Zhone And The New Telco Landscape
Despite Doubling, Zhone Offers Upside To $8-10 In 12-18 Months
John Henderson • 42 Comments
John Henderson • 42 Comments
Thu, Jul. 21, 4:24 PM
Thu, Apr. 21, 12:48 PM
Wed, Apr. 20, 4:18 PM
Wed, Mar. 16, 1:16 PM
- Zhone (ZHNE -10.5%) says it's unable to file its 2015 annual report (form 10-K) in time without unreasonable effort/expense. (SEC filing)
- The fiber access equipment maker says it needs more time to finalize an amendment to revolving credit facility with Wells Fargo. Zhone adds that until the amendment to the facility is finalized and executed, it won't be able to "complete an assessment of its liquidity and how the absence of the amendment would impact the Company's evaluation of its ability to continue as a going concern, in each case without unreasonable effort or expense."
- Shares have fallen sharply. However, only 85K have been traded thus far today.
Wed, Jan. 27, 12:59 PM
- Microcap fiber access equipment maker Zhone (NASDAQ:ZHNE) has rallied after beating Q4 estimates and guiding on its earnings call (transcript) for 2016 revenue to be up by a mid-single digit % - for reference, sales fell 20% in Q4, and 16% in 2015. Q1 revenue is expected to be down slightly Q/Q due to seasonality.
- Zhone sees the deployment of its MXK-F platform by major carriers providing a 2016 lift. It also expects to benefit from an improved spending environment among international carriers - international customers were 57% of Q4 revenue, down from 67% in Q2 - as well as FCC CAF-2 funding and continued strength for Zhone's FiberLAN platform.
- Zhone's Q4 results, earnings release
Tue, Jan. 26, 4:20 PM
- Zhone (NASDAQ:ZHNE): Q4 EPS of $0.01 may not be comparable to consensus of -$0.05.
- Revenue of $24M (-20.3% Y/Y) beats by $1.87M.
Thu, Jan. 7, 12:49 PM
- Zhone (NASDAQ:ZHNE) has jumped on volume of 691K shares, far above a 3-month daily average of 73K.
- No major news has hit the wires. Zhone did announce after yesterday's close its Q4 report will arrive after the Jan. 26 close. Also, telecom/fiber access equipment peer Adtran has caught an upgrade from MKM.
Thu, Jan. 7, 12:41 PM
Oct. 15, 2015, 4:21 PM
- Zhone (NASDAQ:ZHNE): Q3 EPS of -$0.04 beats by $0.01.
- Revenue of $22.1M (-24.9% Y/Y) beats by $0.11M.
Jul. 22, 2015, 4:19 PM
- Zhone (NASDAQ:ZHNE): Q2 EPS of -$0.01 beats by $0.01.
- Revenue of $27.5M (-15.2% Y/Y) misses by $0.71M.
Jun. 15, 2015, 5:40 PM
Apr. 22, 2015, 12:45 PM
Apr. 22, 2015, 12:17 AM
- "[W]e expect second quarter revenue to grow in the mid-single-digit percentage range from the first quarter and continue to grow sequentially for the remainder of the year," Zhone (NASDAQ:ZHNE) CFO Kirk Misaka stated on the Q1 CC (transcript). While the sole Q2 analyst estimate forecasts nearly 10% Q/Q sales growth (to $29.8M), the sole full-year estimate forecasts only 1.5% Y/Y sales growth (to $122.4M).
- Also: CEO Jim Norrod stated Zhone expects to return to profitability in Q2, and be profitable for the whole of 2015. The sole Q2 analyst EPS estimate is at -$0.03, and the sole full-year estimate at -$0.11.
- Full-year growth is expected to be driven by the launch of Zhone's MXKF fiber access concentrator (part of the MXK series, offers a 10x increase in switching capacity and 2x increase in port capacity), continued growth for the company's FiberLAN GPON optical LAN hardware, and international expansion.
- Contributing to the Q1 EPS beat: 1) Gross margin came in at 37.5%, -50 bps Y/Y but topping guidance of 34%-36%. 2) Operating expenses rose just 2% Y/Y to $10.7M, beating guidance of $11M-$11.5M. Q2 GM and opex guidance is respectively at 34%-36% and $10.5M-$11M.
- Shares rose to $1.70 in AH trading, hitting their highest levels since January.
- Q1 results, PR
Apr. 21, 2015, 4:16 PM
- Zhone (NASDAQ:ZHNE): Q1 EPS of -$0.02 beats by $0.05.
- Revenue of $27.1M (-5.3% Y/Y) in-line.
Apr. 14, 2015, 10:17 AM
- Optical networking hardware vendors Ciena (CIEN +5.7%) and Infinera (INFN +2.4%) are higher after Nokia stated it's in talks to merge with Alcatel-Lucent, sparking hopes more telecom equipment industry M&A could be on tap. Microcaps MRV Communications (MRVC +9.7%) and Zhone (ZHNE +6.9%) are also faring well.
- Ciena and Infinera both compete against Alcatel in the optical transport/switching market. The Street might be betting Ericsson or another rival will respond to a Nokia/Alcatel deal by making an optical acquisition.
- Infinera (rallying less than Ciena) is a week removed from making a $350M+ bid for Swedish metro optical hardware vendor Transmode. Analyst reactions to the deal, which stands to significantly increase Infinera's metro market reach and European customer base, have been fairly positive
Feb. 19, 2015, 2:58 PM
- Today's notable tech gainers include fiber equipment provider Zhone (ZHNE +10.6%), IP licensing firm VirnetX (VHC +7%), healthcare software provider Allscripts (MDRX +4.8%), app development software provider Pegasystems (PEGA +6%), software outsourcing firm EPAM (EPAM +5.6%), security software/service provider Imperva (IMPV +5.3%), and cloud HR software provider Paylocity (PCTY +4.5%).
- Notable decliners include Chinese search/app store/security app provider Qihoo (QIHU -5.2%), Web hosting/cloud infrastructure provider Rackspace (RAX -3.9%), LED equipment maker Veeco (VECO -4.9%), and analog/mixed-signal chipmaker MagnaChip (MX -5%). The Nasdaq is up 0.4%.
- VirnetX is adding to the Wednesday gains seen after Apple patent review petitions were denied, and Qihoo is adding to the losses seen following a Jefferies downgrade.
- Rackspace and Veeco are reversing the gains they saw yesterday after posting their Q4 reports (I, II), and then some. MagnaChip is now down 58% since posting its Q1-Q3 results a week ago.
- Previously covered: SolarCity, Facebook, Castlight, Applied Materials, DragonWave, Nimble Storage, AVG, Ascent Solar, Netlist
Zhone Technologies, Inc. designs, develops and manufactures communications network equipment for telecommunications, wireless and cable operators worldwide. The company's products allow network service providers to deliver video and interactive entertainment services in addition to their... More
Industry: Communication Equipment
Country: United States
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