there..."
    • Needham's Alex Henderson reiterated a Buy rating and $18 target on Finisar. "We had been bracing for worse, but improvements out of China and strong volumes were enough to offset pricing pressures in Data Comm. Further, improving demand in ROADMs and T-XFP [transceiver] 10G metro aggregation products helped results. Despite the solid quarter against low expectations, the guide was still softer than our and Street estimates. As a result, we are trimming estimates. But we think we have not only found a base, but the bad news appears to be over for Finisar."
    • The gains came a day after several telecom equipment and optical component makers sold off in response to Ciena's disappointing guidance.
    | Dec. 11, 2015, 6:10 PM
  • Dec. 3, 2015, 3:55 PM
    • Craig-Hallum has launched coverage on Oclaro (OCLR +2.9%) with a Buy rating and $5 target. Shares are closing higher on a down day for equities.
    • The optical component maker is a month removed from rallying in response to an FQ1 beat and solid FQ2 guidance. Shares +101% YTD.
    | Dec. 3, 2015, 3:55 PM
  • Dec. 2, 2015, 9:15 AM
    | Dec. 2, 2015, 9:15 AM | 6 Comments
  • Nov. 30, 2015, 5:30 PM
    • Top gainers, as of 5.25 p.m.: BLOX +16.8%. MFRM +9.4%. IBN +6.8%. THO +4.1%. VNR +3.3%.
    • Top losers, as of 5.25 p.m.: NQ -10.2%. OCLR -6.1%. NXPI -5.5%. PFIN -4.6%. FHN -3.9%.
    | Nov. 30, 2015, 5:30 PM | 6 Comments
  • Nov. 4, 2015, 9:15 AM
    | Nov. 4, 2015, 9:15 AM | 2 Comments
  • Nov. 3, 2015, 4:11 PM
    • Oclaro (NASDAQ:OCLR): FQ1 EPS of -$0.02 beats by $0.03.
    • Revenue of $87.55M (-1.9% Y/Y) beats by $1.55M.
    | Nov. 3, 2015, 4:11 PM
  • Nov. 2, 2015, 5:35 PM
  • Oct. 28, 2015, 1:42 PM
    • Optical component vendors NeoPhotonics (NPTN +12.6%), Oclaro (OCLR +9.4%), Viavi (VIAV +6.9%), Finisar (FNSR +3.8%), Alliance Fiber (AFOP +4%), and Fabrinet (FN +3.1%) are rallying after optical transport hardware vendor Infinera (INFN +14.6%) beat Q3 estimates and issued strong Q4 guidance. Infinera rival Ciena (CIEN +3.4%) hit yesterday by a bearish Off Wall Street report, is also doing well.
    • For Oclaro, the shoe is now on the other foot: Infinera rallied last week after Oclaro pre-announced strong calendar Q3 sales.
    • On the earnings call (transcript), CEO Tom Fallon stated Infinera saw "a substantive increase" in sales of its Cloud Xpress data center interconnect platform. Cloud Xpress customers now stand at 14 (up from 12 as of July), and growing machine-to-machine traffic within data centers is expected to boost demand for 100G interfaces. Infinera's core long-haul system sales were also healthy.
    • Fallon did admit Infinera is seeing "some conflicting signals" regarding market demand. "On one hand, we are seeing some pockets of slightly softening demand. On the other, we're seeing positive indications in the industry, such as lead-times extending for optical components and continued capacity expansion from cloud providers." The optical component remarks might be contributing to today's rally in component makers.
    • Needham's Alex Henderson, who upgraded Infinera earlier this month, is reiterating a Buy rating today. "Infinera reported a strong quarter and offered a strong guide in its first quarter with Transmode partially in the base and fully in the CY4Q guidance. Negative commentary on the Street on INFN and CIEN regarding industry price pressure has set-up a solid entry point and we expect investors will take advantage of this recent weakness."
    | Oct. 28, 2015, 1:42 PM
  • Oct. 22, 2015, 12:47 PM
    | Oct. 22, 2015, 12:47 PM | 1 Comment
  • Oct. 22, 2015, 9:14 AM
    | Oct. 22, 2015, 9:14 AM
Company Description
Oclaro, Inc. engages in the design, manufacture and market of electrical components. It is involved in the production of optical component, modules and subsystems for optical communications and laser applications. Its products for component level include tunable lasers, pump lasers, external... More
Sector: Technology
Industry: Semiconductor Equipment & Materials
Country: United States