04 May 2017
Latest quarter revenue up 60% over Q3 2016; record gross margin and operating income.Oclaro, a developer of diverse optical communications solutions, has presented positive financial results for its third quarter of fiscal year 2017, which ended April 1, 2017.
Revenues were $162.2 million for the quarter, compared with $153.9 million in the second quarter of 2017, and $101.1 million in the third quarter of 2016. Gross margin was 41.6% for the third quarter, compared with 39.8% in the second quarter of 2017, and 27.2% in the third quarter of 2016.
Operating income was $40.5 million for the third quarter, compared with $36.2 million in the second quarter of 2017, and $4.6 million in the third quarter of 2016. Net income for the third quarter of 2017 was $39.9 million. This compares with $36.3 million in the second quarter of 2017, and $3.3 million in the third quarter of 2016. (All above figures are non-GAAP).
Earnings per diluted share for the third quarter of fiscal 2017 were $0.23, compared with $0.21 in the second quarter of fiscal 2017, and $0.03 in the third quarter of fiscal 2016. Cash, cash equivalents, restricted cash, and short-term investments were $254.8 million at April 1, 2017.
China demand down - but global 100G sales surge
Greg Dougherty, Chief Executive Officer, Oclaro, commented, "I am very pleased with our outstanding financial performance for the third quarter. We posted record results, which included revenue growth and improved gross margin during what is normally a seasonally weak period.
“Our revenue increased 60 percent over the same period one year ago, driven by our 100G and beyond products. We also achieved further customer and regional diversification, driven by sales growth in North America and Europe. This strong revenue performance resulted in record gross margin of 42 percent and operating income of $40 million. These outstanding results further demonstrate the strength of our products, customer mix and operational improvements.
“During April 2017, we saw a significant slowing of demand in China which, coupled with an acceleration of the product transition from 100G CFP-related products to the QSFP platform, will cause us to see an approximate 10 percent sequential decrease in our revenue in the June quarter.
”Despite lower revenue, we currently anticipate that our non-GAAP gross margin should remain around 40 percent as we maintain healthy profitability, further attesting to the strength of our financial model. We believe that the industry fundamentals, which drive the need for increased bandwidth and fiber optic components, remain intact and anticipate returning to revenue growth in the September quarter," said Dougherty.
The company also released guidance for the next business quarter ending July 1, 2017: “Revenues will be in the range of $144 million to $152 million; gross margin in the range of 38% to 41%; and operating income in the range of $27 million to $31 million (all figures non-GAAP).