News

28 October 2009

 

Oclaro goes into underlying operating profit

For its fiscal first-quarter 2010 (ended 26 September 2009), optical component, module and subsystem maker Oclaro Inc of San Jose, CA, USA has reported revenue of $85.1m. This is up 27% on $66.9m last quarter (excluding $5.1m from the New Focus business, which was transferred to Newport Corp on 4 July in exchange for their Spectra-Physics laser diode business plus $3m in cash).

Non-GAAP gross margin rose more than expected to 26.2%, up from 25.4% last quarter (or just 21%, including Avanex’s results for the entire quarter rather than only two months). Oclaro was formed on 27 April through a merger that combined the optical component expertise of San Jose-based Bookham Inc with the module and subsystem expertise of Avanex Corp of Fremont, CA.

Net loss has been cut from $14.6m last quarter to just $0.5m (though this is still down on a profit of $2.2m a year ago). Also, says president & CEO Alain Couder, “in the first full quarter after our merger with Avanex we have generated positive non-GAAP operating profit [$1.3m, compared to a loss of $2m last quarter and $0.8m a year ago]... This was driven by increasing revenues and improving our gross margins.” In addition, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose from $0.7m last quarter to $3.8m.

As a result, Oclaro was cash-flow positive in the September quarter. Nevertheless, including $6.5m of net deal-related expenditures, cash, cash equivalents, restricted cash and short-term investments fell from $58m to $52.5m.

“Revenues were up, we are moving beyond the integration phase of Oclaro, and we still have more synergies to come,” says Couder. “While visibility still remains fairly short term, our pipeline suggests the extent of our December revenue growth opportunities may be supply constrained, which is reflected in our guidance range,” he adds.

For its fiscal second-quarter 2010 (ending 2 January), Oclaro expects revenue of $87-92m (up by about 5%). Non-GAAP gross margin should be 25-28%, and adjusted EBITDA $3-7m. “By delivering on this guidance we believe we have a reasonable chance of generating cash in the December quarter,” says Couder.

*Oclaro notes that, on 30 September, it regained compliance with NASDAQ listing rule 5450(a)(1) based on the closing price of its common stock exceeding $1 for at least 10 consecutive business days.

See related items:

Oclaro reports positive adjusted EBITDA in first post-merger quarter

Bookham and Avanex merge into Oclaro

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